General Hawaii News: May 2008 Archives

Hawaiian Airlines has canceled an online travel insurance program. The airline briefly instituted the program for online ticket reservations.

The program on www.hawaiianair.com automatically assessed a $19 charge for insurance when making reservations unless users opted out by clicking on an option that canceled the insurance.

Hawaiian  introduced the program May 5 to streamline the booking process for Mainland-originating customers who Hawaiian said "are increasingly wanting trip insurance to protect against change fees and other restrictions that apply to nonrefundable tickets when plans change."

E-mails began circulating last weekend between people who were troubled by the automatic charge.The Hawaii Visitors and Convention Bureau and travel agencies received inquiries about it.

A Hawaiian spokesman said the e-mails were "full of misinformation," but the airline decided to pull the program last Friday because it "wasn't communicated properly" and caused confusion. 

As airlines are increasing their rates to offset rising fuel costs, few expect to see much of a decrease in the number of travelers this summer.

The Air Transport Association is predicting that more than 211 million passengers will travel on domestic carriers between June 1 and Aug. 31. That would represent only a 1.3 percent drop from last summer.

The ATA also says airlines are reducing their carrying capacity amid slower economic growth and rising jet fuel prices. The group says planes will be nearly 85 percent full, and that delays emanating from New York-area airports will remain a problem.

American Airlines, United Airlines and Delta Air Lines all raised rates by $20 per round-trip last week in the form of a fuel surcharge. The ATA says further fare hikes this summer are "inevitable."