Delta Loses Its Interisland Partner in Hawaiʻi, And It Has No Options

Delta quietly posted on its airline partner page that its loyalty partnership with Hawaiian Airlines will be ending on June 30. This is no surprise, but it would seemingly put a little hole in Deltaʻs network. Or does it? Interisland partnerships donʻt matter nearly as much as they used to, and I ended up deep in the weeds looking at how this market need has shifted over time. How deep? Well, this is going to be a two-parter.

Currently, Delta travelers can earn both redeemable and elite qualifying (MQDs) SkyMiles on Hawaiian interisland flights. They can also use SkyMiles to redeem for interisland travel. The third unrelated part of this is a codeshare where Delta puts flight numbers on Hawaiian’s interisland flights.

Hawaiian has long been the conduit for airlines to get better service in the islands to connect to their mainland flights. The big three US carriers haven’t operated interisland since the early 2000s. Once Aloha went away in 2008, that left Hawaiian as the only significant operator, and it was happy to take everyone’s feed. American, Delta, and United all have relationships with Hawaiian today. American’s ties will strengthen since Hawaiian’s new owner Alaska is not only a part of oneworld but also in a tighter relationship with American. But Delta will go in the opposite direction.

Once Hawaiian purchased Alaska Alaska purchased Hawaiian, the writing was on the wall for the Delta relationship to end, or at least be scaled back. After all, Alaska did promise to keep interline agreements with existing partners in order to sway the government not to challenge the merger. On the other hand, Alaska and Delta have been locked in a fierce rivarly in Seattle for more than a decade, and there was no way that Alaska would want to help its former friend if it could avoid it. Now, changes are coming.

So what will happen? A Delta spokesperson says that “just the mileage accrual piece” will end, though it’s clear on the website that mileage redemption also goes away. In the unwinding process, only tickets booked before June 30 and flown before April 1, 2026 will earn miles. Award redemptions can be booked by June 30, but they canʻt be changed after that date. (They can be canceled and refunded though.) The codeshare will continue for now, which should mean that people will still earn miles on those Hawaiian-operated flights booked with a DL code, at least for now.

This creates a very weird relationship. How often have you seen an airline have a codeshare partnership but no loyalty agreement for flights marketed by the partner airline? It wouldn’t surprise me at some point to see this turn into a pure interline arrangement, or whatever is required by the agreement with the government.

What else can Delta do? Not much. The only other airline flying interisland is Southwest. It is now slowly gaining the ability to interline, so maybe that’s a possibility in theory. But the frequency is much less, plus… Delta and Southwest are not exactly best friends either. Besides, Southwest would probably rather concentrate is interline discussions on those international partners that provide more value. Delta may just be out of options.

Then again, perhaps this doesn’t really matter much to Delta anyway. Does interisland not matter anymore now that there are more flights from the mainland to the neighbor islands? After all, it used to be that nearly everything routed via Honolulu and then fanned out to the Neighbor Islands. Now, there are plentiful nonstop to the mainland from the three other main islands. Just look at this chart detailing the rise of flying outside Honolulu.

Seats from US Mainland to Hawaiʻi

T-100 Data via Cirium

I asked Delta hoping to get some more color here. I had dreams of an in-depth discussion, but instead all I got was:

We don’t have anything additional to share at this time, but appreciate you reaching out.

Well, ok then.

So, I pulled up Cirium data and started looking for answers in the data. I will share all of that with you in tomorrow’s post.

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Brett Avatar

14 responses to “Delta Loses Its Interisland Partner in Hawaiʻi, And It Has No Options”

  1. Kilroy Avatar
    Kilroy

    Looking forward to tomorrow’s post.

    The graph at the end showing flights from US mainland to Hawa’i HNL & excl HNL is very fascinating… I’d be interested to see a breakdown of the major drivers/enablers behind that, besides (I would assume) much more capable single aisle planes in recent years.

    1. SEAN Avatar
      SEAN

      Add to that, the decreased pressure on HNL with more direct flights to the other islands.

    2. Sam Avatar
      Sam

      I agree – I think that’s the most interesting aspect of this topic. Gotta think a huge piece of it is the ETOPS capable 737s & 321s. Hard to fill widebodies to Lihue & Kahalui, but it makes a lot more sense if you’ve only gotta sell <180 seats.

      1. Brad Avatar
        Brad

        Sam,

        I think there is some factor of distance involved in these decisions. The west coast cities get more frequency to/from The Islands with the narrow body ETOPS jets but when you get outside the range of the Maxes and 321s, you see the bigger metal on Hawaii. UA from DEN runs the domestic dense 772s to OGG and HNL pretty much year round and LIH is generally a 757. Larger gauge and lower frequencies due to the distance. These are all old birds so in a few years when they retire, I have to wonder if UA will do something similar with a 787 or if they’ll up the frequencies with double daily narrow bodies? DEN to the Islands fits technically on a narrow body in good conditions, but strong headwinds might make the flight iffy unless you introduce the 321LR or XLR to this route.

        I would imagine that the midcontinent hubs at MSP, DTW, DFW, ORD and IAH have similar direct service on larger metal. Once you get to the east coast it is either widebody direct or a connection on the west coast.

  2. PDubs Avatar
    PDubs

    “Once Hawaiian purchased Alaska, the writing was on the wall for the Delta….”

    If memory serves correct, I believe AS bought HA.

    1. haolenate Avatar
      haolenate

      Cranky was drunk on pog when he was researching this story!

    2. Brett Avatar

      PDubs – That was a very polite way of saying “what the hell are you thinking?!” ;) But yeah, I have fixed it, thanks for the heads up.

      1. SEAN Avatar
        SEAN

        Well Brett, you can’t deny your love of pog juice… right? LOL

        1. Brett Avatar

          SEAN – I can’t deny it, and I won’t deny it. But, kids, only drink your POG in moderation… or you may end up with diabetes

  3. southbay flier Avatar
    southbay flier

    I remember flying a United DC-10 from LIH – HNL and then connecting on another DC-10 to ORD. It took much longer to load the DC-10 in LIH than it did to fly from LIH to HNL.

    These days, I always fly from the mainland to the island I want to visit. It’s not as easy to fly interisland these days as it was in 1991, so I don’t do it. But on the other hand, I see value for people on the east coast making the long flight from Hawaii to the east coast as opposed to connecting in LAX, SFO, or SEA. That would still require a connecting flight from KOA or LIH to HNL.

  4. Stormcrash Avatar
    Stormcrash

    Imagine if Delta purchased some equity in Aloha Air Cargo and attempted to restart Aloha passenger service? I know that’s pretty close to zero but hey it would be really cool if it did happen

  5. JoeFlyday Avatar
    JoeFlyday

    I’m curious what’s driving the drop in neighbor island flying in 2023-2024? The fires on Maui?

    1. Brett Avatar

      JoeFlyday – I talk about that more tomorrow, but it’s Southwest pulling back on interisland capacity because it was losing a lot of money.

  6. Eric C Avatar
    Eric C

    If it’s not there tomorrow, I’d be fascinated by the historical capacity and load factor on the interisland routes, especially with an eye towards what level of service is needed with whatever trend is there.

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