Blog: www.kgmb9.com/howard

Our breaking story in the airline industry this morning flies under the banner -- American cuts back in America -- American Airlines says it will cut its U-S route network 11% this fall and park up to 50 jetliners forever. It's double the cutback previously announced, and a direct result of soaring fuel prices. Crude oil has gone to 130 dollars a barrel.

Alaska Airlines is shifting more resources to Hawaii. It's cutting back flights to Mexico and will launch service from Seattle to Kona on November 17th. The tickets go on sale tomorrow. Also coming in the fall, Alaska will offer TWICE-daily service from Anchorage to Maui. Alaska is the only mainland airline to make significant additions to Hawaii service since Aloha and ATA died.

The weaker dollar has improved the buying power of Japanese visitors, but any extra money is more likely to go to Chevron than Sheraton. Japan Airlines has notified regulators in Tokyo it wants to increase its fuel surcharge to Hawaii in July by more than 50 dollars. ANA is doing the same thing. The Tesoro and Chevron refineries here sell more jet fuel than gasoline.

Shares of Hawaiian Holdings, parent company of Hawaiian Airlines, have been traded on the AMEX. But not for long. Hawaiian says it's moving over to Nasdaq on June 2nd. Its trading symbol will continue to be "HA."

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