Fuel surcharges will help lift Hawaiian Holdings' profit in 2018

In recent years, fuel surcharges have been commonplace in the global airline industry, even after oil prices plunged beginning in 2014. Japan is fairly distinct in having a govt-regulated system in which fuel surcharges correspond directly to jet fuel prices -- on a lagging basis. During 2015 and 2016, falling fuel surcharges created a big unit revenue headwind for Hawaiian Holdings in Japan. By contrast, rising jet fuel prices are now pushing fuel surcharges higher on routes between Japan and Hawaii -- providing a nice tailwind for Hawaiian in its largest international market. Jet fuel prices have been on an upward trajectory since Jan 2016. As a result, fuel surcharges began to reappear last year. Japan is Hawaii's largest source of international tourists. As a result, it's a very important market for Hawaiian Airlines. <br/>