Key Physical Risks RISK TYPE
IMPACT DESCRIPTION
IMPACT
ACUTE
Increased severity of extreme weather events may impact flight operations and increase the potential for supply chain disruptions in Hawai‘i, resulting in decreased revenue and increased costs.
High
High
TIME HORIZON
LIKELIHOOD
RISK MANAGEMENT
Short to Medium Term
Very Likely
8, 9
Long Term
Likely
8, 91
Climate change has the potential to have a major impact on our business as changes in long-term weather patterns result in sea level rise, more frequent and extreme weather, and rising mean temperatures. Sea level rise may impact locations close to the shore, including airport runways and visitor destinations, which could disrupt our flight operations, affect demand, and lower our revenue.
CHRONIC
Hurricanes, typhoons, and other extreme weather events are likely to become more frequent and intense and may impact our flight operations and the resiliency of our infrastructure. Higher average temperatures may result in payload restrictions, as well as increased fuel consumption and cooling costs, which could impact our revenue, flight operations and operating costs. Aircraft engine performance also deteriorates in polluted air, which may result in increased maintenance operating cost over time.
1. Corrected July 2023. Original publication of this report included incorrect risk management legend references for this risk type.
Key Opportunities OPPORTUNITY TYPE
OPPORTUNITY DESCRIPTION
LIKELIHOOD
OPPORTUNITY REALIZATION STRATEGY
Long Term
Very Likely
10, 11
Medium
Medium Term
Likely
4
Medium
Medium Term
Likely
2, 12
IMPACT DESCRIPTION
IMPACT
RESOURCE EFFICIENCY
Use of more efficient modes of Transportation
Opportunity to decrease operating costs through the use of more fuel- efficient aircraft.
High
ENERGY SOURCE
Use of loweremission sources of energy
Use of SAF will reduce carbon emissions and enhance resiliency through diversification of energy sources. Potential local SAF production may reduce logistics costs and complexity.
PRODUCTS AND SERVICES
Shift in consumer preferences
Opportunity to increase revenue by bettering competitive position to reflect shifting consumer preferences toward sustainable services.
30
TIME HORIZON