Since go!, the new interisland airline, started a fare war in June, interisland travel has increased by more than 3 percent.

The drop in prices — to as low as $19 for one-way tickets between islands — has encouraged many Hawai'i residents and tourists to move about the state.

"How can you not travel more," asked Hilo resident Melinda Mizuno, who flew to Honolulu last week with her two small children. Mizuno said one-way fares for the three used to cost $160. She now pays about $80.

"People no longer have to wait for a really significant event like a wedding or a funeral," said Mizuno. "It's allowing us ... to see friends for no other reason than to see them."

In June, July and August, 2.26 million passengers traveled interisland, up from 2.19 million in the same period a year ago, a gain of 68,000, according to figures compiled by the state Department of Transportation at the request of The Advertiser.

June was the first month that Phoenix-based Mesa Air Group's go! began its interisland service. The local airline triggered a fare war when it opened for business with a $39 introductory rate.

Go! has since slashed fares seven times, dropping them to as low as $19 for a few days last month. Hawaiian Airlines and Aloha Airlines have matched go!'s prices each time.

Jonathan Ornstein, Mesa's chief executive officer, credits the low fare environment for the increased traffic.

"We hear it over and over from people who were primarily going to see their families who they haven't seen in long time," said Ornstein.

Marsha Wienert, state tourism liaison, said the increased interisland travel is remarkable given that the large domestic carriers have stepped up their direct flights to the Neighbor Islands, reducing the number of tourists flying between O'ahu and the Neighbor Islands.

"With the fares we have out there, the residents in Hawai'i are traveling more than what they have for the past few years," said Wienert. "Why wouldn't they be traveling with the fares we have?"

To be sure, the fare war was just one of several factors for the revival in interisland travel. With visitors arrivals hitting a record 7.46 million last year and expected to top that this year, overall travel to and within Hawai'i has been up.

Travel between O'ahu and the Neighbor Islands was already on the rise when go! began service this summer. In 2005, travel between Hawai'i's airports increased 1.3 percent to 15.6 million visitors from the previous year's 15.4 million, Transportation Department figures show. That reversed a decline in interisland travel since at least the year 2000.

Hawaiian Airlines spokesman Keoni Wagner said the recent increase in interisland traffic is more of a short-term event. With or without the low fares, Wagner believes travel between O'ahu and the Neighbor Islands will continue to shrink as domestic airlines increase their direct flights from the Mainland.

What's more, with the entry of big-box retailers such as Costco and Home Depot and the expansions of hospital services on the Neighbor Islands, consumers no longer have to fly to O'ahu for their retail and medical needs, he said.

According to Department of Transportation figures, the annual interisland passenger count has dropped from about 20.8 million in 2000 to 15.4 million in 2004 before rebounding to 15.6 million in 2005.

Aloha Airlines Chief Executive Officer David Banmiller said the numbers show that there's a glut of capacity in the interisland market.

The 3.1 percent increase in passenger traffic in June, July and August came as airlines increased the number of passengers seats by nearly 20 percent, he said.

"It's a clear indication that there's too much capacity in the marketplace as there are almost 20 percent more seats available at half the price," Banmiller said.

While the fare war is challenging for the airlines, consumers are enjoying the new low prices.

Junior Manatad, a Kane'ohe resident, said he and his family of five took their first Neighbor Island trip in more than 10 years last week thanks to the $19, one-way fare offered by Hawaiian Airlines. Manatad said that his own roundtrip fare was less than the $60 he paid to park his car for six days at Honolulu Airport.

"That's why we went," said Manatad. "That's reasonable for us locals."

Rachel Agonon of Wailuku said she flew to O'ahu this week to visit friends she hasn't seen in years. Agonon said she was part of a group of four people who paid $19 one-way on Hawaiian and $59 for the return back.

The roundtrip price of about $80, is about half the price Agonon said she would have paid last year. She added that she and her four friends will save about $400.

"That's why we're flying right now, because it's so cheap to fly," said Agonon.

Tourist Olivia Handke figures she's been able to see more of the Islands because of the low airfares. Handke, who is from Switzerland, said she has flown on go! "four or five times" during her month-long stay in Hawai'i.

"It's cheap and very easy to book low fares online," Handke said.

Not all consumers are seeing the benefits of the lower rates.

Last-minute ticket buyer Vanessa Fernandez of Los Angeles said she paid the full $89 fare for a Hawaiian flight from Lihu'e to Honolulu on Wednesday.

Fernandez said she flew to Kaua'i directly from Los Angeles but didn't decide to come to O'ahu until the last minute.

Local airline industry historian Peter Forman believes that consumers should take advantage of the low fares while they're still around.

Forman, author of the 2005 book "Wings of Paradise," said the fares are so low now that "it becomes a questions of which airline is going to go out of business or pull out of the market."

Once that happens, fares typically go up.

"What bothers me about this competition is that it's not necessarily going to be the consumers' first choice as to who survives or not," Forman said. "It's going to be more a question of staying power."

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