Quantcast

Southwest Airlines uses unprofitable Hawaii routes strategically

Spirit Airlines Explores Bankruptcy Filing
Here's how Southwest Airlines' new seating and boarding process will work
Delta Adds New Route to Asia
Southwest Airlines will begin selling assigned seats in 2025
United Airlines Pilot Buys Passengers Pizza In Albuquerque After Flight Was Delayed 7 Hours
Czech Airlines to Cease Operations, Ending 23-Year SkyTeam Partnership
An Asian airline hopes launching one of the world's longest narrowbody routes will actually be a comfort upgrade for passengers
Airlines begin canceling flights, offering rebooking ahead of Hurricane Helene
Southwest Airlines to cut service and staffing in Atlanta to slash costs
New heights, new features: Discover Alaska’s enhanced Flight Pass subscription service
Alaska Airlines completes acquisition of Hawaiian Airlines, expanding benefits and choice for travelers
American Airlines welcomes JetSMART to the award-winning AAdvantage program
Explore Japan for free? Japan Airlines offers free domestic flights to foreign travelers
Delta named Official Airline Partner of Birmingham City Football Club
American Airlines to Cut These Routes to Las Vegas, Orlando, and More — Here's Why
Alaska Airlines completes acquisition of Hawaiian Airlines, expanding benefits and choice for travelers
Southwest wouldn't really start charging for bags — right?
JD Power ranked this Midwest airport as the best among largest airports in North America
Alaska Airlines Chief Plans More Routes After a Deal With Hawaiian
Air Canada could begin suspending flights soon as strike deadline nears
JetBlue's new ticket policy entitles every passenger to a carry-on bag
Why United Airlines’ CEO makes as few decisions as possible
American invests in the future of aviation maintenance with new jobs, additional work
DOT probe seeks to determine if frequent flyer programs are fair to travelers
American Airlines flight diverted after passenger starts vaping
Russian Airline Wants $100 Million From Canada for Seizing Its Giant Cargo Plane
Here's where American Airlines is adding flights to Europe in summer 2025
Major airline grounds Airbus A350 fleet, citing faulty engine component
Airline CEO wants airports to cap passengers at 2 alcoholic drinks to limit on-board disruptions
Regulator cuts Malaysia Airlines' air operator certificate duration after probe
Southwest Airlines uses unprofitable Hawaii routes strategically
Research
Webp p18pueyozwbyaegyt1fzg7i1qaau
View from the Wing | View from the Wing

Brian Sumers of The Airline Observer has provided insights from Southwest Airlines Chief Operating Officer Andrew Watterson regarding the airline’s Hawaii operations. The discussion focuses on their inter-island flights, which despite poor performance, remain strategically important.

Southwest's load factors on these routes range from 32% (Maui – Lihue) to 57% (Honolulu – Hilo), with average fares in the $40s each way, often 15% – 30% below what Hawaiian Airlines achieves on the same routes.

Watterson notes that tourists are not island hopping as they used to: "The number of visitors who visit more than one island has fallen 15 percent compared to 2019, equating to about 700 fewer people per day."

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Despite this decline, there are benefits to maintaining these flights. The planes sent to Hawaii would otherwise be idle between scheduled mainland flights. Additionally, using crew members with extra legal duty hours rather than fresh dedicated crews can be cost-effective. Interisland flying also extends Southwest's reach and connectivity within Hawaii, potentially boosting revenue for mainland-Hawaii flights.

However, operating in Hawaii requires a dedicated base and sales support, including an additional spare plane. These operations have proven more costly than anticipated due to reliance on Boeing 737 MAX 8 aircraft instead of the smaller and less expensive MAX 7.

A key strategic reason for maintaining intra-island flights is securing prime gate access for mainland schedules. To retain preferential use gates, Southwest must schedule at least six flights per gate; reducing this would necessitate spreading out flight times and offering fewer peak-time departures.

"The time channels are quite sensitive," Watterson explained. "When people are leaving the West Coast, they prefer to leave not too early in the morning — let’s call it eight-ish plus or minus an hour — and arrive midday into the islands to get to the hotel and have beach time. Then they fly back in the daytime and arrive in the evening. And that means you really want to be able to have access to gates in Honolulu."

This strategy aims at securing desirable gates but raises concerns about occupying space others could use more efficiently. From a regulatory perspective, it's crucial for airlines to have gate availability assurances while ensuring committed spaces are utilized effectively or reassigned if underused.

Looking ahead, once Southwest starts operating redeye flights from Hawaii—allowing them to reach further east—they may reduce intra-island services if redeyes complement current operations without requiring additional intra-island connections.

Despite its focus on West Coast-Hawaii routes currently being limited by accessibility issues for travelers outside this region, Watterson hinted at broader plans: “There will be some [redeyes] in Hawaii,” he said. “The majority will probably be elsewhere.”

Hawaii remains significant for Southwest’s Rapid Rewards program and its profitable credit card business; however, Aruba holds the top spot as their biggest redemption destination due primarily to accessibility constraints on Hawaii-bound flights.

Organizations Included in this History
More News

American Express has introduced a new benefit for its Business Gold Card holders, offering up to $150 in annual statement credits for U.S. purchases made with Squarespace.

Oct 25, 2025

Kawal Preet, Executive Vice President of Planning, Engineering, and Transformation at FedEx and former President of the Asia Pacific region, has been named to Fortune magazine’s “2025 Most Powerful Women in Business: Asia” list.

Oct 25, 2025

On October 22, Air France announced it will begin regular flights between Paris Charles de Gaulle (CDG) and Las Vegas starting April 15.

Oct 25, 2025

Airbus has established itself as a leading commercial aircraft manufacturer, surpassing Boeing in the late 2010s to become the world's largest producer of airliners.

Oct 25, 2025

FedEx Express and UPS Airlines are two of the largest cargo carriers in the world, with both companies operating extensive fleets and moving significant volumes of freight globally.

Oct 25, 2025

The Dubai Airshow, the largest event of its kind in the region, is set to return in 2025 with more than 200 aircraft expected to be on display.

Oct 25, 2025