Quantcast

Southwest Airlines uses unprofitable Hawaii routes strategically

LA Considers $25 And $30 Minimum Wages For Hotel And Airport Workers
Airlines are on the hook for more than you think if something goes wrong with your trip
WA Labor & Industries plans to create new airline worker protections
Airlines must now give automatic refunds for significant delays. Here's what to know.
Spirit Airlines Pursues Bankruptcy as a Path to Tie-Up With Frontier
American Airlines fined $50M for violating disability laws
Canada's flight attendant union applauds NDP bill to end unpaid work in the airline sector
American Airlines testing new technology that would crack down on boarding
Exciting New Airline Routes Coming to North
Another city ignores airport commission's advice, zones for housing near JWA
United shares hit pre-pandemic high after airline forecasts strong finish to 2024, plans buyback
Alaska Airlines Just Made Its Loyalty Program Even More Lucrative With New Rewards, Better Upgrades, and More
Food safety problem closes Detroit airline kitchen leaving 200 flights without meals
5 Reasons Why Kazakhstan's Air Astana Is Establishing Itself As A Key Player In Asian Aviation
JetBlue is no longer serving hot food in economy class on transatlantic flights
Video shows traveler hurl computer monitor at Frontier employees in Chicago
White House 'in touch' with airlines as hurricanes Helene, Milton spark price-gouging fears
Airline bans two items from luggage amid conflict in the Middle East
Turkish Airlines pilot dies midflight, leading to emergency landing in New York
Spirit Airlines Explores Bankruptcy Filing
Airlines turn to AI to allocate gates and cut waiting times
American Airlines Passengers Save Woman from Alleged Violent Male Companion on Flight
Garuda Indonesia and Japan Airlines (JAL) Form Joint Business Agreement — What To Know
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 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

Seeking Alpha has reported a concerning development for Embraer following US President Donald Trump's threat to impose a 50% tariff on all imported Brazilian goods.

Jul 15, 2025

Cirium Diio data reveals that the United States is seeing 6,335 departing long-haul international flights this week, averaging 905 takeoffs daily.

Jul 15, 2025

After flying back to Frankfurt Airport with Lufthansa, a review was conducted of the Star Alliance Lounge at Amsterdam Schiphol Airport.

Jul 15, 2025

The Airbus A380, a prominent figure in the aviation world, is known for its massive size and four-engine configuration.

Jul 15, 2025

The National Transportation Safety Board (NTSB) has released its final report on the Alaska Airlines mid-air door plug blowout involving a Boeing 737 MAX 9 in January 2024.

Jul 15, 2025

Air China, Korean Air, and Lufthansa continue to operate Boeing 747 passenger flights to the United States.

Jul 15, 2025