Quantcast

Southwest Airlines uses unprofitable Hawaii routes strategically

Spirit Airlines to add Detroit nonstop flight out of Bradley International Airport
Major airline to launch new direct flights from Scotland to North America
Qantas’ free international Wi-Fi to switch on from next week
The real reason Southwest is charging for bags now
Air France-KLM in ongoing talks with Air Europa on potential stake, CEO says
Frontier Savagely Shades Southwest After They Eliminated Longstanding Free Bag Policy, Sparking Backlash
Frontier Wants You to 'Divorce Your Old Airline' After Southwest Changes
Delta named one of Fast Company's Most Innovative Companies for sustainability initiatives
Passengers escape fiery American Airlines jet in Denver
Delta, American Dive On Slashed Outlooks; But Two Airlines Rally
Competitors are circling Southwest after the airline announced it's going to start charging for checked bags
Exclusive: Dominican Low-Cost Carrier Arajet Wants to Disrupt NYC Market
Boeing deliveries rise 63% in February from a year earlier
Transportation Secretary Duffy Lays Out 10 Ways the FAA Is Working to Upgrade Air Traffic Control and Make Flying Safer
EasyJet pilot Paul Elsworth suspended after flying too close to mountain
Delta Air Lines bets on ‘blended-wing’ flight to reduce emissions
Europe's airlines pivot to bite size M&A deals to limit cost, regulatory burden
Dave Emerson named new CEO of Virgin Australia, replacing Jayne Hrdlicka
Ryanair DELAYS controversial new boarding pass rule to avoid summer chaos
FAA Orders Inspection, Replacement of 737NG Engine Parts
Spirit Adds New Airport, Three Routes
Delta crash passengers should take the $30,000 payment, their lawyers say. Here’s why.
Budget airline launches new cheap flights to one of the UK’s top winter sun destinations
Brazilian airline Azul to go 'back to basics' after challenging 2024
Airlines cancel flights as air travel to ‘grind to complete halt’ this week ahead of major strike action in Europe
Dramatic moment American Airlines plane diverted to Rome is escorted by fighter jets after mid-air bomb threat
Jetstar Faces Major Backlash as Nationwide System Outage Causes Travel Chaos, Stranding Passengers and Disrupting Flights Across the Australian Airline Industry
Sudden oil supply outages creating turbulence for airline industry
Southwest's layoffs dent its worker-first culture
Abu Dhabi's long-haul carrier Etihad Airways sees record $476 million profit in 2024
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

Star Alliance has been named the World's Best Airline Alliance at the 2025 Skytrax Awards.

Jul 12, 2025

SAS and Air France have applied for a codeshare network covering ten U.S. destinations, including New York's JFK and Los Angeles' LAX.

Jul 12, 2025

Aviation analytics firm Cirium has released its June 2025 On-Time Performance (OTP) report, which analyzes global punctuality trends among airlines and airports.

Jul 12, 2025

United Airlines is set to resume flights to Tel Aviv Ben Gurion Airport on July 21, 2025.

Jul 12, 2025

Seattle-Tacoma International Airport experienced significant growth in 2024, surpassing pre-pandemic passenger numbers.

Jul 12, 2025

Emirates' fleet currently includes 253 widebody aircraft, with the addition of eight Airbus A350-900s.

Jul 12, 2025