As Southwest Airlines grapples with significant operational and financial challenges, including a drastic reduction in its fleet expansion plans and just announced job cuts, the impact on its Hawaii service remains a concern for many travelers. Southwest has become a significant part of Hawaii’s air service over the past five years since it started flying from the mainland and then interisland.
Today, the airline announced that it would receive only about 20 of the 85 new Boeing 737 MAX planes this year. This development has forced Southwest to rethink its route strategy and operational capacity, affecting services nationwide. They also said that instead of increasing the number of employees, it will shed some 2,000 jobs by the end of this year.
At the same, Southwest flight attendants agreed to a lucrative contract that would make them some of the highest paid in their profession while the airline struggles with a net loss revealed today.
Southwest announced it had incurred a net loss of $231 million in the first quarter of 2024. Earlier this week, Hawaiian announced it incurred even more significant losses in relation to its size. See: Hawaiian Airlines’ Outlook After Posting $138 Million Loss.
How will the plans announced today impact Southwest flights to and from Hawaii?
Last month, we reported on the challenges Southwest faced with its Hawaii operations, including fluctuating flight schedules and capacity adjustments. With the latest developments, the situation appears more precarious. The reduction in new aircraft deliveries constrains Southwest’s ability to maintain existing services and will limit its ability to expand or enhance its offerings to Hawaii.
Word of what was to occur today started last month when Southwest said it was implementing a “schedule re-optimization.” That was just the beginning. In response to these constraints, Southwest announced today the cessation of flights to four mainland cities and significant reductions at other airports.
CEO Bob Jordan has emphasized the airline’s commitment to maintaining reliable service, stating, “We are reacting and replanning quickly to mitigate the operational and financial impacts.” This statement underscores the airline’s focus on adapting to these new challenges with a focus on minimizing disruptions for travelers.
Implications for Hawaii tourism, residents, and visitors are to be revealed.
While these cuts we have talked about do not currently affect direct services to Hawaii, the overall reduction in fleet capacity could lead to fewer available flights, potential increases in fares, and changes in flight schedules for those traveling on Southwest to and from the islands. This could affect visitor arrival numbers and negatively impact Hawaii’s travel economy.
As Southwest navigates these challenges and determines what more may be necessary, we will monitor what further adjustments remain, depending on the airline’s ability to stabilize its operations in the current scenario and manage ongoing Boeing aircraft delivery delays.
Red-eye Southwest Hawaii flights could be one key to aircraft utilization improvement.
Last month, Southwest said their first-ever red-eye flights from Hawaii and Las Vegas would be tested. We expect that will happen within months, if not sooner, due to these very significant aircraft delivery constraint issues. Previously, the airline had expected that to occur within two years. But things were much different then.
Overnight flights may help Hawaii travelers if these flights bring with them any mitigation in high airfares. That would be as a result of decreased demand for nighttime flying. That stands to appeal to those Hawaii travelers looking to save on airfare.
As we continue to monitor these developments, we invite your feedback. Does this initial round of changes impact your travel plans to and from Hawaii? Do you have any thoughts on Southwest Hawaii flights during this period of change and about their plans for Hawaii red-eye flights?
Southwest has to be losing millions of dollars on their interisland side. They are flying half empty planes while adding more carbon emissions. They will never be profitable in this sector and should just give up or reduce their capacity.
Hello, it would be sad to see any Hawaiian flights cut! We go at least once a year and the perks on SW especially the luggage is outstanding! And the lowing prices are always a plus. Friendly always! Would we take red eyes yes more than likely! Hopefully flights will continue as planned.
Diane, while you say it would be sad to see HA reduce flights you say you support SWA? SWA is the airline that has been trying to hurt them in the marketplace by operating at a loss to try and insert themselves into Hawaii. SWA has been guilty of flooding the market with cheap fares and upending the tourism industry here and then cutting way back after the damage was done. Hawaii is very sensitive to businesses from out of state that try to take far more than they give. The so called “SWA effect” was very bad for Hawaii.
Southwest is an unpleasant airline and unfortunately they hitched their wagon to Boeing.
The interisland flying is money losing and expect it to mostly go away when they can start flying red eyes.
A red eye on Southwest. Shudder.
Red eye flights if making prices cheaper will definitely be welcomed. Hawaii people would love direct red eye flights to vegas.
Some context on how bad the arrivals are at Kahului (OGG). The US Department of Transportation (bts.gov) publishes monthly airline statistics. For “load factor” (i.e., how full the planes are), the latest information is from January 2024. destination airport, the stats are:
DEST Description Loadfactor
HNL Honolulu, HI: Daniel K Inouye International 84.17%
MKK Hoolehua, HI: Molokai 83.86
KOA Kona, HI: Ellison Onizuka Kona International at Keahole 81.18
LIH Lihue, HI: Lihue Airport 80.16
OGG Kahului, HI: Kahului Airport 74.76
ITO Hilo, HI: Hilo International 65.59
LNY Lanai, HI: Lanai Airport 59.61
The national average was 78.78% in January. The 74.76% load factor is very low for Maui.
Great articles.
I flew Southwest out of Bellingham, changing in Oakland. I suspected there was a problem several months ago when the Bellingham to Oakland flight was no longer listed. The only option was Bellingham to Las Vegas and then to HNL. I hope this mess gets fixed. Every airline is suffering right now, even those with Airbus aircraft in their fleet.
Southwest keeps the other airline fares low. Southwest still has the best fares. Thank God for Southwest!
“Great”. Now that Southwest Airlines has driven Hawaiian Airlines to near bankruptcy, flight cut-backs, & seeking a bailout merger with Alaska Airlines, the financial “chickens are coming home to roost” for Southwest. But Hawaii residents may suffer the consequences in terms of less flights and less service.
Southwest didn’t drive Hawaiian’s financial condition. HA has **always** been a financially weak airline, undercapitalized and historically having sub-par management. Hawaii’s interisland market can pretty much only support two airlines — Aloha Airlines in the past and Southwest currently. I, for one, welcome the Alaska Airlines – Hawaiian Airlines merger as it should provide better management and a stronger financial backbone. Having two stable airlines, Southwest and Alaska, should be a net positive. Southwest’s current issues generally relate to being a “all-Boeing737” airline, where Boeing can’t deliver the airplanes. Just note, that SWA’s version of the 737 (the MAX 7) is Not the version with the Alaska door plug blowout.
I’ve flown HA for 20 years and never had a problem. Both coach and first, and with my frequent flier miles. I will not get on a 737 max 8. And I’ve had horrible service on SW. But if you want to feel like a herded cow…
Please note, I listened to the earnings call and there was no mention of Hawaii… at all. Hawaii is a profitable market for them. Note the four cities they are leaving do not have a significant number of flights (e.g., Bellingham, Washington has 3 arrivals and 3 departures per day).
The Boeing delayed deliveries are an issue for future scheduling. Expect more packed planes and fewer fare sales.
As for the red-eye flights, they are still up to a year away (during the analyst questions). There is no assurance that Hawaii will have red-eye flights.
Considering the depressed state of Hawaii travel that is now upon us, and will continue to get worse for the balance of the year and the next two years, the plight of Southwest and Hawaiian combined with the possibility of banning vacation rentals will do unspeakable long-term damage to the visitor equation. Neighbor island hotels are cost prohibitive. There isn’t a special deal in sight. Vehicle prices are still far above pre-pandemic levels. Food & beverage has to be the highest in the nation by a wide margin. Visitors from Japan and Downunder have not returned. The huge influx from China that was predicted a dozen years ago never materialized. There is no leadership and no vision—only corruption and confusion. Sad!
This will probably relieve some of the financial pressure on HA
Couldn’t happen to a more “deserving” airline. Looks like karma has finally caught up to them
While it’s always fun to bash airlines, I don’t think Southwest is as bad as many US airlines. I don’t mind flying SWA, as long as you know the ropes. And they give free checked baggage, whereas Hawaiian Airlines charges $40 for the first checked bag to the Mainland. Note that American Airlines announced a Q1 loss today also, so karma may be “spreading.”
Karma?! What the heck has SWA done to you? Other than affordable fairs and free checked bags making visiting relatives on other islands at least a little more often.
Dave, when SWA entered the market they had on the wall in OAK ops a large shark painted up in SWA colors eating two small fish painted as Alaskan and Hawaiian Air, their intent was to run the two out of the market. People from the mainland who wanted to take local jobs and they backed it up with some very cocky moves from some employees. As they have proven, they do what’s best for SWA with little regard for Hawaii. So yes, a bit of karma it would seem.
“Southwest announced it had incurred a net loss of $231 million in the first quarter of 2023.”
I suspect that should be 2024 …
Hi David.
Thank you! You’re Hired.
Aloha. R/J
I fly back and forth to mainland every month or so on business. I never see full flights anymore to Maui. Anti-tourism is killing Hawaiian airlines and hurting SWA as well. All this results in more poverty for locals but doesn’t stop billionaires. They don’t fly commercial anyway. So here is what’s happening. Anti-tourism is killing locals who have to move to the 9th island but does nothing to reduce the great replacement of locals with wealthy from around the world. The antis are having the exact opposite of their intended effect.
Yes Tavares, you are correct. I fear that we are just beginning to see the “tip of the iceberg” but many Hawaii politicians think like the builders of the ill fated Titanic, that they can withstand a hit in the tourist economy and come out just fine on the other side. Not so, Hawaii’s tourist driven economy hasn’t even begun to see the damage these incompetent politicians are doing to the people of Hawaii. So very sad as everyone will suffer other than the narcissistic high tech and entertainment billionaires.
You should get 100 thumbs up! Nailed it.
Yo have to wonder if the faire wars between Hawaiian and Southwest aren’t part of the reason for some of those losses.
I would think so….despite their aggressive initial inter island fare wars SWA has a 30 percent lower load factor and half the flights of HA…..the newer smaller Max’s were supposed to replace the current fleet which would have helped, now they are stuck with an inter island plane that is very unsuitable…and expensive to use inter island. They likely are losing a lot of money inter island.