A regular Hawaii flyer who reads BOH just put words to what longtime travelers are now seeing when booking flights. Fares have surged, planes are half empty, and the carrier that promised to break the monopoly just rolled out a loyalty program instead of keeping fares low.
Jim flies between islands often enough to know when something feels off. He told us he can afford to fly but is choosing not to, and maybe that says more than anything else right now. His focus was not on his own travel. He kept coming back to families and what it looks like when four people try to book a simple Hawaii flight from Honolulu and see totals pushing past $1,000 round trip for twenty-minute flights. He tied last week’s Hawaiian final integration by Alaska directly to the timing, with changes rushing in at once because something about the pricing suddenly felt less stable.
He did not soften it and said the Aloha spirit has been replaced by what he called a greedy eye for profit. Jim asked Alaska to explain what was happening, and he is not alone. He is just someone who said it clearly.
Fares up, planes not full, but the math no longer works for anyone.
Fuel is the obvious headline, but it does not completely explain what visitors and residents are seeing. The Middle East conflict pushed jet fuel to over $200 in a matter of weeks, hitting an industry where fuel now accounts for an unacceptably high percentage of operating expenses. US carriers largely folded that increase into base fares rather than as a separate charge, which helps explain some of the jump but not the entire pricing behavior now showing up on Hawaii interisland flights.
Federal Department of Transportation data covering the 12 months through August 2025 showed Southwest filling just 51.9% of its Hawaii flights between islands, while Hawaiian sat near 74% over that same period. That disparity has held for years now, and planes that are half full usually do not support higher fares because airlines lower prices to fill empty seats. That is how this business works when carriers actually compete.
We checked it ourselves this week. Lihue to Honolulu for meetings in June came back at about $230 round trip per person before any seat selection or other fees, and the flights were wide open on both Hawaiian/Alaska, and on Southwest across the day, with plenty of seats and seemingly no pressure on availability. High fares alongside empty inventory are telltale. This is not a capacity problem; it is a pricing decision.
Southwest came to Hawaii to break the monopoly then finally stopped trying.
Southwest entered Hawaii in 2019 with a simple pitch. Break the Hawaiian Airlines monopoly and keep fares honest. The $39 fare sales became the symbol of that promise, and people remember those numbers because they reset expectations overnight.
Those fares are gone. They did not just fade slowly; they stopped showing up. Southwest never got its Hawaii loads where it needed them, and even after cutting capacity twice in 2025 to shrink its operation, the planes stayed underfilled. Hawaiian held steady in the mid-70% range on the last count, while the competitive pressure that was supposed to keep prices in check no longer seems to matter.
Now both carriers are moving in the same direction on price, and fuel gave them a great reason to move together. No one needed to say anything publicly. The result is the same: the discount era has ended, and nothing valuable has replaced it on the fare side.
Airline points programs are not fare sales.
This week, Southwest expanded its Ohana Rewards program for Hawaii residents, and the pitch sounds familiar. Hawaii residents earn 1,000 points per one-way flight, awards starting at 4,000 points, two free checked bags, and a quarterly 10% discount code.
So two full-fare round-trip tickets earn one free one-way ticket. Is that a deal when the cost per flight is so much higher than it has been before? It asks residents to pay full price repeatedly to earn back a fraction of a trip, and for Hawaii visitors its even worse.
Southwest used to advertise fares that moved the market. Now it advertises points that require multiple paid trips to unlock a limited return. Hawaiian’s Huakai program runs essentially the same playbook on the other side. The headline is up to 20% off one neighbor island booking per quarter, but that’s only for holders of the old Hawaiian Airlines Mastercard. Regular members get 10%. The discount code applies to up to 6 companions on the same reservation. Perks sit atop high prices, with rules that make them hard to use.
When Southwest, which built its reputation on cheap fares to Hawaii, shifts to selling loyalty points, the signal is clear. The focus moved from filling seats with lower prices to holding prices high and offering rewards later, and reader Jim saw that shift when booking, before any press release explained it.
Residents bear the highest cost when flights to Hawaii become a luxury.
Mainland visitors experience it differently. If they book a direct flight to Maui, Kauai, or Kona and stay put, there is no impact. And that direct to neighbor island flight shift has been building for years as mainland carriers added more nonstop routes to Maui, the Big Island, and Kauai. Flying between the Hawaii islands is no longer a key part of many visitors’ itineraries.
The people left flying between islands are residents, and some visitors, those visiting multiple islands, and those going to see family, attend meetings, handle medical appointments, show up for events, or support kids playing sports and music across the islands. Many of these are not optional trips. There is no ferry, there is no road, and flying Southwest or Alaska is the only way.
When fares double and stay there, the choice becomes simple and hard at the same time. Pay it or do not go. Jim chose not to go because he could make that call, but many could not.
The group with the least flexibility is paying the highest prices, and the carriers serving that market have stopped competing on airfare. What they are offering is Hawaii resident loyalty programs of far less value than better airfares.
Jim said it plainly. That is not Aloha when, in a Hawaii flight market, the people who need the service most are the ones with the fewest options.
The shift arrived suddenly.
Two airlines that once competed hard on price are now moving together, and loyalty program enhancements are landing at the same time as clear airfare spikes. Fuel is the reason everyone can easily point to, but the alignment on pricing is the piece that people feel, and that we are writing about. Jim asked Alaska to explain itself, and he has not heard anything that answers his question.
What are you seeing when booking Hawaii flights now? Please tell us in the comments below.
Photo Credit of Waikiki from Diamond Head: © Beat of Hawaii.
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Cheaper to.just stay home. It us too bad we don’t have a viable third airline or the Superferry. 😯
I just paid $280 to fly from Honolulu to Hilo on Hawaiian Airlines/Alaska this coming weekend. That price is Insane!!!! And the flights are nowhere near full. Makes no sense other than corporate greed. A year ago this flight would have been at least half the cost.
cheap inter-island fares are not relealistic for airlines to be able to just break even on a flight let alone make a profit. Back in 2004 when both Aloha and Hawaiian were in bankruptcy, fincancial data revealed it cost both airlines about $65/ seat for a one way inter-island flight. When Mesa entered the market they offered $39 fares as a way to get market share because they knew the other guys could not match that for long. South West used the same tactic, enter the market with below cost fares to get market share. You can see that Hawaiian would match SWA fares on flights that depart at the same time to same place. But since Hawaiian has more flights, they would raise the fare on flights duringthe times SWA does not have a flight. I’m sure the cost per seat is much higher 20 years later, so $100 one way ticket sounds reasonble to me. I think people saw those $39 fares when SWA started and just thought they would last forever. that was not realistic.
I would say, change the whole system of flying. Everyone flies in one category. No first class, no comfort seating, just transportation like a bus with a one charge fare. Maybe a discount onSenior, Military, and Student fares. People just need to get where they plan to go no matter if it is for vacation, work, school, family crisis, or just to get to Hawaii and back. Charge them like a bus fare. Monthly, Yearly, or one time travel. This is so sad when family and friends have to suffer due to this War of the World. Please we must come together and find a solution to make flying affordable again. Mahalo.
having only one price per ticket would make that price increase because the airlines use a model of charging higher for 1st class and business and then they keep the economy seats lower because the premium seats bring in more money. This way the total revenue for the flight can pay for the cost to operate. You have to think of it this way. A flight cost a certain amount to operate, fuel, crew, maintenece cost etc. That cost does not change if the flight is empty or full. So the airlione has to try to make enough money to cover that cost and hopefully more because if there is no profit on flights soon they get into debt and go out of business.
Aloha, I recently tested the discount deals from Alaska/Hawaiian and Southwest and for a one way from San Diego to Maui in mid-June, Hawaiian was the clear winner. I booked a non-stop flight that arrived in Maui from SD at 2pm for $223. Meanwhile, Southwest advertised $178 from San Diego to Maui, but I could not find a flight for less than $367, with a stop, and it arrives in Maui later than 4pm. Also, Alaska/Hawaiian had one way inter-Island flights for as low as $69, for mid-week flights. So timing is the key. However, as I commented in an earlier post, I had one of the worst airline experiences with Alaska/Hawaiian at the end of March and I’m hoping they do not repeat it in June. So buyer/flyer beware!
I have read and treasured (BOH) for many, many years and whose valuable and informed information I have always respected and enjoyed.
Sadly, for the last few years what I read just reminds me why after many trips to Hawai’i, I will never return.
I don’t feel welcome and the spirit of Aloha is gone.
The recent post about Lei Day made me ache for Hawai’i…but it was of sadness of what was. My past experiences and memories are what I will hold onto now.
Jim
I have been traveling to Kona 2-3 times a year. Now looking ahead at prices for the months I go. I’m really shocked at the latest fare prices (currently doubled or tripled ) as well as the Alaska miles needed from SEA have soared.
I usually travel during shoulder or off season as I am very flexible because I have a small condo in Kona.
So in conclusion my last trip was Oct ‘25. Looking ahead I might not go til Oct ‘26.
Let’s see. You pay 275 dollars one way. Twice you pay total of 550. Then you get the third free. Also you get the 10% discount. My math concludes that total of 825 dollars you save 82.50 in the 10% discount. 275.00 for the free leg which is a grand total of 825-275-82.50=449.50. That’s roughly a 46 percent discount. Where does visitors from the mainland ever get a 46% discount in Hawaii? Plus you also receive 2000 miles when you really should only receive around 300. IMO if it isn’t totally free start the whine party. Do main land tourists ever see these deals. And please don’t give me the but this is our home excuse. We live here. Guess what. I don’t even see these discounts on the mainland no matter where you live. The bottom line is pay or relocate or don’t fly. Simple.
Hawaii quit being Hawaii years ago. There is no Aloha left only greed. As you say it is better for the person who just stays on one island, but the ease and affordability of inter Island travel is gone. They have killed the goose that laid the golden eggs.
When I talk to travelers that have come and gone from the islands, there is no happiness or positive talk about a wonderful trip to Hawaii. It is all “too crowded, too expensive, and what happened to paradise?”
Thanks Kawika.
I couldn’t have said it any better. Straight up say it about what it is. IMO Hawaii needs to revert back to when the tourist was treated like a welcoming guest and not a wallet. Years ago I got a welcoming speech of a hotel presentation that the spokes person commented. Thank you for choosing Hawaii because there are many fabulous beaches, places, worldwide and you selected our islands. That meant something. Now visitors are seen as disrespectful intruders. Exactly right too expensive,too crowded and no aloha.
I returned t KOA yesterday, May 1, from HNL. I’m a Kaiser patient, who went for tests, and Kaiser pays the airfare. I still almost lost it when I saw what the bill was. I went on Alaska to Oregon round trip on April 16. Ì paid $450. The trip between island this week was $377.60. I have the receipt.
You keep mentioning the big carriers, but what about the smaller island hopper airlines like Mokulele? Are they doing the same thing? Are they even still in business?
I just checked Mokulele from Kapalua and a one way to Honolulu starts at $78. I am just glad there are flights again out of the West Maui airport. Saves Uber or parking in Kahului. Mokulele always bought a few sea glider vessels from Regent, so I am hopeful for the future, since it’s all electric!
We were planning to go to Maui for 2 weeks in June. Not now with the current fares. This will hurt the tourist industry, again.
Southwest will bring those fares down when the Max 7’s enter the fleet! You can count on that. In the meantime, It appears both airlines are struggling with low demand and sky high fuel prices!
Airlines are not a charity nor a social service agency. Their sole reason to exist is to make a profit for the stockholders, something both Hawiian and Southwest have done a pretty poor job at.
Southwest’s load factors have been shockingly low and I’ve been saying for some time I beleive the only reason that Southwest even flies interisland is because of equipment utilization back before they had the technical capability to fly overnight. A flight can only leave the West Coast no later than mid-morning to get to Hawaii, turn around and get back to the mainland before midnight.
Now that they do, I suspect once they get their ducks in a row with their “transition” to seat assignments, “premium seating”, and all that, they will drop interisland service altogether and just do mainland-Hawaii point-to-point.
If there were any money in interisland service, United Airlines would have done it decades ago when they could have bought Aloha.
When the dream for millions is a trip to Paradise and now more than ever. Cannot the Mainland States and the Hawaii State together make this happen for us ? And the tourist industry?
Keep the government out of this Free Enterprise exercise. Much of Hawai’i’s attraction has been tarnished by the governor and county mayors. Keep an eye on Maui! Let the airline industry ‘duke-it-out’ and in due time competition will make fair (fare) adjustments.
Interesting I just paid $145 for Round trip from Maui to Honolulu on Hawaiian.
And going to LAX in June for $318 round trip on Hawaiian from Maui
Not a very accurate article.
Just sayin…
All about when you book…
What do you mean by breaking the monopoly? Is there some monopoly on inter-island flights?
Southwest fares at $39 were never sustainable, they were a gimmick on start-up to get people associating SW with Hawaii. Their fares haven’t been competitive for a long time on the mainland. What they offered was friendliness such as free bags and better cancellation. But now they eliminated all that too. I doubt they’ll survive as an airline.
As for inter-island, I suspect that in years past people bounced around islands on their “one trip a lifetime” to Hawaii. Now people would rather stay put and get to know a place, and come back another time to see another island.
IMO surprised to see at half full the airlines even attempt to take off at all. No money to be made just for a 20 minute flight. Pay the pilot, crew members and seriously there is nothing left. If this continues IMO this might just lead to cancelled flights or a cut back on frequency of departures and arrivals. So much for the Hawaiian Entitlement. Remember who caters to who? Sounds like the free ride or discount ride just got a little more of a sour taste. Now you know how tourist’s feel with all Hawaii’s added taxes and fee’s and such. Welcome to the club.
Well we bought our tix to Maui 6 weeks ago for September because of all the hype about fuel and flights being limited and they’ve dropped $150! I bought 7 tix, so needless to say I’m very bummed. Don’t believe everything you read on the internet.
$230 RT is only $125 ea way. Pretty cheap if you ask me. How much for a taxi the same distance? An even if 20 minute flight, aircraft is tied up for 1 1/2 hours.
Just likw you guys know and I know, there are ways to game the interisland fare system but they are getting harder. So many Hawaii residents never did and I guess still don’t have a HA branded credit cards, that was a mistake especially if you travel Hawaiian often or even a few times a year interisland. The longer you have had one of the branded cards the better the long term benefits are…over the years. And before the final merger/ takeover everyone was urged to use their AMEX points to maximize getting miles on HA before that program ended, it was a Great deal, albiet brief since its now over. Of course we all see that interisland fares are ridiculous if you have no flexability, if you do, they are not as bad. If you are a long time holder of the HA Barlclays World Mastercard you still do get the savings on every tickets, free bags, miles (points now) and all that stays for what they assure is the medium term future until I guess they hand those MCs over to BofH.
FYI- the ATMOS card which is Alaska new card is issed by Bank of America. Since they combined the pts programs. My guess the Hawaiian MC will go away.
I blame Hawaiians loyalty to Hawaiian airlines for this one. So many Hawaiians refused to fly SWA even when the fares were 39.00. I really appreciated SWA flying interisland during covid when no other airlines were operating…they were a lifesaver.
The once looked at Ferry system is looking really good now.