Hawaiian Airlines The Big Winner As Southwest Discards Every Hawaii Advantage

Southwest’s gamble on Hawaii appears to have collapsed, and now, it’s leaving the door wide open for Hawaiian and Alaska to pick up the pieces. It began today when Southwest announced that their free bag policy ends on new reservations made on or after May 28.

With the airline’s latest move to scrap this and other benefits, the Hawaii travel landscape just shifted dramatically—and Hawaiian Airlines and Alaska Airlines are the clear beneficiaries.

The official Facebook page for Southwest is flooded with comments from angry passengers after this tone deaf response from the airline:

“While our policies are changing, our commitment to caring for our Customers remains the same.” Southwest Airlines spokesperson, Alvaro.

The much-anticipated changes—forever altering Southwest as we knew it—including new bag fees and basic economy fares, are expected to hit Hawaii travelers hardest. For a region where the cost of air travel has long been a concern, the loss of Southwest’s competitive perks leaves travelers with fewer choices and higher prices, directly benefiting Hawaiian Airlines, which is now far better able to maintain its advantage.

Southwest’s Hawaii edge just disappeared.

We checked fares from Las Vegas, Oakland, San Jose, and Phoenix for spring travel to Hawaii, and in nearly every case, Southwest’s fares were higher than those offered by Hawaiian/Alaska Airlines. Travelers who once justified any higher cost because of free checked bags now find no such cushion to justify the premium.

Bag fees have now been added to the mix. Southwest has yet to announce what its fees will be, but other airlines like Delta, American, and United charge between $35 and $45 for the first checked bag.

Hawaiian Airlines has raised its fees to $40 for the first checked bag and $45 for the second. Alaska Airlines currently charges $35 for the first bag and $45 for the second. While Hawaiian’s interisland bag fees are lower, starting at $15 for non-credit card frequent flyer members, it’s unclear whether Southwest will also introduce separate pricing for interisland flights or not. Stand by for more on that.

Southwest’s free bag policy had long been one of its few significant competitive advantages in Hawaii, but with that now gone, many travelers will likely rethink whether Southwest still makes sense—especially when, in many cases, it is no longer overall the most affordable option.

Basic economy comes to Southwest.

The changes go beyond just bag fees. Southwest is also introducing a new basic fare class that limits flexibility and adds restrictions, including charges for same-day standby.

One of the most notable shifts is in the Rapid Rewards program. Travelers who once used points freely will now face significant limitations. While points technically still don’t expire, the program’s structure has changed.

For example, the lowest-priced Wanna Get Away fares now earn only 2 points per dollar spent, down from 6. Meanwhile, the higher-priced Anytime fares continue to earn more, though at a reduced rate compared to before. This marks a significant shift in how points can be earned and redeemed, potentially limiting the value for frequent flyers.

Additionally, flight credits issued for tickets purchased on or after May 28, 2025, will expire one year from the ticketing date, or earlier depending on the fare type purchased. This introduces new restrictions that could impact travelers’ ability to use credits before expiration.

In short, travelers lose both the tangible benefits and flexibility Southwest was once known for.

Read: Southwest Hawaii: Flights Cut, Points Gutted. Next: Free Bags?

What this means for Hawaii competition.

Southwest’s retreat from its unusually customer-friendly airlien stance amounts to a significant, though unintentional, gift to its competitor—Hawaiian/Alaska. This is especially true now that Hawaiian is integrating with Alaska’s broader network.

We may see fares shift with Southwest ceding ground, but it’s unclear if it result in any immediate price changes from either company. Competitors, however, now have a distinct advantage in terms of flexibility, mileage value, and in some cases, baggage pricing. Hawaiian’s relatively low bag fees interisland and long-standing benefits for HawaiianMiles members, continue to stand out, and Alaska’s cross-network redemption potential continues to grow stronger.

At the same time, Southwest has already cut many Hawaii flights from its schedule. These cuts include a significant reduction in once-core routes from California, with some flights reduced by over 50 percent. Combined with today’s announcement, it’s clear this isn’t a temporary shift—it’s a significant strategic pullback.

Read: Southwest Slashes Hawaii Flights Despite Soaring Profits: The Real Story.

Misuse and economics both played a role.

Southwest executives have hinted at the reasons behind these changes. Cost pressures, investor demands, operational limitations, and the abuse of flexible policies—especially around changes and standby—contributed to the decision.

While some passengers took advantage of generous policies by booking multiple flights or changing itineraries without penalty, it’s evident that Southwest’s financial performance in Hawaii was also a contributing factor.

The much-hyped Southwest Effect, which was supposed to bring competition and lower prices, has fizzled out. Fewer flights and fewer perks may cause Hawaii travelers to reconsider at this point.

The reaction is swift—and polarized.

Social media is already abuzz. Some frequent flyers feel betrayed, while others suggest Southwest is simply catching up with the industry. One Reddit user commented: “They were the last to go, and now they’re just like everyone else—but slower, with worse food.” Another user said, “The move was inevitable,” citing mounting losses and industry pressure.

A flood of Facebook comments adds to the conversation. Some users are fed up with Southwest’s changes, like Thomas, who posted: “I just flew my last ever flight with Southwest. You’ve got rid of the two things that set you apart so there’s literally no reason now to consider you. It was good while it lasted, good luck with bankruptcy.”

Paige chimed in: “Well too bad. Not incentive enough. Money talks and it is saying a lot.” Others, like Ariean, were even more blunt: “Such a boneheaded decision.”

We’ve seen this kind of reaction before with major changes. However, Hawaii travelers may feel it more acutely. Families who relied on the two free bags now face hundreds in added vacation costs. Points loyalists suddenly need to relearn redemption charts. And without clear pricing superiority, the default choice may return to the familiar.

What to watch going forward.

The next few months will reveal whether Southwest’s pullback from Hawaii will accelerate as flights are harder to find. Or will the savings from today’s changes help them find a new way forward in Hawaii.

There’s also the question of whether Alaska, through its Hawaiian Airlines acquisition, will move aggressively to fill the gaps—especially with its diverse fleet including widebody capacity and an upcoming retooling of its loyalty program.

With today’s announcement, Southwest has essentially handed Alaska the upper hand in the entire Hawaii air travel market.

For now, it’s clear: the Hawaii flight playing field has shifted significantly. The airline that once promised to shake up Hawaii flights may have shaken itself out of the game entirely.

Please let us know your thoughts.