With Southwest Airlines in the middle of an unprecedented shake-up, including slashing 15% of its corporate workforce (1,750 jobs) and restructuring its entire operation to meet investor demands, the question for Hawaii travelers is how much more Southwest may cut in the islands.
The airline has already trimmed Hawaii flights greatly, walking back on an aggressive expansion that initially promised low fares and intense competition. Now, as the reality of the severe cost-cutting takes hold, it’s hard to see how Hawaii flights won’t be hit even harder in the next round.
Hawaii was already in Southwest’s crosshairs.
The signs were already there. Southwest has continued quietly reducing its Hawaii service in recent months, cutting specific routes and limiting interisland expansion. These moves came despite Southwest reporting record revenues system-wide last year.
However, Hawaii reflects one of its most recent and highly visible regional expansions. Investor Elliott Investment Management, the activist investor now influencing Southwest’s future, has been pushing for a reduction in Hawaii from the start of their involvement.
This isn’t the first time Southwest has pulled back in Hawaii.
Last year, the airline trimmed its Hawaii flights by over 50%, scaling back multiple mainland routes and reducing interisland frequencies. At the time, Southwest said these cuts were part of regular seasonal adjustments, but with another round of cuts on the horizon, it’s clear that Hawaii service was never as stable as some had hoped.
John W., a longtime Hawaii resident and aviation professional, pointed out the pattern in our comments section. “During the post-COVID revenge travel boom, SWA flooded the market with ultra-budget travelers that fed a lot of the tourism backlash that some have complained about. From the road to Hana to the airport waiting lines, the ‘SWA effect’ was in full force. Now, during difficult times they helped create by flooding the market, they pull back… Auwe!”
Southwest’s initial Hawaii strategy involved launching deeply discounted fares—often well below cost—to force its way into the market. Joe, another reader, called this approach unsustainable. “They are arrogant. Guns blazing with marketing and fares waaay below cost, warping people’s sense of norms.”
Several issues have resulted in Southwest’s Hawaii operations being particularly vulnerable. No interisland fleet flexibility has made their unique service challenging to sustain. Southwest flies only Boeing 737 MAX 8, which isn’t ideal for short-haul interisland routes, as even Southwest acknowledges.
Unlike Hawaiian’s aged interisland 717s, which were built for such quick turnarounds, the 737 is an expensive aircraft to tie up on short legs like the 100 miles between Honolulu and Maui. The lack of codesharing with Hawaiian/Alaska has also made Southwest an outsider in the Hawaii market, where Americans, Delta, and United all use that relationship in spite of competition. As Hawaiian and Alaska combine operations, Southwest remains unable to efficiently feed passengers between islands.
Mainland routes will also continue to be reviewed, and Southwest’s longer-haul Hawaii flights are intensive operationally and prime targets for reduction under cost-cutting measures.
Donna S., a frustrated Southwest traveler, shared her experience. “I have been rerouted twice due to cancellations of SWA nonstops on the LAX to Maui route. First, my May trip was canceled, so I rebooked for June. But then those flights were canceled as well. I gave up on SWA and shifted over to Hawaiian.”
Another longtime Hawaii resident summed it up. “They entered the market like someone moving here and trying to speak pidgin when they can’t even pronounce the street names. Their interisland business model simply can’t compete.”
Southwest’s interisland future remains in doubt.
When Southwest first arrived, it disrupted the entire Hawaii market by launching ultra-low mainland to Hawaii and then interisland fares, forcing Hawaiian Airlines to slash its pricing in order to compete. But that model appears to have never been sustainable. In relation to using mainland aircraft for interisland flights, the airline recently told us that they have now stationed one 737 MAX 8 here in Hawaii to provide contingencies for operational issues related to their flight methodology.
Now, with intense pressure to eliminate everything that’s unprofitable, more of Southwest’s interisland flights could become possible casualties. As one reader bluntly said, “Southwest has no obligation to fly interisland. They probably could just fly mainland routes directly to the islands if profits don’t pan out.”
The impact could be significant for residents and visitors alike. Without a prominent presence of Hawaii flights from Southwest, fares will likely rise quickly—especially now that Hawaiian Airlines has been acquired by earnings-savvy Alaska Airlines. The concern is that with one dominant airline controlling virtually all interisland travel, competition could dwindle, and fares could return to pre-Southwest levels, as we have long been suggesting. That could mean that those fares may increase by double or more.
One Hawaii traveler shared that grim prediction. “If Southwest pulls out of interisland, Hawaiian will return to $200 r/t fares like before. Guaranteed.”
Will Southwest pull back from mainland Hawaii routes?
Southwest’s mainland to Hawaii flights have always been a delicate balance. For now, the airline doesn’t charge for bags, still offers open seating, and typically runs shorter-haul flights—factors that may make Hawaii’s five to six-hour transpacific routes challenging to sustain profitably.
Southwest has already begun cutting back flights from some cities to Hawaii, and travelers report finding fewer viable options.
Elliott Investment’s extreme influence looms large.
The real driver behind these changes is Elliott Investment Management, which forced its way onto Southwest’s board after buying a major stake in the airline. Elliott has been vocal about eliminating underperforming routes and maximizing efficiency. Hawaii, with its unique operational challenges, fits the criteria for more cuts and has been used by Elliott as an example of Southwest’s inefficiency.
One investor left no doubt about their position in the comments. “My investment was made with the intention of earning a respectable return. If Southwest can’t earn a profit, investors like myself will campaign for a corporate takeover. Show us the money.”
This is the core of the issue. Southwest’s entry into Hawaii wasn’t the financial success it had sought. With an investor-led shake-up, there’s little room for sentimental decisions in the future, even when it relates to Hawaii.
The bottom line: What travelers should expect.
With Southwest restructuring, more Hawaii flights may be in serious jeopardy. Travelers should prepare for changes, including the potential elimination of more interisland flights. Southwest’s interisland flights were always an experiment, and now they could start to disappear.
There is also the possibility of fewer direct flights from mainland hubs. More Hawaii flights could be consolidated into fewer departure cities, making nonstop service harder to find. Higher fares are also a concern as competition decreases. If Southwest reduces service, prices will climb, especially with Alaska running Hawaiian Airlines.
For now, the writing is on the wall. Travelers should book early and keep an eye on route changes because Southwest’s commitment to Hawaii is looking shakier today.
We welcome your thoughts!
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Aloha; When I look at Southwest, it seems that they are losing their brand loyalty. In 2025 more people are looking for an upgraded flight experience, even if it costs more. Many people still love Southwest and are very loyal. But, that number is going down. There will always be a market for Southwest’s product. I am just not sure if that number will be great enough for Southwest to make money in the Hawaii market. It hasn’t work out yet. Mahalo
Don’t write Southwest off yet. They have made a long term investment in Hawaii and when Boeing gets their crap together they will execute fully on their plan. Now that Hawaiian is no longer the “local airline” we should support Southwest interisland to show our appreciation for the lower prices and improved inter island service!
We have flown Southwest for many flights, but never to Hawaii. Why? In the greater Los Angeles area there are 5 airports serviced by SWA. Not One flight is a non-stop to any destination in the state. That means over 8 hours of travel and a change of planes on most flights. I just do not understand why SWA does not have at least 1 direct flight to HNL or OGG.
Aloha Jim. You have to go to Southwest Airlines Web site to book flights on them. There you will find they have Non Stops to HNL out of LGB and LAX.
I wonder if it is time for another inter-island air carrier to come into existence. Mokulele has had its problems and its Hawaii operations are sort of an orphan. With travel times from west Maui to OGG taking up to an hour, or more, could more use be made of Kapalua (JHM)? Could the Alaska/Hawaiian bring back Ohana? While I never flew Ohana, Island Air was a great way to get from Honolulu to Kapalua.
With the exception of Kapalua, could a good business be made using smaller aircraft such as ATR, Embraer or Bombardier produce? I am sure business people with more information on operating costs of those aircraft can take a good look at the economics.
Not surprised to hear about these possible reductions in Southwest Airlines Hawaii service. Regardless of Elliott management’s intentions or involvement, Southwest Airlines is still operating out of its short hop high frequency DNA that dates back to its early Texas roots. Running an airline with extensive trans Pacific routes is not the same as flying every half hour between San Antonio and Dallas or Houston. From my perspective United Airlines has been flying to Hawaii since before statehood and knows how to make money and fill airplanes from all over its extensive mainland route network.
Southwest has not followed that particular model since its inception years ago.
Wow, my family and I love Southwest Airlines and hoping it keeps its mainland route especially Honolulu to Las Vegas flights.
Hawaii to the mainland is most important to Hawaii families.
As a long-term investor in Southwest, I think they should pull out of the inter-island market. The locals that didn’t see the benefit of supporting competition deserve the much higher fares they will have for years to come. Time for Southwest to pick up its ball and play where people support them!
When all the different airline unions are demanding more money and more benfits who do you think will pay for the increases? Either increase in airfare or cutting routes, or employees.
Aloha.🌺🤙
I haven’t been to flight on Southwest Airlines.✈️ It cost lot of moneys.💰 💵
My family and I’ve been to flight on Alaska Airlines✈️ and fly across the ocean🌊 to Honolulu from Portland to Seattle.
And on Hawaiian Airlines✈️ to Kailua-Kona from Honolulu.
Aloha.😉
In 2019 my wife and I flew from Atlanta to Hawaii, interisland, and back for just 25,000 points. 5 flights total, just 25,000 points on Southwest. It was an unreal deal.
The writing was on the wall when they started pulling back last year. This just feels like the next step along the way before they make an even bigger change in Hawaii.
I was one of those who loved Southwest when they first started flying here. But now? I feel like they’re just another airline that overpromised and underdelivered in Hawaii. Between the concerns about them and about Hawaiian now, this is going to be weird.
I’ve never understood investors who buy a company’s stock and then demand the company changes the way it does business. Why? So they can drive up the company’s value by gutting what had been a profitable operation and then dump their stocks when the price has gone up? History has shown that these companies don’t last long after they’ve been gutted.
Southwest lost its way when Herb passed on. Someone needed to fix them, and thankfully they have the healthiest balance sheet in the industry.
I flew Southwest to Maui last year because the fares were reasonable, but the schedule changes were frustrating. If they cut back more, I’m not sure I’d take the risk of booking with them to Hawaii again.
I get why investors want profitability, but Southwest’s presence in Hawaii really changed the game for the better. I hope they don’t backtrack completely—competition is still needed, and especially now that Alaska is running the show at Hawaiian.
This is what has concerned me since Southwest first entered the market. They came in aggressively, but the long-term commitment just wasn’t assured. If they pull out, interisland fares in particular are going to shoot up fast and no one else is going to step in.
Simple fix, let Elliott Management run the airline and if that does not work out, then let the investors deal with it/