Southwest Slashes Hawaii Flights Despite Soaring Profits: The Real Story

In a paradox of success and reduction perhaps unique to Hawaii, Southwest Airlines announced improved revenue for 2024, citing “resilient travel demand” and more efficient operations.

At the same time, Southwest is sharply reducing its Hawaii operations in 2025, with flight cuts of up to 30% planned. This raises important questions: Why is Southwest scaling back its Hawaii presence when the overall outlook appears strong? And what does it mean for travelers who’ve come to depend on Southwest for their flights to and within Hawaii?

While we’re debating these questions, remember that this is the last day of their Cyber sale, which offers 30% off and ends December 5.

Southwest’s financial upswing amid contractions.

Southwest’s latest guidance indicates an expected revenue rise between 5.5% and 7%, up from its prior expectations. CEO Bob Jordan emphasized efficiency, red-eye flights (to soon include Hawaii), and other network changes.

Yet for Hawaii, this has translated into fewer flights and routes—seemingly at direct odds with the notion of “resilient demand.” What’s behind the decision to cut so much Southwest Hawaii flight capacity?

Where does investor Elliott fit into both of these changes?

One key to what’s happening may lie in Southwest’s recalibration under the pressure of activist investor Elliott. CEO Jordan has suggested that Elliott encouraged faster strategic shifts, including reducing flights where profitability lagged. Excessive and unprofitable Hawaii flights were a key focus in prior Elliott investor presentations. And therein may lie exactly why Hawaii flights didn’t make the cut in 2025 changes.

What’s happening with Hawaii flights?

Reducing Hawaii-bound and interisland flights remains part of Southwest’s greater efficiency moves. As Southwest strives to boost aircraft utilization with red-eyes and remove less profitable routes and flights, Hawaii service, in particular, has felt the impact.

BOH reader Chris succinctly noted, “Honestly, Southwest had way too many flights with empty seats on routes that Hawaiian already dominated. These cuts feel like the airline finally being realistic.”

Yet, not everyone is as accepting of the shift. In a comment, Mark wrote, “These cuts are disappointing—will we be left with no real competition for Hawaiian Airlines again?”

With Southwest pulling back in Hawaii, at least for now, if not permanently, the once-promising Hawaiian Airlines competitor may be conceding its attempt to disrupt Hawaii’s air travel landscape more fully. Hawaiian is a unique warrior that remains difficult to tame, even for Southwest.

Achieving route efficiency in Hawaii flights.

Much of Southwest’s strategy focuses on a fast return to “industry-leading” profits. This may have come from activist investor Elliott’s pressure for the fastest possible changes. Amid that dramatic swing, scaling back Hawaii flights raises questions about the future direction and long-term commitment to Hawaii.

Reader JB observed, “You barely scrape a profit after fuel, maintenance, labor, and other associated costs… Can’t imagine how much WN is losing on their half-empty flights.”

Even with the changes just announced in Hawaii, and while the demand for Hawaii remains strong and appears to be growing again, this may not be sufficient to justify the cost of some flights here, especially on interisland routes that are notoriously challenging to make profitable.

The impact on Hawaii travelers.

Southwest’s partial retreat from Hawaii sparks many reactions from residents and visitors. Tina lamented, “Without competition, [Hawaiian Airlines will] have a hold on interisland fares. Not great for those of us who live here!” The reduction in Southwest flights could lead to rising prices on interisland routes, affecting residents relying on affordable flights for essential travel.

The potential impact on interisland fares isn’t lost on residents like Kim, who worried, “Southwest cutting flights is frustrating, but Hawaiian Airlines is often too pricey for residents. I’m worried we’ll see fares increase again to the stratosphere.”

For travelers accustomed to Southwest driving low interisland fares while offering two free checked bags, the reduction in Hawaii will mean fewer choices and potentially higher costs.

What to expect for 2025: Red-eyes, partnerships, higher prices, and fewer Hawaii flights

Southwest Hawaii is clearly losing flights next year, while new services like red-eye routes and premium seating options will help the airline drive the most profit from island travel.

Reader D shared their perspective on the future: “I previously expressed my personal desire for Southwest to maintain daytime flights…With their retreat from the market, the Alaska-Hawaiian cabal will certainly increase prices for interisland travel, leaving many people to just stay in place.”

With fewer direct routes and more emphasis on long-haul services, travelers to Hawaii may need to prepare for more connections and layovers, new timings, higher prices, and the possibility that routes connecting Hawaii to major mainland hubs will be more challenging.

BOH readers react to Southwest changes

Southwest’s pivot away from Hawaii hasn’t gone unnoticed by readers of Beat of Hawaii. While some, like Chris, welcomed more flights to Las Vegas, others see the changes as a troubling sign of competition in Hawaii.

Roger remarked, “The interisland reduction is sure to be a bummer for our family! We live on Maui and have two kids who go to college in Honolulu.” The reduction in interisland routes may create added challenges for some families, residents, and anyone needing to travel frequently between islands, especially those relying on the two free checked bags.

Even those who have been complimentary about Southwest’s efforts have mixed feelings. Reader Stan F. pointed out that Southwest’s inability to get a more convenient terminal location, like Hawaiian Airlines, contributed to their challenges: “The changes reflect the overcapacity on interisland flights, along with the continued operation of Southwest from the Central Concourse… The situation may improve once Southwest can fly the Max-7 aircraft to the islands.”

Resilient demand but a changing reality for Hawaii-bound travelers

Southwest has made it clear that its recent financial gains and newfound efficiency are central to its broader strategy of quickly regaining profitability. Unfortunately, Hawaii flights are not set to be part of this growth. The airline’s scaling back of routes—despite “resilient demand”—reflects the challenges of making interisland and Hawaii-bound flights work within the new Southwest model.

Please share your thoughts on changes for Southwest in Hawaii.