The fact that it is still resorting to unsustainably low fares to fill its planes calls its interisland strategy into question. Even accounting for the pandemic's impact on interisland travel, Southwest shouldn't need to price all of its flights below cost after this much time. However, Southwest Airlines entered the interisland market more than three years ago. The low-fare carrier is spinning the promotion as a way to get locals who are used to flying Hawaiian Airlines between the islands to try Southwest. It was also on the verge of beginning nonstop service between San Diego and Hawaii. By the time the COVID-19 pandemic brought air travel to a standstill in March 2020, Southwest was flying nonstop to several destinations in Hawaii from three California cities while operating a mini-hub in Honolulu with flights to each of the state's other four major airports. In the first year after it began service to Hawaii, Southwest Airlines expanded rapidly there. Barring a turnaround in its performance, that could lead to retrenchment sometime down the road, benefiting hometown airline Hawaiian Holdings ( HA 2.29%). Since then, the low-fare airline giant has built up a sizable business flying customers to, from, and within Hawaii.īut despite Southwest's growth in Hawaii and its displays of confidence in the market, there are signs that parts of its Hawaii route network aren't working. In March 2019, Southwest Airlines ( LUV 1.45%) launched service to Hawaii with great fanfare.
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