Is Hawaii Paradise or a Money Pit for Southwest Airlines?
In March 2019, Southwest Airlines (NYSE: LUV) launched service to Hawaii with great fanfare. Since then, the low-fare airline giant has built up a sizable business flying customers to, from, and within Hawaii.
But 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. Barring a turnaround in its performance, that could lead to retrenchment sometime down the road, benefiting hometown airline Hawaiian Holdings (NASDAQ: HA).
In the first year after it began service to Hawaii, Southwest Airlines expanded rapidly there. 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. It was also on the verge of beginning nonstop service between San Diego and Hawaii.
Source Fool.com
