Southwest Airlines growing to Hawaii even as it shrinks elsewhere because of the MAX
When Southwest Airlines began selling tickets for its first-ever flights to Hawaii in March, they sold out "in minutes," said chief financial officer Tammy Romo.
Demand for Hawaii remains "ahead" of the Dallas-based carrier's expectations and has prompted further growth to the islands even as Southwest continues to deal with the ramifications of the Boeing 737 MAX grounding, Romo said while speaking at a Cowen investor conference on Wednesday.
"Hawaii has just been tremendously successful right out of the gate," she added.
In March, Southwest landed in Hawaii with flights to Honolulu (HNL), Kahului (OGG) on Maui, and Kona (KOA) from both Oakland (OAK) and San Jose (SJC) in California. Plans called for a rapid ramp up of service to those initial cities, plus Hilo (ITO) and Lihue (LIH) in Hawaii, and from Sacramento (SMF) and San Diego (SAN) on the US mainland.
But then Southwest's best laid plans for Hawaii went awry.
The 737 MAX was grounded in March, throwing a wrench into Southwest's growth plans. The carrier is the largest US operator of the aircraft, with 34 737 MAX 8s at the time of the suspension and a previous expectation to have 68 MAXes by the end of the year.
Related: The Best Southwest Airlines Credit Card for Family Travelers
Southwest was forced to put its Hawaii plans on hold as it dealt with the operational issues stemming from the MAX grounding. Newark (EWR) has been dropped from its network, at least 13 routes suspended, and numerous flights cancelled as a result.
As a result, the airline will operate roughly 8% less capacity at the end of 2019 than it planned to at the beginning of the year, said Romo. Based on Southwest's initial plans to grow by nearly 5% this year, this means it will actually shrink by roughly three percentage points because of the MAX.
But Hawaii continues to beat expectations. This was a driver of Southwest's decision in August to continue with its expansion to the islands, even as it continued to work to mitigate the impact of the MAX grounding.
Related: Southwest Airlines to Resume Hawaii Expansion
On Jan. 19, Southwest will begin six new Hawaii routes: Honolulu-Hilo, Honolulu-Lihue, Honolulu-Sacramento, Kahului-Kona, Oakland-Kona, and San Jose-Lihue. Two days later it will add service between Oakland and Lihue, and San Jose and Kona.
Notably, even as the carrier moves forward with its Hawaii expansion, all of the new routes begin only after it expects the 737 MAX to resume flying on Jan. 6.
Southwest sees a lot of opportunity to continue to grow in Hawaii, and elsewhere, said Romo. That growth just will not occur until 2020 at the earliest.
Related: Why the Last Row on Southwest Is the Best Place to Fly
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees