This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

The past few years have seen many airlines introduce a basic economy product. So, it wasn’t a big surprise when Hawaiian followed suit last year, announcing the bare bones fare class would be instated in 2019.

Now, in a new report, one well-respected Wall Street analyst wants the airline to launch the product as soon as possible, rather than sticking with the current timeline to launch later this year.

Analyst Helane Becker from Cowen Equity Research said in a Wednesday report that for Hawaiian, “basic economy can’t come soon enough.”

Why the sudden push for no-frills fares from Wall Street?

Hawaii as a destination currently has plenty of capacity, which is keeping fare prices depressed. Capacity is going to grow even more once Southwest gets airborne and island bound. This is great news for thrifty air passengers who want to head to the islands. Round-trip flights from Los Angeles(LAX) to Honolulu(HNL) can currently be booked for an average of less than $500 with Hawaiian. For investors, however, this over capacity poses a risk to profits.

Wall Street wants the airline to launch its basic economy product ahead of schedule to better compete once Southwest launches its much-anticipated service to Hawaii. The new fare class would allow Hawaiian to shore up revenue as passengers opt to pay for higher classes of service to avoid the restrictive product, or pay additional fees for conveniences like choosing their seats ahead of time.

With the government shutdown delaying Southwest’s entrance into the market, Hawaiian has some time get out ahead, although the window to do so is shrinking. It remains to be seen if the airline will heed the pleas from Wall Street and makes changes to the launch timetable for its basic economy product.

Featured photo by Hawaiian Airlines.

Know before you go.

News and deals straight to your inbox every day.

The Platinum Card® from American Express

WELCOME OFFER: 60,000 Points Terms Apply.

TPG'S BONUS VALUATION: $1,200

CARD HIGHLIGHTS: Delta Sky Club and Centurion lounge access, $200 annual airline fee credit and up to $200 in Uber credits annually

Apply Now
More Things to Know
  • Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
  • Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
  • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
  • 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
  • Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
  • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
  • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
  • Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
  • $550 annual fee.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
N/A
Annual Fee
$550
Balance Transfer Fee
See Terms
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.