Southwest Airlines Co (LUV) to Add Hawaii Routes in 2018

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Southwest Airlines Co (NYSE:LUV) announced that it would be expanding its domestic services to reach Hawaii.

Southwest Airlines Co (LUV)The popularity of Hawaii as a tourist destination continues to rise with 8.9 million people traveling to the beautiful island at some point during the year. Now, Southwest has acquired a new fleet of Boeing planes that will carry their passengers to Hawaii.

Part of the reason why people love to travel Southwest is because the company doesn’t assign seats, instead allowing passengers to choose their own spot based on who shows up first. While this may seem inconvenient to some, it ultimately means that you get to travel for cheaper as lower ticket prices are the trade-off for such a deal.

A University of Virginia was studying the “Southwest Effect,” which essentially found that in markets where the airline has nonstop service fares, tickets are $45 lower than in cities without those routes.

The popularity of Hawaii as a tourist destination has risen recently due to last year’s outbreak of the mosquito-borne Zika virus that struck Florida and the Caribbean. While Florida may be closer to some travelers, the risk was not worth the reward when choosing a vacation place.

In the first eight months of the current year, the number of visitors who have gone to the state has increased by 5%.

LUV stock surged 0.5% Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/10/southwest-airlines-luv-hawaii/.

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