Hawaiian Airlines -6.5% after Southwest plans 'low fares' between islands
- Hawaiian Holdings (NASDAQ:HA) plunged 6.5% in today's trade after Southwest Airlines (LUV) said it planned to offer service to Hawaii from California and fly between the Hawaiian islands.
- Inter-island flying is "a market that has little competition, if any. We think it's very highly priced," says LUV President Tom Nealon, adding that the airline plans to offer "low fares" - unwelcome news to Hawaiian Airlines, which charges at least $185 for a round-trip ticket from Honolulu to Kona.
- LUV said last fall that it planned to start serving Hawaii this year; today it said it planned to fly from Oakland, San Diego, Sacramento and San Jose, pending regulatory approvals.