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Interisland Travel Costs and Comfort to Deteriorate as Alaska Airlines Considers Fleet Swap

·6 min read·👀 Watch

Executive Summary

Alaska Airlines' potential retirement of its 717 fleet could lead to a doubling of middle seats on interisland flights, increasing travel discomfort and costs for businesses and residents. Remote workers and tourism operators should prepare for a less convenient travel experience and evaluate budget impacts. Travelers should monitor fleet decisions over the next 6-12 months.

  • Remote Workers: Increased discomfort and potentially higher fares for frequent interisland travel.
  • Small Business Operators: Higher travel costs for interisland logistics and employee movement.
  • Tourism Operators: Potential strain on visitor experience and increased operational travel costs.
  • Investors: May need to re-evaluate business models reliant on seamless interisland connectivity.
  • Action: Monitor Alaska Airlines' fleet announcements and competitor responses.

Watch & Prepare

Medium PriorityNext 6-12 months (pending fleet decisions)

If Alaska Airlines proceeds with the 717 retirement and fleet swap, businesses and individuals relying on interisland travel will face increased costs and diminished comfort, requiring at least a 'watch' posture to adjust travel plans and budgets if necessary.

Monitor Alaska Airlines' fleet transition announcements and any competitor responses over the next 6-12 months. If a confirmed retirement of the 717 fleet and replacement with higher-density aircraft is announced, remote workers and small businesses should re-evaluate travel budgets and consider alternative logistics.

Who's Affected
Remote WorkersSmall Business OperatorsTourism OperatorsInvestors
Ripple Effects
  • →Increased middle seats → reduced passenger comfort and potential fare increases
  • →Higher interisland travel costs → increased cost of doing business and living in Hawaii
  • →Less attractive interisland travel → potential disincentive for multi-island business expansion or remote work arrangements
Hawaiian Airlines jet soaring through a clear sky during twilight, Kailua-Kona, Hawaii.
Photo by Josh Withers

Interisland Travel Costs and Comfort to Deteriorate as Alaska Airlines Considers Fleet Swap

The potential phasing out of Alaska Airlines' Boeing 717 aircraft introduces a significant, albeit not immediate, risk of diminished comfort and increased costs for interisland travel across Hawaii. This shift, driven by the aging 717 fleet and potential replacements, could translate to a near doubling of middle seats on heavily trafficked routes, impacting the travel experience for a critical segment of Hawaii's workforce and economy.

The Change

Alaska Airlines has signaled its intention to retire its fleet of 17 Boeing 717 aircraft, a type highly utilized for interisland flights within Hawaii. While a firm timeline has not been set, discussions suggest a transition within the next few years. The most probable replacement aircraft, such as the Airbus A220 or other narrow-body jets, typically have a higher ratio of middle seats compared to the current 2-3 configuration of the 717. This change could fundamentally alter the seating density on routes like Honolulu to Maui or Kauai, shifting from a balanced passenger experience to one where the middle seat becomes far more prevalent. This decision is partly driven by the increasing maintenance costs and operational challenges associated with the aging 717 airframes, some of which have been in service for over two decades.

Who's Affected

  • Remote Workers: For digital nomads, remote employees residing in Hawaii, or mainland-based professionals with frequent client engagements across the islands, this change directly impacts comfort and cost. Increased middle seat occupancy can make multi-leg island hops, often necessary for client meetings or personal travel, significantly less comfortable and potentially lead to higher airfare as airlines reconfigure cabin layouts. Businesses with remote employees who travel frequently between islands may see increased travel budgets and decreased employee satisfaction.

  • Small Business Operators: Businesses relying on interisland shipping, personnel movement, or cross-island operational coordination face increased logistical friction and costs. If competitors adopt similar fleet strategies or if Alaska Airlines' service becomes less appealing, businesses may need to seek alternative, potentially more expensive, transportation methods or absorb higher airfare costs. This could affect supply chain efficiency for businesses with operations on multiple islands.

  • Tourism Operators: Hotels, tour companies, and rental car agencies depend on seamless interisland visitor movement. A less comfortable and potentially more expensive travel experience for tourists could deter multi-island itineraries or lead to visitor dissatisfaction if flights are perceived as cramped or burdensome. This could marginally impact the competitiveness of Hawaii as a multi-island destination.

  • Investors: Investors in Hawaii's business ecosystem, particularly those focused on transportation, logistics, or businesses with significant interisland operational needs, should monitor Alaska Airlines' fleet decisions. A shift towards higher-density seating could signal a broader trend in interisland air travel, affecting the viability of certain business models or investment theses that rely on efficient, comfortable island hopping.

Second-Order Effects

The potential for more middle seats on interisland flights, coupled with the retirement of older aircraft, could lead to increased fares over time. This escalation in travel expenses, particularly for frequent flyers like remote workers and business personnel, contributes to a higher cost of doing business and living in Hawaii. While not directly creating labor shortages, the added inconvenience and cost of interisland travel could make remote work arrangements less attractive for residents or discourage businesses from expanding operations to multiple islands, potentially concentrating economic activity and exacerbating regional disparities.

What to Do

Given that Alaska Airlines has not yet finalized its fleet decisions, affected parties should adopt a 'watch' posture. This means actively monitoring the airline's official announcements and industry responses, rather than taking immediate action.

  • Remote Workers and Small Business Operators: Begin tracking Alaska Airlines' fleet transition plans and any announcements regarding future seating configurations. Assess the frequency of your interisland travel over the next 6-12 months and estimate the potential budget impact if fares increase or comfort decreases significantly. Consider building contingencies into travel budgets for at least two years out.

  • Tourism Operators: Keep an eye on passenger feedback regarding interisland flights and any changes in flight schedules or pricing. Evaluate if a degraded travel experience might affect visitor satisfaction or booking patterns for multi-island packages. Explore partnerships with other interisland carriers if available.

  • Investors: Monitor developments closely for any indication of a shift in Alaska Airlines' strategy or how competitors like Hawaiian Airlines might respond. Assess the potential impact on your portfolio companies that have significant interisland travel dependencies.

No immediate action is required, but a proactive watch ensures readiness to adapt travel strategies and budgets as confirmed plans emerge.

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