I don't understand why Aloha and Hawaiian are losing money? For similar fares, the discount carriers like WN, JetBlue etc. will take you on much longer flights? Are their loads so low that they need to charge the few passengers they have high fares to compensate for empty planes?

I know all the arguments about comparing WN to full service carriers, but IIRC, interisland flights on Aloha and Hawaiian are about 30 minutes long and are pretty no frills.