The lasing mode and internal optical absorption loss profiles of III-nitride edge-emitting laser diode (LD) designs operating at 440 nm were modeled using the transfer matrix method. These models indicate absorption losses are minimized in LDs utilizing tunnel junction (TJ) contacts that (1) optimize the TJ to be as close to fully depleted as possible; (2) spatially separate the metal contact from the lasing mode using lightly doped n-GaN located above the TJ; (3) in designs with optimized TJs, minimize the total thickness of p-type material. These features reduce absorption losses in the model, relative to comparable LD models with an unoptimized TJ contact or with a transparent conducting oxide p-contact, by up to 15.3% and 12.5%, respectively, while at the same time eliminating most or nearly all p-type material.