Alaska Air Group, Inc. (NYSE: ALK) and Hawaiian Holdings, Inc. (NASDAQ: HA) are set to merge, creating a powerhouse that enhances travel options for consumers in Hawai’i and the West Coast. The all-cash transaction, valued at approximately $1.9 billion, will see Alaska Airlines acquire Hawaiian Airlines for $18.00 per share, solidifying a single, compelling loyalty offering.
The merged entity will maintain the strong, high-quality brands of both Alaska and Hawaiian Airlines, operating under a single platform. With a fleet of 365 narrow and wide-body airplanes, the fifth-largest U.S. airline will provide access to 138 destinations through combined networks and over 1,200 destinations via the oneworld Alliance.
Honolulu will emerge as a key hub, facilitating expanded services for Hawai’i residents to the Continental U.S. and establishing new connections to Asia and the Pacific. The commitment to Hawai’i includes maintaining robust Neighbor Island air service and fostering a competitive platform for growth, job opportunities, community investment, and environmental stewardship.
The $18.00 per share offer for Hawaiian Airlines shareholders represents an attractive premium, with an expected accretive impact on Alaska’s earnings within two years post-close. The merger aims to create immediate value, with projected run-rate synergies of at least $235 million.
Ben Minicucci, Alaska Airlines CEO, expressed excitement about the collaboration, emphasizing the shared commitment to providing an enhanced travel experience. Peter Ingram, Hawaiian Airlines President and CEO, highlighted the potential for accelerated investments in guest experience and technology, while preserving the unique Hawaiian Airlines brand.
The combined airline will maintain both brands, ensuring operational reliability, trust, and guest satisfaction. Passengers can expect an expanded product offering, increased connectivity across networks, and loyalty program benefits, including access to a broader range of global partners and oneworld Alliance benefits.
The merger promises substantial benefits for employees and communities in Hawai’i, including the maintenance and growth of union-represented jobs, career advancement opportunities, and expanded workforce development initiatives. The commitment extends to local communities, culture, and the natural environment.
Environmental stewardship remains a priority, aligning with Alaska Airlines’ commitment to net zero by 2040. The transaction, expected to close in 12-18 months, has received approval from both boards and is subject to regulatory and shareholder approval. The combined organization will be headquartered in Seattle, under the leadership of Ben Minicucci, with a dedicated team focused on integration planning.
