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Wall St

Alaska Air Agrees to Buy Rival Hawaiian in $1.9 Billion Deal

user avatar Author: Editors Desk Source: Bloomberg
December 3, 2023 at 16:44
Alaska and Hawaiian Airlines planes takeoff from San Francisco International Airport (SFO) in San Francisco, California.Photographer: Tayfun Coskun/Anadolu Agency/Getty Images
Alaska and Hawaiian Airlines planes takeoff from San Francisco International Airport (SFO) in San Francisco, California.Photographer: Tayfun Coskun/Anadolu Agency/Getty Images

The deal could “improve fares, though increase complexity by adding long-haul operations from Hawaii to US cities and into Asia,” Bloomberg Intelligence analysts George Ferguson and Francois Duflot wrote in a note. 

Alaska Air Group Inc. has agreed to buy rival Hawaiian Holdings Inc.’s Hawaiian Airlines in a $1.9 billion deal to combine the two carriers, challenging the Biden administration’s aggressive stance on mergers that has already derailed one partnership.

Alaska will pay $18 per share in cash in a deal that includes about $900 million of Hawaiian’s debt, according to a statement Sunday. The offer is a significant premium to Hawaiian Holdings’ $4.86 closing share price on Friday.

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