Alaska Air Group to Acquire Hawaiian Airlines for $1.9 Billion

Alaska Air Group, Inc. (NYSE: ALK) has announced a definitive agreement to acquire Hawaiian Holdings, Inc. (NASDAQ: HA) for $18.00 per share in cash, with a transaction value of approximately $1.9 billion. This strategic acquisition is expected to bolster growth and competition in the U.S. aviation industry, while also fostering long-term job opportunities, community investment, and environmental stewardship. Learn more about this significant development in the airline industry.

Alaska Air Group, Inc. (NYSE: ALK) and Hawaiian Holdings, Inc. (NASDAQ: HA) have announced a definitive agreement for Alaska Airlines to acquire Hawaiian Airlines for $18.00 per share in cash, with a transaction value of approximately $1.9 billion, including $0.9 billion of Hawaiian Airlines net debt. This acquisition is expected to create a stronger platform for growth and competition in the U.S., as well as provide long-term job opportunities for employees, continued investment in local communities, and environmental stewardship.

The combined company aims to unlock more destinations for consumers and expand the choice of critical air service options and access throughout the Pacific region, Continental United States, and globally. Both Alaska Airlines and Hawaiian Airlines share a deep commitment to caring for their employees, guests, and communities, and this combination will build on the legacies and cultures of these two service-oriented airlines.

The acquisition is expected to result in a range of benefits for consumers, including the preservation of both Alaska Airlines and Hawaiian Airlines brands, expanded product offerings, and increased travel options across both airlines' networks. For Hawai’i residents, the combination will expand service and convenience by tripling the number of destinations throughout North America that can be reached nonstop or one stop from the Islands, while maintaining robust Neighbor Island service and increasing air cargo capacity.

The transaction will also deliver substantial benefits for employees and communities in Hawai’i, including the maintenance and growth of union-represented jobs, strong operational presence, opportunities for career advancement, and investment in local communities. The combined company is committed to promoting regenerative tourism in the Hawaiian Islands and investing in Hawaiian language and culture.

In terms of sustainability, Alaska Airlines is committed to building upon both airlines' strong commitments to environmental stewardship, including sustainability goals in areas of carbon emissions and fuel efficiency, waste, and healthy ecosystems. The combined efforts of both airlines will continue to advance the market for sustainable aviation fuel (SAF) in their respective geographies.

The acquisition is expected to deliver attractive value creation for Alaska Airlines' shareholders while providing a compelling premium for Hawaiian Airlines shareholders. The transaction is designed to generate high single-digit earnings accretion for Alaska Airlines within the first two years post-close and mid-teens ROIC by year three, excluding integration costs.

The transaction agreement has been approved by both boards and is conditioned on required regulatory approvals, approval by Hawaiian Holdings, Inc. shareholders, and other customary closing conditions. It is expected to close in 12-18 months and the combined organization will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.

The acquisition of Hawaiian Airlines by Alaska Airlines is expected to bring about significant benefits for consumers, employees, and communities in Hawai’i, while also creating a stronger platform for growth and competition in the U.S. aviation industry.