Alaska Airlines Can Merge With Hawaiian Airlines, U.S. Says

Published On Sep 17, 2024, 3:00 PM

The Transportation Department has approved the acquisition of Hawaiian Airlines by Alaska Airlines for $1.9 billion, marking the first major U.S. airline merger in nearly a decade. To gain approval, both airlines agreed to maintain loyalty points, service certain routes, and adhere to customer service guarantees. The merger is expected to close soon, allowing Alaska Airlines to expand its operations and market share significantly.

Stock Forecasts

The merger is likely to strengthen Alaska Airlines' competitive position on the West Coast and in the international market, particularly in Asia. This growth could attract more investors and increase stock value over time.

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The airline’s chief executive, Ben Minicucci, said in an interview that closing its acquisition of Hawaiian Airlines would allow it to expand, including on international routes.

The Department of Transportation approved the merger between Alaska Airlines and Hawaiian Airlines, provided that the carriers maintain certain conditions.

The airlines agreed to maintain some routes and meet other conditions to secure the Transportation Department’s approval of their merger.