December 3, 2023 - 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. The all-cash transaction, valued at approximately $1.9 billion, includes assuming $0.9 billion of Hawaiian Airlines' net debt. The acquisition will create a combined company that offers expanded travel options and access to over 1,200 destinations globally.

The merger will position the combined airline as the fifth largest in the United States, with a fleet of 365 narrow and wide body airplanes. Passengers will have the opportunity to reach 138 destinations through the combined networks of Alaska Airlines and Hawaiian Airlines, and over 1,200 destinations through the oneworld Alliance.

Honolulu will become a key hub for the combined airline, with expanded service for residents of Hawai'i to the Continental U.S. and new connections to Asia and throughout the Pacific for travelers across the U.S. The commitment to Hawai'i remains strong, with a focus on maintaining robust Neighbor Island air service and providing a more competitive platform for growth, job opportunities, community investment, and environmental stewardship.

Both Alaska Airlines and Hawaiian Airlines have a deep commitment to caring for their employees, guests, and communities. The merger aims to preserve the strong legacies and cultures of both airlines, maintaining their high-quality brands on a single operating platform. The combined company is dedicated to protecting and growing union-represented jobs in Hawai'i.

The acquisition is expected to create immediate value, with at least $235 million of expected run-rate synergies. Alaska Airlines projects the transaction to be accretive to its earnings within two years post-close. The deal offers an attractive premium for Hawaiian Airlines shareholders, with a purchase price of $18.00 per share.

A joint press conference will be held in Honolulu on December 3, 2023, to discuss the acquisition. The transaction is subject to regulatory approvals, shareholder approval from Hawaiian Holdings, Inc., and other customary closing conditions. It is expected to close within 12-18 months.

Alaska Airlines' CEO, Ben Minicucci, expressed excitement about the combination, stating, "This is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawai'i travelers." Peter Ingram, President and CEO of Hawaiian Airlines, echoed this sentiment, emphasizing the opportunity to deliver more for guests and communities.

The merger of Alaska Airlines and Hawaiian Airlines will enhance competition, expand choice for consumers, and create a stronger platform for growth. It represents a significant milestone for both airlines and the travel industry as a whole.