Alaska Air Group, Inc. has completed the acquisition of Hawaiian Holdings, Inc. The acquisition has expanded the number of destinations available to guests, allowing them to reach 141 destinations directly, including 29 international markets, and over 1,200 destinations globally through the oneworld alliance and global partners.
As of today, Alaska Air Group's airlines/subsidiary airlines operate nearly 1,500 daily flights to 141 destinations and maintain hubs in Seattle, Honolulu, Los Angeles, San Francisco, Portland, San Diego, and Anchorage. The company operates a fleet of 350 aircraft and employs more than 33,000 people across North America, Asia, and the Pacific.
In terms of benefits for guests, Alaska Airlines and Hawaiian Airlines will be offering various advantages. For example, Alaska Lounge members and guests can now enjoy Alaska Lounge locations when flying on Hawaiian. Additionally, guests will soon be able to transfer miles between Alaska and Hawaiian loyalty accounts to redeem award travel at a 1:1 ratio for no charge.
In the coming weeks, guests will also be able to buy tickets for flights on both airlines on their respective websites, and a new travel program called "huaka‘i by Hawaiian" will be introduced, offering unique discounts and benefits exclusively for Hawaii residents. Furthermore, in the coming months, guests will be able to earn miles on both airlines and enjoy expanded redemption opportunities.
The acquisition has also led to changes in leadership, with Alaska Air Group CEO Ben Minicucci leading the combined organization and Joe Sprague serving as the CEO of Hawaiian Airlines until the FAA grants a single operating certificate.
The combined organization anticipates achieving at least $235 million in run-rate synergies, high single-digit accretion to earnings within the first two years, and mid-teens return on invested capital (ROIC) by year three. The long-term value of acquiring another top 25 U.S. hub positions the combined organization as a leader in the $8 billion Hawaii market.
Hawaiian Airlines' stock will be delisted and cease trading on the NASDAQ, and the combined organization will continue to trade under the ticker ALK on the New York Stock Exchange.
Alaska Air Group, Inc. is committed to safety, remarkable customer care, operational excellence, financial performance, and sustainability. The company is a member of the oneworld alliance and, with oneworld and additional global partners, provides guests with more choices to purchase, earn, or redeem across 30 airlines and more than 1,000 worldwide destinations.
The full press release for the acquisition is available on the Alaska Air Group website. The market has reacted to these announcements by moving the company's shares -2.4% to a price of $39.99. For more information, read the company's full 8-K submission here.
