Alaska Air Group, Inc. has announced the completion of its acquisition of Hawaiian Holdings, Inc., expanding its network to 141 destinations with 29 international markets and over 1,200 destinations globally through the oneworld alliance and global partners. The combined entity will maintain the distinct brands of Alaska Airlines and Hawaiian Airlines while establishing Honolulu as its second largest hub.
Alaska Air Group's airlines now fly nearly 1,500 daily flights to 141 destinations, including 29 international markets, and operate a fleet of 350 aircraft, employing more than 33,000 people across North America, Asia, and the Pacific.
As of the acquisition date, Alaska Airlines and Hawaiian Airlines have initiated several changes to provide expanded benefits for guests. For example, guests can now reach 141 destinations directly, and the airlines will begin the work to secure a single operating certificate with the Federal Aviation Administration (FAA), which will allow them to operate as a single carrier with an integrated passenger service system.
In terms of loyalty programs, Alaska Lounge members will have more access, and Hawaiian million milers will receive new benefits. Additionally, guests can now transfer miles between Alaska and Hawaiian loyalty accounts to redeem award travel at a 1:1 ratio, and they will soon be able to purchase tickets for flights on both airlines on both websites.
Looking ahead, the airlines plan to offer expanded redemption opportunities, allow customers to earn miles on both airlines, and introduce a new travel program exclusively for Hawaii residents.
The acquisition aims to maximize shareholder value by diversifying revenue, expanding growth opportunities, and increasing network relevance. The combined organization is expected to deliver at least $235 million in run-rate synergies, with high single-digit accretion to earnings within the first two years and mid-teens return on invested capital by year three.
In terms of leadership, Ben Minicucci, CEO of Alaska Air Group, will lead the combined organization, while Joe Sprague, previously Alaska’s regional president of Hawaii/Pacific and president of Horizon Air, will serve as the chief executive officer of Hawaiian Airlines until the FAA grants a single operating certificate.
Hawaiian Airlines’ stock will be de-listed and cease trading on the NASDAQ, with the combined organization continuing to trade under the ticker ALK on the New York Stock Exchange.
Today the company's shares have moved 0.0% to a price of $18.0. For the full picture, make sure to review Hawaiian's 8-K report.
