Alaska Airlines will acquire Hawaiian Airlines for approximately $1.9 billion, the companies announced Sunday.
According to the deal, Alaska Airlines will buy Hawaiian Airlines for $18 per share in cash, amounting to $1.9 billion, and will take on $900 million of Hawaiian Airlines net debt.
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“The combined company will unlock more destinations for consumers and expand choice of critical air service options and access throughout the Pacific region, Continental United States and globally,” Alaska Airlines said in a news release.
Hawaiian Holdings, the parent company of Hawaiian Airlines, closed on Friday at under $5 a share, reaching a market value of about $250 million, according to the Wall Street Journal. Alaska Airlines has a market value of approximately $5 billion.
“This combination 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,” Alaska Airlines CEO Ben Minicucci said in a statement. “We have a longstanding and deep respect for Hawaiian Airlines, for their role as a top employer in Hawai‘i, and for how their brand and people carry the warm culture of aloha around the globe.”
The airlines said they are committed to building both companies’ commitments to environmental stewardship, “including Alaska Airlines’ five-part path to net zero by 2040.”
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“In Alaska Airlines, we are joining an airline that has long served Hawai‘i, and has a complementary network and a shared culture of service,” Peter Ingram, Hawaiian Airlines President and CEO, said in a statement.
“With the additional scale and resources that this transaction with Alaska Airlines brings, we will be able to accelerate investments in our guest experience and technology, while maintaining the Hawaiian Airlines brand.”
