Alaska Airlines to Acquire Hawaiian Airlines

Alaska Airlines announced Sunday that it plans to acquire Hawaiian Airlines in a $1.9 billion deal, signaling that U.S. industry airline consolidation has not fully run its course.

Alaska plans to acquire Hawaiian for $18 cash per share, a significant premium over the $4.86 per share at the Honolulu-based airline’s Dec. 1 closing stock price. Alaska Airlines Group, the parent company of the combined airlines, will maintain Alaska and Hawaiian as separate brands with a shared loyalty program and single operating platform.

Seattle-based Alaska operates daily nonstop flights from PIT to Seattle. The merger, if approved, would provide additional connectivity to Hawaii and beyond through Alaska’s Seattle hub.

The merger is expected to create the nation’s fifth-largest airline—exc