Hawaiian Airlines is in the spotlight after announcing a potential merger with Alaska Airlines for $1.9 billion. The deal, which was revealed on December 3, involves Alaska acquiring Hawaiian for $18 a share. This move comes as Hawaiian Airlines has been struggling financially, reporting losses of $12.3 million before taxes in the second quarter of 2023 and $240 million in 2022.
The impact of the pandemic on the tourism industry has hit Hawaiian Airlines particularly hard, with the company being disproportionately affected by the shutdown of tourism in Hawaii from March 2020 to November 2021. This has resulted in significant debt for Hawaiian, contributing to its financial struggles.
While Hawaiian Airlines has expressed openness to other offers, the joint press release with Alaska Airlines indicates that there has been limited interest from other airlines in acquiring Hawaiian. The total transaction, inclusive of Hawaiian Airlines’ net debt, is valued at approximately $1.9 billion.
As the potential merger unfolds, the future of Hawaiian Airlines and its operations in the competitive airline industry remains uncertain. With the airline industry facing ongoing challenges and changes, the merger with Alaska Airlines could have significant implications for both companies and the broader aviation sector.
