Hawaiian Holdings, Inc.

HA

Market cap $936M

The Department of Transportation approved the merger between Alaska Airlines and Hawaiian Airlines, provided that the carriers maintain certain conditions.

SEATTLE and HONOLULU , Sept. 17, 2024 /PRNewswire/ -- Alaska Air Group, the parent company of Alaska Airlines, announced today the interim Honolulu leadership team that will guide Hawaiian Airlines operations from transaction close through a full combination of operations under a single operating certificate with two brands – Hawaiian Airlines and Alaska Airlines.

The Department of Transportation on Tuesday allowed Alaska Airlines to close its $1.9 billion acquisition of Hawaiian Airlines, clearing the final regulatory hurdle for a major industry merger that comes after federal officials blocked other deals, after both airlines agreed to several concessions.

The carriers secured clearance from the Transportation Department to proceed with their merger, conditioned on the airlines maintaining service on crucial routes, preserving the value of frequent-flier miles and other customer-service guarantees.

CNBC's Phil LeBeau joins 'Power Lunch' to report on the DOT approving Alaska Airlines and Hawaiian Airlines planned merger.

The U.S. Transportation Department said on Tuesday it had agreed to allow Alaska Airlines to close on its $1.9 billion acquisition of Hawaiian Airlines , after the carriers agreed to maintain key Hawaiian routes and adopt consumer protections.

Alaska Airlines and Hawaiian Airlines can go through with their planned merger, the U.S. Department of Transportation said Tuesday. The two carriers must maintain the value of their airline reward systems and preserve several key routes, among other conditions.

Hawaiian Holdings' top line is bolstered by improved air travel demand. Fleet upgrade efforts are commendable.

Hawaiian Holdings (HA) reported earnings 30 days ago. What's next for the stock?

Spirit Airlines, Inc. shares have dropped over 82% since the failed JetBlue merger, raising concerns about their financial health and future viability as a standalone airline. Despite financial struggles, Spirit's undervalued assets and recent regulatory shifts suggest potential for acquisition, making it a high-risk, high-reward investment opportunity. The DOJ's approval of the Alaska-Hawaiian merger indicates a possible regulatory shift, which could favor Spirit in finding a suitable acquirer.