Hawaiian Holdings Inches Closer to Alaska Airlines Deal

Shares Rise on Extended Review Period

Agreement with Antitrust Regulator Buys Time

Shares of Hawaiian Holdings, the parent company of Hawaiian Airlines, rose on Wednesday after the company announced an extension to the review period with the US antitrust regulator regarding its proposed merger with Alaska Air Group.

The extension, granted by the Department of Justice (DOJ), gives the two airlines more time to address the agency's concerns about the deal's potential impact on competition in the Hawaii market.

Hawaiian Holdings shares rose 6% in intraday trading on Wednesday, reaching their highest level in over a year. The stock closed at $28.40, up $1.60 or 5.91% for the day.

The DOJ is reportedly concerned that the merger would give Alaska Airlines too much control over the Hawaii market, potentially leading to higher fares and reduced competition.

To address these concerns, Hawaiian Airlines has agreed to divest some of its assets in Hawaii, including slots at Honolulu International Airport and gates at Kahului Airport on Maui.

The extended review period gives the two airlines time to complete the necessary divestitures and provide additional information to the DOJ.

If the merger is ultimately approved, it would create the fifth-largest airline in the United States with a combined fleet of over 300 aircraft.

The deal is expected to close in the second half of 2023.