The top four airlines—American, Southwest, Delta, and United—control 74% of US flight capacity
Alaska Airlines, the fifth-largest carrier in the US, is buying Hawaiian Airlines for $1.9 billion. The deal, which includes $900 million of the Hawaiian Airlines’ debt, “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,” the two 90-plus-year-old companies announced yesterday (Dec. 3).
Expected to close in 12 to 18 months, the transaction has been approved by both boards, but it could invite regulatory scrutiny like the JetBlue Airways–Spirit Airlines merger. In March, the US Transportation and Justice departments sued to stop the JetBlue-Spirit deal, worried that consolidation would push up prices and bring down service. The antitrust trial began just over a month ago, with closing arguments expected tomorrow (Dec. 5).
The Alaska-Hawaiian combination is less of a threat to the industry status quo, though. Combined, JetBlue and Spirit would climb up the leaderboard, surpassing Alaska to become America’s fifth-biggest airline. The Hawaiian purchase won’t really change the game for Alaska or upset any order.
Neither merger can dethrone the top players. The big four airlines in the country—American, Southwest, Delta, and United—account for a combined 74% of US flight capacity.
365: Combined fleet of narrow- and wide-body airplanes between Alaska and Hawaiian. By comparison, American Airlines has a fleet of 958 and counting
Triple: Increase in North American destinations that Hawai’i residents will be able to reach directly or with one stop
54.7 million: Combined annual passengers for Alaska Airlines and Hawaiian. In 2022, American Airlines ferried nearly 200 million travelers
29: Global partners from whom Hawaiian Airlines loyalty members will be able to earn and redeem miles and receive elite benefits, via the oneworld Alliance, which includes Alaska Airlines
“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...I am grateful to the more than 23,000 Alaska Airlines employees who are proud to have served Hawai’i for over 16 years, and we are fully committed to investing in the communities of Hawai’i and maintaining robust Neighbor Island service that Hawaiian Airlines travelers have come to expect.”
—Ben Minicucci, CEO of Alaska Airlines, who will lead both brands after the deal closes
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
