Dec 4, 2023 - Business
Charted: Hawaiian Holdings takes off
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Another big tie-up to talk about today:
- Alaska Air Group agreed to buy Hawaiian Airlines for around $1.9 billion in cash and debt, the companies announced on Sunday, Hope writes with Axios Pro's Michael Flaherty.
By the numbers: Alaska Air has agreed to pay $18 per share in cash for its Hawaiian rival, a premium of around four times the seller's closing price on Friday before the deal was announced.
- Shares of Hawaiian closed up 193% today.
- Alaska Airlines shares sunk 14.2%.
The big picture: U.S. airline carriers have steadily consolidated over the years amid cutthroat competition and price wars, rivalries that only intensified in the post-pandemic travel boom.
What we're watching: The deal still carries conditions, one of which is regulatory approval.
- And with Hawaiian shares closing today 21% below the agreed deal price, investors are signaling it's no sure thing.
- If approved, the transaction is expected to take 12-18 months to close.
