© Reuters. File photo: Hawaiian Airlines airplanes sit idle on the runway at the Daniel K. Inouye International Airport due to the business downturn caused by the coronavirus disease (COVID-19) in Honolulu, Hawaii, U.S., April 28, 2020. REUTERS/Marco Garcia/File pho
(Reuters) -Alaska Air said on Sunday that it has entered an agreement to acquire Hawaiian Airlines for $1.9 billion, which includes $900 million of Hawaiian Airlines net debt.
Alaska Airlines will acquire Hawaiian Airlines for $18.00 per share in cash, the two companies said, adding that the transaction will unlock more destinations and expand access throughout the Pacific region, continental United States and globally.
The deal is expected to generate high single-digit earnings accretion for Alaska Airlines within the first two years with no anticipated material impact on long-term balance sheet metrics.
“This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawai’i travelers,” said Ben Minicucci, Alaska Airlines CEO.
The combined organization will be based in Seattle under the leadership of Minicucci, and Honolulu will become a key Alaska Airlines hub.
Alaska Air (NYSE:) in October had cut its full-year profit outlook on rising expenses as major U.S airlines felt the pinch from higher fuel prices, putting a dampener on their outlooks.
