Opinion: Hawaiian Airlines Needs the Merger Deal

Photo byNils Huenerfuerst

Hawaiian Airlines announced the merger with Alaska Airlines in December 2023. The DOJ has extended the review period to August 15. As of March 31, 2024, Hawaiian Airlines had a net loss of $1.75 billion.

As you recall, Aloha Airlines and Hawaii Airlines were the mainstays of interisland airlines for many years. Also, on March 31, 2008, Aloha Airlines flew its last flight before closing its business.

Before Aloha Airlines filed for bankruptcy protection and closed for business, it had a net operating loss of $40.5 million in 2006. Aloha Airlines's net loss was less than Hawaiian Airlines before it shut its doors for good.

The DOJ's decision to challenge or approve the merger will determine whether the Hawaiian Airlines name survives as a business through the Alaska Airlines merger. A better indication of whether there will be a merger will be made on August 15, 2024.

If the merger falls apart, Hawaiian Airlines may not survive the monthly net losses and may have to close its doors for business. That means Southwest Airlines will be the only major interisland passenger airline.

Final Thought

Hawaiian Airlines cannot survive with net losses in the billions. Their only hope of survival is a merger or another airline purchasing the airline and folding it into its business.