Alaska Airlines has agreed to purchase Hawaiian Airlines for $1.9 billion

Alaska Air Group has agreed to pay $1.9 billion to acquire competitor Hawaiian Airlines, setting up another potential regulatory struggle in the second proposed airline merger in less than two years.

Alaska will pay $18 per share for Hawaiian and assume $900 million in debt, the businesses said on Sunday. Hawaiian Airlines’ shares ended at $4.86 on Friday, giving the firm a market valuation of around $250 million. This year, they are down roughly 53%.

The Maui wildfires, increasing competition from Southwest Airlines, which has boosted service in Hawaii in recent years, and a slow recovery of travel to and from Asia following the pandemic have all been issues for the airline. Since the beginning of 2020, Hawaiian has incurred net losses in all but one quarter, whereas Alaska and other airlines have restored to more stable financial footing as the epidemic has faded.

Hawaiian’s stock went up 180% in early trade on Monday, closing at $13.57 per share, still less than the suggested purchase price. Alaska’s stock was down 17% in early trade.