The federal government has 10 days past the previous deadline of Aug. 5 to decide whether it will allow or oppose the merger of Alaska Airlines and Hawaiian Airlines.
In February, Hawaiian Airlines shareholders approved Alaska's acquisition for $1.9 billion, including $900 million in Hawaiian debt.
The airlines await approval from the U.S. Justice Department Antitrust Division, which blocked JetBlue Airway’s acquisition of low-cost carrier Spirit Airlines earlier this year.
In May, Hawaiian and Alaska said they had complied with the DOJ's second request for additional documents, triggering a 90-day waiting period initially set to end Aug. 5.
The DOJ has asked for 10 more days to weigh in — and Hawaiian and Alaska consented. That means the Aug. 5 decision deadline is now Aug. 15.
During a quarterly earnings conference call on Tuesday, Hawaiian reported a loss in revenue during the second quarter of 2024. But its stock actually rose, as speculation swirled over the fate of the Hawaiian-Alaska merger.
Hawaiian shares shot up 14% in after-hours trading to top $13 a share after Hawaiian posted a spring loss of $1.30 a share on revenue of $732 million. It was a smaller loss than expected, but revenue missed.
Behind these facts is the looming shadow of the rumor mill — a source report that the DOJ might fight the sale to Alaska, and a later report that there was internal division at the DOJ on what to do.
If the merger moves forward, Hawaiian shareholders would receive $18 per share.
When the merger was announced in December 2023, Alaska CEO Ben Minicucci said the two brands would remain the same, coexisting under one company — an unusual move in an industry where waves of acquisitions have led to four big brands dominating the U.S. market.
"There's a lot of wait and see to make sure we really do, and, you know, that's fair, and that's appropriate to make sure that we continue to uphold that commitment," said Diana Birkett Rakow, senior vice president for public affairs and sustainability at Alaska Airlines, previously on The Conversation.
If all goes as planned, the airlines have said they expect to complete the transaction between December 2024 and May 2025.
