In a groundbreaking development that signals a new era for U.S. aviation, the U.S. Department of Transportation (DOT) has officially approved the long-anticipated merger between Alaska Airlines and Hawaiian Airlines. Formalized under DOT Order 2025-7-5, the merger allows Alaska Air Group, the parent company of Alaska Airlines, to acquire Hawaiian Holdings, Inc., the parent of Hawaiian Airlines. This move marks a transformative shift in domestic and international air travel, with far-reaching implications for passengers, competition, and the broader travel industry.

The approval process, launched on December 3, 2023, began when the two airlines notified the DOT of their intent to merge. A formal application followed on July 15, 2024, requesting the transfer of economic authorities and necessary exemptions. Notably, the proposal faced no significant objections from industry stakeholders, an uncommon scenario in airline consolidations, suggesting broad support for the merger's potential benefits.

With regulatory hurdles now cleared, Alaska and Hawaiian are set to forge a future that blends operational efficiency, brand preservation, and enhanced customer experiences.

Preserving Legacy While Advancing Innovation

One of the defining features of this merger is the airlines' decision to retain their individual brand identities. Alaska Airlines and Hawaiian Airlines, both deeply rooted in their respective regional cultures, will continue to operate under their established names. This approach ensures that passengers will still enjoy the personalized service and cultural nuances each airline is known for, even as the companies work together under a shared corporate umbrella.

This preservation of brand loyalty is a significant factor in customer retention. Hawaiian Airlines has built its identity around hospitality and the spirit of aloha, while Alaska Airlines has long positioned itself as a dependable carrier known for environmental stewardship and Pacific Northwest values. By keeping both brands intact, the merged entity maintains emotional and service continuity for millions of loyal flyers.

A New Super Carrier Emerges

The combination of Alaska and Hawaiian Airlines creates a powerful new player in the U.S. aviation market. The newly formed entity is projected to serve approximately 54.7 million passengers annually across a network of 138 destinations. This includes 29 international routes extending across North America, Asia, Australia, and the South Pacific.

This expanded footprint brings several key advantages:

• Broader Access: With an expanded route network, passengers will find it easier to travel across the country and internationally. More non-stop and one-stop options reduce layovers and improve overall travel efficiency.
• Strategic Hubs: The merger strengthens major hubs such as Seattle, Honolulu, Anchorage, and San Francisco, allowing for improved connections and more frequent departures.
• Regional and Global Balance: While Hawaiian Airlines brings transpacific experience and aircraft equipped for long-haul travel, Alaska Airlines enhances domestic reach across the continental U.S. and Canada.

For travelers, this translates into a more connected and convenient travel experience, whether flying for business, leisure, or family purposes.

Loyalty Programs Combine for Greater Value

Frequent flyers stand to gain substantially from this merger. Hawaiian Miles members will be integrated into Alaska’s Mileage Plan, a widely respected program known for its mile-based earning system and transparent redemption process. Unlike revenue-based models that reward spending over distance, Mileage Plan members earn miles based on how far they fly a system appreciated by travelers who prioritize long-haul travel or budget-conscious ticketing.

The merger also deepens Alaska’s involvement in the oneworld Alliance, a global partnership of leading airlines that includes British Airways, Qantas, Cathay Pacific, Japan Airlines, and American Airlines. This alliance opens up a massive network of over 1,200 airports in 180 countries. Travelers will gain access to tier-based benefits such as lounge access, priority check-in, preferred seating, and reciprocal mileage accrual on partner airlines.

This global connectivity positions the new airline as a more competitive option for international travelers. For example, a traveler flying from Honolulu to London or Tokyo can now do so with greater ease and better loyalty program integration.

Dramatic Impact on Hawaii’s Connectivity

For the residents of Hawaii and those planning to visit the islands, the merger brings especially noteworthy benefits. Alaska and Hawaiian Airlines plan to triple the number of destinations in North America accessible from Hawaii either directly or with just one stop. This unprecedented increase in connectivity is expected to improve access to both major cities and regional destinations, providing better service for tourists, business travelers, and local residents alike.

Beyond passenger travel, the merger will boost cargo capacity, an often-overlooked component of aviation that is essential for island economies. Hawaii imports a significant portion of its goods, including fresh food, medical supplies, and consumer products. With more flights and larger aircraft servicing the islands, the efficiency and frequency of cargo operations will improve, benefiting businesses and consumers.

Competitive Pressure on the “Big Four”

One of the U.S. government’s motivations in approving this merger was its potential to increase competition. The current airline market is heavily dominated by four carriers: American, Delta, United, and Southwest which collectively control about 80 percent of the domestic market. Alaska and Hawaiian, while respected carriers, have historically held smaller shares.

By joining forces, the merged airline creates a more viable fifth competitor capable of challenging the status quo. The expanded scale allows for more efficient operations, competitive fare structures, and the ability to serve previously underserved routes. The result could be a ripple effect across the industry, compelling larger airlines to respond with better prices, improved service, and more innovation.

Moreover, the merger could bring fare relief to travelers flying between the mainland U.S. and Hawaii, a route that has often suffered from limited competition and high prices.

New International Possibilities

Perhaps one of the most exciting aspects of the merger is the potential for new international routes. Hawaiian Airlines operates long-haul aircraft such as the Airbus A330 and Boeing 787, which are capable of reaching Asia, Australia, and even parts of Europe. Alaska Airlines, on the other hand, has focused primarily on narrow-body aircraft servicing North American destinations.

With access to a broader fleet and existing international gate slots, the combined airline will be positioned to launch routes to high-demand international destinations. These may include:

• Southeast Asia: Cities like Manila, Ho Chi Minh City, and Bangkok could be within reach.
• Oceania: Additional routes to Australia, New Zealand, and the South Pacific would strengthen the U.S.-Oceania connection.
• India and the Middle East: Long-range aircraft could eventually make service to Dubai or Delhi feasible from West Coast hubs.

These developments would not only offer new options for travelers but also intensify competition on long-haul international routes traditionally dominated by global carriers.

Regulatory Approval and Strategic Alignment

The DOT’s approval followed an extensive regulatory review process. The agency examined key factors such as market overlap, financial sustainability, and alignment with U.S. aviation policy. The merger met the DOT’s “public interest” criteria, largely because the two airlines have minimal route overlap and serve complementary markets.

According to projections submitted to regulators, the merger is expected to yield approximately $400 million in annual synergies within two years. These gains will result from streamlined operations, joint purchasing agreements, route optimization, and shared technology platforms.

In addition, the order mandates reissuance of international route authorities under joint control meaning routes once served independently by Hawaiian or Alaska will now be jointly held by either carrier. This facilitates a smoother integration process and eliminates administrative obstacles to expanded service.

Integration Timeline and Passenger Expectations

The merger is now effective, pending final presidential review, and operational integration is expected to unfold over the next 12 to 24 months. During this time, passengers can expect to see:

• Unified booking systems: One-stop access to flights, reservations, and loyalty accounts across both brands.
• Shared check-in counters and customer service desks: Improving convenience and reducing confusion at airports.
• Enhanced in-flight experiences: With aligned amenities and inflight services across both airlines.
• Co-branded promotions: Including limited-time loyalty offers, cross-carrier upgrades, and bonus mileage programs.

While the process will take time, both airlines have committed to transparency and customer communication throughout the transition.

A Promising Outlook for U.S. and Global Air Travel

The Alaska and Hawaiian Airlines merger is not just a corporate transaction; it is a significant development in the evolution of air travel. By combining two respected carriers with unique strengths and complementary networks, the merger promises a better experience for travelers while strengthening the competitive dynamics of the airline industry.

For passengers, the benefits are clear: more destinations, enhanced loyalty rewards, competitive fares, and smoother travel experiences. For the aviation industry, the merger signals a renewed push toward growth, innovation, and market diversity.

As global travel continues to rebound post-pandemic and consumers demand better value and connectivity, this strategic alliance between Alaska and Hawaiian Airlines is well-positioned to lead the way.