What Happened to Hawaiian Airlines, Inc.?

Hawaiian Airlines, with a history stretching back to its founding as Inter-Island Airways in 1929, has long been synonymous with air travel in Hawaii. The airline rebranded to Hawaiian Airlines in 1941 and steadily expanded its inter-island and later transpacific services, becoming a vital link for residents and tourists alike.

The most significant recent development for Hawaiian Airlines is its acquisition by Alaska Air Group, which was announced in December 2023 and completed on September 18, 2024. This merger was driven by Hawaiian's financial struggles, as the airline had not made a profit since 2019 and faced substantial losses, including a $189 million loss before income taxes in 2025, its first full year under Alaska's ownership. The acquisition aimed to provide financial stability and create the fifth-largest airline in the United States, dominating travel to and from Hawaii and the US West Coast.

The integration process has been rapid and comprehensive. Key milestones in 2025 included the transition of HawaiianMiles to Alaska's Atmos Rewards loyalty program on October 1, 2025, and obtaining a single operating certificate from the Federal Aviation Administration on October 29, 2025. The most impactful changes occurred on April 22, 2026, when Hawaiian Airlines officially joined the Oneworld alliance, and critically, Alaska's reservation system took over all Hawaiian operations. On this date, Hawaiian's flight numbers (HA code) disappeared, replaced by Alaska's (AS code), although Hawaiian continues to operate flights under its brand with an 'operated by Alaska as Hawaiian Airlines' disclosure.

Despite the operational shifts and initial financial drag on Alaska Air Group, there is a clear strategic direction for Hawaiian. In January 2026, Hawaiian Airlines announced a five-year, $600 million 'Kahu'ewai Hawai'i Investment Plan.' This substantial investment, part of Alaska Air Group's 'Alaska Accelerate' strategy, focuses on modernizing airport facilities across Hawaii, including a new premium lounge in Honolulu by late 2027, and a full interior upgrade of its widebody Airbus A330 fleet starting in 2028. These upgrades will introduce new seats, first-class suites, premium economy cabins, Bluetooth-enabled in-flight entertainment, and Starlink Wi-Fi. Furthermore, in May 2026, Hawaiian announced the electrification of a significant portion of its ground support fleet at Honolulu, aligning with broader sustainability goals.

As of May 2026, Hawaiian Airlines operates as a wholly-owned subsidiary of Alaska Air Group, maintaining its brand identity but with deeply integrated operations. The airline is no longer in crisis mode, but remains unprofitable, losing approximately $518,000 per day in 2025. The full integration is targeted for 2027, with the aim of generating significant synergies and enhancing the combined entity's competitive position, particularly in transpacific and inter-island travel.