Merger of Hawaiian Airlines and Alaska Airlines Brings Layoffs

In 2024, the merger of Hawaiian Airlines and Alaska Airlines sparked concerns of layoffs as part of the reorganization process. These concerns have now been confirmed as 252 employees are expected to be cut from the absorbed Hawaiian staff force.

Majority of the layoffs will come from the Honolulu headquarters workforce, with the remaining non-union employees being cut from various locations. Hawaiian Airlines, which was facing financial difficulties before the merger, had been steadily hiring union members. However, with the merger, the fate of Hawaii’s flag carrier was sealed.

On July 14, 2025, the United States Department of Transportation approved the merger, granting Alaska Air Group access to Hawaiian’s most valuable routes, codeshare licenses, and international flying rights. Prior to the merger, Hawaiian Airlines had hired around 500 union staff in anticipation of the transition. According to airline representatives, the affected staff had been informed of the decision well in advance.

The Beat of Hawaii, an aviation analysis website, predicts that long-haul aircraft will follow the same fate as the routes, certificates, and rights that have now been transferred to Alaska’s control. It is speculated that international tourism will take a back seat as domestic traffic, served by Boeing 737s, becomes the focus. This will allow the widebody 787 Dreamliners and Airbus A330s to be transferred to other Alaska routes.

In line with this prediction, Alaska has already started transferring Dreamliners from Honolulu International Airport (HNL) to Seattle-Tacoma International Airport (SEA) for a Tokyo Narita Airport (NRT) route. However, a news release from Hawaiian on July 22 indicates that they will continue operating to Sydney Kingsford Smith Airport (SYD), Los Angeles International Airport (LAX), and Seattle (SEA).

Kirsten Amrine, vice president of revenue management and network planning at Alaska Airlines, expressed excitement over the increased options for travelers during the busiest travel period of the year. She emphasized the airline’s commitment to providing convenient and comfortable travel for its customers.

The challenging market of commercial flying, compounded by the COVID-19 pandemic, heightened competition, and operational challenges, has contributed to Hawaiian Airlines’ financial woes. The epidemic has greatly affected the demand for travel, particularly on international routes, which are crucial for the Hawaiian community.

Furthermore, engine issues with Pratt & Whitney engines on the airline’s fleet of Airbus A321neos have led to increased fuel consumption and operational costs. Increased competition from other carriers, especially on mainland routes, has also impacted the airline’s income and profitability. Hawaiian Airlines also faced financial setbacks due to the Maui wildfires in 2023. Fluctuating gasoline prices have further added to the airline’s financial instability.

In recent years, the airline has experienced significant net losses due to its substantial debt structure, which includes secured borrowings and aircraft-backed debt.