Hawaiian Holdings Inc. (NASDAQ:HA), the parent company of Hawaiian Airlines, has agreed with the Department of Justice (DOJ) to extend the review period for its proposed merger with Alaska Air Group Inc. (NYSE:NYSE:ALK), until August 15, 2024. This extension, announced on Monday, follows a previous agreement to not finalize the merger before 90 days from May 7, 2024, the date both parties declared substantial compliance with a Second Request for information from the DOJ.
The merger, initially announced on December 2, 2023, involves Alaska Air Group's subsidiary, Marlin Acquisition Corp., merging with Hawaiian Holdings, with the latter surviving as a wholly owned subsidiary of Alaska Air Group. The extended review period allows the DOJ additional time to investigate the merger's implications under antitrust laws.
The timing agreement between Hawaiian Holdings and the DOJ, entered into on March 27, 2024, set the original review deadline for August 5, 2024. The new deadline is now set for 12:01 a.m., Eastern Time, on August 15, 2024, as both parties continue to cooperate with the regulatory review process.
Hawaiian Holdings' decision to extend the review period reflects the company's commitment to regulatory compliance and its efforts to ensure a thorough review by the DOJ. The merger is subject to regulatory approvals and customary closing conditions.
This development is based on a press release statement from Hawaiian Holdings Inc.
In other recent news, Hawaiian Holdings has seen a revised price target from TD Cowen, raising it to $13 on improved operational metrics. Analysts from the same firm have also adjusted their earnings estimates for the company, citing increased interest expenses. In contrast, Susquehanna has lowered its price target for Hawaiian Holdings, attributing it to a slow rebound in travel demand from Japan and Maui.
The U.S. Treasury Department has managed to raise $556.7 million from the sale of warrants in major U.S. airlines, including Hawaiian Holdings, as part of the government's COVID-19 relief efforts. The Treasury is also targeting a minimum of $492 million from upcoming warrant sales.
In addition to financial developments, Hawaiian Holdings, along with other major U.S. airlines, has initiated legal action against the U.S. Department of Transportation over a regulation mandating the upfront display of various airline fees.
These recent developments reflect the dynamic and complex nature of the airline industry.
InvestingPro Insights
As Hawaiian Holdings Inc. (NASDAQ:HA) navigates the complexities of its proposed merger with Alaska Air Group Inc., the company's financial health and market performance become critical factors for investors to consider. According to real-time data from InvestingPro, Hawaiian Holdings is currently operating with a market capitalization of $613.37 million. The company's revenue over the last twelve months as of Q1 2024 stands at $2.749 billion, with a slight quarterly revenue growth of 5.38%. However, the company faces challenges, as evidenced by a negative P/E ratio of -2.07 and a gross profit margin of just 3.07%, indicating that it is not profitable over the last twelve months.
InvestingPro Tips highlight several concerns for Hawaiian Holdings, such as a significant debt burden and weak gross profit margins, which could impact the company's ability to manage its financial obligations in the short term. Furthermore, analysts do not expect the company to be profitable this year, which may affect investor confidence as the merger review process continues. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/HA. Utilize coupon code PRONEWS24 to receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain further insights into Hawaiian Holdings' financial outlook.
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