Alaska Air Completes Hawaiian Cargo Integration Ahead of Schedule

Alaska Airlines (NYSE: ALK) announced the completion of its cargo integration with Hawaiian Airlines, marking a significant step in its international expansion. The merger, finalized in September 2024, has streamlined operations, including booking systems and sales approaches, to enhance freight services globally. Cargo revenue surged 11% year-over-year to $146 million in the fourth quarter, driven by Hawaiian's fleet of Airbus A330-300 freighters for Amazon. Full-year cargo revenue reached $549 million, up 19%. Alaska is set to launch cargo services to London Heathrow and Rome in spring, leveraging Boeing 787-9 Dreamliners from the Hawaiian fleet. Despite challenges like IT outages and a government shutdown, Alaska Air Group exceeded analyst expectations, reporting adjusted earnings per share of 43 cents versus guidance of 10 cents. Management anticipates strong results for the rest of the year, supported by new routes and cost synergies from the merger. The company continues to operate Hawaiian as a separate brand while consolidating operations elsewhere.