How Alaska’s Acquisition of Hawaiian Airlines Is Affecting Fares for Visitors and Residents

In late 2024, Alaska Airlines completed its $1.9 billion acquisition of Hawaiian Airlines, creating a combined carrier that promises expanded reach and integrated service. But for consumers—both residents of Hawaiʻi and tourists—one critical question remains: how is this affecting airfare prices in 2025? The answer is nuanced, with early signs pointing to fare increases in some markets, improved loyalty perks, and evolving booking dynamics.

The Deal That Changed Hawaiʻi Air Travel

On September 18, 2024, Alaska Air Group finalized its acquisition of Hawaiian Airlines. Regulatory bodies (DOJ and DOT) approved the merger, subject to conditions safeguarding consumer protections, inter-island route services, and loyalty program integrity.

The airlines committed to maintaining rural and neighbor-island flights, preserving mileage equivalence, and offering perks like fee-free family seating and military discounts.

Fare Trends: What’s Happened So Far

Inter-Island Tickets Climb

With reduced competition in inter-island markets, fares have ticked upward. For instance, early 2024 saw inter-island promotional fares as low as $39, while 2025 commonly offers baseline fares around $60 or more.

For traveling residents or frequent flyers, this means even short hops between islands cost noticeably more than before.

Mainland-Hawaiʻi Fares: Variations & Shifts

For long-haul flights from the mainland U.S., fare pricing is less consistently rising. The airlines' broader network allows for routing flexibility—especially through Seattle, a growing hub for Alaska Airlines. Beat of Hawaii

That said, the reduced number of competing mainland carriers (e.g., Southwest’s scaled-back Hawaiʻi flights) may give the combined airline leverage to consolidate price increases.

Loyalty Programs: New Benefits, Same Value

One silver lining for frequent flyers is the newly unified loyalty program. Dubbed Atmos Rewards, this program replaces both HawaiianMiles and Alaska’s Mileage Plan, launching fully on October 1, 2025. AwardFares Blog

Key features:

• Miles transfer 1:1, no prompt devaluation.
• Status benefits carry over—your elite miles/status remain valuable.
• Expanded redemption network, including oneworld partners.
• For frequent travelers—especially residents who fly inter-island often—these expanded options may offset some fare increases through better value in mileage redemptions.

What Travelers and Residents Are Saying

Many Hawaiʻi residents report frustration with rising basic fares for short flights. “Why is a 30-minute flight between islands suddenly double the price?” is a common sentiment among locals.

Meanwhile, visitors are noticing fewer deeply discounted fares. However, bundled routes via Alaska’s Seattle hub sometimes offer better connectivity or promotional pricing for international travelers.

Online forums and social media reflect mixed reviews—some users cite $1,400 increments on round-trip tickets compared to past years, while others highlight improved service and schedule variety.

Dot’s Assurances and Consumer Protections

The U.S. Department of Transportation imposed conditions to mitigate negative impacts of reduced competition. These include

• Preserving inter-island flight service levels
• Maintaining mileage values
• Ensuring options for military and family seating remain fee-free.

These agreements may limit the extent to which fares can rise, especially on routes critical to Hawaiʻi residents.

Summary: Effects on Fares in 2025

Recommendations for Travelers to Mitigate Fare Increases

1. Book early to lock in lower rates, especially inter-island.
2. Maximize your loyalty miles, especially before the transition to Atmos Rewards.
3. Use partnerships—Atmos and upcoming oneworld membership bring access to global itineraries.
4. Be flexible on routing—depending on origin, flying via Seattle or other hubs may offer better deals.
5. Leverage resident deals, like the Huakaʻi benefit offering 10% off one inter-island flight per quarter: https://www.hawaiianairlines.com/huakai

Final Thoughts

The Alaska acquisition of Hawaiian Airlines has reshaped Hawaiʻi’s aviation landscape. In early 2025, inter-island fares have risen, thanks in part to reduced competition. Yet, improved loyalty options and expanded route flexibility offer some offset—particularly for travelers who use points or fly internationally.

While residents may feel the pinch shortly, longer-term innovation in service, connectivity, and rewards may deliver benefits. As always, informed and flexible travel planning will help you get the most value in Hawaiʻi’s evolving air travel environment.