Alaska Air Agrees to Buy Rival Hawaiian in $1.9 Billion Deal (4)

Alaska Air Group Inc. agreed to buy rival Hawaiian Holdings Inc. for $1.9 billion in cash and debt, challenging the Biden administration’s aggressive stance on mergers that has already derailed one partnership between carriers.

Alaska will pay $18 per share in cash in a deal that includes about $900 million of Hawaiian’s debt, according to a statement Sunday. The offer — a significant premium to Hawaiian Holdings’ $4.86 closing price on Friday — sent its stock surging 174% on Monday.

The deal could provide a valuable lifeline to Hawaiian, whose stock has tumbled more than 52% this year. The company ...