Hawaiian Airlines just posted another year of losses, even as its Seattle-based owner celebrated beating Wall Street expectations and placing the largest aircraft order in its history. The contrast could not be clearer, and the timing is telltale for anyone hoping the Hawaii side of this story is already settled.
For 2025, the Hawaiian Airlines unit lost $189 million before income taxes during its first full year under Alaska Air Group ownership. That is an improvement over the airline’s final years before being acquired, when losses ran close to $1 million per day. But improved does not mean fully healthy, and the Hawaiian segment remains firmly unprofitable.
Alaska disclosed the results Thursday alongside its broader earnings report. While the parent company posted adjusted earnings of 43 cents per share, well above analyst expectations, Hawaiian Airlines continued to weigh down the combined operation. The Hawaiian segment alone lost $60 million before income taxes in the fourth quarter.
For travelers watching the acquisition play out in real time, this is the first full set of numbers that shows what saving Hawaiian Airlines actually looks like on the bottom line.
The numbers behind the headline.
Hawaiian Airlines generated $3.3 billion in revenue in 2025, yet still failed to turn a profit. The $189 million figure is not a headline-friendly estimate but instead the segment’s income loss before income taxes as reported by Alaska itself.
Losses were cut roughly in half compared to the airline’s pre-acquisition collapse, bringing the daily burn rate down to about $518,000. That improvement is real, and Alaska deserves credit for stopping the bankruptcy-headed free fall, even as the absolute numbers remain deeply negative.
Hawaiian Airlines is no longer in crisis mode.
However, Hawaiian is also nowhere near self-sustaining as of today. Losing half a million dollars a day is still significant.
Alaska acknowledged that reality indirectly in its 2026 guidance. The company projected earnings between $3.50 and $6.50 per share, a wide range that signals uncertainty more than confidence. The $5 midpoint fell short of analyst expectations, sending shares down about 2% initially in late night, after-hours trading.
CEO Ben Minicucci highlighted what he called “the most significant integration milestone to date,” pointing to the issuance of a single FAA operating certificate. Operationally, that matters because it will greatly simplify how the airline runs. Financially, it does not erase Hawaiian’s ongoing losses or change the near-term path.
Big Hawaii promises meet financial reality.
The earnings report landed just weeks after Alaska unveiled its Hawaiʻi Investment Plan, a $600 million, five-year promise to refresh Hawaiian aircraft interiors, modernize airport spaces, and upgrade technology across the islands.
Those commitments sound reassuring to some travelers and employees. They also raise obvious questions about timing and prioritization, given that the Hawaiian segment continues to operate at such a substantial loss.
Alaska pointed to several bright spots across the broader company, including strong bookings in January and the new international routes from Seattle to Europe that are now on sale. That mentioned momentum, however, isn’t centered on Hawaii travel or driven by Hawaiian Airlines.
While Alaska admirably grows its mainland and international footprint, Hawaiian Airlines remains largely a domestic and interisland operation with high costs, aging aircraft fleets, and intense competition. The gap between Alaska’s growth investments and Hawaiian’s still losing money continues to widen.
The fleet tells a story.
Alaska’s fleet strategy reveals an unmistakable divide. This month, the airline announced orders for 105 Boeing 737-10 aircraft and five additional Boeing 787 Dreamliners, along with options for 35 more 737-10s. By 2035, the combined fleet is expected to exceed 550 aircraft.
Those Dreamliners will all wear a new global livery and operate long-haul international routes from Seattle. Hawaiian Airlines’ aircraft will not be part of that growth.
Hawaiian’s core fleet still consists of aging A330 widebodies and even older 717 aircraft flying interisland that are expensive to operate and increasingly challenging. Interior refreshes are promised under the Hawaii plan, but little is known in terms of details, and the long-term strategy is clearly centered on Boeing standardization and Seattle-based growth.
For Hawaii travelers, fleet decisions will shape seating comfort, route networks, reliability, and ultimately whether Hawaiian Airlines remains a distinct and separate operation or, as some believe, slowly fades into a supporting role.
Loyalty changes, and whose program it really is.
Hawaiian Airlines will join the oneworld alliance this spring, giving prior HawaiianMiles members access to a global network of partners. That represents a significant expansion beyond Hawaiian’s historically limited partnerships.
At the same time, today’s press release reinforces what travelers are already sensing. Atmos Rewards is repeatedly positioned as Alaska’s loyalty engine, while Hawaiian appears more of an add-on than a co-equal pillar of the new program. Even when Hawaiian is mentioned, it is within Alaska’s broader loyalty strategy frame.
Travelers are becoming savvy to the fact that loyalty programs are no longer side benefits. They represent huge airline profit centers, brand anchors, and decision drivers for at least the most frequent flyers. If Atmos Rewards serves Alaska’s network and growth goals primarily, Hawaiian’s role may be less strategic than symbolic.
Alaska’s best case 2026 scenario.
To achieve its top 2026 earnings guidance, Alaska said it will need sustained macroeconomic recovery at or above early-January trends, along with stable fuel prices. That is, of course, unknown in an industry that is vulnerable to shocks.
The airline also projected a first-quarter loss of $1.50 to $0.50 per share, stating that early in the year, losses are typical industry-wide. Hawaiian’s specific contribution to that seasonal loss was not detailed, but its recent track record suggests it will continue to drag on financial results rather than improve them.
For Hawaii travelers and residents alike, the takeaway offers clarity. Hawaiian Airlines is no longer collapsing, but is not yet thriving. Alaska has stopped the financial bleed, while much more work remains.
As you watch Hawaiian Airlines under Alaska’s new ownership, do these losses feel like recoverable during the rebuilding phase, or confirmation that Hawaiian is no longer the priority it once was?
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