Alaska Airlines faces challenges from Hawaiian merger, rising fuel costs, and tough competition

Alaska Airlines is struggling with strategic challenges including the complex integration of Hawaiian Airlines, rising fuel prices, and strong competition from larger legacy carriers. The merger has increased fleet complexity, eroding Alaska's historical cost advantage. The airline aims to expand internationally using Hawaiian Airlines and new Boeing 787s to compete with Delta's global network, but profitability and network synergy remain uncertain. A recent double downgrade by Citi Research adds pressure on Alaska Airlines' shares.