As Alaska Airlines (ALK) is set to buy Hawaiian Airlines (HA) for $1.9 billion, the Federal Trade Commission (FTC) is investigating Exxon's (XOM) planned merger with Pioneer Natural Resources (PXD). S&P Global Market Intelligence Editorial Lead Joe Mantone examines M&A activity in 2023, discussing with Yahoo Finance the conditions that could boost or hurt M&A forecasts for the new year. "Something that could help M&A in 2024 is if... [interest rates] stop rising, if they stay at an elevated rate without increasing, that can help boost M&A activity," Mantone says. "Just because buyers have a better idea of what their financing is going to cost." Click here to watch the full interview on the Yahoo Finance YouTube page or you can watch this full episode of Yahoo Finance Live here.
Alaska Air's (ALK) fleet size will increase considerably if the deal to buy HA materializes. Upbeat air-travel demand aids Ryanair's (RYAAY) November traffic.
Alaska Airlines surprised analysts and industry officials with its plan to buy Hawaiian Airlines for $1.9 billion even before a judge rules on the U.S. Department of Justice's (DOJ) lawsuit aimed at blocking JetBlue's proposed merger with Spirit Airlines. But supply and labor constraints are so onerous that airlines like Alaska will likely keep chasing deals despite the Biden administration's aversion to more consolidation. "This is an industry that is constantly looking for an angle," said Addison Schonland, partner at consulting firm AirInsight.