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With talk heating up in recent weeks regarding a merger between 
American Airlines and United Airlines, another US-based carrier has been drawn into the mix. According to a Bloomberg report, American raised the prospect of a merger with 
Alaska Airlines during recent talks on strengthening their cooperation.
However, this proposition never advanced beyond speculative discussions, with the two airlines instead pivoting to other strategic arrangements. This will reportedly include American allowing Alaska to join its lucrative joint venture (JV) agreements, paving the way for revenue-sharing and fare coordination as the two carriers build on their partnership.
American And Alaska Merger Rejected
Sources familiar with the matter told Bloomberg that, during talks between the two airlines over strengthening their partnership, the possibility of a full-scale merger was raised. However, this was not pursued any further, with both airlines instead opting to pursue potential revenue-sharing arrangements. Under this proposal, Alaska would be integrated into American’s existing transatlantic and transpacific JVs with other 
oneworld carriers, with a focus on long-haul international routes.
Alaska has been a oneworld member since 2021, a fact that would ease its integration into AA’s JV portfolio. While Alaska’s interest in joining American’s partnership with Japan Airlines has already been reported, it could also join AA’s Atlantic Joint Business (AJB), which includes IAG Group airlines Aer Lingus, British Airways and Iberia, as well as Finnair. American and Alaska already benefit from codesharing and reciprocal loyalty perks as part of their “West Coast International Alliance,” but now seek to strengthen their cooperation amid the ongoing fuel shock and strong recent performances of rivals United and Delta Air Lines.
What Both Airlines Stand To Gain
Joint ventures allow airlines to benefit from various perks, such as coordinating fares and sharing revenue. Alaska’s integration could be particularly fruitful for American’s foothold in the transpacific market, owing to Alaska’s strong presence at leading West Coast hubs, including San Francisco (SFO) and Seattle (SEA). As it stands, American only maintains one true hub airport on the West Coast in Los Angeles (LAX), which is also a big hub for rivals Delta and United.
Conversely, Alaska would get its foot in the door in the East Coast long-haul market. Alaska is eager to grow its long-haul network and is preparing to launch its first-ever transatlantic long-haul flights next week with a seasonal service between Seattle and Rome (FCO) to begin on April 28. It will then begin flying to London Heathrow (LHR) and Reykjavík (KEF) the following month using its Boeing 787-9 fleet inherited from Hawaiian.
Ultimately, AS plans on operating around a dozen long-haul routes out of its SEA hub by 2030. After breaking up their partnership in 2018, the two airlines resurrected their cooperation in 2020 before Alaska joined oneworld the following year. Although Alaska’s long-haul capabilities are minor at this stage, American has a lot to gain by leveraging AS’ powerful position on the West Coast, particularly in the Pacific Northwest.
Alaska Airlines Reportedly In Talks To Join Japan Airlines & American Airlines’ Joint Venture
The carrier could be preparing to make a big move.
Significant Regulatory Hurdles
As with any close airline partnership, the deepening of ties between American and Alaska will undergo rigorous regulatory scrutiny. American knows this full well after its Northeast Alliance (NEA) with JetBlue was dismantled in 2023, with the US Department of Justice (DoJ) deeming it in violation of antitrust regulations.
Alaska’s inclusion in American’s joint ventures would raise questions over competition fairness. As is often the case, carriers wishing to launch such ventures often end up agreeing to concessions in other areas, such as divesting slots. Ultimately, authorities want to prevent monopolistic behavior in the market, as airline(s) with too much dominance can have a detrimental impact on consumers.
Not that long ago, Alaska finalized its merger with Hawaiian Airlines — officially sealing the deal in late 2024 — but remains in the process of fully integrating the Hawaiian carrier into its operations. Earlier this week, Simple Flying reported that the iconic ‘HA’ flight code has been formally dropped, with all Hawaiian flights now to operate under the ‘AS’ code.
