Hawaiian Airlines Retires Boeing 717 Fleet for 737-800s Starting 2028

Alaska Air Group confirmed on July 21 that Hawaiian Airlines will retire its Boeing 717 fleet and transition to Boeing 737-800 aircraft starting in 2028. The new planes will carry 161 seats versus 128 on the aging 717s, adding capacity and modern amenities including Starlink Wi-Fi and expanded premium seating. The decision caps years of uncertainty following Alaska’s $1.9 billion acquisition of Hawaiian in September 2024.

Why the 717 fleet had to go

Hawaiian’s Boeing 717s average 25 years old and no longer roll off production lines. The aircraft face mounting maintenance demands and aging parts availability challenges. Neighbor Island flying in Hawaii demands frequent short hops and salt-air operations that strain the aging fleet. Alaska will deploy one 737 starting October to fly three daily round trips between Honolulu and Kahului, easing capacity gaps while the 717s undergo increased maintenance.

What passengers will see on the new 737-800s

Each 737-800 will seat 161 passengers, up from 128 on the 717. The aircraft feature free Starlink Wi-Fi, reclining leather seats, 110V power outlets, and USB charging at every seat. First Class seats will double, and more than 30 new Premium Class seats will create upgrade opportunities. Cargo space expands for surfboards and other goods. Honolulu-based pilots and flight attendants will operate the Hawaiian-branded aircraft once integration completes.

Cargo expansion fuels Alaska’s profit push

Alaska Air Cargo will add four Boeing 737-800 converted freighters, expanding its cargo fleet from five to nine aircraft by 2027. The expanded capacity targets agricultural products, seafood, and medicine shipments. Alaska projects cargo will deliver $150 million in new annual profit as it integrates Hawaiian’s cargo operations and expands internationally from Seattle. The move supports Alaska Accelerate, the carrier’s three-year plan to generate $1 billion in incremental profit post-merger.

Stock implications for investors

Alaska Air Group (ALK) trades at $45.46 with a Meyka grade of B+ and a 12-month forecast of $54.11, suggesting upside to current levels. Meyka’s technical data shows RSI at 42.83 and ADX at 16.91 with no clear trend. Six analysts rate ALK a buy while one rates it a sell, with consensus at 3.0. Hawaiian Airlines (HA) closed at $18.00, up 3.9% on the announcement, with a Meyka grade of C+ and a 12-month forecast of $23.65. The fleet modernization supports Alaska’s long-term profitability but requires capital discipline during integration.

Final Thoughts

The 737-800 transition modernizes Hawaiian’s interisland network and unlocks cargo profit, key drivers of Alaska’s $1 billion profit target. With ALK graded B+ and forecasted at $54.11 versus current $45.46, the data supports the strategic direction, though execution risk remains during the multi-year integration.

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