[Source: Reuters]

Shares of Hawaiian Holdings (HA.O), the parent of Hawaiian Airlines, nearly tripled on Monday after Alaska Air Group (ALK.N) agreed to acquire it for $1.9 billion, including debt.

Hawaiian shares were trading at $13.40 in morning trade, below Alaska’s offer price of $18 per share made public on Sunday, with some analysts saying regulatory approval was far from certain.

The company’s shares had taken a beating in recent months due to the impact of the Maui wildfires, high fuel costs and jet engine recall issues at some of its Airbus SE (AIR.PA) planes. Its shares have fallen 52.6% so far this year.

Alaska and Hawaiian said on Sunday the deal, valued at $929.4 million on an equity basis, will expand their networks and offer more choices to passengers.

“This transaction makes good common sense for both airlines,” TD Cowen analyst Helane Becker wrote in a note.