A bounded linear operator $T$ is called $\infty$-hypo\-normal if $T$ is $p$-hyponormal for every $p>0$. In this paper $\infty$-hyponormality of the Aluthge transformations of $\infty$-hyponormal operators is investigated. It is shown that the Aluthge transformation of an $\infty$-hyponormal operator is not necessarily $\infty$-hyponormal. It is also shown that the (generalized) Aluthge transformation of an $\infty$-hyponormal operator $T$ is $\infty$-hyponormal provided $|T||T^\ast|=|T^\ast||T|$. Moreover we give an example of an $\infty$-hyponormal operator $T$ whose Aluthge transformation $\tilde{T}$ is $\infty$-hyponormal but $|T||T^\ast|\not=|T^\ast||T|$.