Hawaiian Holdings Reports 2014 First Quarter Financial Results

• Operating income grew to $10.0 million in the first quarter compared to an operating loss of $11.9 million in the prior year period.
• GAAP net loss in the first quarter of $5.1 million or $(0.10) per diluted share compared to a loss of $17.1 million in the prior year period or $(0.33) per diluted share.
• Adjusted net loss, reflecting economic fuel expense, in the first quarter of $0.9 million or $(0.02) per diluted share compared to $14.8 million in the prior year period or $(0.29) per diluted share.
• Unrestricted cash, cash equivalents and short-term investments of $479 million compared to $438 million in the prior year period.

"Our first quarter results were markedly improved in this seasonally weak period," said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. "Good cost control and strong performance from our domestic network helped offset the impact of unfavorable exchange rate changes which weighed on our international business. Strong levels of demand throughout leave us encouraged that the improvements seen these last six months will continue for the remainder of 2014."

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.

Liquidity and Capital Resources

As of March 31, 2014 the Company had:

• Unrestricted cash, cash equivalents and short-term investments of $479 million.
• Available borrowing capacity of $69.5 million under Hawaiian's Revolving Credit Facility.
• Outstanding debt and capital lease obligations of approximately $940 million consisting of the following:
  • $570 million outstanding under secured loan agreements to finance a portion of the purchase price for nine Airbus A330-200 aircraft.
  • $150 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
  • $108 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.
  • $34 million outstanding under floating rate notes for two Boeing 767-300 ER aircraft.
  • $78 million of outstanding Convertible Senior Notes.

First Quarter 2014 Highlights

Operational

• Ranked #1 nationally for on-time performance in 2013 for the 10th straight year and for the months of January and February 2014.

Fleet and financing

• Added two new A330-200 aircraft that were financed through Enhanced Equipment Trust Certificates (EETCs) at a fixed blended rate of 4.13%.

Product and loyalty

• Entered into a new code-share agreement with Air China.

New routes and increased frequencies

• Increased Honolulu to Brisbane service from three-times-weekly to four-times-weekly in March.
• Launched Honolulu to Beijing, China service three-times-weekly in April.
• Launched 'Ohana by Hawaiian, turboprop operation, reintroducing service from Honolulu to Moloka'i and Lana'i in March.
• Announced the reintroduction of daily non-stop service from Honolulu to San Jose, beginning in May 2014.
• Accelerated daily non-stop service from Maui to Los Angeles, to begin in May 2014 and announced a second daily, seasonal service on this route for eight weeks this summer.

Second Quarter and Full Year 2014 Outlook

The table below summarizes the Company's expectations for the second quarter ending June 30, 2014 and the full year ending December 31, 2014, expressed as an expected percentage change compared to the results for the quarter ended June 30, 2013 or the year ended December 31, 2013, as applicable (the results for which are presented for reference).

Refer to full documentation in attachments box, located at the top left, below the headline.