Hawaiian Holdings Reports 2014 Fourth Quarter and Full Year Financial Results

• GAAP net income in the fourth quarter of $11.1 million or $0.17 per diluted share. For the full year, GAAP net income of $68.9 million or $1.10 per diluted share.
• Adjusted net income in the fourth quarter of $26.1 million or $0.40 per diluted share, an increase of $14.1 million or $0.18 cents per diluted share year-over-year. For the full year, adjusted net income grew to $97.1 million or $1.55 per diluted share compared to $46.6 million or $0.88 per diluted share in the prior year.
• Operating revenue increased to $575 million for the fourth quarter and $2.3 billion for the full year. This resulted in an operating revenue per available seat mile (RASM) increase of 6.1%, year-over-year for the fourth quarter, and for the full year an increase of 5.6% year-over-year.

"2014 finished on a high note with the company posting much better results than a year ago," said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. "We served more customers than ever before, grew revenues, improved profitability and strengthened our balance sheet. I have our employees to thank for Hawaiian's performance on the ground, in the air and in our financial statements. Their hard work helps overcome the advantage that our competitors generate through their massive size alone. 2015 will be another year of improvement as long as demand, fuel and industry capacity in our marketplaces remain as forecast."

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 December 31, 2014 the Company had:

• Unrestricted cash, cash equivalents and short-term investments of $524 million.
• Outstanding debt and capital lease obligations of approximately $1,050 million consisting of the following:
  • $714 million outstanding under secured loan agreements to finance a portion of the purchase price for 11 Airbus A330-200 aircraft.
  • $137 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
  • $102 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.
  • $30 million outstanding under floating rate notes to finance the acquisition of two Boeing 767-300 ER aircraft.
  • $67 million of outstanding Convertible Senior Notes.

2014 Highlights

Operational

• Ranked #1 nationally for on-time performance for all reported months in 2014 by the U.S. Department of Transportation Air Travel Consumer Report.
• Carried a record 10.2 million passengers in 2014.

New routes and increased frequencies

• Launched new non-stop service from Beijing to Honolulu in April 2014.
• Expanded service in the Bay Area with the reintroduction of non-stop service from San Jose to Honolulu in May 2014 and launched new non-stop service from San Francisco to Maui in November 2014.
• Expanded service in Southern California with non-stop service from Los Angeles to Maui in May 2014 and the addition of a second daily summer seasonal service. Announced that the second daily seasonal service will return for the summer of 2015.
• Operated new neighbor island seasonal service from Oakland and Los Angeles directly to Lihu'e and Kona in the summer of 2014. Announced that this seasonal service will return for the summer of 2015.
• Launched 'Ohana by Hawaiian turboprop operation, reintroducing service from Honolulu to Moloka'i and Lana'i in March 2014. Expanded the network with the addition of flights between Maui and Moloka'i, Kona and Hilo in July.

Product and loyalty

• Announced the refresh of interiors in the B717-200 aircraft for a consistent seat configuration throughout the fleet.
• Introduced Extra Comfort premium economy seats in the A330-200 aircraft in August 2014.
• Entered into a new code-share agreement with Air China.

Fleet and financing

• Retired $54 million of A330 bank debt.
• Repurchased $15 million (principal amount) or 18% of convertible notes outstanding.
• Executed a purchase agreement with Airbus for six A330-800neo aircraft with deliveries starting in 2019, replacing the previous order for six A350XWB-800 aircraft.
• Entered into a new revolving credit facility that has availability of up to $175 million.
• Added five new A330-200 aircraft and returned or retired two Boeing 767-300 aircraft.

First Quarter and Full Year 2015 Outlook
The table below summarizes the Company's expectations for the first quarter ending March 31, 2015 and the full year ending December 31, 2015, expressed as an expected percentage change compared to the results for the quarter ended March 31, 2014 or the year ended December 31, 2014, 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.