Hawaiian Airlines Announces Workforce Reduction

HONOLULU, October 31, 2002 -- Hawaiian Airlines, Inc. (AMEX and PCX: HA) today announced that it will reduce its workforce over the next several months by approximately 150 employees, or 4 percent of its total workforce of 3,538 in response to continuing unfavorable economic conditions resulting from soft travel demand. In addition, the company has secured voluntary leaves of absence from approximately 60 flight attendants, has reduced work schedules for part time reservations personnel and has decided to leave certain open positions unfilled until economic conditions improve.

John W. Adams, chairman, chief executive officer and president, said, “We don't like having to take steps that affect our employees' lives in this way, but the economic crisis we and all airlines are now facing demands aggressive action to maximize efficiency. In attacking all areas of our cost structure, we can't avoid these difficult decisions.

“As we move forward, we will continue to evaluate the economic outlook and make further adjustments as necessary,” he said.

The workforce reduction, which will begin early next month, will help bring the company's cost structure more in line with current and expected revenues. The reduction will affect primarily pilot, flight attendant, airport service and maintenance positions. All eligible employees will receive severance benefits in accordance with established company policies and agreements.

Hawaiian continues to review all aspects of its operations to identify opportunities for increasing efficiency and reducing expense, including certain areas of labor productivity, fleet utilization and levels of capacity on long-haul routes. The company is also working to rationalize capacity on short-haul routes in accordance with provisions of the recently granted federal antitrust exemption allowing adjustment of Hawaii interisland capacity in conjunction with competitor Aloha Airlines.

Additional information on Hawaiian Airlines, including previously issued company news releases, is available on the airline's Web site at www.HawaiianAir.com.