HONOLULU, March 25, 1999 -- Hawaiian Airlines, Inc. (AMEX and PCX: HA) made the first profit sharing payments to employees in its nearly 70-year history today, distributing $760,000 among 2,870 individuals with thanks for their role in the company's achievement of record earnings in 1998.
Hawaiian's record operating profit of $17.4 million for the year ended December 31, 1998 (compared to an operating profit of $2.5 million in 1997) triggered the payout.
Profit sharing checks are being hand-delivered to employees today by company department heads and managers around the system. Company President and CEO Paul J. Casey personally delivered checks to several of Hawaiian's longest-serving employees on duty today, including mechanic Clay Silva, who tops the company seniority list at a remarkable 52 years.
"This is a proud day for everyone at Hawaiian Airlines," Casey said.
"Hawaiian Airlines ended 1998 a stronger, more efficient company with growing revenues and one of the most competitive cost structures in the business. Although we were helped significantly by factors beyond our control -- especially low fuel prices and the State of Hawaii moratorium on landing fees -- we clearly would not have achieved record earnings in 1998 without the efforts of employees system-wide. They are providing the high service levels that are contributing to increased revenues.
"Employees deserve to share in the company's success. Our goal is to continue improving the company's profitability so that employees can earn profit sharing every year, and to make the checks bigger in the future," Casey said.
The payments were made in accordance with a Profit Bonus Plan adopted by the company in 1996. Under terms of the plan, 10 percent of company pre-tax profits (as defined) over $10 million are allocated for employee distribution. Individual shares are calculated based on a percentage of each employee's W-2 earnings for the year.
Founded in Honolulu 69 years ago, Hawaiian Airlines is Hawaii's longest-serving and largest airline, and the nation's 12th largest carrier. Hawaiian's fleet of McDonnell Douglas DC9s provides award-winning service on more than 150 jet flights daily among the islands of Hawaii. Hawaiian also operates a fleet of McDonnell Douglas widebody DC10 aircraft on 14 flights a day between Hawaii and the U.S. mainland. Its DC10 South Pacific service links Honolulu with American Samoa and Tahiti.
(This news release includes forward-looking statements that involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include fluctuations in fuel prices, government regulations, lower than expected revenues, economic conditions and competition in the area in which the company operates and other factors described in recent company filings with the Securities and Exchange Commission.)