Hawaiian Airlines to Discontinue Las Vegas Charters and Enhance Scheduled Service to Las Vegas

HONOLULU, September 25, 2002 -- Hawaiian Airlines today announced that it will fly its last charter flight between Honolulu and Las Vegas on January 31, 2003. The company plans to put the aircraft and crews that operate the charters to use in new nonstop scheduled service to Las Vegas starting this winter.

Hawaiian has flown the charter route on contract to Vacations Hawaii, a subsidiary of Las Vegas-based Boyd Gaming, Inc., since 1996. Current value of the contract is approximately $30 million annually.

John W. Adams, Hawaiian's chairman, chief executive officer and president, said the company is reallocating resources from charter to scheduled operations, where there is greater profit potential.

“Our new fleet of Boeing 767-300s are creating economic benefits for our scheduled operations, but are less suited for the volume-oriented strategy of charter operations. Therefore, we're opting to enhance our scheduled service to Hawaii's favorite vacation destination as well as provide greater flexibility and convenience for the growing population of former Hawaii residents and other travelers using Las Vegas as a gateway to Hawaii.”

Hawaiian currently serves Las Vegas daily from Honolulu on a scheduled basis via Los Angeles, using 304-seat DC-10 aircraft. Adams said the airline would soon announce an enhanced Las Vegas flight schedule, including the addition of nonstop service using Hawaiian's new 252-seat Boeing 767-300ER extended range aircraft.

Hawaiian is in the process of replacing its transpacific fleet of DC-10s with 16 state-of-the-art Boeing 767-300ER widebody aircraft by mid-2003. The carrier this week takes delivery of its eighth B767-300ER; three more deliveries from Boeing are scheduled by the end of 2002.

The twin-aisle, twinjet B767-300ER seats 252 passengers, 18 in First Class and 234 in Coach Class, featuring widebody comfort and the convenience of a 2-3-2 seating configuration that offers either window or aisle seating to 88 percent of the passengers onboard.

With the start of Hawaiian's daily nonstop service between Phoenix and Honolulu on October 11, the carrier will increase its transpacific service connecting Hawaii with nine key western U.S. markets. Hawaiian connects more U.S. cities to Hawaii with daily nonstop service than any other airline.

Founded in Honolulu 72 years ago, Hawaiian Airlines is Hawaii's longest-serving and largest airline. The nation's 12th largest airline, it is also the second-largest provider of passenger service between the West Coast and Hawaii. The airline has earned numerous international awards for service in recent years, including the 2001 Zagat Survey's award for Best Overall U.S. Airline in the Premier category, and the 2001 Diamond Award for In-Flight Service from Onboard Services magazine. Hawaiian was rated third highest in Travel & Leisure magazine's most recent ranking of the Top 10 U.S. Airlines.

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

Except for historical information contained herein, the matters discussed in this news release contain forward-looking statements that involve risks and uncertainties. The company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, the effect of changing economic conditions, trends in the airline industry, the ability to control costs and expenses, and other risks detailed in the company's continuing reports filed with the Securities and Exchange Commission.