Hawaiian Airlines to Reduce Flight Schedule

Hawaiian Airlines to Reduce Flight Schedule Workforce Reduction Expected

HONOLULU, September 20, 2001 -- Hawaiian Airlines, Inc. (AMEX and PCX: HA) announced today that it will reduce its systemwide flight schedule by approximately 20 percent as a result of substantially reduced travel demand following the terrorist attacks of September 11. The reduction in flights will take effect October 1, 2001.

Hawaiian's Interisland schedule of approximately 158 flights daily among the islands of Hawaii will be reduced to 123 flights. In addition, the company has eliminated two round trips from its scheduled Transpacific service: a flight between Los Angeles and Maui that is one of Hawaiian's four daily round trips between Los Angeles and Hawaii, and a flight between Seattle and Honolulu that had operated four days per week alongside the company's daily Seattle - Honolulu service. The changes reduce Hawaiian's Transpacific schedule of approximately 120 flights per week between Hawaii and the mainland U.S. to 98. The company's South Pacific schedule of weekly flights to American Samoa and Tahiti will remain unchanged, as will its charter service to Las Vegas and Anchorage.

"Last week's tragic events in New York, Washington, D.C., and Pennsylvania have had profound effects on the U.S. airline industry, Hawaiian included. At current levels of demand, and for the foreseeable future, we need to establish more appropriate levels of capacity to protect the viability of our operations going forward," said Paul Casey, Hawaiian's vice chairman and chief executive officer. "We have no other choice, given current market conditions and the unpredictability of future demand."

"Our goal is to ensure that there is adequate capacity in our markets, while quickly bringing operating costs more in line with expected revenues. What we will be actively working to avoid is a situation in which capacity begins to restrict travel to and within Hawaii. We will be working closely with our community leaders to stimulate a rebound in demand and be ready to restore capacity as the market dictates," Casey said.

Casey said Hawaiian will need to make staffing adjustments in line with the reduced level of flight operations and that the company is still trying to determine the scope of those adjustments. He said the company is hoping to use voluntary programs to reduce the number of layoffs that may be necessary.

Founded in Honolulu 71 years ago, Hawaiian Airlines is Hawaii's longest-serving and largest airline, and the nation's 12th largest carrier. The company provides award-winning service on daily flights among the Hawaiian Islands and between Hawaii and the U.S. mainland. Its South Pacific service links Honolulu with American Samoa and Tahiti. Additional information on Hawaiian Airlines, including previously issued company news releases, is available on the airline's Web site at www.hawaiianair.com.