Hawaiian Holdings Reports 2007 Fourth Quarter and Year-End Financial Results

    Fourth Quarter Highlights
    - Operating revenue increased 14.1% to $250.7 million

    - RASM increased 5.2% to 10.66 cents

    - Passenger yield increased 4.4% to 11.31 cents

    - Net income of $3.3 million, or $0.07 per basic and diluted share

    - Industry leading load factor of 86.8%

    - CASM declined 1.5% to 10.75 cents; excluding fuel, CASM decreased 13.4%
      to 7.03 cents

    2007 Full Year Highlights
    - Operating revenue increased 10.6% to $982.6 million

    - Operating income totaled $6.8 million compared to $0.5 million in 2006

    - Net income of $7.1 million, or $0.15 per basic and diluted share

    - Industry leading load factor of 87.3%

    - CASM declined 4.0% to 10.57 cents; excluding fuel, CASM decreased 7.5%
      to 7.41 cents

    - Unrestricted cash, cash equivalents and short-term investments of $144.5
      million at December 31, 2007
HONOLULU, Feb. 27 /PRNewswire-FirstCall/ -- Hawaiian Holdings, Inc. (Amex: HA) ("Holdings" or "the Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported consolidated net income for the three months ended December 31, 2007, of $3.3 million, or $0.07 per basic and diluted share, on total operating revenue of $250.7 million. This result compares to net loss of $9.6 million, or $0.20 per basic and diluted share, for the three months ended December 31, 2006.

For the full year 2007, the Company reported consolidated net income of $7.1 million, or $0.15 per basic and diluted share, on total operating revenue of $982.6 million. This result compares to consolidated net loss of $40.5 million, or $0.86 per basic and diluted share, on total operating revenue of $888.0 million for the full year 2006. The 2006 results include a $32.1 million loss related to extinguishment and modification of debt.

Mark Dunkerley, the Company's President and Chief Executive Officer, commented, "The modest improvement in our 2007 results belies a year of both great challenges and notable achievements. We did a good job of managing those items of cost that we control only to see the improvements largely offset by the rising price of fuel. On the revenue side of our business, we strengthened our relative position in our interisland and transpacific operations but the intensity of competition in both of these markets undermined the benefits that might have flowed. All in all, I believe that Hawaiian is better positioned today than it was this time last year, and considerably better than a couple of years ago.

"At the same time, the challenges posed by rising fuel prices and heavily contested markets continue unabated in 2008, so our management team remains focused on initiatives to improve the financial footing of our business and build shareholder value. The current high cost of fuel and prospects for a softening U.S. economy add urgency to these efforts," he said.

Mr. Dunkerley continued, "During the fourth quarter, we reinforced our commitment to Hawaiian's future. Our agreement with Airbus to acquire up to 24 new long-range aircraft represents the single largest investment in our 78-year operating history. This transaction provides significant flexibility to scale the size of our fleet and enables us to lower our unit cost, expand our geographic reach and improve the on-board experience enjoyed by our customers. The April launch of service to the Philippines will open our first gateway into Asia and in the years ahead, these larger state-of-the-art aircraft will allow us to pursue additional expansion opportunities around the world."

Fourth Quarter Operating Results

The Company reported an operating loss of $2.0 million in the fourth quarter of 2007 compared to an operating loss of $16.6 million in the fourth quarter of 2006. Fourth quarter 2007 operating revenue was $250.7 million, a 14.1% increase compared to the fourth quarter of 2006. Capacity for the quarter increased 8.5% year-over-year to 2.4 billion Available Seat Miles (ASMs), resulting in Revenue per ASM (RASM) of 10.66 cents, up 5.2% from 10.14 cents in the fourth quarter a year ago. Fourth quarter load factor increased to 86.8% from 85.2% in the same period a year ago. Passenger yield (passenger revenue per revenue passenger mile) increased 4.4% to 11.31 cents from 10.83 cents in the fourth quarter of 2006.



    Hawaiian Holdings, Inc.
    Selected Statistical Data

                         Three Months Ended         Twelve Months Ended
                            December 31,              December 31,
                      2007    2006     Change     2007       2006   Change


    Scheduled
     Operations:
      Revenue
       passenger
       miles
       (RPM) (a)   2,003.7   1,813.1   10.5%     7,929.9    6,838.9   16.0%
      Available
       seat
       miles
       (ASM) (a)   2,302.4   2,127.9    8.2%      9,076.2    7,915.9  14.7%
      Passenger
       revenue
       per RPM       11.31     10.83    4.4%       11.21      11.65   (3.8%)
                     cents     cents               cents      cents
      Passenger
       load
       factor
       (RPM/ASM)      87.0%    85.2%    1.8 pt.     87.4%      86.4%   1.0 pt.
      Passenger
       revenue
       per ASM
       (PRASM)        9.84     9.23     6.6%       9.80       10.07   (2.7%)
                     cents     cents               cents      cents

    Total
     Operations:
      Revenue
       passenger
       miles
       (RPM) (a)   2,041.2   1,845.3   10.6%      8,057.1   6,965.0   15.7%

      Available
       seat
       miles
       (ASM) (a)   2,350.5   2,166.4    8.5%      9,231.6   8,062.1   14.5%
      Passenger
       load
       factor
       (RPM/ASM)      86.8%     85.2%   1.6 pt.      87.3%    86.4%    0.9 pt.
      Operating
       Revenue
       per ASM
       (RASM)        10.66     10.14    5.2%        10.64    11.02    (3.4%)
                     cents     cents                cents    cents
      Operating
       Cost per
       ASM
       (CASM)        10.75     10.91   (1.5%)       10.57    11.01    (4.0%)
                     cents     cents                cents    cents
      CASM
       ex-fuel        7.03      8.12  (13.4%)        7.41     8.01    (7.5%)
                     cents     cents                cents    cents

    (a) In millions.


Total operating expenses for the fourth quarter of 2007 increased 7.0% year-over-year to $252.7 million, resulting in an operating cost per available seat mile (CASM) of 10.75 cents, down 1.5% versus the same period a year ago on greater capacity. CASM excluding fuel for the fourth quarter of 2007 was 7.03 cents, a 13.4% decrease versus last year's fourth quarter.

Aircraft fuel costs increased 44.7% year-over-year to $87.4 million and represented over 34% of operating expenses. Hawaiian's average cost per gallon of jet fuel increased 33% year-over-year in the fourth quarter to $2.63 (including taxes, delivery and hedging impacts), while block hours increased 7.0% primarily reflecting increased 767 operations.

Wages and benefit expense decreased $10.5 million versus a year ago to $51.0 million. Approximately $7.1 million of this improvement relates to the combination of a favorable adjustment to our workers compensation liabilities in the fourth quarter of 2007 and an unfavorable pension adjustment in the prior year's fourth quarter. Maintenance, materials and repairs expense increased $6.3 million to $23.7 million. The increase in maintenance expense is primarily due to a year-over-year increase in the level of Boeing 767 heavy maintenance activity and higher power-by-the-hour (PBH) charges for engine maintenance. Aircraft rent expense declined 12.2% compared to the fourth quarter of 2006 as a result of the December 2006 purchase of three previously leased Boeing 767-300ER aircraft, while higher depreciation expenses reflect the ownership of these aircraft and four Boeing 767-300 EM aircraft brought into service during 2006 and 2007.

Fourth quarter 2007 non-operating income totaled $3.1 million, as compared to non-operating expense of $3.5 million in the fourth quarter of 2006. Higher interest expense in the fourth quarter of 2007 related to increased aircraft borrowings in 2006 was offset by gains related to the Company's fuel hedging activities.

2007 Full Year Operating Results

For the full year 2007, the Company reported operating income of $6.8 million compared to operating income of $0.5 million for the full year 2006.

Full year 2007 operating revenue was $982.6 million, a 10.6% increase compared to $888.0 million in 2006. Capacity for 2007 increased 14.5% year-over-year to 9.2 billion ASMs, resulting in RASM of 10.64 cents, down 3.4% from 11.02 cents a year ago. Load factor increased to 87.3% from 86.4% in 2006. Passenger yield declined 3.8% to 11.21 cents from 11.65 cents.

Total operating expenses for the year increased 9.9% to $975.7 million. CASM in 2007 decreased 4.0% to 10.57 cents. CASM excluding fuel for the year was 7.41 cents, a decline of 7.5% versus the prior year.

For the full year of 2007, the Company reported non-operating expenses of $8.9 million, compared to non-operating expenses of $41.5 million in 2006. Higher interest expense in 2007 was partially offset by gains related to the Company's fuel hedging activities. The 2006 results include a $32.1 million loss related to extinguishment and modification of debt.

    Liquidity, Capital Resources and Fuel Hedging:

    -- As of December 31, 2007, the Company had unrestricted cash, cash
       equivalents and short-term investments of $144.5 million, and $38.7
       million in restricted cash.
    -- As of December 31, 2007, the Company's debt included $103.7 million in
       two term loans at the Hawaiian level, $117.9 million in floating rate
       notes issued in conjunction with the acquisition of three Boeing
       767- 300 ER aircraft in December 2006 and additional notes payable of
       $17.4 million.
    -- As of February 22, 2008, Hawaiian had entered into heating oil futures
       contracts to hedge approximately 28%, 19% and 10% of its first, second
       and third quarter of 2008 consumption respectively.  Certain of these
       contracts have settled during the first quarter of 2008.  Additionally,
       the Company had entered into jet fuel forward contracts to hedge
       approximately 2% of its first quarter consumption.  The Company's
       futures and forward contracts (including those that have settled during
       the first quarter) are outlined in the table below:



              Heating Oil Futures and Jet Fuel Forward Contracts

    HEATING OIL FUTURES
                                           Average                 Percentage
                                         Heating Oil                   of
                                           Contract      Gallons    Quarterly
                                            Price        Hedged    Consumption
                                          per Gallon   (thousands)   Hedged

    First Quarter 2008                       $2.28        9,156        28%
    Second Quarter 2008                      $2.39        6,090        19%
    Third Quarter 2008                       $2.41        3,192        10%


    JET FUEL FORWARDS
                                         Average Jet               Percentage
                                             Fuel                      of
                                           Contract      Gallons    Quarterly
                                            Price        Hedged    Consumption
                                          per Gallon   (thousands)   Hedged

    First Quarter 2008                       $2.21          714         2%



    2007 Highlights

    Fourth Quarter Highlights

    -- Hawaiian has led all U.S. carriers in on-time performance for each of
       the past four straight years (2004-2007) and in fewest misplaced bags
       for the past three years (2005-2007) as reported by the U.S. Department
       of Transportation (DOT). Additionally, Hawaiian ranked second
       nationally for fewest cancelled flights.
    -- In late November, Hawaiian announced agreements in principle with
       Airbus and engine maker Rolls-Royce to acquire up to 24 new long-range
       wide-body aircraft as the first step in a phased fleet plan that will
       replace its current wide-body fleet of 18 aircraft, expand its
       long-range fleet, and enable it to open new routes to more distant
       markets on a nonstop basis from Hawaii.
    -- In late October, the U.S. Bankruptcy Court District of Hawaii ruled in
       favor of Hawaiian Airlines in its lawsuit against Mesa Air Group,
       awarding Hawaiian $80 million in damages and ordering Mesa to pay
       Hawaiian's costs of litigation and reasonable attorneys' fees.
    -- In early October, Hawaiian announced approval from the (DOT) to provide
       nonstop flights between Honolulu and Manila in the Philippines. The
       service will begin in April 2008, making Hawaiian the only U.S. carrier
       providing nonstop service between Hawaii and the Philippines.
    -- In October, Hawaiian announced the promotion of Charles Nardello to
       Senior Vice President, Operations.  Nardello had served as Hawaiian's
       Vice President of Maintenance since February 2004.


    Third Quarter Highlights

    -- Hawaiian Airlines ranked as the top domestic airline serving Hawaii in
       Travel + Leisure magazine's 2007 World's Best Awards -- the ninth
       consecutive year Hawaiian has earned this distinction.
    -- Hawaiian announced an agreement to become the 'Official Airline of the
       Seattle Seahawks.' For the 2007 NFL season.  The Company also announced
       an agreement to carry the Oakland Raiders to all of their 2007 away
       games for the eighth consecutive season.
    -- Consumer Reports gave Hawaiian a "Best Buy" rating for offering the
       "best combination of service and price." Hawaiian was one of only four
       airlines nationwide and the only one serving Hawaii to receive the
       magazine's top rating.


    Second Quarter Highlights

    -- Hawaiian received the highest rating of any U.S. airline in the 2007
       Airline Quality Rating report.  The comprehensive annual study,
       conducted by the University of Nebraska at Omaha Aviation Institute and
       the Wichita State University School of Business for the past 17 years,
       evaluated the nation's 18 largest carriers using a weighted average of
       15 elements in four major areas important to consumers when judging
       quality airline services.
    -- Travel + Leisure's 2007 World's Best Service Awards rated Hawaiian
       highest of all domestic carriers serving Hawaii and the #3 domestic
       carrier overall.
    -- Hawaiian announced the appointment of Rick Peterson as Vice President
       of Marketing and Sales.  Previously Vice President of e-commerce,
       Peterson has led the development of Hawaiian's successful online
       marketing programs for the past decade, including a series of
       innovative enhancements to its frequent flyer program, HawaiianMiles,
       and the company's industry-leading new website.
    -- Culminating six months of studying the company's management structure,
       Hawaiian released 98 non-union employees in administrative positions
       throughout the company and eliminated an additional 38 unfilled
       non-union positions as part of a broad effort to realign its managerial
       and administrative structure with the changing nature of its business.
    -- Hawaiian announced a new code share agreement with Korean Air.  The
       agreement expands the range of travel options for Korean Air's
       customers coming to Hawaii and eases their flight connections between
       Asia, Hawaii and the Western U.S.
    -- Hawaiian added Continental's U.S. routes to its frequent flyer
       benefits. Hawaiian members are now able to earn and redeem
       HawaiianMiles anytime they fly Continental Airlines in the U.S.,
       including Continental Express flights operated by ExpressJet Airlines
       and Chautauqua Airlines, as well as select Continental Connection
       flights operated by CommutAir.


    First Quarter Highlights

    -- Hawaiian unveiled its next generation airline website.  The new
       evocative site offers consumers an unsurpassed level of personalized
       convenience to plan and book travel.
    -- Hawaiian resumed its daily nonstop year-round service connecting San
       Diego and Kahului, Maui.
    -- Hawaiian appointed Hoyt Zia as Senior Vice President, General Counsel
       and Corporate Secretary.

    Investor Conference Call
Hawaiian Holdings' quarterly earnings conference call is scheduled to begin later today (Wednesday, February 27, 2008) at 4:30 p.m. Eastern Time (USA). The conference call will be broadcast live over the Internet. Investors may listen to the live audio webcast on the investor relations section of the Company's website at http://www.HawaiianAirlines.com. For those who are not available for the live broadcast, the call will be archived on Hawaiian's investor website.

About Hawaiian Airlines

The nation's top-ranked airline for service in the 2007 Airline Quality Ratings, Hawaiian has led all U.S. carriers in on-time performance for each of the past four straight years (2004-2007) and in fewest misplaced bags for the past three years (2005-2007) as reported by the U.S. Department of Transportation. Consumer surveys by Conde Nast Traveler, Travel + Leisure and Zagat have all ranked Hawaiian as the top domestic airline serving Hawaii.

Now in its 79th year of continuous service in Hawaii, Hawaiian is the state's biggest and longest-serving airline, as well as the second largest provider of passenger air service between the U.S. mainland and Hawaii. Hawaiian offers nonstop service to Hawaii from more U.S. gateway cities than any other airline (nine), as well as service to Australia, American Samoa and Tahiti. Hawaiian also provides approximately 120 daily jet flights among the Hawaiian Islands.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (Amex: HA). Additional information is available at http://www.HawaiianAirlines.com.

Forward Looking Statements

The foregoing information contains certain forward-looking statements that reflect the Company's current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the Company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. These risks and uncertainties include, without limitation, aviation fuel costs, competition in the interisland markets, competitive pressure on pricing, ability to negotiate labor agreements, our ability to satisfy financial covenants and our new long term commitments for aircraft Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company's financial results may be found in the Company's filings with the Securities and Exchange Commission.



                           Hawaiian Holdings, Inc.
                    Consolidated Statements of Operations
                  (in thousands, except for per share data)
                                 (unaudited)

                                       Three Months Ended  Twelve Months Ended
                                          December 31,        December 31,
                                         2007      2006      2007      2006

    Operating Revenue:
      Passenger                        $226,592  $196,416  $889,038  $796,821
      Cargo                               8,361     8,379    30,916    32,181
      Charter                             4,619     2,749    11,842     9,486
      Other                              11,110    12,087    50,759    49,559
        Total                           250,682   219,631   982,555   888,047

    Operating Expenses:
      Aircraft fuel, including
       taxes and oil                     87,357    60,386   291,636   241,660
      Wages and benefits                 51,030    61,540   222,558   228,010
      Aircraft rent                      24,418    27,803    97,626   109,592
      Maintenance materials
       and repairs                       23,746    17,443    93,166    69,606
      Aircraft and passenger
       servicing                         12,768    16,734    53,877    52,655
      Commissions and other
       selling                           11,166    12,184    53,602    48,575
      Depreciation and
       amortization                      12,599     7,983    45,952    28,865
      Other rentals and
       landing fees                       6,573     7,262    27,897    25,720
      Other                              23,014    24,907    89,407    82,858
        Total                           252,671   236,242   975,721   887,541

    Operating Income (Expense)           (1,989)  (16,611)    6,834       506

    Nonoperating Income (Expense):
      Interest and amortization of
       debt discounts and issuance
       costs                             (6,157)   (5,123)  (25,510)  (17,476)
      Losses due to redemption,
       extinguishment and
       modification of long-term
       debt                                   -          -        -   (32,134)
      Interest income                     2,719      2,354    10,643   11,338
      Capitalized interest                    -      1,166     1,309    3,769
      Other, net                          6,528     (1,944)    4,653   (7,013)
        Total                             3,090     (3,547)   (8,905) (41,516)

    Net Income (Loss) Before
     Income Taxes                         1,101   (20,158)   (2,071)  (41,010)
      Income tax benefit                 (2,206)  (10,528)   (9,122)     (463)

    Net Income (Loss)                    $3,307   $(9,630)   $7,051  $(40,547)

    Net Income (Loss) Per
     Common Stock Share:
      Basic                               $0.07    $(0.20)    $0.15    $(0.86)
      Diluted                             $0.07    $(0.20)    $0.15    $(0.86)

    Weighted Average Number of
     Common Stock Shares
     Outstanding:
      Basic                              47,291    47,186    47,203    47,153
      Diluted                            47,579    47,186    47,460    47,153



                           Hawaiian Holdings, Inc.
                Reconciliation of Non-GAAP Financial Measures
                     (in millions, except for CASM data)
                                 (unaudited)

                                    Three Months Ended     Twelve Months Ended
                                       December 31,            December 31,
                                     2007        2006        2007        2006

    GAAP operating expenses         $252.7      $236.2      $975.7      $887.5
      Aircraft fuel, including
       taxes and oil                  87.4        60.4       291.6       241.7
    Adjusted operating
     expenses                       $165.3      $175.9      $684.1      $645.9

    Available Seat Miles           2,350.5     2,166.4     9,231.6     8,062.1

    CASM                             10.75       10.91       10.57       11.01
                                     cents       cents       cents       cents

      Less aircraft fuel              3.72        2.79       3.15        2.99
    CASM - ex-fuel                    7.03        8.12       7.41        8.01
                                     cents       cents       cents       cents

    Notes:
    ASM's represents total operations

SOURCE Hawaiian Holdings, Inc.

CONTACT: Peter Ingram, CFO, +1-808-835-3030,
peter.ingram@hawaiianair.com, or media, Keoni Wagner, VP Public Affairs,
+1-808-838-6778, keoni.wagner@hawaiianair.com, both of Hawaiian Airlines; or
investor relations, Andrew Greenebaum, agreenebaum@icrinc.com, or Lena Adams,
ladams@icrinc.com, both of ICR, Inc., +1-310-954-1100, for Hawaiian Airlines