Hawaiian Holdings Reports Second Quarter 2006 Financial Results

* Operating revenue increased 10% to $222 million from a year ago

* Load factor increased to 86.9% from 85.4% a year ago

* Operating Income of $9 million

* Pre-tax loss of $22 million including a special charge of $28 million

* Excluding special charge, pre-tax income of $6 million

* Management will host an investor call today at 5 p.m. EDT to discuss results

HONOLULU, Aug. 7 /PRNewswire-FirstCall/ -- Hawaiian Holdings, Inc. (Amex: HA; PCX) ("Holdings" or "the Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported a consolidated net loss for the three months ended June 30, 2006 of $26.4 million, or $0.56 per basic and diluted share, on total operating revenue of $222.3 million. As previously announced, these results include a special charge of $28.0 million related to the Company's redemption of all of its outstanding 5% subordinated convertible notes. Additionally, the net loss includes a tax provision of $4.3 million, despite the Company reporting a pre-tax loss (discussed below in more detail). Operating income for the second quarter was $9.0 million. Excluding the special charge, the Company would have reported pre-tax earnings of $6.0 million for the second quarter.

Mark Dunkerley, President and Chief Executive Officer, commented, "During the second quarter we faced two main challenges in the rising price of fuel and the increase in competitor capacity, both interisland and on our transpacific routes. In this environment we are pleased to report an operating and pre-tax profit excluding the special charge associated with the redemption of our convertible securities. At the same time, we recognize that our progress in this quarter has lagged that of several of our competitors, so we remain keenly focused on efforts to improve revenues and further control our costs."

Mr. Dunkerley continued, "On a positive note, the four additional Boeing 767-300 aircraft we purchased during the first quarter are on target to begin service during the third and fourth quarters. These aircraft will join our existing fleet and allow us to bring our industry-leading customer service and on-time performance to more travelers."

Operating Results

GAAP Results

Hawaiian emerged from bankruptcy on June 2, 2005. Effective April 1, 2003, following Hawaiian's bankruptcy filing, through June 1, 2005, Holdings deconsolidated Hawaiian and accounted for its interest in Hawaiian using the cost method of accounting. As a result, the consolidated financial results of Holdings during that period do not include Hawaiian's financial results. Holdings generated no revenue from April 1, 2005 through June 1, 2005, and its operating expenses consisted primarily of professional fees related to Hawaiian's bankruptcy case and maintaining Holdings' status as a public company. Hawaiian's emergence from bankruptcy was accounted for as a business combination, the acquisition of Hawaiian by Holdings. As a consequence, the results of operations for Hawaiian are included in the consolidated financial results of the Company from June 2, 2005 forward.

On a consolidated GAAP basis, the Company reported operating income of $9.0 million and a net loss of $26.4 million for the second quarter 2006. The GAAP financial results include a $28 million special charge primarily attributable to Holdings' redemption of its outstanding 5% subordinated convertible notes in the second quarter of 2006. Additionally, the net loss for the second quarter includes a provision for income taxes, despite the Company reporting a pre-tax loss. The tax provision is primarily attributable to the non-deductible charge taken upon the convertible notes redemption and an increase in deferred tax assets following Hawaiian's emergence from bankruptcy, for which the Company is required to provide a full valuation allowance.

Consolidated/Combined Holdings and Hawaiian Results

Because Hawaiian's emergence from bankruptcy was accounted for as a business combination, the assets and liabilities of Hawaiian were adjusted to their fair values as of June 2, 2005, and the results of operations of Hawaiian are included in the Company's consolidated results from that date forward. In order to clarify some of the complex accounting resulting from Holdings' reacquisition of Hawaiian upon Hawaiian's emergence from bankruptcy and provide readers with a basis for comparison with the financial results of Hawaiian during its bankruptcy, the following discussion compares the consolidated financial results for the quarter ended June 30, 2006 to the combined financial results of Holdings and Hawaiian for the same quarter of the prior year. These combined financial results are not, however, defined within accounting principles generally accepted in the United States and therefore should not be considered in isolation or as a substitute for the equivalent measure defined by GAAP.

The adjustments to record Hawaiian's assets and liabilities at fair value resulted in significant additional depreciation and amortization expense in the current quarter and on an on-going basis, as well as several other non-cash adjustments. The consolidated results of operations for the second quarter and the six months ended June 30, 2006 were affected by the application of purchase accounting as follows:



                                             3 Months Ended    6 Months Ended
                                                June 30,          June 30,
                                             2006     2005      2006     2005
                                                       (in millions)
    Operating Revenue - Decrease in
     operating revenue:
       Passenger - Elimination of deferred
        revenue from sales of miles in
        frequent flyer program              $(1.8)   $(2.0)    $(4.4)   $(2.0)
          Total decrease in operating
           revenue                          $(1.8)   $(2.0)    $(4.4)   $(2.0)

    Operating Expenses -
     Increase/(decrease) in operating
     expenses:
       Wages and benefits - elimination of
        unrecognized actuarial losses         $--    $(0.8)      $--    $(0.8)
       Aircraft and other rent -
        amortization of favorable and
        unfavorable operating leases          0.4      0.2       0.9      0.2
       Maintenance materials and repairs
        - favorable aircraft maintenance
        contracts                             0.3      0.2       0.6      0.2
       Depreciation and amortization          3.9      1.1       7.9      1.1
          Total increase in operating
           expenses                          $4.7     $0.8      $9.4     $0.8

    Operating Income - Decrease in
     operating income                       $(6.4)   $(2.8)   $(13.8)   $(2.8)

    Non Operating Income/Expense -
       Interest expense - amortization of
        certain debt  due to recognizing
        debt discount at fair value         $(0.2)   $(0.0)    $(0.3)   $(0.0)
       Interest income - accretion due to
        recognizing aircraft maintenance
        and lease security deposits at
        fair value                            0.3      0.1       0.7      0.1
          Total                              $0.2     $0.1      $0.4     $0.1

    Increase in Loss Before Income Taxes    $(6.3)   $(2.7)   $(13.4)   $(2.7)


As a result of higher revenue and improvements in cost containment, the Company reported operating income of $9.0 million in the second quarter of 2006 compared to operating income of $0.2 million in second quarter of 2005 on a combined basis.

Second quarter operating revenue was $222.3 million, a 10.2% increase over the combined operating revenue for the second quarter 2005. Passenger revenue represented approximately 91% of operating revenue in the second quarters of both 2005 and 2006. Charter, cargo and other revenues represented the balance. Passenger yield (passenger revenue per revenue passenger mile) in the second quarter of 2006 increased 7.1% to 12.17 cents from 11.36 cents in the second quarter 2005. Operating revenue per available seat mile (RASM) increased 9.4% to 11.43 cents in the second quarter of 2006 from 10.45 cents in the second quarter 2005.



    Hawaiian Holdings, Inc. and Hawaiian Airlines, Inc.
    Selected Combined Statistical Data

                                                  Three months ended
                                                        June 30,
                                            2006          2005          Change
                                               (in millions)
    Scheduled Operations:
    Revenue passenger miles (RPM)       1,661.5         1,619.0          2.6%
    Available seat miles (ASM)          1,911.6         1,896.1          0.8%
    Passenger load factor (RPM/ASM)       86.9%           85.4%

    Total Operations
    Operating Revenue per ASM (RASM)      11.43 cents     10.45 cents    9.4%
    Operating Cost per ASM (CASM)         10.97 cents     10.44 cents    5.1%
    CASM ex-fuel                           7.92 cents      7.94 cents   -0.3%
    Adjusted CASM ex-fuel*                 7.68 cents      7.90 cents   -2.8%

      *adjusted for purchase accounting differences


                                                     Six months ended
                                                        June 30,
                                            2006          2005          Change
                                               (in millions)
    Scheduled Operations:
    Revenue passenger miles (RPM)       3,287.3         3,090.3          6.4%
    Available seat miles (ASM)          3,770.2         3,625.1          4.0%
    Passenger load factor (RPM/ASM)       87.2%           85.2%

    Total Operations
    Operating Revenue per ASM (RASM)      11.25 cents     10.45 cents    7.6%
    Operating Cost per ASM (CASM)         11.13 cents     10.28 cents    8.3%
    CASM ex-fuel                           8.11 cents      7.97 cents    1.7%
    Adjusted CASM ex-fuel*                 7.86 cents      7.95 cents   -1.1%

      *adjusted for purchase accounting differences


Total operating expenses for the second quarter increased 5.8% to $213.3 million from $201.6 million for the second quarter of 2005. Operating cost per available seat mile (CASM) for the second quarter 2006 increased 5.1% year-over-year to 10.97 cents. CASM excluding fuel and the non-cash adjustments related to purchase accounting declined 2.8% to 7.68 cents in the second quarter of 2006 versus 7.90 cents in the prior year's quarter.

The higher operating expenses were primarily the result of an $11.0 million, or 22.8%, increase in aircraft fuel costs to $59.2 million. Hawaiian's average cost per gallon of jet fuel rose 24% to $2.15 (including taxes, delivery and hedging gains) for the second quarter of 2006. Aircraft fuel represented 27.8% of operating expenses in the second quarter 2006 compared to 23.9% in the same quarter of 2005.

Depreciation and amortization expense increased by $3.1 million, to $7.0 million, primarily due to the amortization of intangible assets arising from revaluing Hawaiian's assets under purchase accounting. Additionally, materials and repairs expenses increased $4.3 million to $18.3 million as a result of higher engine maintenance expenses incurred under power-by-the-hour (PBH) agreements and an increase in airframe overhaul expenses for both the 767 and 717 fleets. The PBH increases are attributable to the inclusion of additional engines under PBH agreements, an overall increase in block hours operated and higher rates per hour.

The higher expenses were partially offset by lower wages and benefits in the quarter which declined by 5.1% to $56.1 million. In the 2005 second quarter, wages and benefits expense included $4.7 million of compensation expense related to cash and stock bonuses associated with Hawaiian's successful reorganization in June 2005. Effective January 1, 2006, the Company adopted SFAS No. 123(R) which resulted in the recognition of $1.2 million share-based compensation expense for the second quarter of 2006.

Other expenses declined $5.1 million, or 12.1%, to $37.2 million during the second quarter of 2006. Included in this amount is a decline in professional fees of $2.6 million following a period of escalated expense in 2005 related to initial compliance with Sarbanes-Oxley requirements and activities related to Hawaiian's bankruptcy and reorganization.

Nonoperating expenses, net for the second quarter of 2006 totaled $31.1 million compared to nonoperating income of $16.2 million in the second quarter of 2005. Included in the total expense for the second quarter of 2006 is a $28.0 million special charge attributable to Holdings' redemption of all of its outstanding 5% subordinated convertible notes in April 2006. Included in the 2005 second quarter are $10.9 million of unrealized gains related to jet fuel forward contracts that did not qualify for hedge accounting and a $4.9 million gain from the favorable settlement of a bankruptcy related claim.

Recent Events:

* In early May, the Company announced a significant expansion of its service to Hawaii from San Diego, Seattle, Portland, Sacramento and Los Angeles.
* In June, the Company extended to 32 consecutive months its streak of leading the DOT's rankings for on-time performance and maintained its #1 ranking for baggage handling.
* In early June, the Company announced the addition of three members to its board of directors, increasing to 12 the number of board members overseeing the Company.
* In June, Hawaiian was ranked as the nation's top airline serving Hawaii in Travel + Leisure magazine's 2006 World's Best Service Awards.

Liquidity, Capital Resources and Fuel Hedging:

* On April 21, 2006, the Company completed the redemption of all of its outstanding 5% subordinated convertible notes due in 2010, thus avoiding significant potential dilution. As discussed previously, the Company incurred a $28 million special charge in connection with the redemption.
* As of June 30, 2006, the Company had unrestricted cash and cash equivalents of $173 million.
* As of June 30, 2006, the Company also had an additional $87.0 million in restricted cash including approximately $10 million classified as a noncurrent asset. Subsequent to the quarter end, the Company used the $10 million noncurrent restricted cash to make a prepayment on the term loan it made under the Company's debt restructuring in the first quarter of 2006. The $10 million had been held in escrow as it was contingent on a certain asset acquisition which did not occur, and consistent with the terms of the transaction, the $10 million was used to reduce the principal of the term loan.
* For the quarter ended June 30, 2006, net cash provided by operating activities before reorganization activities was $32 million, compared to $39 million for the same period in 2005 on a combined basis.
* As of June 30, 2006, Hawaiian had entered into jet fuel forward contracts to hedge approximately 24% of its fuel requirements for the remainder of 2006 at fixed prices ranging from $1.89 to $2.17 per gallon. The Company's current jet fuel hedge position for the remainder of 2006 is outlined in the table below:

Average Forward Contract Percentage of Designation Average Settlement Gallons Quarterly Price Per Price of Forward Hedged Consumption Gallon(1) Contract (thousands) Hedged Third Quarter 2006 $2.025 $2.024 13,944 48% Fourth Quarter 2006 $2.085 $2.100 756 2% (1) Designation prices are based on spot prices on the date of designation of the applicable jet fuel forward contracts, and represent the prices per gallon that the fuel expenses to be recognized in our financial statements will be based upon. Investor Conference Call

Hawaiian Holdings' quarterly earnings conference call is scheduled to begin later today (Monday, August 7, 2006) at 5:00 p.m., Eastern Daylight 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 www.hawaiianair.com . For those who are not available for the live broadcast, the call will be archived on Hawaiian's investor website.

About Hawaiian Airlines

Hawaiian was the nation's number one carrier for on-time service, fewest flight cancellations and best baggage service reliability in 2005 and the first quarter of 2006, according to reports by the U.S. Department of Transportation. Consumer travel surveys conducted by Conde Nast Traveler, Travel + Leisure, and Zagat all rank Hawaiian as the top domestic airline serving Hawaii.

Now in its 77th year of continuous service in Hawaii, Hawaiian is the state's biggest and longest-serving airline, and the second largest provider of passenger air service between Hawaii and the U.S. mainland. Hawaiian offers nonstop service to Hawaii from more U.S. gateway cities (nine) than any other airline, as well as service to Australia, American Samoa and Tahiti. Hawaiian also provides approximately 100 daily jet flights among the Hawaiian Islands.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (Amex: HA; PCX). Additional information is available at 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. 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.

    (Financial Tables Follow)



    Hawaiian Holdings, Inc.
    Consolidated Balance Sheets (in thousands, except for share data)

                                                 June 30,         December 31,
                                                   2006               2005
                                                (unaudited)
    ASSETS
    Current Assets:
       Cash and cash equivalents                  $172,542          $153,388
       Restricted cash                              76,835            53,420
       Accounts receivable, net of allowance
        for doubtful accounts of $481 and
        $912 as of June 30, 2006 and
        December 31, 2005, respectively             36,373            35,278
       Spare parts and supplies, net                14,022            14,578
       Deferred tax assets                          10,992             9,269
       Prepaid expenses and other                   24,864            21,673
          Total                                    335,628           287,606

    Property and equipment, less accumulated
     depreciation and amortization of $10,728
     and $5,751 as of June 30, 2006 and
     December 31, 2005, respectively                91,235            51,277

    Other Assets:
       Long-term prepayments and other              39,816            29,253
       Intangible assets, net of accumulated
        amortization of $25,845 and $13,936
        as of June 30, 2006 and December 31,
        2005, respectively                         179,296           191,205
       Goodwill                                    105,380           107,179
       Total Assets                               $751,355          $666,520

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities:
       Accounts payable                            $39,983           $39,089
       Air traffic liability                       225,766           162,638
       Other accrued liabilities                    34,074            62,969
       Current maturities of long-term debt
        and capital lease obligations               14,828            13,064
          Total                                    314,651           277,760

    Long-Term Debt and Capital Lease
     Obligations                                   136,342            77,576

    Other Liabilities and Deferred
     Credits:
    Accumulated pension and other
     postretirement benefit obligations            198,381           196,831
    Other liabilities and deferred credits          63,274            57,017
    Deferred income taxes                           10,992             9,269
       Total                                       272,647           263,117

    Commitments and Contingent Liabilities
     Shareholders' Equity:
       Special preferred stock, three shares
        outstanding as of June 30, 2006
        and December 31, 2005                           --                --
       Common stock, 46,553,914 shares and
        45,349,100 shares outstanding
        as of June 30, 2006 and December 31,
        2005, respectively                             466               453
       Capital in excess of par value              208,072           203,479
       Accumulated deficit                        (182,397)         (143,721)
       Accumulated other comprehensive
        income (loss):
          Income (loss) on hedge instruments         1,574           (12,144)
          Total                                     27,715            48,067
    Total Liabilities and Shareholders' Equity    $751,355          $666,520



    Hawaiian Holdings, Inc.
    Consolidated Statements of Operations (in thousands, except for per share
     data)
    (unaudited)
                                        Three Months Ended   Six Months Ended
                                             June 30,            June 30,
                                         2006(*)  2005(**)  2006(*)  2005(***)

    Operating Revenue:
    Passenger                            $202,157  $63,880  $391,745  $63,880
    Charter                                 1,951      685     4,225      685
    Cargo                                   7,830    2,569    15,918    2,569
    Other                                  10,340    2,788    20,108    2,788
    Total                                 222,278   69,922   431,996   69,922

    Operating Expenses:
    Aircraft fuel, including taxes
     and oil                               59,216   16,770   116,178   16,770
    Wages and benefits                     56,057   22,578   114,226   22,578
    Aircraft rent                          27,164    8,862    54,522    8,862
    Maintenance materials and repairs      18,262    3,998    35,033    3,998
    Depreciation and amortization           6,961    2,256    13,725    2,256
    Other rentals and landing fees          6,149    1,893    12,065    1,893
    Sales commissions                       2,227      558     4,084      558
    Other                                  37,225   16,548    77,741   18,643
    Total                                 213,261   73,463   427,574   75,558

    Operating Income (Loss)                 9,017   (3,541)    4,422   (5,636)

    Nonoperating Income (Expense):
    Interest and amortization of debt
     discounts and issuance costs          (4,533)  (1,104)   (5,396)  (1,104)
    Losses due to redemption,
     extinguishment and
     modification of long-term debt       (28,032)      --   (31,104)      --
    Interest income                         3,037      508     5,466      508
    Capitalized interest                      960       --     1,259       --
    Other, net                             (2,519)   5,536    (8,824)   5,536
    Total                                 (31,087)   4,940   (38,599)   4,940

    Income (Loss) Before Income Taxes     (22,070)   1,399   (34,177)    (696)
    Income tax expense                      4,314       --     4,499       --

    Net Income (Loss)                    $(26,384)  $1,399  $(38,676)   $(696)

    Net income (Loss) Per Common Stock
     Share:
    Basic                                  $(0.56)   $0.03    $(0.82)  $(0.02)
    Diluted                                $(0.56)   $0.03    $(0.82)  $(0.02)

    Weighted Average Number of
     Common Stock Shares Outstanding:
    Basic                                  47,171   35,730    47,126   33,254
    Diluted                                47,171   36,459    47,126   33,254

    (*)   Includes the consolidated results of operations of Hawaiian
          Holdings, Inc. and Hawaiian Airlines, Inc. for the entire period
          presented.

    (**)  Includes the results of operations of Hawaiian Holdings, Inc. for
          the period April 1, 2005 through June 1, 2005, and the consolidated
          results of operations for Hawaiian Holdings, Inc. and Hawaiian
          Airlines, Inc. for the period June 2, 2005 through June 30, 2005.

    (***) Includes the results of operations of Hawaiian Holdings, Inc. for
          the period January 1, 2005 through June 1, 2005, and the
          consolidated results of operations for Hawaiian Holdings, Inc.  and
          Hawaiian Airlines, Inc. for the period June 2, 2005 through June 30,
          2005.



    Hawaiian Holdings, Inc. and Hawaiian Airlines, Inc.
    Statements of Operations (in thousands)
    (unaudited)

                                        Three Months ended   Six Months ended
                                            June 30,             June 30,
                                        2006(*)   2005(**)  2006(*)   2005(**)

    Operating Revenue:
    Passenger                          $202,157  $183,973  $391,745  $353,720
    Charter                               1,951     2,081     4,225     6,600
    Cargo                                 7,830     7,293    15,918    14,339
    Other                                10,340     8,381    20,108    16,414
       Total                            222,278   201,728   431,996   391,073

    Operating Expenses:
    Aircraft fuel, including taxes
     and oil                             59,216    48,222   116,178    86,556
    Wages and benefits                   56,057    59,070   114,226   115,360
    Aircraft rent                        27,164    26,589    54,522    52,730
    Maintenance materials and repairs    18,262    13,941    35,033    28,012
    Depreciation and amortization         6,961     3,825    13,725     6,025
    Other rentals and landing fees        6,149     5,816    12,065    11,530
    Sales commissions                     2,227     1,741     4,084     3,135
    Other                                37,225    42,369    77,741    81,271
       Total                            213,261   201,573   427,574   384,619

    Operating Income                      9,017       155     4,422     6,454

    Nonoperating Income (Expense):
    Reorganization items, net                --     6,738        --       888
    Interest and amortization of debt
     discount and issuance costs         (4,533)   (1,236)   (5,396)   (1,570)
    Losses due to redemption,
     extinguishment and
     modification of long-term debt     (28,032)       --   (31,104)       --
    Interest income                       3,037       508     5,466       508
    Capitalized interest                    960        --     1,259        --
    Other, net                           (2,519)   10,229    (8,824)    8,910
       Total                            (31,087)   16,239   (38,599)    8,736

    Income (Loss) Before Income Taxes   (22,070)   16,394   (34,177)   15,190

       Income tax expense                 4,314    18,067     4,499    18,572

    Net Loss                           $(26,384)  $(1,673) $(38,676)  $(3,382)

    (*)   Consolidated results of operations of Hawaiian Holdings, Inc. and
          Hawaiian Airlines, Inc.

    (**)  Combined results of operations of Hawaiian Holdings, Inc. and
           Hawaiian Airlines, Inc.



    Hawaiian Holdings, Inc.
    Reconciliation of GAAP Financial Information to Non-GAAP Financial
     Information (unaudited)

Pursuant to Regulation G of the Securities and Exchange Commission, we are providing further disclosure of the reconciliation of reported non-GAAP financial measures to their comparable financial measures reported on a basis consistent with accounting principles generally accepted in the United States (GAAP). Our disclosure of earnings excluding special charges and cost per available seat mile (CASM) excluding fuel expense provides management and investors the ability to measure and monitor our performance on a consistent basis. Additionally, the cost and availability of fuel are subject to many economic and political factors and are therefore largely beyond our control. These measures are consistent with financial measures reported by other airlines.

We are also providing certain information on a historical cost basis. Because Hawaiian's emergence from bankruptcy was accounted for as a business combination and Hawaiian's assets and liabilities were recorded at fair value at that point, our performance in periods subsequent to Hawaiian's emergence from bankruptcy is not necessarily comparable to our and Hawaiian's combined performance prior to Hawaiian's emergence. Our disclosure of financial information on a historical cost basis provides management and investors the ability to measure and monitor our performance on a consistent basis.



                                                               (in thousands)

    Net loss before income taxes for the quarter ended
     June 30, 2006                                                $(22,070)

    Less special charge:
        Loss on the redemption of Holdings' outstanding
         5% subordinated convertible notes                         (28,032)

    Income before income taxes and special charge                   $5,962



    Hawaiian Holdings, Inc.
    Reconciliation of GAAP Results to
    Adjusted Historical Cost Financial Results (unaudited)

                       Three months ended            Six months ended
                            June 30,                     June 30,
                       2006          2005           2006           2005
                          (in millions)                (in millions)


    GAAP operating
     expenses         $213.3         $73.5         $427.6          $75.6

       Hawaiian
        expenses
        pre-June 2,
        2005 (a)          --         128.1             --          309.1
    Combined Holdings
     and Airlines
     operating
     expenses         $213.3        $201.6         $427.6         $384.6

       Aircraft fuel,
        including
        taxes
        and oil         59.2          48.2          116.2           86.6
    Adjusted
     operating
     expenses         $154.0        $153.4         $311.4         $298.1

        Add (Subtract)
         impact of
         purchase
         accounting:
           Wages &
            benefits
            (b)          $--          $0.8            $--           $0.8
       Aircraft and
        other rental
        expense  (c)    (0.4)         (0.2)          (0.9)          (0.2)
       Maintenance
        materials and
        repairs (d)     (0.3)         (0.2)          (0.6)          (0.2)
       Depreciation
         and
         amortization
         (e)            (3.9)         (1.1)          (7.9)          (1.1)

    Adjusted
     Historical
     Cost operating
     expenses,
     ex-fuel          $149.4        $152.6         $302.0         $297.3

    Available Seat
     Miles
     (millions)      1,944.9       1,931.3        3,841.0        3,740.8

    CASM - GAAP        10.97 cents    3.80 cents    11.13 cents     2.02 cents
     add Hawaiian
     expenses CASM        --          6.63             --           8.26
    CASM - Combined    10.97 cents   10.44 cents    11.13 cents    10.28 cents
     less aircraft
     fuel               3.04          2.50           3.02           2.31
    CASM - Combined,
     ex-fuel            7.92 cents    7.94 cents     8.11 cents     7.97 cents
       Impact of
        purchase
        accounting
        adjustments    (0.24)        (0.04)         (0.24)         (0.02)
    CASM - Adjusted
     for historical
     cost, ex-fuel      7.68 cents    7.90 cents     7.86 cents     7.95 cents

    Footnotes:
    (a) Effective April 1, 2003, the Company deconsolidated Hawaiian until the
        Company reacquired and reconsolidated Hawaiian on June 2, 2005.  The
        reconsolidation of Hawaiian was accounted for as a business
        combination with Hawaiian's assets and liabilities being adjusted to
        their fair values as of June 2, 2005.  Hawaiian's results of
        operations for the period April 1, 2003 through June 1, 2005 were not
        included in Holdings' results of operations.

    (b) The Company recorded the accumulated pension and other postretirement
        benefit obligations of Hawaiian at their fair values as of June 2,
        2005, resulting in the elimination of actuarial losses and the related
        amortization of such losses as a component of pension expense.

    (c) The increase in aircraft and other rental expense is due to recording
        the Company's operating leases to their fair values as of June 2,
        2005.

    (d) The Company recorded an intangible asset for certain aircraft
        maintenance contracts with contractual rates less than current market
        rates for similar services at June 2, 2005.

    (e) Adjustment to reflect the impact on depreciation and amortization
        expense due to the amortization of intangible assets and certain
        property and equipment recorded to its fair value at June 2, 2005.

SOURCE
Hawaiian Holdings, Inc.
08/07/2006

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, Allyson Pooley,
apooley@icrinc.com, or Andrew Greenebaum,
agreenebaum@icrinc.com, both of Integrated Corporate Relations,
1-310-954-1100, for Hawaiian Airlines