HONOLULU, Nov. 9 /PRNewswire-FirstCall/ -- Hawaiian Holdings, Inc. (Amex: HA; PCX) ("Holdings" or "the Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), the nation's number one on-time carrier for the past 23 consecutive months as reported by the US Department of Transportation, the 16th largest domestic carrier and the leader in the Hawaii market, today reported consolidated net income for the three months ended September 30, 2005 of $7.8 million, or $0.17 per basic share and $0.16 per diluted share, on total operating revenue of $224.1 million.

"We are generally pleased to be among the very few airlines that achieved profitability in the third quarter despite the problem of high fuel costs. The positive results are a credit to our employees, whose focused efforts continued to drive high demand for our service during the quarter, as evidenced by our strong load factor of nearly 90 percent. We also commenced daily nonstop service between Honolulu and San Jose and are pleased with the initial results," said Mark Dunkerley, Holdings' President and Chief Executive Officer.

Mr. Dunkerley continued, "We take little comfort in our third quarter profits, knowing that fuel prices remain high and competition remains intense as we head into a traditionally weaker period of the year. However, we believe the combination of our long history in Hawaii, strong brand recognition, operational integrity, customer satisfaction and the dedication of our employees position us well to meet the many challenges ahead."

Operating Results

GAAP Results

As previously announced, Hawaiian emerged from bankruptcy on June 2, 2005. During the period from Hawaiian's bankruptcy filing, effective April 1, 2003, through June 1, 2005, the day prior to Hawaiian's emergence from bankruptcy, Holdings deconsolidated Hawaiian and accounted for its interest in Hawaiian using the cost method of accounting and had no responsibility for the management of Hawaiian. As a result, the financial results of Holdings during that period do not include Hawaiian's financial results. Holdings generated no revenue during the three months ended September 30, 2004, and its operating expenses consisted primarily of professional fees related to Hawaiian's bankruptcy case and maintaining Holdings' status as a public company. Holdings reported operating income of $17.9 million for the third quarter 2005 which includes several non-cash purchase accounting adjustments that increased operating expenses for the quarter and which will continue on an on-going basis.(1) In an effort to clarify some of the complex accounting required as a result of Hawaiian's emergence from bankruptcy and provide readers with a basis for comparison with the financial information of Hawaiian previously available during Hawaiian's bankruptcy proceeding, the following is a discussion of the combined historical cost financial results of Holdings and Hawaiian. These combined 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 in U.S. GAAP.

Combined Historical Cost Financial Results for the Third Quarter ended September 30, 2005

Third quarter operating revenue was $228.3 million, an 8.3% increase over the $210.8 million reported for the third quarter 2004. Passenger revenue represented 92% of operating revenue in 2004 and 91% in the third quarter of 2005. Charter, cargo and other revenues represent the balance. Revenue passenger miles (RPMs) in the third quarter increased 9.0%, while available seat miles (ASMs) increased 6.5%, resulting in a 2.3% increase in load factor to 89.9%. The passenger revenue yield per RPM declined slightly to 11.62 cents from 11.75 cents in the third quarter 2004. However, operating revenue per ASM (RASM) increased slightly to 11.21 cents in 2005 from 11.12 cents in the third quarter 2004, due to the increased load factor for the quarter.

Total operating expenses for the third quarter, on a combined historical cost basis, increased 12.9% to $203.7 million, from $180.4 million for the third quarter of 2004. The higher expenses were primarily the result of an $18.9 million, or 52.7%, increase in aircraft fuel costs to $54.8 million. The increase in fuel costs was due to a 43.5% increase in the average cost of jet fuel, to an average of $1.88 per gallon including taxes for the quarter, as well as increased flying. As a percentage of revenue, aircraft fuel expense was 24.5% in the third quarter 2005, as compared to 17.0% in 2004. Other operating expenses increased $3.1 million, as compared to the third quarter of 2004, primarily as a result of increased professional fees related to Sarbanes-Oxley compliance. Operating cost per ASM (CASM) for the third quarter 2005 increased 5.1% to 10.00 cents, compared to 9.52 cents in the third quarter 2004. Operating costs per ASM excluding fuel for the third quarter of 2005 were 7.31 cents, a 4.1% decrease compared to the third quarter 2004. As a result of the higher expenses in the third quarter 2005, operating profit was $24.5 million, compared to an operating profit of $30.4 million in 2004.

    (1) As more fully discussed in consolidated financial statements of
        Holdings for the third quarter, Hawaiian's emergence from bankruptcy
        was accounted for as a business combination, the acquisition of
        Hawaiian by Holdings.  As a result, 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 consolidated
        results from that point forward.  The adjustments to record Hawaiian's
        assets and liabilities at fair value result in significant additional
        deprecation and amortization expense on an on-going basis.

The following table presents a reconciliation of the combined historical cost financial results to the related measure defined in U.S. GAAP for the specified periods.



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

                                        Three months ended  Nine months ended
                                             Sept. 30,          Sept. 30,
                                           2005     2004      2005     2004
                                                    (in thousands)
    Operating Revenue Reconciliation:
    GAAP operating revenue               $224,086     $--   $294,008      $--
      Add:  Hawaiian revenue pre-
       June 2, 2005 (a)                        --  210,817   321,508  579,825
      Add:  Frequent-flier
       adjustment (b)                       4,197       --     6,231       --

    Combined Historical Cost
     Operating Revenue                    228,283  210,817   621,747  579,825

    Operating Expense Reconciliation:

    GAAP operating expenses              $206,150   $1,757  $281,709   $5,611
    Add (Subtract):
       Hawaiian expenses pre-
        June 2, 2005 (a)                       --  178,677   311,299  513,726
       Wages and benefits adjustment (c)    2,265       --     3,020       --
       Aircraft and other rental
        expense (d)                           522       --       373       --
    Maintenance materials and repairs (e)  (1,062)      --    (1,308)      --
    Depreciation and amortization (f)      (4,129)      --    (5,248)      --

    Combined Historical Cost Operating
     Expenses                             203,746  180,434   589,845  519,337

    Combined Historical Cost Operating
     Income                               $24,537  $30,383   $31,902  $60,488

    Footnotes:

    (a) On June 2, 2005, the Company reconsolidated Hawaiian for financial
        reporting purposes.  The reconsolidation 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
        prior to June 2, 2005 were not included in Holdings' results of
        operations.

    (b) Adjustment to reflect the impact on passenger revenue due to
        elimination of deferred revenue from sales of miles to other companies
        affiliated with our frequent flyer program.

    (c) The Company recorded the accumulated pension and other postretirement
        benefit obligations of Hawaiian at their fair value 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.

    (d) The Company recorded a net deferred credit for certain operating
        leases with contractual rentals in excess of current market rates as
        of June 2, 2005.  The net credit serves to reduce aircraft rental
        expense each period.

    (e) 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.

    (f) Adjustment to reflect the impact on depreciation and amortization
        expense due to the amortization of intangible assets recorded at
        June 2, 2005.


    Recent Events:
    * Peter Ingram, an 11-year veteran of AMR Corporation, the parent company
      of American Airlines, will become chief financial officer of Hawaiian
      effective November 10, 2005.  Mr. Ingram previously served as vice
      president of finance and chief financial officer for American Eagle
      Airlines since 2002.
    * Hawaiian flew the inaugural flight of its daily non-stop service between
      San Jose, California and Honolulu on September 29, 2005.
    * In September, Hawaiian was ranked the nation's best airline for on-time
      performance, fewest flights cancelled and fewest customer complaints by
      the US Department of Transportation.

    Liquidity and Capital Resources:
    * As of September 30, 2005, the Company had cash and cash equivalents of
      $148.8 million, as well as $65.5 million of restricted cash.  Restricted
      cash consists primarily of cash deposits held by institutions as
      collateral against advance credit card ticket sales.  These funds are
      subsequently made available as the related air travel is provided.
    * As of September 30, 2005, the Company's debt consisted of $60 million in
      subordinated convertible notes at the Holdings level, and $47.9 million
      in two term loans at the Hawaiian level.  In addition, Hawaiian has a
      $25 million revolving credit facility, $5.7 million of which currently
       supports outstanding letters of credit.
    * For the nine months ended September 30, 2005, net cash provided by the
      combined entity's operating activities before reorganization activities
      was $64.9 million, compared to $41.6 million for the comparable period
      in 2004.

    Fuel Hedging:
    * In May 2005, Hawaiian converted its fuel hedging program to one based on
      jet fuel, as compared to its previous program which was based on heating
      oil.  Hawaiian believes the jet fuel hedges more appropriately offset
      its fuel costs.
    * As of September 30, 2005, the Company had hedged 46.3 million gallons of
      jet fuel at an average economic price of $1.78, or approximately 42% of
      its needs for the coming 12-month period.
    * Prior to September 1, 2005, the Company did not have the proper
      documentation in place to qualify its jet fuel forward contracts as
      hedges under Statement of Financial Accounting Standards No. 133
      "Accounting for Derivative Instruments and Hedging Activities", (SFAS
      No. 133).  The increase in the fair value of the jet fuel forward
      contracts from July 1, 2005 through August 31, 2005 resulted in a gain
      of $8.2 million, which was recognized in other non-operating income.  A
      realized gain of $1.1 million from contract settlements was also
      recorded in other non-operating income during the third quarter.
    * As of September 1, 2005, the Company had completed its required
      documentation and designated the changes in spot prices of its jet fuel
      forward contracts as cash flow hedges under SFAS No. 133.  As a result,
      changes in the fair value of the effective portion of the jet fuel
      forward contracts, which was a decline in fair value of $0.5 million
      from September 1, 2005 through September 30, 2005, are deferred as a
      separate component of equity until the underlying fuel being hedged is
      consumed.
    * The fair value of the jet fuel forward contracts of $15.2 million as of
      September 30, 2005 was recorded in prepaid expenses and other assets.

    About Hawaiian Airlines

Hawaiian Airlines, the nation's number one on-time carrier, is recognized as one of the best airlines in America. Readers of two prominent national travel magazines, Conde Nast Traveler and Travel + Leisure, have both rated Hawaiian as the top domestic airline serving Hawaii in their most recent rankings.

Celebrating its 76th year of continuous service, Hawaiian is Hawaii'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 than any other airline (nine). Hawaiian also provides approximately 100 daily jet flights among the Hawaiian Islands, as well as service to Australia, American Samoa and Tahiti.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (AMEX and PCX: HA) Additional information about the Hawaiian Airlines is available at www.HawaiianAirlines.com.

(Financial Tables Follow)

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. Theses 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 theses 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 projected results 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 Balance Sheets (unaudited)

                                               September 30,      December 31,
                                                  2005(*)           2004(**)
                                                        (in thousands)
    ASSETS
    Current Assets:
      Cash and cash equivalents                  $148,802            $2,169
      Restricted cash                              65,478               500
      Accounts receivable, net of allowance
       for doubtful accounts of $1,780
        as of September 30, 2005                   55,188                --
      Spare parts and supplies, net                13,852                 -
      Prepaid expenses and other                   40,885               175
        Total                                     324,205             2,844

    Property and equipment, less
     accumulated depreciation and amortization
     of $3,219 as of September 30, 2005            50,470                --

    Other Assets:
      Long-term prepayments and other              64,875                --
      Intangible assets, net of accumulated
       amortization of $7,104
      as of September 30, 2005                    162,046                --
      Goodwill                                    103,524                --

        Total Assets                             $705,120            $2,844

    LIABILITIES AND SHAREHOLDERS' EQUITY
     (DEFICIENCY)
    Current Liabilities:
      Accounts payable                            $42,275              $593
      Air traffic liability                       177,456                --
      Other accrued liabilities                    57,293               763
      Current portions of long-term debt and
       capital lease obligations                   12,950                --
      Due to related parties                           --             1,478
        Total                                     289,974             2,834

    Long-Term Debt and Capital Lease
     Obligations                                   82,289                --

    Other Liabilities and Deferred
     Credits:
      Accumulated pension and other
       postretirement benefit obligations         199,649                --
      Other liabilities and deferred credits       54,154                --
      Losses in excess of investment in
       Hawaiian Airlines, Inc                          --            61,302
        Total                                     253,803            61,302

    Commitments and Contingent Liabilities

    Shareholders' Equity (Deficiency):
      Common and Preferred stock                      451               307
      Capital in excess of par value              203,338            69,756
      Notes receivable from sales of common
       stock                                          (24)               --
      Accumulated deficit                        (124,218)         (131,355)
      Accumulated other comprehensive loss:
      Loss on hedge instruments                      (493)               --
        Total                                      79,054           (61,292)

    Total Liabilities and Shareholders'
     Equity (Deficiency)                         $705,120            $2,844

    (*)  Includes the consolidated balance sheets of Hawaiian Holdings, Inc.
          and Hawaiian Airlines, Inc.
    (**) Includes only the balance sheet of Hawaiian Holdings, Inc.



    Hawaiian Holdings, Inc.
    Consolidated Statements of Operations (unaudited)

                                    Three Months Ended    Nine Months Ended
                                       September 30,        September 30,
                                     2005(*)    2004(**)  2005(***)  2004(**)
                                    (in thousands, except per share data)
    Operating Revenue:
      Passenger                    $204,537       $--   $268,417       $--
      Charter                         2,450        --      3,135        --
      Cargo                           8,264        --     10,833        --
      Other                           8,835        --     11,623        --
        Total                       224,086        --    294,008        --

    Operating Expenses:
      Wages and benefits             55,313        --     77,890        --
      Aircraft fuel, including
       taxes and oil                 54,811        --     71,580        --
      Aircraft rent                  26,349        --     35,211        --
      Maintenance materials
       and repairs                   13,549        --     17,547        --
      Depreciation and amortization   7,006        --      9,015        --
      Other rentals and landing fees  6,290        --      8,183        --
      Sales commissions               1,912        --      2,470        --
      Other                          40,920     1,757     59,813     5,611
        Total                       206,150     1,757    281,709     5,611

    Operating Income (Loss)          17,936    (1,757)    12,299    (5,611)

    Nonoperating Income (Expense):
      Interest and amortization
       of debt issuance costs        (5,004)       --     (6,107)       --
      Interest income                 1,879         1      2,387         4
      Other, net                      7,916        --     13,452        --
        Total                         4,791         1      9,732         4

    Income (Loss) Before
     Income Taxes                    22,727    (1,756)    22,031    (5,607)

    Income tax expense               14,894        --     14,894        --

    Net Income (Loss)                $7,833   $(1,756)    $7,137   $(5,607)

    Net Income (Loss) Per
     Common Stock
    Share:
      Basic                           $0.17    $(0.06)     $0.19    $(0.19)
      Diluted                         $0.16    $(0.06)     $0.18    $(0.19)

    Weighted Average Number of
    Common Stock Shares Outstanding:
      Basic                          44,898    30,006     37,019    29,441
      Diluted                        58,999    30,006     51,120    29,441


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

SOURCE  Hawaiian Holdings, Inc.
    -0-                             11/09/2005
    /CONTACT:  Keoni Wagner, VP Public Affairs of Hawaiian Airlines,
+1-808-838-6778, keoni.wagner@hawaiianair.com; or Investor Relations, Andrew
Greenebaum, agreenebaum@icrinc.com, or Allyson Pooley, apooley@icrinc.com,
both of Integrated Corporate Relations, +1-310-395-2215, for Hawaiian
Airlines, Inc./
    /Web site:  http://www.HawaiianAirlines.com /
    (HA)

CO:  Hawaiian Holdings, Inc.; Hawaiian Airlines, Inc.
ST:  Hawaii
IN:  AIR TRA LEI TRN
SU:  ERN

CC-CM
-- LAW132 --
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