Forward-Looking Statements



This Quarterly Report on Form 10-Q contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 that reflect
our current views with respect to certain current and future events and
financial performance. Such forward-looking statements include, without
limitation, statements related to our financial statements and results of
operations; any expectations of operating expenses, deferred revenue, interest
rates, tax rates, income taxes, deferred tax assets, valuation allowances or
other financial items; the severity, magnitude, duration and effects of the
COVID-19 pandemic; the extent to which the COVID-19 pandemic and related impacts
will materially and adversely affect our business operations, financial
performance, results of operations, financial position or achievement of
strategic objectives; the duration and scope of government mandates or other
limitations of or restrictions on travel; the impact of COVID-19 testing
programs and vaccinations on the demand for air travel and travel to, from and
within Hawai'i; the demand for air travel in the markets in which we operate;
the compounding effect of the COVID-19 pandemic on competitive pressures in the
markets in which we operate; our dependence on tourism; the impact of the
COVID-19 pandemic on our suppliers; the effect of the economic downturn and the
COVID-19 pandemic on our aircraft contracts and commitments; the effect of
government, business and individual actions intended to mitigate the effects of
the COVID-19 pandemic; the terms and effectiveness of cost reduction and
liquidity preservation measures taken by us; our ability to continue to generate
sufficient cash to operate; changes in our future capital needs; estimations
related to our liquidity requirements; future obligations under the CARES Act,
CAA 2021 and ARP 2021 programs; the availability of aircraft fuel, aircraft
parts and personnel; expectations regarding industry capacity, our operating
performance (including bookings, revenue and results of operations), available
seat miles, operating revenue per available seat mile and operating cost per
available seat mile for the second quarter of 2022; expected salary and related
costs; our expected fleet as of March 31, 2023; estimates of annual fuel
expenses and measure of the effects of fuel prices on our business; the impact
of inflation on our business; the availability of, and efforts seeking, future
financing; changes in our fleet plan and related cash outlays; committed capital
expenditures; expected cash payments related to our post-retirement plan
obligations and the establishment of a Health Retirement Account; estimated
financial charges; expected delivery or deferment of new aircraft and engines;
the impact of accounting standards on our financial statements; the effects of
any litigation on our operations or business; the effects of our fuel and
currency risk hedging policies; the fair value and expected maturity of our debt
obligations; our estimated contractual obligations; the restatement of our
financial statements for the Non-Reliance Periods and the impact of such
restatement on our future financial statements and other financial measures; the
material weakness we identified in our internal controls over financial
reporting and our efforts and timing related to such remediation; and other
matters that do not relate strictly to historical facts or statements of
assumptions underlying any of the foregoing. Words such as "expects,"
"anticipates," "projects," "intends," "plans," "believes," "estimates," "could,"
"would," "will," "might," "may," variations of such words, and similar
expressions are also intended to identify such forward-looking statements. These
forward-looking statements are and will be, as the case may be, subject to many
risks, uncertainties and assumptions relating to our operations and business
environment, all of which may cause our actual results to be materially
different from any future results, expressed or implied, in these
forward-looking statements.

Factors that could affect such forward-looking statements include, but are not
limited to: the continuing and developing effects of the spread of COVID-19 on
our business operations and financial condition; whether our cost-cutting
efforts related to the COVID-19 pandemic will be effective or sufficient; the
duration of government-mandated and other restrictions on travel; the full
effect that quarantines, restrictions on travel, vaccination requirements, and
other measures to limit the spread of COVID-19 will have on demand for air
travel in the markets in which we operate; the effect of vaccination mandates on
our operations; fluctuations and the extent of declining demand for air
transportation in the markets in which we operate; our dependence on the tourism
industry; our ability to generate sufficient cash and manage the cash available
to us; our ability to accurately forecast quarterly and annual results; global
economic volatility; macroeconomic political and regulatory developments;
geopolitical conflict; the price and availability of fuel, aircraft parts and
personnel; foreign currency exchange rate fluctuations; competitive pressures,
including the impact of increasing industry capacity between North America and
Hawai'i; maintenance of privacy and security of customer-related information and
compliance with applicable federal and foreign privacy or data security
regulations or standards; our dependence on technology and automated systems;
our reliance on third-party contractors; satisfactory labor relations; our
ability to attract and retain qualified personnel and key executives; successful
implementation of our growth strategy and cost reduction goals; adverse
publicity; risks related to the airline industry; our ability to obtain and
maintain adequate facilities and infrastructure; seasonal and cyclical
volatility; the effect of applicable state, federal and foreign laws and
regulations; increases in insurance costs or reductions in coverage; the limited
number of suppliers for aircraft, aircraft engines and parts; our existing
aircraft purchase agreements; delays in aircraft or engine deliveries or other
loss of fleet capacity; changes in our future capital needs; fluctuations in our
share price; our financial liquidity; and our ability to implement our growth
strategy. The risks, uncertainties, and assumptions referred to above that could
cause our results to differ materially from the results expressed or implied by
such forward-looking statements also include the risks, uncertainties, and
assumptions discussed under the heading "Risk Factors" in Part II, Item 1A in
this
                                       30
--------------------------------------------------------------------------------

Quarterly Report on Form 10-Q and discussed from time to time in our public
filings and public announcements. All forward-looking statements included in
this Quarterly Report on Form 10-Q are based on information available to us as
of the date hereof. We undertake no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that may arise
after the date of this quarterly report. The following discussion and analysis
should be read in conjunction with our unaudited Consolidated Financial
Statements and notes thereto included elsewhere in this Quarterly Report on
Form 10-Q. Unless the context otherwise requires, the terms the Company, we, us,
and our in this Quarterly Report on Form 10-Q refer to Hawaiian Holdings, Inc.
and its consolidated subsidiaries.

Restatement of Previously Issued Financial Statements



This "Management's Discussion and Analysis of Financial Condition and Results of
Operations" has been amended and restated to give effect to the restatement of
our financial statements, as more fully described in Note 2 to our financial
statements entitled "Restatement of Previously Issued Financial Statements." For
further detail regarding the restatement, see the "Explanatory Note" to this
Quarterly Report on Form 10-Q.

Our Business



We are engaged in the scheduled air transportation of passengers and cargo
amongst the Hawaiian Islands (the Neighbor Island routes), between the Hawaiian
Islands and certain cities in the U.S. mainland (the North America routes and
collectively with the Neighbor Island routes, referred to as our Domestic
routes), and between the Hawaiian Islands and the South Pacific, Australia, and
Asia (the International routes), collectively referred to as our "Scheduled
Operations." In addition, we operate various charter flights. Since February
2020, we have temporarily reduced our Scheduled Operations due to the COVID-19
pandemic. We are the largest airline headquartered in the state of Hawai'i and
the tenth largest domestic airline in the United States based on revenue
passenger miles reported by the Research and Innovative Technology
Administration Bureau of Transportation Statistics for the month of January
2022, the latest available data. As of March 31, 2022, we had 6,656 active
employees before giving effect to voluntary and involuntary separation programs
discussed in detail below.

General information about us is available at https://www.hawaiianairlines.com.
Information contained on our website is not incorporated by reference into, or
otherwise to be regarded as part of, this Quarterly Report on Form 10-Q unless
expressly noted. Our annual reports on Form 10-K, quarterly reports on Form 10-Q
and current reports on Form 8-K, as well as any amendments and exhibits to those
reports, are available free of charge through our website as soon as reasonably
practicable after we file them with, or furnish them to, the Securities and
Exchange Commission (SEC).

March 2022 Quarterly Financial Overview



•GAAP net loss in the first quarter was $133.3 million, or $2.60 per diluted
share on total revenue of $477.2 million, compared to a net loss of $60.7
million, or $1.23 per diluted share, on total revenue of $182.2 million during
the same period in 2021.

•During the three months ended March 31, 2022, capacity (as measured in
Available Seat Miles or ASM) was up 71.8%, while Revenue Passenger Miles (RPM)
increased 181.2%, as compared to the same period in 2021, driven primarily by
increased customer demand within our domestic network.

•Unrestricted cash, cash equivalents and short-term investments was $1.6 billion as of March 31, 2022.

See "Results of Operations" below for further discussion of changes in revenue and operating expense.



Impact of COVID-19 Pandemic

The ongoing COVID-19 pandemic, which began in the first quarter of 2020, continues to suppress passenger travel demand, with passenger revenue down approximately 32.8% during the three months ended March 31, 2022, as compared to the same period in 2019.



One significant factor influencing passenger travel demand has been the Safe
Travels Hawai'i program, which was enacted to help control the spread of
COVID-19 by enforcing quarantines and pre-travel testing requirements for travel
to the state of Hawai'i. In March 2022, the State of Hawai'i ended the Safe
Travels program and incoming domestic passengers are no longer required to show
proof of vaccination or a pre-travel negative test result. International
passengers continue to follow federal government requirements. During the first
quarter of 2022, we continued to rebuild our network, leading to a 71.8%
increase in overall capacity as compared to the first quarter of 2021; however,
capacity remained depressed from pre-COVID-19 pandemic
                                       31
--------------------------------------------------------------------------------

levels, down 12.1% as compared to the same period in 2019. During the second
quarter of 2022, we anticipate capacity will be down between 11.5% to 14.5%, as
compared to the same period in 2019.

Restrictions on international travel continue to suppress demand, with
international passenger revenue down 82.8% during the first quarter of 2022 as
compared to the same period in 2019. During the first quarter of 2022, our
domestic network accounted for approximately 93.4% of total passenger revenue.
We continue to monitor developments relating to the easing of restrictions on
international travel by both the U.S. government and international governments,
including by the government of Japan, which represented a large percentage of
our pre-pandemic international revenue.

Despite the easing of COVID-19-related restrictions on travel to and within
Hawai'i, uncertainties remain regarding sustained demand for air travel,
particularly as new variants of the COVID-19 virus have emerged and spread.
There can be no assurance whether, at some point, the State of Hawai'i or
counties within the state may reinstate quarantine or other travel requirements
should the prevalence of COVID-19 worsen. The U.S. government and international
governments could also impose, extend or otherwise modify existing travel
restrictions on domestic or international travel. Additionally, delays,
disruptions, or issues with the performance of our third-party vendors and
service providers due to COVID-19 could have a material or adverse effect on our
operations and restrictions or shortages impacting other sectors of the travel
industry, such as hotel or transportation availability, could negatively impact
travel demand. As a result of all the above factors and our results to date, we
expect bookings, revenue and results of operations in the second quarter of 2022
to be below 2019 levels. Unpredictability in the demand for air travel as a
result of the ongoing COVID-19 pandemic may result in decreases to existing or
anticipated levels of demand, and such decreases could be material to our
business. We will continue to assess our routes and schedule in response to
changes in demand, including those related to the COVID-19 pandemic.

Material Changes to our Consolidated Balance Sheet



As a result of the COVID-19 pandemic, we took actions to increase liquidity and
augment our financial position in fiscal years 2020 and 2021. Refer to our
Annual Report on Form 10-K for the year ended December 31, 2021 filed on
February 10, 2022, for a comprehensive discussion of actions taken in both
fiscal years. During the three months ended March 31, 2022, material changes to
our Consolidated Balance Sheet included the following:

•Cash, cash equivalents and short-term investments totaled approximately $1.6
billion as of March 31, 2022, compared to $1.7 billion as of December 31, 2021.
Refer to Cash Flow and Use of Liquidity section below for additional discussion.
•As of March 31, 2022, our total debt was $1.7 billion, a decrease of $69.9
million, or 3.9%, as compared to $1.8 billion as of December 31, 2021. During
the three months ended March 31, 2022, we made the final scheduled principal
payment of $45.1 million for our Class B EETC-13 debt obligation.
•As of March 31, 2022, our air traffic liability and current frequent flyer
deferred revenue was $760.8 million, an increase of $129.6 million, or 20.5%, as
compared to $631.2 million as of December 31, 2021. The increase in air traffic
liability is primarily due to an increase in advanced ticket sales prior to the
peak summer travel season.

Based on these actions, including anticipated revenue recovery assumptions, we
believe we have sufficient liquidity to satisfy our obligations and remain in
compliance with existing debt covenants. If we are unable to generate sufficient
cash flows to support our future payment obligations, comply with debt
covenants, compete successfully with less heavily leveraged competitors, manage
potential adverse economic and industry conditions in the future or maintain our
credit ratings, the impact to our business and financial condition could be
material.

Fleet Summary



Due to the ongoing uncertainties of the COVID-19 pandemic on our business, we
continue to evaluate our existing fleet structure to optimize capacity with
demand, as well as the potential deferment of future aircraft deliveries. The
table below summarizes our total fleet as of March 31, 2021 and 2022,
respectively and our expected fleet as of March 31, 2023 (based on existing
executed agreements as of March 31, 2022):
                                       32
--------------------------------------------------------------------------------

                                                 March 31, 2021                                            March 31, 2022                                          March 31, 2023 (Expected)
Aircraft Type                    Leased (1)          Owned (2)            Total            Leased (1)          Owned (2)            Total           Leased (1)            Owned (2)                Total
A330-200                             12                  12                 24                 12                  12                 24                 12                   12                      24
A321neo                               4                  14                 18                  4                  14                 18                  4                   14                      18

717-200                               5                  14                 19                  5                  14                 19                  5                   14                      19
ATR 42-500 (3)                        -                   4                  4                  -                   3                  3                  -                    3                       3
ATR 72-200 (3)                        -                   4                  4                  -                   4                  4                  -                    4                       4
Total                                21                  48                 69                 21                  47                 68                 21                   47                      68

(1) Leased aircraft include aircraft under both finance and operating leases.

(2) Includes unencumbered aircraft as well as those purchased and under various debt financing.



(3)  The ATR 42-500 turboprop and ATR 72-200 turboprop aircraft are owned by
Airline Contract Maintenance & Equipment, Inc., a wholly owned subsidiary of the
Company. In 2021, the Company announced the permanent suspension of its 'Ohana
by Hawaiian operations, which operated under a CPA with a third-party provider.
As of March 31, 2022, these aircraft and related asset group were classified as
Assets held for sale on the Consolidated Balance Sheets.

© Edgar Online, source Glimpses