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HAWAIIAN HOLDINGS, INC. Map Not Drawn to Scale 20 Annual 20 Report HAWAIIAN HOLDINGS, INC. Map not drawn to scale. CANADA Seattle Bozeman Asahikawa Portland Minneapolis Burlington Memanbetsu Portland Sapporo/Chitose Rochester Vladivostok Kushiro Buffalo Boston Obihiro Detroit Syracuse Hakodate Chicago Cleveland Nantucket Newark Martha’s Vineyard Aomori Misawa Salt Lake City Pittsburgh Philadelphia Laguardia Beijing Akita JAPAN Sacramento NORTH Morioka Reno Baltimore New York/Kennedy Dalian Hanamaki CHINA Niigata Yamagata Oakland AMERICA Seoul/Incheon Seoul/Gimpo Komatsu Sendai San Francisco Washington D.C. Osaka/Itami Izumo Tokyo/Narita San Jose SOUTH Busan Hiroshima Las Vegas Raleigh-Durham Nagoya Nashville KOREA Kitakyushu Ube Tokyo/Haneda Charlotte Osaka/Kansai Los Angeles Ontario Fukuoka Nanki Shirahama Atlanta Charleston Nagasaki Long Beach Okayama Phoenix Savannah Shanghai/Pudong Kumamoto Tokushima San Diego Kagoshima Takamatsu Shanghai/Metro Kochi Jacksonville Oita Matsuyama Amami Oshima Miyazaki Austin Orlando MEXICO Tampa Naha/Okinawa West Palm Beach Taipei Fort Myers Miyako Jima Fort Lauderdale Guangzhou Ishigaki Hong Kong Kaohsiung Hanoi KAUA‘I THAILAND PHILIPPINES Bangkok* Manila Guam Lı¯hu‘e VIETNAM NI‘IHAU O‘AHU Phnom Penh Ho Chi Minh City CAMBODIA MOLOKA‘I Honolulu Kapalua Ho‘olehua Kahului MALAYSIA Lana‘i City MAUI Kuala LA¯ NA‘I Lumpur PAPUA Singapore NEW GUINEA KAHO‘OLAWE Hilo Jakarta Kailua-Kona OPERATED BY EMPIRE AIRLINES HAWAI‘I INDONESIA ISLAND Pago Pago AMERICAN Cairns SAMOA Papeete Townsville TAHITI Mackay Rockhampton AUSTRALIA Gladstone Brisbane Gold Coast Perth Newcastle Sydney Adelaide Canberra Auckland NEW Melbourne ZEALAND Wellington Christchurch Queenstown Dunedin Codeshare Partners: Interline Partners: Not all routes operate year-round. *Some international routes behind and beyond Japan pending receipt of governmental operating authority. April 5, 2021 To Our Stockholders: When I last wrote to you in March of last year, the emerging COVID-19 pandemic was top of mind for all of us. And yet I could not have imagined the profound impact it would have on our business and the world. In an effort to minimize the spread of the disease, Hawai‘i adopted a travel quarantine and restrictions unseen elsewhere in the United States. As a result, Hawaiian Airlines had to shut down the vast majority of our network, grounding most of our fleet and eventually furloughing or putting on leave a large portion of our workforce. It has been a year unprecedented in the 91-year history of our airline. Having grown our franchise over the last decade and performed well in the face of robust competition, in 2020 our revenues declined 70% to $845 million, and we had an adjusted net loss of $551 million. In spite of this financial performance, I am extremely proud of the work our team has done to successfully navigate this crisis and position our company well for the recovery. Providing critical air service and maintaining our operation Even with a greatly diminished network, we continued to provide essential air service to ensure healthcare and other critical services reached our communities throughout the pandemic, especially in the second quarter of 2020 when demand diminished to a virtual standstill. Hawaiian Airlines provides a critical lifeline to our home state at all times, and especially in times like these. We also began operating scheduled, cargo-only service, as well as cargo charter flights, to keep goods flowing to and from our state. And we increased the number of passenger charter flights we operated to make use of our aircraft and crew for critical missions around the world. We used idle time of our fleet to accelerate the pace of aircraft maintenance and improvements. These included upgrades to engines on our A321neo fleet as well as cabin modifications and general upkeep. Much-needed payroll support (PSP) funding from the CARES Act allowed us to keep active team members who wanted to work. Around 2,100 of our employees accepted voluntary leave options. Unfortunately, on October 1, when the initial PSP expired, we were forced to remove 2,400 of our employees from the active workforce through a combination of voluntary and involuntary measures. We have since been able to return those involuntarily furloughed to active status with the enactment of a second PSP package. Caring for our guests, our employees, and our community We have layered health and safety measures through every part of our guests’ journey to better protect them and our employees from the virus, and to give everyone confidence that it is okay to fly. Our robust “Keeping You Safe” program includes distancing measures when checking-in, boarding and deplaning; plexiglass shields at ticket counters and podiums; and frequent cleaning of self-service kiosks and aircraft, including electrostatic disinfection of cabins. We are also encouraging travelers to check-in via our mobile app and requiring all guests to wear a mask or face covering (except for young children and those unable to do so due to a medical condition) for the duration of their journey. Throughout this pandemic we have been focused on how we can contribute to the health and well- being of our community. In 2020, over 1,500 Hawaiian Airlines volunteers donated approximately 6,500 hours to cultural initiatives, environmental conservation and caring for our most vulnerable community members. We also partnered with Barclays and Mastercard to reward our HawaiianMiles World Elite Mastercard holders for supporting local businesses hard hit by the pandemic. Our Food-A-Go-Go campaign led to a $100,000 donation to the Hawai‘i Agricultural Foundation and supported 1,200-plus local restaurants. The Pop Up Makeke initiative resulted in over $320,000 in sales from more than 100 local entrepreneurs. Positioning our business for the recovery Since the start of the pandemic, we have taken decisive action to bolster our balance sheet and ensure that we have sufficient cash to weather the crisis. This included aircraft financings, an At-the-Market stock issuance program, and most importantly, a $1.2 billion debt issuance backed by our loyalty program cashflow and brand assets. We believe this latter transaction has comprehensively ensured that we will have sufficient liquidity to manage through this crisis and beyond. While the near-term crisis was at times consuming, we have remained focused on ensuring that we are ready to compete and win as travel resumes. Seeing a need for affordable, readily available pre-travel testing, we have partnered with lab companies to establish a network of ten proprietary testing sites conveniently located near our major U.S. mainland airports, exclusively for the use of our guests. This testing network has become a critical asset in making it as seamless as possible for travelers to meet the state of Hawaii’s entry requirements and avoid quarantine. We have also continued to invest in technology, including improvements to our mobile app and a significant upgrade to our check-in software. We continue to move forward with the design and implementation of our first Boeing 787-9 aircraft, which will be Hawaiian’s flagship long-haul aircraft in the decade ahead. In October 2020 we reached an agreement with Boeing to delay the delivery of our 10 Dreamliners, with the first now scheduled to arrive in September 2022. This aircraft is currently being built by Boeing, and we are excited to unveil the newest addition to our fleet. Throughout the pandemic we have worked to ensure that our business is as nimble as possible and can respond to rapidly evolving market conditions. In doing so we have worked closely with our labor unions and appreciate the spirit of partnership with which they have collaborated with us. Doing so will ensure that we can return to growth and competition as conditions improve. Taking action to improve our environment and society, and to advance our culture The challenges of the pandemic did not distract us from our commitment to minimize our impact on the environment, improve our communities and preserve our culture. To provide transparency to our stakeholders, we were proud to publish our inaugural Environmental, Social and Governance (ESG) report in December 2020. Our “Corporate Kuleana” report, aligned with the Sustainability Accounting Standards Board’s (SASB) accounting standards, highlights our success in lowering carbon emissions even as we increased our flying between 2018 and 2019, due to investments in fleet modernization, route planning software and operational practices. We also reported aspects of our diversity efforts, including our leading of the U.S. airline industry with the highest percentage of women pilots, and the expansion of our internal employee resource groups. We highlighted impactful campaigns to engage travelers in environmental and cultural initiatives. In a project with Barclays and CPI Card Group, we began producing Second Wave™ credit cards made with recovered ocean-bound plastic for our Hawaiian Airlines Bank of Hawai‘i World Elite Mastercard® members. Our passion for commemorating and helping advance Hawaiian culture is visible in our expansion of a complimentary ‘Ōlelo Hawai‘i certification program for employees, and in what has now become an annual celebration of ‘Ōlelo Hawai‘i month. While we are proud of our progress, it is clear that there is considerable work to be done, and we remain focused on our commitments to the environment, our employees, and the communities we serve. Looking forward While much remains uncertain, I am encouraged by positive signs for our future. Leisure travel, particularly domestic, will lead the recovery of demand; and Hawai‘i – as a popular destination that has put an emphasis on safety – will be top-of-mind for travelers. As vaccination progresses and society begins to reopen, we believe that there will be significant demand for a Hawai‘i vacation. And Hawaiian Airlines is well-prepared to win these travelers’ business, competing with our traditional advantages of hospitality and a true Hawai‘i experience that begins the moment our guests step on board, as well as new advantages including our innovative health and safety measures and digital tools for travelers.
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