HAWAIIAN AIRLINES LONG NASDAQ: HA PT $53.70 (+34.10%) Catherine Cheng Karna Venkatraj Ananya Rajesh Ryan Spencer INVESTMENT THESIS MARKET VIEW Sustained downward pressure revolves around increasing competition in Hawaii

$70.00 6,000 (21.90%) $60.00 UAL increases service 5,000 to 40 daily flights (15.89%) Speculation on and $50.00 LUV entry late 2018 4,000

$40.00

3,000

$30.00

2,000 $20.00

1,000 $10.00

$0.00 0 9/28/2016 11/17/2016 1/6/2017 2/25/2017 4/16/2017 6/5/2017 7/25/2017 9/13/2017

Volume (Thousands) Price Close

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS MARKET VIEW Capacity increase and threat of price war drives HA revenue down

United Airlines Hawaiian Entry Southwest Hawaiian Entry

▪ June 2017: United Airlines announces 40 new direct flights ▪ May 2017: Earnings call mentions a inevitable expansion of to Honolulu, Kona, Maui, and Lihue LUV into Hawaiian markets  Flights service Honolulu (HNL), Kona (KOA), Lihue (LIH) ▪ September 2017: and Maui (OGG)  Leaked document suggests that entry into Hawaii  Flights are operated from Chicago, Denver, San  LUV has placed a firm order for 14 Boeing 737-MAX 8 Francisco, and Los Angeles aircrafts, equipped for long flights over water ▪ October 11, 2017: LUV announces Hawaii entry

Projected Increase in United Monthly Flights The Southwest Effect (2000-2010)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 350% 322%

827 764 973 846 867 983 1,071 1,012 786 852 785 1,001 10,767 300% 2017 250% 207.20% 1,894 1,761 2,179 1,946 2,016 2,215 2,380 2,273 1,861 1,965 1,835 2,239 24,564 2018 200% 150% 106.10% 104.10% 100% ▪ Difference in Flights 3,030 Flights 54.30% 55.10% 67.30% % Change % 42.30% 41.00% ▪ Difference in Capacity 466,620 Seats 50% 0% ▪ Potential Loss of Operating Revenue $102,656,400 -50% ▪ Change in HA Operating Revenue (4.19%) -41% -28.90% -28.60% -41.40% -39.90% -100% -66.40% -68.80%

Market Average Fare Decline Total Market O&D Passenger Increase

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS VARIANT VIEW HA has been undervalued by investors focused on increasing capacity

Overreaction to New Entrants Investors have overlooked the non-competitive nature of a majority of UAL’s 1 routes and the long-haul mitigant on the Southwest Effect which reduces the ability of LUV to wage price wars in Hawaii.

Long-Haul Luxury Experience The market has overestimated the ability of UAL and LUV to capture market 2 share in Hawaii given HA’s advantage in providing a long-haul luxury experience and Hawaii’s less price-sensitive tourist demographic.

Hawaiian Route Advantage Competitor news has overshadowed HA’s revenue expansion potential resulting 3 from move into new markets with A321neos and pivot away from domestic markets into international markets with Japan Airlines partnership.

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS 1. OVERREACTION TO NEW ENTRANTS 64% of UAL’s new flight routes do not compete with HA

Comparative Route Map Capacity Impact

United Airlines ▪ Only 4 of United’s new routes compete  San Francisco to Maui (2 flights daily)  Los Angeles to Maui  Los Angeles to Lihue ▪ Reduces projected impact by Hawaiian Airlines Southwest Airlines $54 million United Airlines

Total Competing Estimated Actual Difference in Flights 3,030 1,440 1,440 Difference in Capacity (Seats) 466,620 221,760 174,303 Loss of Revenue $102,656,400 $48,787,200 $38,346,739 Change in HA Revenue 4.19% 1.99% 1.56%

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS 1. OVERREACTION TO NEW ENTRANTS LUV effect is unlikely to manifest in Hawaiian market and has become marginal

Hawaii Resists Southwest Advantage Diminishing Effect

▪ LUV’s pricing power is limited by its cost per seat mile ▪ Southwest has morphed into a hybrid carrier from its traditional low-cost carrier identification despite popular  A321neo outclasses the 737-MAX8 belief that it still offers the cheapest routes  A330-200 outclasses the 737-800  Southwest’s average fare from Dallas to Houston has 4.50¢ increased 50.92% from 2010-2017 737-800  Southwest’s average fare from Dallas to San Antonio 4.00¢ A321 has increased 39.27% from 2010-2017 A330-200 737-MAX8 3.50¢ ▪ Southwest underperforms in comparative route analysis regardless of haul length, advance time, and geographical A321neo 3.00¢ region

2.50¢ Route Lowest Competitor Fare Lowest Southwest Fare Differential Operating Cost per Seat Mile Seat per Operating Cost Hartford-Chicago (21-day advance; 150 170 190 210 230 250 270 290 310 $392/United $445/Southwest 13.52% seven-day stay; any time) Capacity (Seat) New York-Denver (90-day advance; $235/Delta $402/Southwest 71.06% seven-day stay; any time) ▪ Difference in CASM exaggerated by long haul difference San Diego-Las Vegas (three-day $231/Delta $232/Southwest 0.43% advance; three-day stay; any time) 2016 CASM (ex Transport-Related Costs) Dallas-Houston (one-day advance; $453/United $454/Southwest 0.22% 10.95¢ 11.14¢ three-day stay; any time) Dallas-Houston (14-day advance; $266/American $266/Southwest 0.00% 9.03¢ seven-day stay; any time) Dallas-Houston (90-day advance; $211/United $212/Southwest 0.47% seven-day stay; any time) Boston-Ft. Myers (seven-day $316/United $410/Southwest 29.75% advance; three-day stay; any time) San Francisco-Los Angeles (28-day $105/United $138/Southwest 31.43% advance; seven-day stay; any time) Seattle-St. Louis (90-day advance; $216/Alaska $304/Southwest 40.74% seven-day stay; any time) Minneapolis-Phoenix (seven-day $375/Delta $446/Southwest 18.93% Alaska Hawaiian Southwest advance; four-day stay; any time)

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS 1. OVERREACTION TO NEW ENTRANTS LUV effect is unlikely to manifest in Hawaiian market and has become marginal

Hawaii Resists Southwest Advantage Diminishing Effect

▪ LUV’s pricingALGT powerDAL is limited by its cost per seat mile ▪ Southwest has morphed into a hybrid carrier from its HA 0.3% 16.8% ▪ Low cost fare has already traditional low-cost carrier identification despite popular 24.5%  A321neo outclasses the 737-MAX8been introduced to belief that it still offers the cheapest routes  A330-200 outclasses the 737-800Hawaii  Southwest’s average fare from Dallas to Houston has ALK ▪ 27.96% of yield is increased 50.92% from 2010-2017 4.50¢ 10.9% 737-800 >12.50¢ Island Air  Southwest’s average fare from Dallas to San Antonio 4.00¢ A321 0.7% ▪ has increased 39.27% from 2010-2017 Fare introduction A330has -not200 737-MAX8Virgin changed HA yield or 2.0% ▪ Southwest underperforms in comparative route analysis 3.50¢ average Hawaii fare price UAL AAL regardless of haul length, advance time, and geographical 27.8% A321neo 3.00¢ 17.1% region

2.50¢Average Q1’17 Yield for Hawaii Flights Above 2000 Miles Route Lowest Competitor Fare Lowest Southwest Fare Differential Operating Cost per Seat Mile Seat per Operating Cost Hartford-Chicago (21-day advance; 16.00¢ 150 170 190 210 230 250 270 290 310 $392/United $445/Southwest 13.52% seven-day stay; any time) Capacity (Seat) New York-Denver (90-day advance; 15.00¢ $235/Delta $402/Southwest 71.06% HA AAL UAL seven-day stay; any time) ▪ DifferenceVirgin in CASMIsland exaggeratedAir by long haul difference San Diego-Las Vegas (three-day 14.00¢ $231/Delta $232/Southwest 0.43% advance; three-day stay; any time) 13.00¢ 2016 CASM (ex Transport-Related Costs) Dallas-Houston (one-day advance; $453/United $454/Southwest 0.22% ALK 10.95¢ 11.14¢DAL three-day stay; any time) 12.00¢ Dallas-Houston (14-day advance; $266/American $266/Southwest 0.00% 9.03¢ seven-day stay; any time) 11.00¢ Dallas-Houston (90-day advance; $211/United $212/Southwest 0.47%

Average Average Yield seven-day stay; any time) 10.00¢ Boston-Ft. Myers (seven-day $316/United $410/Southwest 29.75% advance; three-day stay; any time) 9.00¢ San Francisco-Los Angeles (28-day $105/United $138/Southwest 31.43% 8.00¢ advance; seven-day stay; any time) Seattle-St. Louis (90-day advance; ALGT $216/Alaska $304/Southwest 40.74% 7.00¢ seven-day stay; any time) Minneapolis-Phoenix (seven-day 3,500.00 4,000.00 4,500.00 5,000.00 5,500.00 $375/Delta $446/Southwest 18.93% Alaska Hawaiian Southwest advance; four-day stay; any time) Average Miles Flown

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS 2. LONG-HAUL LUXURY EXPERIENCE Hawaiian Airlines uniquely adaptive to customer profile and long-haul routes

Leisure Customer Significance of the Leisure Consumer 511,033 496,176 LCC Advantages in Short Haul Vacation 66,418 Conventions 390,823 Wide Range of Customers Marriage 344,839 Government 4,895,369 Customer Loyalty Visit Family Other Low Cost Value Proposition (2017P) Lower Price Sensitivity

The traditional strategy and advantages of LCC and legacy carriers do not succeed when applied to a Hawaiian market defined by unique customer needs. *only food and lodging

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS 3. HAWAIIAN ROUTE ADVANTAGE A321neo’s operational efficiency allows access to underserved markets

HA’s New A321neo High-margin, medium-haul narrowbody suited for opening new, untapped markets. Seats Range (Miles) Fuel Efficiency A330-200 286 8357.4 -14% 767-300 258 5975 -20% A321neo 189 3700 0%

Midmarket Routes Pacific Rim Expansion Long-Haul Expansion

A321neo enables flights from mid-sized A321neo allows more flights to Pacific A321neo frees up A330 for expansion markets and flights to neighbor islands Rim and diversification from Hawaii and entry into more long haul routes ▪ Higher fuel efficiency reduces ▪ Can expand from 2 flights a week 1,548 necessary customer demand with more efficient, smaller planes 516 needed for profitable operations ▪ Samoa can become new hub to 3,718 2,560 2,580 ▪ Lower seat number optimizes Australia, New Zealand, and others balance between supply and Short Haul Medium Haul Long Haul

demand in less concentrated (Seats) Capacity 2016 markets 717 A330 767 Route experimentation begins 2018 2,646 ▪ Portland and Kahului 4,004 ▪ Oakland and Lihue, Kauai 2,560 2,860 ▪ Los Angeles and Kona (seats) Capacity

Short Haul Medium Haul Long Haul 2019 717 A330 767 A321neo

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS 3. HAWAIIAN ROUTE ADVANTAGE Japan Airlines partnership expands international market share and network

Partnership Details Impact on Market Share

Japan Airlines 32.47% Hawaiian Airlines 20.16% Delta Airlines 19.48% All Nippon Airways 13.66% Korean Airlines 4.55% Combined Japan- United Airlines 4.55% Hawaii market share China Airlines 3.76% increases to 52.63% AirAsia X 1.33% Asiana Airlines 0.04%

0 500 1000 1500 2000 2500 3000 Number of Flights between Japan and Hawaii (2017E) Significance of Partnership

▪ JAL guests have unlimited access to HA’s neighbor island and ▪ Joint venture is effectually a M&A Japan-Hawaii network  Ability to coordinate price ▪ HA has full access to JAL’s untapped domestic network  Increases infrastructure density  Nagoya ▪ HA flights empirically capture latent Japanese demand  Fukuoka  12/21/16: Hawaiian Airlines begins nonstop service  Sendai from Haneda (HND) to Kona International Airport (KOA)  Aomori  5/17: Hawaii Tourism Authority credits new route with ▪ HA flights offered as new packages within JALPAK (highly growth in Japanese visitors and spending reputable package tour operator in Japan)  Led to 9.1% increase in Japanese visitors to Hawaii ▪ Mileage and lounges merged for seamless transfers ▪ Japan is the largest source of international visitors to Hawaii

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS 3. HAWAIIAN ROUTE ADVANTAGE Japan Airlines partnership expands international market share and network

Partnership Details Impact on Market Share

Japan Airlines 32.47% Hawaiian Airlines 20.16% Delta Airlines 19.48% All Nippon Airways 13.66% Korean Airlines 4.55% Combined Japan- United Airlines 4.55% Hawaii market share China Airlines 3.76% increases to 52.63% AirAsia X 1.33% Asiana Airlines 0.04%

0 500 1000 1500 2000 2500 3000 Number of Flights between Japan and Hawaii (2017E) Significance of Partnership

▪ JAL guests have unlimited access to HA’s neighbor island and $44.00▪ Joint venture is effectually a M&A 3,500 Japan-Hawaii network $43.00  Ability to coordinate price Market has yet to 3,000 ▪ HA has full access to JAL’s untapped domestic network $42.00  Increases infrastructure densityreact to partnership 2,500  Nagoya $41.00 due to focus on UAL ▪ HA flights empirically capture latent Japanese demand 2,000  Fukuoka $40.00 and LUV events  12/21/16: Hawaiian Airlines begins nonstop service 1,500  Sendai $39.00 from Haneda (HND) to Kona International Airport (KOA) 1,000  Aomori $38.00  5/17: Hawaii Tourism Authority credits new route with 500 ▪ HA flights offered as new packages within JALPAK (highly $37.00 growth in Japanese visitors and spending reputable package tour operator in Japan) $36.00  Led to 9.1% increase in Japanese visitors to Hawaii 0 9/1/2017 9/6/2017 9/11/2017 9/16/2017 9/21/2017 9/26/2017 10/1/2017 ▪ Mileage and lounges merged for seamless transfers ▪ Japan is the largest Volume source (Thousands) of internationalPrice Closevisitors to Hawaii

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS CATALYST TIMELINE Route expansion and JAL partnership improves earnings to catalyze appreciation

A330 Freed to Fly Q4 Earnings Discounts JAL HA partnership Current and New Concerns Over UAL Expansion effect takes place International and Price War Possibility Routes Future: LUV Effect Fails to Manifest Fuel and Maintenance Retrofit of A330s and HA Gains in Savings Program Completion Market Share

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 2018

Quarterly Cash Dividend Expansion of New Future: Full Pivot Initialization Zealand Flights to Luxury and International Service

HA Announces Arrival of Q2 Earnings Reflects Strong New Routes to A321neos Growth from A321neo Mid-Market Hubs Operations and International Partnerships

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS COMPANY OVERVIEW MANAGEMENT VISION Proven executive leadership has forward-thinking strategy for differentiation

Strategic Vision Since 2010 Consolidate Market Share Domestically and Internationally

Expand International Presence

Streamline Operational Efficiency through Upgraded Fleet

Augment Premium Seating Options

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS MARKET SHARE Continued expansion promises to extend current competitive advantages

West Coast Outperformance Dominant Market Share

HNL OGG 28% 87% Honolulu Kahului LAX SFO OAK SJC Largest market share in Neighbor Island SEA and W. US markets PDX Key Route Expansions SAN Over 5% 2% to 5% 7/22/16: Narita-Honolulu PHX 7/22/16: Haneda-Honolulu 3/01/17: Kapalua-Honolulu Hawaiian Airlines 1/18/18: Portland-Maui 4/11/18: Oakland-Kaua’I commands a PRASM 3/11/18: Los Angeles-Kona premium on West Coast Recent and planned routes include expansion markets into three major market segments

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS AIRLINE PARTNERSHIPS Strategically important code sharing partnerships boost customer base

Code Share Partners Customer Implications HA # on Flights Operated Other Airline # on Flights Airline by Other Airline Operated by HA Extensive code sharing increasing customer Air China ✓ satisfaction and retention through: All Nippon Airways ✓ ✓ ▪ Expanded opportunity for mileage accrual American Airlines ✓ and redemption across carriers China Airlines ✓ ✓ ▪ Convenient access to international and Delta Airlines ✓ domestic destinations across the globe Japan Airlines ✓ ✓ Jet Blue ✓ ✓ ▪ Added value from frequent flyer programs Korean Air ✓ ✓ and lounge access Philippine Airlines ✓ ▪ Exposure to new markets draws new Turkish Airlines ✓ customers United Airlines ✓ Virgin Airlines ✓ Virgin Australia ✓ Expansion Opportunities Frequent Flier Partners HA Miles Frequent Flier Other Airline Frequent Airline Agreement Flyer Agreement All Nippon Airways ✓ ✓ American Airlines ✓ China Airlines ✓ ✓ Delta Air Lines ✓ Japan Airlines ✓ ✓ JetBlue ✓ ✓ Korean Air ✓ ✓ United Airlines ✓ Virgin America ✓ ✓ Virgin Atlantic Airways ✓ ✓ Virgin Australia ✓ ✓

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS REVENUE DIVERSIFICATION Strong potential for growth across varied revenue streams

International Travel 2010 2017 1% 9% 16% ▪ Consolidation of Japanese market share from 1% (2010) to 24% (2017) 11% ▪ Haneda to Kona route credited with increasing 49% 33% Japanese spending 20.8% 57% ▪ International travel accounts for 27% of revenue mix

24%

Frequent Flier Value Premium Seating

25 Rewards Value Per $100 Spent Q2 PRASM ▪ Highest rewards value ▪ 90% of Hawaiian 20 of all US Airlines ($21 13.0 visitors are leisure travelers 15 per $100 spent) 12.5 10 ▪ One of three airlines to ▪ 2014-2018: 5 increase rewards value 12.0 Premium seating in 2017 expansion 0 11.5 program

▪ 2013-2019: $100M

Spirit Delta

Virgin ▪ Allowed 10%

Alaska 11.0

United incremental cash flow JetBlue

Frontier increase in PRASM Hawaiian

American from renegotiated Southwest credit card 10.5 2017 Q2 quarter- Frequent Flier Average Flyer Light Flyer 2Q13 2Q14 2Q15 2Q16 2Q17 over-quarter

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS INDUSTRY OVERVIEW DECLINE IN INDUSTRY REVENUE HA resists headwinds through premium pricing and market diversification

US GDP & Airline Revenue ($B) Airline Revenue % GDP

$25,000.00 $250.00 Recent 1.21% 1.20% Accelerating Trend 1.19% Decline

$20,000.00 $200.00 1.13%

1.08%

$15,000.00 $150.00

2012 2013 2014 2015 2016

$10,000.00 $100.00 ChangeChange in inRevenue Revenue %% Year Year over Over Year Year

14.10%

$5,000.00 $50.00 6.66% 2.43% 2.77%

-0.65% $- $- -2.42% -1.17% -3.82% -5.05% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -4.91% US GDP (Billions) Airline Revenue (Billions) 2012 2013 2014 2015 2016 Linear (US GDP (Billions)) Linear (Airline Revenue (Billions)) Hawaiian Industry Average

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS DECLINE IN INDUSTRY REVENUE HA resists headwinds through premium pricing and market diversification

US GDP & Airline Revenue ($B) Airline Revenue % GDP

$25,000.00 $250.00 Recent 1.21% 1.20% Accelerating Trend 1.19% Decline

$20,000.00 $200.00 1.13%

1.08%

$15,000.00 $150.00

2012 2013 2014 2015 2016

$10,000.00 $100.00 ChangeChange in inRevenue Revenue %% Year Year over Over Year Year

HA14.10% resists downward industry pressures due to:

$5,000.00 $50.00 ▪ Price premiums (PRASM) on luxury plane models,6.66% seats, and services 2.43% 2.77% ▪ Geographical diversification captures international growth -0.65% $- $- ▪ -2.42%Target market-1.17% resists online discounts given -3.82% -5.05% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 low price sensitivity and trip- 4.91%purpose US GDP (Billions) Airline Revenue (Billions) 2012 2013 2014 2015 2016 Linear (US GDP (Billions)) Linear (Airline Revenue (Billions)) Hawaiian Industry Average

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS REVENUE DRIVERS HA revenue continues to grow despite capacity pressures facing industry

Capacity Creates potential for passenger revenue Load Factor Passenger demand relative to available capacity

Passenger Yield Passenger fare per mile traveled $

Cargo Freight and mail transported

Fees & Other Ancillary – bag fees, change fees, food, services

* Theoretical driver analysis in USD millions

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS REVENUE DRIVERS HA revenue continues to grow despite capacity pressures facing industry

Airline Carrier Change in Revenue Drivers FY’15/FY’16

5.74% 5.46% 5.48% Revenue Drivers Industry ($M) HA (M)

Capacity  $2,330  $80 3.81% 3.71% 3.29% 3.08% Load Factor  $101  $69

Yield  $8,487  $29 1.20%

0.07% Cargo  $474  $9

Capacity Load Factor Yield Cargo Fees/Other Revenue Fees/Other  $632  $4 -1.14% HA beat the industry change  $4,950  $133 in revenue by -2.41% 8.15% HA limits declines in yield by: ▪ Targeting markets with higher profitability levels through premium service -5.24% ▪ Servicing medium-sized hubs where existing supply Hawaiian Airlines Industry Average is limited

* Theoretical driver analysis in USD millions

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS REVENUE DRIVERS HA revenue continues to grow despite capacity pressures facing industry

Airline Carrier Change in Revenue Drivers FY’15/FY’16 Airline Carrier Change in Yield FY’15/FY’16

5.74% 5.46% 5.48% Revenue Drivers Industry ($M) HA (M) 3.39% Capacity  $2,330  $80 3.81% 3.71% 3.29% 3.08% Load Factor  $101 -1.14%$69

-4.83% -4.46% -4.30% Yield -5.75%  $8,487  $29 1.20% -6.91% -6.72% -9.58% 0.07% Cargo  $474  $9

Capacity Load Factor Yield Cargo Fees/Other Revenue Fees/Other  $632  $4 -1.14% HA beat the industry change  $4,950  $133 in revenue by -2.41% -24.10% 8.15% HA limits declines in yield by: ▪ Targeting markets with higher profitability levels through premium service -5.24% ▪ Servicing medium-sized hubs where existing supply Hawaiian Airlines Industry Average is limited

* Theoretical driver analysis in USD millions

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS COST DISTRIBUTION HA matches CASM of LCCs through controlled fuel and labor expenses

Industry CASM Fuel Expenses per ASM 14.00¢ 2.38¢ 2.00¢ 2.08¢ 2.08¢ 2.10¢ 2.10¢ 1.87¢ 1.88¢ 1.92¢ Delta 1.70¢ JetBlue Hawaiian United 12.00¢ American (Interisland) Southwest Hawaiian Alaska/Virgin 10.00¢ America

8.00¢ Allegiant Frontier Spirit Labor Expenses per ASM

Average CASM Average 6.00¢ 5.39¢ 4.88¢ 4.54¢ 3.82¢ 3.82¢ 3.11¢ 3.29¢ 4.00¢ 2.02¢ 1.54¢ 1.78¢

2.00¢

0.00¢ - 500 1,000 1,500 2,000 2,500 3,000 3,500 Average Stage Length

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS TOURISM TRENDS BY ORIGIN Growth in tourism driven by Asian visitors whose spending trends favor HA

Arrivals by Region Hawaiian Tourist Makeup YOY Growth in Tourists by Region

71.42% 68.01% 67.39% 6.1% ▪ Visitors from Asia make up an 4.5% 3.6% increasing portion of total 3.4% Hawaiian tourists 3.1% 3.1% 3.0% 3.0% ▪ Improves HA’s position in 21.60% 21.84% 19.99% industry as capacity expansion is focused in Americas 0.0%

2010 2015 2020P 2015 2016 2017

Americas Asia Europe Oceania Other Total Americas Asia Expenditures by Region Purchase Deal by Region

$328.50 Daily Personal Spending Group Purchases Package Purchases $276.60 $277.90 $239.30 $208.70 34.49% 34.67% $176.80 52.92% $162.80 78.50% 82.18% 79.01% 98.28% 95.50%

65.51% 65.33% 47.08%

1.72% 21.50% 17.82% 20.99% 4.50% Canada U.S. West U.S. East Japan Korea Australia China U.S. West U.S. East Japan China U.S. West U.S. East Japan China

Group Non-Group Package Non-Package

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS TOURISM TRENDS BY ORIGIN Growth in tourism driven by Asian visitors whose spending trends favor HA

Arrivals by Region Hawaiian Tourist Makeup YOY Growth in Tourists by Region

71.42% 68.01% 67.39% 6.1% ▪ Visitors from Asia make up an 4.5% 3.6% increasing portion of total 3.4% Hawaiian tourists 3.1% 3.1% 3.0% 3.0% ▪ Improves HA’s position in 21.60% 21.84% 19.99% industry as capacity expansion is focused in Americas 0.0%

2010 2015 2020P 2015 2016 2017

Americas Asia Europe Oceania Other Total Americas Asia Expenditures by Region Purchase Deal by Region

Purpose of Trip Group Purchases Package Purchases 3.54% 17.89% 12.21% 34.49% 34.67% 52.92% 56.74% 78.50% 82.18% 79.01% 64.91% 95.50% 70.10% 98.28% 6.70% 65.51% 65.33% 47.08% 4.77% 33.02% 4.40% 18.11% 1.72% 21.50% 17.82% 20.99% 7.61% 4.50% Americas Europe Asia U.S. West U.S. East Japan China U.S. West U.S. East Japan China

Honeymoon / Marriage Business Vacation Other Group Non-Group Package Non-Package

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS IMPACT OF CAPACITY Historical capacity expansion has negligible effect on HA operations

Domestic Capacity 4Q17 vs 4Q14 International Capacity (4Q17 vs 4Q14) 700000 Korean Capacity HA JAL DAL ANA Air JetStar UAL ex HA 40000 79.60% 30000 50.60% 600000 20000 25.50% 10000 18.10% 0 500000 -1.40% -10000 -20000 -23.80% -28.80% -30000 -40.40% -40.00% 400000 -40000 -50000 Impact on Operating Metrics 300000 38.90% 13.56¢ 13.33¢ 13.07¢ 200000

21.10% 11.99¢ 11.68¢ 11.44¢ 100000 13.60% 13.30% 9.60% 8.30% 3.90% 0 HA Alaska AAL Delta Island Air United Industry Industry RASM PRASM Capacity Cont'l ex HA incl HA Yo3Y Difference % Change in Seats 2014 2015 2016

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS IMPACT OF CAPACITY Historical capacity expansion has negligible effect on HA operations

Domestic Capacity 4Q17 vs 4Q14 International Capacity (4Q17 vs 4Q14) 700000 Korean Capacity HA JAL DAL ANA Air JetStar UAL ex HA 40000 79.60% 30000 50.60% 600000 Industry is consolidating internationally, 20000 making international play more25.50% profitable: 10000 18.10%▪ Capacity has decreased 1.40% over 0 the past 3 years 500000 There is no reason to believe -1.40% increases in capacity in 2018 -10000 ▪ Combination of Japan Airlines and -20000 Hawaiian Airlines makes for powerful will significantly weaken HA -23.80% -28.80% operations: -30000 alliances -40.40% -40.00% 400000 ▪ Capacity growth is not a -40000 new phenomena and has grown 13.30% over the -50000 last 3 years Impact on Operating Metrics 300000 38.90%▪ Not including HA, capacity has grown 13.56¢ 13.33¢ 21.10% 13.07¢ 200000

21.10% 11.99¢ 11.68¢ 11.44¢ 100000 13.60% 13.30% 9.60% 8.30% 3.90% 0 HA Alaska AAL Delta Island Air United Industry Industry RASM PRASM Capacity Cont'l ex HA incl HA Yo3Y Difference % Change in Seats 2014 2015 2016

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS IMPACT OF CAPACITY Historical capacity expansion has negligible effect on HA operations

Domestic Capacity 4Q17 vs 4Q14 International Capacity (4Q17 vs 4Q14) 700000 Korean Capacity HA JAL DAL ANA Air JetStar UAL ex HA 40000 79.60% 30000 50.60% 600000 Industry is consolidating internationally, 20000 making international play more25.50% profitable: 10000 18.10%▪ Capacity has decreased 1.40% over 0 the past 3 years 500000 There is no reason to believe -1.40% increases in capacity in 2018 -10000 ▪ Combination of Japan Airlines and -20000 Hawaiian Airlines makes for powerful will significantly weaken HA -23.80% -28.80% operations: -30000 alliances -40.40% -40.00% 400000 ▪ Capacity growth is not a -40000 new phenomena and has grown 13.30% over the -50000 last 3 years Impact on Operating Metrics 300000 38.90%▪ Not including HA, capacity has grown 13.56¢ Load % 90.00% 13.33¢ 21.10% 13.07¢ 85.00% 200000 80.00% 21.10% 11.99¢ 11.68¢ 75.00% 11.44¢ 100000 13.60% 13.30% 70.00% Industry Load for Hawaii Arrivals: 73.49% 9.60% 8.30% 65.00% 3.90% 0 60.00% HA Alaska AAL Delta Island Air United Industry Industry 2013 RASM 2014 2015PRASM 2016 Capacity Cont'l ex HA incl HA Yo3Y Difference % Change in Seats Overall 2014International2015 2016 Domestic

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS VALUATION COMPARABLES ANALYSIS Market valuation leaves room for substantial multiple expansion

Comapany Market Cap P/E EV/EBITDAR Debt/EBITDAR D/E Delta Air Lines 37.1 10.5x 5.47x 1.14x 0.67 United Continental 19.5 10.5x 3.95x 1.86x 1.49 Alaska Air Group 9.9 10.9x 5.24x 1.36x 0.86 Allegiant Travel 2.1 15.9x 6.33x 2.09x 1.91 Spirit Airlines 2.5 11.7x 3.57x 1.57x 0.80 JetBlue 6.5 11.3x 4.08x 0.78x 0.32 Southwest Airlines 35.0 16.3x 6.41x 0.57x 0.36 Average 16.1 12.4x 5.01x 1.34x 0.92 Median 9.9 11.3x 5.24x 1.36x 0.80 Hawaiian Airlines 2.1 7.22x 2.66x 0.78x 0.67

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS COMPARABLES ANALYSIS Market valuation leaves room for substantial multiple expansion

Valuation - LTM EBITDAR ValuationValuation - FTM - FTM EBITDAR EBITDAR Industry Average LTM EV/EBITDAR 5.01x Industry Average LTM EV/EBITDAR 5.01x Competition Discount -33% Competition Discount -33% Adj. EV/EBITDAR Multiple 3.36x Adj. EV/EBITDAR Multiple 3.36x HA LTM EBITDAR $ 761.2 HA LTM EBITDAR $ 858.5 Implied Enterprise Value $ 2,554.0 Implied Enterprise Value $ 2,880.4 Net Debt $ (111.3) Net Debt $ (111.3) Implied Equity Value $ 2,665.30 Implied Equity Value $ 2,991.71 Diluted Shares Outstanding 53.9 Diluted Shares Outstanding 53.9 Value Per Share $ 49.44 Value Per Share $ 55.49 Current share Price $ 40.05 Current share Price $ 40.05 Implied Discount 23.4% Implied Discount 38.6%

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS DISCOUNTED CASH FLOW MODEL Strong UFCF generation from projected growth in passenger revenue

2014 2015 2016 2017P 2018P 2019P 2020P 2021P 2022P Passenger Revenue 2,045 2,026 2,146 2,354 2,426 2,388 2,512 2,622 2,728 PRASM(Cents) 12.0 11.4 11.7 12.4 12.4 11.8 12.0 12.2 12.4 Cargo Revenue 270 292 305 303 313 308 324 338 351 Total Revenue 2,315 2,317 2,451 2,657 2,739 2,695 2,836 2,959 3,080 % Growth 7.4% 0.1% 5.7% 8.4% 3.1% -1.6% 5.2% 4.3% 4.1% Available Seat Mile 17,074 17,726 18,385 18,939 19,602 20,288 20,897 21,419 21,955 % Growth 1.7% 3.8% 3.7% 3.0% 3.5% 3.5% 3.0% 2.5% 2.5%

Wages and Benefits (447) (500) (545) (625) (647) (670) (690) (707) (725) Cents per ASM 2.6 2.8 3.0 3.3 3.3 3.3 3.3 3.3 3.3 Aircraft fuel, including taxes and delivery (678) (418) (344) (421) (424) (434) (452) (464) (476) USD Per Gallon 2.95 1.78 1.41 1.64 1.62 1.60 1.62 1.62 1.62 Maintenance, materials and repairs (226) (225) (229) (240) (248) (257) (264) (271) (278) Cents per ASM 1.32 1.27 1.25 1.26 1.26 1.26 1.26 1.26 1.26 Other Operating Expenses (516) (528) (584) (576) (597) (617) (636) (652) (668) Total Operating Expenses (1,867) (1,670) (1,703) (1,862) (1,916) (1,978) (2,042) (2,094) (2,146)

EBITDAR 448 647 747 795 823 718 794 866 934 Less: Depreciation and Amortization (96) (106) (108) (111) (118) (109) (77) (79) (125) Less: Aircraft rent (106) (116) (125) (123) (127) (132) (136) (139) (143) EBIT 245 426 515 561 578 477 582 648 666 Less: Tax Expense (45) (113) (149) (185) (193) (159) (194) (216) (229) Implied Tax Rate 18% 27% 29% 33% 33% 33% 33% 33% 33% NOPAT 201 313 365 376 385 318 388 432 437 Add: Depreciation and Amortization 96 106 108 111 118 109 77 79 125 Less: Capital Expenditures (442) (119) (179) (300) (324) (258) (178) (186) (194) Less: Change in Networking Capital (114) (27) (54) (19) 6 (31) (22) (29) (28) Unlevered Free Cash Flow (259) 273 240 168 185 138 264 295 340

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS SUPPLY-DEMAND PRASM PROJECTIONS Projected revenue based on analysis of supply-demand effect on HA PRASM

13.0 35,000

12.5 33,000

12.0

31,000

11.5 ASM(MM)

HA PRASM HA (Cents) 29,000 Industry Industry

11.0

27,000 10.5

10.0 25,000 2014 2015 2016 2017P 2018P 2019P 2020P 2021P 2022P

HA PRASM Industry ASM

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS VALUATION PRICE TARGET Reasonable assumptions lead to asymmetric upside with price target of $53.56

Valuation Sensitivity Analysis

WACC 6.84% Demand Growth 34.1% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% Discounted Cash Flows 1,028 3.8% -1% 12% 25% 38% 52% 66% 80% 94% 109% 4.8% -5% 7% 20% 33% 46% 59% 73% 86% 100% EV/EBITDAR Multiple 2.7x 5.8% -9% 3% 15% 27% 40% 52% 65% 79% 92% 2022 EBITDAR 934 WACC 6.8% -13% -1% 10% 22% 34% 46% 59% 71% 84% 7.8% -16% -5% 6% 17% 29% 40% 52% 65% 77% Terminal Value 1,755 8.8% -19% -9% 2% 13% 24% 35% 46% 58% 70% 9.8% -22% -12% -2% 8% 19% 30% 41% 52% 63% Enterprise Value 2,784 EV/EBITDAR Cash 580 34.1% 1.9x 2.1x 2.3x 2.5x 2.7x 2.9x 3.1x 3.3x 3.5x 3.8% 24% 31% 38% 45% 52% 59% 66% 73% 80% Preferred Stock 0 4.8% 19% 25% 32% 39% 46% 52% 59% 66% 73% Debt (468) 5.8% 14% 20% 27% 33% 40% 46% 53% 59% 65% WACC 6.8% 10% 16% 22% 28% 34% 40% 46% 52% 59% Equity Value 2,895 7.8% 5% 11% 17% 23% 29% 35% 40% 46% 52% 8.8% 2% 7% 13% 18% 24% 29% 35% 40% 46% Diluted Shares Outstanding 53.9 9.8% -2% 3% 8% 14% 19% 24% 30% 35% 40% Price Traget 53.70 Implied Upside 34.1%

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS RISKS AND MITIGANTS NORTH KOREAN MISSILE PROGRAM NK aggression unlikely to significantly deter domestic and international visitors

Risk: University of Hawaii Crisis Email Mitigant: Unaffected International Travel October 10th: “… state and federal Chinese citizens do not view NK as volatile agencies are providing information ▪ Censored Chinese media unlikely to about nuclear threats and what to do portray North Korea as volatile in the unlikely event of a nuclear ▪ China has played mediating role since attack and radiation emergency” 2003, upon US request ▪ Series of military shifts near NK border indicate heightened forcefulness Possible decrease in leisure travel to Hawaii Japanese arrivals grow despite tensions 180 Mitigant: Unaffected Domestic Travel 160 140 % of Americans Viewing NK as Significant Threat 120 100 80 60 40 20 2003 2017 (Thousands) Arrivals Japanese 0 NK pulls out of University of Hawaii June July August non-proliferation treaty issues warning 2016 2017

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS SOUTHWEST ENTRY TO NEIGHBOR ISLANDS HA’s empirical strength in Neighbor Island market moat against Southwest entry

Mitigant: Incumbent Advantage Risk: Southwest Neighbor Island Potential October 11th: After confirming entry Market Share into Hawaiian market, Southwest reports it is ‘considering’ adding ▪ Existing nonstop interisland flights supermajority of 87% market share Hawaiian Airlines ▪ 8 daily flight routes Potential loss of market share in between islands Neighbor Islands

Mitigant: Experience Tackling Low-Cost Competitors

▪ ▪ Code• Code-sharing-sharing agreement Agreement with with • LowLow-fare,-fair, small small aircraft aircraft strategy strategy United Airlines United Airlines ▪ Operates predominately at ▪ 64• -seat64- seatATR- ATR72 turboprop-72 turboprop aircraft • Hawaii’sOperates smaller predominately airports at aircraft Hawaii’s smaller airports

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS CHINESE VISA ISSUES Despite one-off situations, Chinese visitors undeterred by political climate

Mitigant: Strong Long Term Trends Risk: Travel Restriction Concerns April 1, 2017: Nu Skin Conference China-US Tourism Leadership ▪ >2,000 (about 1/3) of visas rejected, Summit in Kailua-Kona average is 10-15% ▪ Reductions in visa processing time ▪ Potential missed $15.9M in ▪ Longer-term visas corporate spending, $1.9M in taxes 2017 State Department Forecasts Risk: Travel Restriction Concerns ▪• Arrivals up 2%2% toto 173,479173,479 January 27, 2017: • Spending up 6% to $434M ▪ Inauguration to 1st travel ban: 33% ▪ Spending up 6% to $434M drop in average flight searches to US Mitigant: Positive Current Events Dec-Feb, 2017: ▪• Brand USA study: only Chinese more likely to visit due to political climate Concerns over cancelled visas may push Second Travel Ban Chinese tourists from Hawaiian market March 6, 2017: ▪• Asia-Pacific least affected, 4.9% increase in YoY bookings

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS CONCLUSION 94% 86% 79% 72% 65% 5.5% 111% 102% 96% 88% 80% 73% 66% 60% 54% 5.0% 81% 74% 67% 60% 54% 48% 42% 4.5% CONCLUSION

67% 60% Market53% 47% 42% 36% fear31% of capacity increase presents opportunity for asymmetric upside 4.0%

Upside Distribution Analysis 52% 46% 40% 35% 30% 25% 20% 3.5% $75.00 $70.00 Bull Case: $73.80 (84.3%)

Demand Growth Demand $65.00 38% 33% 28% 23% 18% 14% 10% 3.0% $60.00 $55.00

$50.00 7% 3% Base Case: $53.70 (34.1%) -1% 25% 20% 15% 11% 2.5% $45.00 $40.00 7% 3% -1% -5% -8%

11% $35.00 2.0% -11% Bear Case: $34.97 (-12.7%) $30.00 5/31/2017 6/20/2017 7/10/2017 7/30/2017 8/19/2017 9/8/2017 9/28/2017 -2% -6% -9% 1.5% -13% -16% -19% -22% Sensitivity Analysis Recommendation

3.8% 4.8% 5.8% 6.8% 7.8% 8.8% 9.8% The market has woefully misunderstood the 35.0% effect of increased capacity on the Hawaii airline market and has consequently undervalued HA and mispriced HA’s potential for revenue

WACC expansion and margin improvement. ▪ LONG HA, Price Target: $53.56 92.06% of scenarios return positive upside ▪ Investment Time Horizon: 12 months THE APPENDIX TABLE OF CONTENTS

Investment Thesis Insider Trading - LTM Intra-Island Capacity by Year United Capacity Analysis Weighted Average Cost of Capital Neighbor Island Competition United Routes to Hawaii, Planned Expansions Macquarie Research Coverage Mark B. Dunkerley, President and CEO LUV Price Analysis Imperial Capital, LLC Coverage Aaron Alter, CLO and Executive VP Southwest Effect Timing Deutsche Bank Coverage Peter R. Ingram, COO and Executive VP Domestic Hawaii Route Analysis Shannon L. Okinaka, CFO and Executive VP Hawaiian Service Company Overview Jon Snook, Executive VP and COO Hawaiian and Southwest Service Comparison Revenue Analysis and Distribution Ann R. Botticelli, Senior VP, Corporate Com Premium Seating Analysis HA Unit Cost Growth Historic Flight Number Japan Airlines Impact on Market Share Flight Path Routes Historic ASM Ground Facilities Financials Mid-Market Expansion Map Industry Overview Two Year Stock Chart International Expansion Captures Demand Hawaii Average Fare One Year Stock Chart Market Share by Geography Airline Classification Six Month Stock Chart International Growth Lowers NA Dependence ASM and RPM PRASM & Jet Fuel Prices West Coast PRASM Revenue Block Hours Revenues – Bull, Base, Bear Case Cabin Configuration Timeline Average Utilization PRASM – Bull, Bear, Base Cases Fuel Efficiency Program Average Aircraft Stage Length WACC Calculations Fuel Efficiency Software RASM and PRASM Beta Calculations Maintenance Costs Passenger Yield Trading Metrics Fleet Age Passenger Load Factor Quarterly DCF – 2014-2017 Fleet Age Forecast CASM Quarterly DCF – 2018-2019 Fleet Schedule Fuel Expense Quarterly DCF – 2020-2022 Capacity Impact Comparison of New Planes Industry System Fees Revenue Industry Supply & Demand – 2018-2019 Airbus 321neo Seat Map and Features Industry Supply & Demand – 2020-2022 Management CapEx Projections Other D&A Calculations Management CASM Outlook Southwest Management Quotes PP&E Projections Management Fuel Forecast Increasing US Arrivals Despite NK Activity NWC – 2018-2019 Labor Relations Stock Ownership NWC – 2020-2022 Labor Utilization ETOPS Certification LUV Projections – 2018-2019 Island Hopping Overview 3Y Return Graph Neighbor Island Capacity Growth 1Y Returns Graph Intra-Island Capacity HA Correlation Intra-Island Capacity by Month United Capacity Analysis

2018 Departure City Name Arrival City Name Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Chicago HONOLULU 31 28 31 30 31 30 31 31 30 31 30 31 365 KAHULUI 22 19 19 20 19 19 20 19 15 19 19 33 243 Denver HONOLULU 31 28 31 30 31 30 31 31 30 31 30 31 365 KAHULUI 28 26 31 30 31 32 33 24 31 16 18 20 320 KONA 14 13 27 28 30 32 34 24 31 16 18 20 287 LIHUE 7 4 4 5 4 4 5 4 4 4 4 16 65 Guam HONOLULU 31 28 31 30 31 30 31 31 30 31 30 31 365 Houston HONOLULU 31 28 31 30 31 30 31 31 30 31 30 31 365 Los Angeles HONOLULU 102 83 113 113 122 137 155 138 112 118 109 141 1443 KAHULUI 95 86 92 90 92 99 107 102 91 96 90 108 1148 KONA 68 73 92 67 65 82 92 92 64 65 62 79 901 HILO 27 25 30 29 30 36 39 39 31 33 30 35 384 LIHUE 61 60 65 65 61 63 66 65 65 65 60 61 757 Majuro HONOLULU 13 12 14 12 14 13 13 13 13 13 13 13 156 Newark HONOLULU 31 27 31 30 31 30 31 31 30 31 30 31 364 San Francisco HONOLULU 125 122 155 150 155 150 155 155 123 123 144 167 1724 KAHULUI 156 157 204 153 176 179 184 184 175 182 149 169 2068 KONA 92 86 95 91 92 93 97 96 68 88 90 95 1083 LIHUE 64 60 65 61 61 83 92 92 65 85 60 77 865 Tokyo NRT HONOLULU 31 28 31 30 31 30 31 31 30 31 30 31 365 Washington D.C. HONOLULU 7 4 14 6 11 30 31 28 7 4 4 18 164

Total 1,067 997 1,206 1,100 1,149 1,232 1,309 1,261 1,075 1,113 1,050 1,238 13,797

RETURN TO TABLE OF CONTENTS United Capacity Analysis

2018 Departure City Name Arrival City Name Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Chicago HONOLULU 4,774.0 4,312.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 56,210.0 KAHULUI 3,388.0 2,926.0 2,926.0 3,080.0 2,926.0 2,926.0 3,080.0 2,926.0 2,310.0 2,926.0 2,926.0 5,082.0 37,422.0 Denver HONOLULU 4,774.0 4,312.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 56,210.0 KAHULUI 4,312.0 4,004.0 4,774.0 4,620.0 4,774.0 4,928.0 5,082.0 3,696.0 4,774.0 2,464.0 2,772.0 3,080.0 49,280.0 KONA 2,156.0 2,002.0 4,158.0 4,312.0 4,620.0 4,928.0 5,236.0 3,696.0 4,774.0 2,464.0 2,772.0 3,080.0 44,198.0 LIHUE 1,078.0 616.0 616.0 770.0 616.0 616.0 770.0 616.0 616.0 616.0 616.0 2,464.0 10,010.0 Guam HONOLULU 4,774.0 4,312.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 56,210.0 Houston HONOLULU 4,774.0 4,312.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 56,210.0 Los Angeles HONOLULU 15,708.0 12,782.0 17,402.0 17,402.0 18,788.0 21,098.0 23,870.0 21,252.0 17,248.0 18,172.0 16,786.0 21,714.0 222,222.0 KAHULUI 14,630.0 13,244.0 14,168.0 13,860.0 14,168.0 15,246.0 16,478.0 15,708.0 14,014.0 14,784.0 13,860.0 16,632.0 176,792.0 KONA 10,472.0 11,242.0 14,168.0 10,318.0 10,010.0 12,628.0 14,168.0 14,168.0 9,856.0 10,010.0 9,548.0 12,166.0 138,754.0 HILO 4,158.0 3,850.0 4,620.0 4,466.0 4,620.0 5,544.0 6,006.0 6,006.0 4,774.0 5,082.0 4,620.0 5,390.0 59,136.0 LIHUE 9,394.0 9,240.0 10,010.0 10,010.0 9,394.0 9,702.0 10,164.0 10,010.0 10,010.0 10,010.0 9,240.0 9,394.0 116,578.0 Majuro HONOLULU 2,002.0 1,848.0 2,156.0 1,848.0 2,156.0 2,002.0 2,002.0 2,002.0 2,002.0 2,002.0 2,002.0 2,002.0 24,024.0 Newark HONOLULU 4,774.0 4,158.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 56,056.0 San Francisco HONOLULU 19,250.0 18,788.0 23,870.0 23,100.0 23,870.0 23,100.0 23,870.0 23,870.0 18,942.0 18,942.0 22,176.0 25,718.0 265,496.0 KAHULUI 24,024.0 24,178.0 31,416.0 23,562.0 27,104.0 27,566.0 28,336.0 28,336.0 26,950.0 28,028.0 22,946.0 26,026.0 318,472.0 KONA 14,168.0 13,244.0 14,630.0 14,014.0 14,168.0 14,322.0 14,938.0 14,784.0 10,472.0 13,552.0 13,860.0 14,630.0 166,782.0 LIHUE 9,856.0 9,240.0 10,010.0 9,394.0 9,394.0 12,782.0 14,168.0 14,168.0 10,010.0 13,090.0 9,240.0 11,858.0 133,210.0 Tokyo NRT HONOLULU 4,774.0 4,312.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 4,774.0 4,620.0 4,774.0 4,620.0 4,774.0 56,210.0 Washington D.C. HONOLULU 1,078.0 616.0 2,156.0 924.0 1,694.0 4,620.0 4,774.0 4,312.0 1,078.0 616.0 616.0 2,772.0 25,256.0

Total Capacity 164,318 153,538 185,724 169,400 176,946 189,728 201,586 194,194 165,550 171,402 161,700 190,652 2,124,738

RETURN TO TABLE OF CONTENTS United Capacity Analysis

Hawaiian Operating Revenue per Passenger 220 United Current Load 78.6% Hawaiian Total Operating Revenue $ 2,450,580,000.00

Total Competing Estimated Actual Difference in Flights 3,030 1,440 1,440 Difference in Capacity 466,620 221,760 174,303

Potential Loss of Operating Revenue $ 102,656,400.00 $ 48,787,200.00 $ 38,346,739.20 Change in Operating Revenue 4.19% 1.99% 1.56%

Operating Revenue per Passenger \ % $ 50.00 $ 100.00 $ 150.00 $ 200.00 $ 250.00 $ 300.00 $ 350.00 $ 400.00 $ 450.00 $ 500.00 60% 0.27% 0.54% 0.81% 1.09% 1.36% 1.63% 1.90% 2.17% 2.44% 2.71% 65% 0.29% 0.59% 0.88% 1.18% 1.47% 1.76% 2.06% 2.35% 2.65% 2.94% 70% 0.32% 0.63% 0.95% 1.27% 1.58% 1.90% 2.22% 2.53% 2.85% 3.17% 75% 0.34% 0.68% 1.02% 1.36% 1.70% 2.04% 2.38% 2.71% 3.05% 3.39% 80% 0.36% 0.72% 1.09% 1.45% 1.81% 2.17% 2.53% 2.90% 3.26% 3.62%

UAL Load UAL % 85% 0.38% 0.77% 1.15% 1.54% 1.92% 2.31% 2.69% 3.08% 3.46% 3.85% 90% 0.41% 0.81% 1.22% 1.63% 2.04% 2.44% 2.85% 3.26% 3.66% 4.07% 95% 0.43% 0.86% 1.29% 1.72% 2.15% 2.58% 3.01% 3.44% 3.87% 4.30%

RETURN TO TABLE OF CONTENTS United Routes to Hawaii, Planned Expansions

Denver International Airport (DEN)

Chicago O’Hare International Airport (ORD) • Connections (not non-stop to 90 mainland cities) Los Angeles International Airport (LAX) • Nonstop service from Guam and Tokyo

San Francisco International Airport (SFO)

RETURN TO TABLE OF CONTENTS LUV Price Analysis

Origin City Average Increase (%) Miami, FL (Metropolitan Area) -4.71% Fort Myers, FL 4.34% Boise, ID 15.00% Phoenix, AZ 16.96% San Francisco, CA (Metropolitan Area) 19.44% Corpus Christi, TX 19.72% Summary Statistic Value Orlando, FL 21.70% Average Increase in Fare $ 59.23 Sacramento, CA 23.15% Harlingen/San Benito, TX 23.71% Average Increase in Fare (%) 35.23% Nashville, TN 24.19% Las Vegas, NV 25.07% Los Angeles, CA (Metropolitan Area) 25.44% New Orleans, LA 25.90% Hartford, CT 27.13% Little Rock, AR 28.35% Oklahoma City, OK 28.96% Birmingham, AL 28.98% San Diego, CA 29.22% Reno, NV 29.56% Louisville, KY 31.81% Cleveland, OH (Metropolitan Area) 36.45% El Paso, TX 36.45% Midland/Odessa, TX 36.93% San Antonio, TX 37.10% Albany, NY 37.74% Amarillo, TX 37.89% Houston, TX 38.43% Dallas/Fort Worth, TX 38.99% Buffalo, NY 39.92% Albuquerque, NM 39.98% Denver, CO 40.30% Raleigh/Durham, NC 40.85% Chicago, IL 41.70% St. Louis, MO 44.74% Lubbock, TX 46.81% Columbus, OH 47.30% Milwaukee, WI 50.75% Austin, TX 51.26% Norfolk, VA (Metropolitan Area) 51.85% Omaha, NE 53.62% Kansas City, MO 54.15% Tampa, FL (Metropolitan Area) 55.13% Indianapolis, IN 63.97%

RETURN TO TABLE OF CONTENTS Southwest Effect Timing

The behavior of incumbents on pre-announced routes is significantly different - none of the coefficients on the quarters before actual entry is significant nor substantially negative, suggesting that incumbents do not preemptively slash fares when Southwest entry is certain.

Threat and Eventual Entry (SD) Preannounced Entry (SD) Threat but No Entry (SD)

Threat (t – 4) -0.010 (0.036) -0.023 (0.042) -0.007 (0.058)

Threat (t – 3) -0.020 (0.033) -0.033 (0.043) -0.033 (0.061)

Threat (t – 2) -0.033 (0.039) -0.001 (0.053) -0.072 (0.062)

Threat (t – 1) -0.034 (0.043) -0.038 (0.052) -0.044 (0.067)

Southwest Presence:

Threat (t) -0.112 (0.044) -0.070 (0.056)

Threat (t + 1) -0.081 (0.043) -0.068 (0.054)

Threat (t + 2) -0.091 (0.051) -0.133 (0.036)

Threat (t + 3 to t + 12) -0.169 (0.050) -0.177 (0.081)

Southwest Actual Entry:

Entry (t) -0.157 (0.051) -0.051 (0.060)

Entry (t + 1 to t + 2) -0.202 (0.049) -0.176 (0.057)

Entry (t + 3 to t + 12) -0.263 (0.053) -0.265 (0.060)

Number of Observations 31,388 12,126 4,919

Source: Steven Wu at Massachusetts Institute of Technology (2011) RETURN TO TABLE OF CONTENTS Domestic Hawaii Route Analysis

Average Yield (One-Way) Origin Airport ID AA AS DL G4 HA UA VX WP 12173 0.1490 0.1303 0.1352 0.0828 0.1573 0.1623 0.1556 0.1313 12402 0.1347 0.1432 12758 0.1643 0.1331 0.1258 0.1599 0.1692 0.1329 0.1752 12982 0.1482 0.1246 0.1276 0.1596 0.1429 0.1346 13034 0.2108 13347 0.1488 0.1113 13830 0.1592 0.1269 0.1267 0.1787 0.1481 0.1406 0.1452

Total Miles Flown (One-Way) Origin Airport ID AA AS DL G4 HA UA VX WP 12173 7,283,842 3,022,060 7,456,842 88,384 6,217,502 9,093,285 789,464 231,041 12402 - - - - 1,022,287 525,918 - - 12758 2,647,860 2,544,420 1,688,006 - 1,716,507 2,217,385 4,991 134,855 12982 1,973,229 1,990,932 700,333 - 2,382,332 1,562,307 - 290,110 13034 - - - - 48,915 - - - 13347 - 10,101 - - 46,384 - - - 13830 3,796,776 3,595,681 1,997,395 - 3,088,265 3,386,054 1,580,464 124,551 Total Miles 15,701,707 11,163,194 11,842,576 88,384 14,522,192 16,784,949 2,374,919 780,557 Average Yield 0.1539 0.1288 0.1320 0.0828 0.1610 0.1579 0.1456 0.1424

RETURN TO TABLE OF CONTENTS Domestic Hawaii Route Analysis

Average Yield (Round Trip) Origin Airport ID AA AS DL G4 HA UA VX WP 12173 0.1133 0.1111 0.1104 0.0705 0.1314 0.1304 0.1087 0.1211 12402 0.1282 0.1329 12758 0.1254 0.1149 0.1110 0.1269 0.1393 0.1158 12982 0.1258 0.1058 0.1029 0.1273 0.1197 0.0878 13034 0.1503 13347 0.1323 13830 0.1141 0.0958 0.1006 0.1245 0.1132 0.1167 0.2027

Total Miles Flown (Round Trip) Origin Airport ID AA AS DL G4 HA UA VX WP 12173 6,856,393 1,949,116 10,452,893 281,724 13,084,374 18,755,189 160,126 31,325 12402 - - - - 2,252,319 648,672 - - 12758 685,968 984,886 858,845 - 1,263,565 1,072,517 - 28,343 12982 409,545 607,865 277,774 - 1,751,341 593,433 - 70,169 13034 - - - - 22,565 - - - 13347 - - - - 10,458 - - - 13830 1,006,372 1,083,716 746,516 - 2,480,238 2,200,759 297,512 51,132 Total Miles 8,958,278 4,625,583 12,336,028 281,724 20,864,860 23,270,570 457,638 180,969 Average Yield 0.1149 0.1076 0.1097 0.0705 0.1297 0.1289 0.1139 0.1304

RETURN TO TABLE OF CONTENTS Domestic Hawaii Route Analysis

Average Yield (All Flights) Origin Airport ID AA AS DL G4 HA UA VX WP 12173 0.1373 0.1255 0.1246 0.0752 0.1431 0.1460 0.1503 0.1308 12402 0.1311 0.1391 12758 0.1593 0.1300 0.1226 0.1505 0.1628 0.1329 0.1689 12982 0.1458 0.1219 0.1234 0.1505 0.1387 0.1303 13034 0.1987 13347 0.1488 0.1136 13830 0.1534 0.1225 0.1221 0.1621 0.1391 0.1381 0.1553

Total Miles Flown (All Flights) Origin Airport ID AA AS DL G4 HA UA VX WP 12173 14,140,235 4,971,176 17,909,735 370,108 19,301,876 27,848,474 949,590 262,366 12402 - - - - 3,274,606 1,174,590 - - 12758 3,333,828 3,529,306 2,546,851 - 2,980,072 3,289,902 4,991 163,198 12982 2,382,774 2,598,797 978,107 - 4,133,673 2,155,740 - 360,279 13034 - - - - 71,480 - - - 13347 - 10,101 - - 56,842 - - - 13830 4,803,148 4,679,397 2,743,911 - 5,568,503 5,586,813 1,877,976 175,683 Total Miles 24,659,985 15,788,777 24,178,604 370,108 35,387,052 40,055,519 2,832,557 961,526 Average Yield 0.1442 0.1250 0.1241 0.0752 0.1465 0.1458 0.1422 0.1416

RETURN TO TABLE OF CONTENTS Hawaiian Service

In-flight Services Travel and Leisure – Best US Airlines, 2001, ▪ Complimentary, Hawaiian cuisine 2003, 2004, 2006, 2007, 2009, 2011 - 2017 ▪ In-flight entertainment ▪ Duty Free shopping ▪ Hana Hou, in-flight magazine World Airline Awards Winner for Best Airline ▪ Comfort Kit amenities Staff – North America

Premium Seating US Department of Transportation – #1 On-time Performance, 2004-2016 ▪ Extra Comfort Seats: legroom, priority security and boarding, unlimited TV and More On-Time Arrivals ▪ Preferred Seats: large-format tablets, amenity kits 92.0% 91.10% ▪ Premium Cabin: flat-lying seats, Hawaiian- inspired décor 90.0% ▪ Plumeria lounge access, Sig Zane Designs 88.0% amenity kits 86.0% Other Benefits 84.0% 81.40% ▪ Premier Club Membership 82.0% ▪ Hawaiian Airlines World Elite MasterCard 80.0% ▪ Neighbor Island Travel Plan: lock in rates for 78.0% inter-island travel 76.0% Industry Average Hawaiian Airlines

RETURN TO TABLE OF CONTENTS Hawaiian and Southwest Service Comparison

Hawaiian Airlines Premium Cabin ▪ Lie-flat ▪ Complimentary Hawaiian Significance and Impact of Service Difference cuisine ▪ In-flight entertainment Premium Traffic: 10-20% of customers, up to 50% of revenue Extra Comfort ▪ Priority boarding Success Factors: inflight entertainment, ▪ Extra legroom food service, and comfort

HA Value Proposition: experience and Southwest existing fleet infrastructure Business Select ▪ Priority boarding ▪ Double points ▪ Free drink

RETURN TO TABLE OF CONTENTS Premium Seating Analysis

Premium Seating Timeline Premium Seats Flown

Beginning Expansion Completion +104% 2014 2016 Q2 2018

Seat Amenities Lie Flat (Premium Cabin) ▪ 180° rotating wheel ▪ Hawaiian-inspired décor ▪ Cuisine prepared by Hawaiian chefs ▪ Large format tablets for in-flight entertainment Extra Comfort ▪ Extra legroom 2016 2017 2018 2019 ▪ Priority security and boarding A330 A321 ▪ Unlimited entertainment pack 767

Leisure travelers (90% of visitors) ▪ Around $50M in annual revenue (2016) likely to pay for premium seats on ▪ Average paid utilization: 70%+ long haul flights ▪ PRASM increased 10% quarter over quarter (2017 Q2)

RETURN TO TABLE OF CONTENTS Japan Airlines Impact on Market Share

Impact on International Market Share Impact on Japan Market Share

HA 22.00% Japan Airlines 32.47%

JAL 16.89% Hawaiian Airlines 20.16% DAL 11.41%

Korean Air 7.77% Delta Airlines 19.48%

JetStar 7.39% All Nippon Airways 13.66% ANA 4.94%

China Airlines 4.63% Combined Korean Airlines 4.55% Combined

UAL 3.44% international Japan-Hawaii market share United Airlines 4.55% market share Asiana 2.51% increases to increases to China Airlines 3.76% Qantas 2.47% 38.89% 52.63% Air NZ 1.87% AirAsia X 1.33%

Air China 1.56% Asiana Airlines 0.04% Other 13.13%

0 500000 1000000 1500000 2000000 2500000 3000000 0 500 1000 1500 2000 2500 3000

International ASM from HNL (2016) Number of Flights between Japan and Hawaii (2017E)

RETURN TO TABLE OF CONTENTS Two Year Stock Chart

$70.00 6,000

$60.00 5,000

$50.00 4,000

$40.00

3,000

$30.00

2,000 $20.00

1,000 $10.00

$0.00 0 9/28/2015 1/6/2016 4/15/2016 7/24/2016 11/1/2016 2/9/2017 5/20/2017 8/28/2017 Volume (Thousands) Price Close

RETURN TO TABLE OF CONTENTS One Year Stock Chart

$70.00 6,000

$60.00 5,000

$50.00 4,000

$40.00

3,000

$30.00

2,000 $20.00

1,000 $10.00

$0.00 0 9/28/2016 11/17/2016 1/6/2017 2/25/2017 4/16/2017 6/5/2017 7/25/2017 9/13/2017 Volume (Thousands) Price Close

RETURN TO TABLE OF CONTENTS Six Month Stock Chart

$70.00 6,000

$60.00 5,000

$50.00 4,000

$40.00

3,000

$30.00

2,000 $20.00

1,000 $10.00

$0.00 0 3/28/2016 7/6/2016 10/14/2016 1/22/2017 5/2/2017 8/10/2017 Volume (Thousands) Price Close

RETURN TO TABLE OF CONTENTS PRASM & Jet Fuel Prices

2012 2013 2014 2015 2016 2017P 2018P 2019P 2020P 2021P 2022P ASM 14,687 16,786 17,074 17,726 18,385 18,939 19,602 20,288 20,897 21,419 21,955 Growth % 22% 14% 2% 4% 4% 3% 3% 4% 3% 2% 2% Passenger Revenue 1,767 1,943 2,045 2,026 2,146 2,354 2,426 2,388 2,512 2,622 2,728 Growth % 19% 10% 5% -1% 6% 10% 3% -2% 5% 4% 4% PRASM (Cents) 12.03 11.57 11.98 11.43 11.67 12.43 12.38 11.77 12.02 12.24 12.43 Fuel Costs 632 699 678 418 344 421 424 434 452 464 476 Jet Fuel Price 3.17 3.09 2.95 1.78 1.41 1.64 1.62 1.60 1.62 1.62 1.62

RETURN TO TABLE OF CONTENTS Revenues – Bull, Base, Bear Case

$3,000

$2,900

$2,800

$2,700

$2,600

$2,500

$2,400 Passenger Passenger Revenue (MM) $2,300

$2,200

$2,100

$2,000 2017P 2018P 2019P 2020P 2021P 2022P

Bear Base Bull

RETURN TO TABLE OF CONTENTS PRASM – Bull, Bear, Base Cases

14.6

13.6 13.6

12.6

12.2 PRASM PRASM (Cents)

11.6

11.0

10.6 2017P 2018P 2019P 2020P 2021P 2022P

Bear Base Bull

RETURN TO TABLE OF CONTENTS WACC Calculations

WACC Calculations Beta 1.30 Risk-free Rate 2.3% Market Risk Primium 5.7% Cost of Equity 9.7% Cost of Debt 3.8% Debt/Equity 0.67 Equity % 59.9% Debt % 40.1% Tax Rate 33.3% WACC 6.84%

RETURN TO TABLE OF CONTENTS Beta Calculations

Beta Calculations Company Beta D/E Tax UL Beta Delta Air Lines 1.33 0.67 35% 0.93 United Continental 1.37 1.49 36% 0.70 Alaska Air Group 0.96 0.86 38% 0.63 Allegiant Travel 1.92 1.91 37% 0.87 Spirit Airlines 1.07 0.80 37% 0.71 JetBlue 1.75 0.32 38% 1.46 Southwest Airlines 1.21 0.36 37% 0.98 Average 1.37 0.92 37% 0.90 Median 1.33 0.80 37% 0.87 Hawaiian Airlines 1.30 0.67 33% 0.90

RETURN TO TABLE OF CONTENTS Trading Metrics

Hawaiian Airlines (NASDAQ: HA) Last Price $ 40.05 52 wk High/Low 36.20-60.90 Beta 5Y 1.09 Average Daily Volume (mm) 1.17 Market Cap (mm) $ 2,134.40 Diluted Shares Out. (mm) 53.9 Share Float % 15.76% Dividend Yield % 1.20% Diluted EPS $ 4.11 Price/Diluted EPS 9.74x

RETURN TO TABLE OF CONTENTS Quarterly DCF – 2014-2017

2017 FY FY FY FY Q1 Q2 Q3 Q4 FY 2013A 2014A 2015A 2016A 2017A 2017A 2017P 2017P 2017P Passanger Revenue 1,942.8 2,045.1 2,025.6 2,145.7 537.6 593.2 632.7 590.6 2,354.2 % QoQ Growth 9.9% 5.3% (1.0%) 5.9% 11.5% 14.4% 7.0% 6.7% 9.7% Cargo Revenue 213.0 269.8 291.9 304.8 76.6 82.1 81.5 76.1 303.2 % QoQ Growth 9.1% 26.7% 8.2% 4.4% 10.8% 8.0% 1.4% (4.1%) (0.52%) Total Revenue 2,155.9 2,314.9 2,317.5 2,450.6 614.2 675.3 714.2 666.7 2,657.4

Available Seat Mile 16,786 17,074 17,726 18,385 4,522 4,736 4,951 4,731 18,939 Wages and Benefits (427.4) (447.4) (499.5) (545.4) (151.1) (154.7) (163.4) (156.1) (625.0) per ASM 2.5% 2.6% 2.8% 3.0% 3.3% 3.3% 3.3% 3.3% 3.3% Aircraft fuel, including taxes and delivery (698.8) (678.3) (417.7) (344.3) (103.5) (102.8) (111.4) (103.5) (421.3) Maintenance, materials and repairs (203.4) (225.6) (224.6) (229.0) (59.4) (52.6) (62.6) (59.8) (239.5) per ASM 1.2% 1.3% 1.3% 1.2% 1.3% 1.1% 1.3% 1.3% 1.3% Aircraft and passenger servicing (120.6) (122.8) (117.4) (126.9) (33.5) (34.8) (34.5) (33.0) (132.2) per ASM 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% Aircraft rent (108.5) (106.4) (115.7) (124.6) (33.1) (34.6) (32.2) (30.8) (123.2) per ASM 0.6% 0.6% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% Commissions and other selling (125.9) (122.5) (119.7) (125.7) (33.2) (32.6) (35.1) (33.5) (134.1) per ASM 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% Other rentals and landing fees (81.3) (87.9) (95.1) (108.1) (28.3) (27.4) (26.3) (25.1) (100.5) per ASM 0.5% 0.5% 0.5% 0.6% 0.6% 0.6% 0.5% 0.5% 0.5% Other (173.1) (182.4) (196.0) (223.8) (58.6) (60.8) (54.8) (52.4) (209.6) per ASM 1.0% 1.1% 1.1% 1.2% 1.3% 1.3% 1.1% 1.1% 1.1% Total Operating Expenses (1,939.1) (1,973.4) (1,785.8) (1,827.7) (500.7) (500.1) (520.3) (494.2) (1,985.4)

EBITDA 216.8 341.5 531.7 622.9 113.4 175.2 194.0 172.5 672.0 Less: Depreciation and Amortization (83.1) (96.4) (105.6) (108.1) (27.5) (27.9) (29.0) (28.0) (111.1) EBIT 133.7 245.1 426.1 514.8 86.0 147.3 165.0 144.5 560.9 Less: Tax Expense (34.6) (44.5) (113.0) (149.3) (14.6) (48.9) (64.8) (56.8) (185.1) Implied Tax Rate 25.8% 18.2% 26.5% 29.0% 16.9% 33.2% 39.3% 39.3% 33.0% NOPAT 99.2 200.6 313.1 365.4 71.4 98.4 100.1 87.7 375.8 Add: Depreciation and Amortization 83.1 96.4 105.6 108.1 27.5 27.9 29.0 28.0 111.1 Less: Capital Expenditures (342.2) (442.2) (118.8) (178.8) (53.1) (43.1) (101.9) (101.9) (300.0) Less: Change in Networking Capital (142.8) (114.0) (26.7) (54.4) (129.7) (3.3) 63.4 51.0 (18.6) Unlevered Free Cash Flow (302.8) (259.2) 273.1 240.3 (83.9) 79.8 90.7 64.8 168.3 Discounted Free Cash Flow 63.75 63.7502

RETURN TO TABLE OF CONTENTS Quarterly DCF – 2018-2019

2018 2019 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2018P 2018P 2018P 2018P 2018P 2019P 2019P 2019P 2019P 2019P Passanger Revenue 566.6 621.5 666.6 571.6 2,426.2 543.2 609.4 647.0 588.3 2,387.9 % QoQ Growth 5.4% 4.8% 5.3% (3.2%) 3.1% (4.1%) (1.9%) (2.9%) 2.9% (1.6%) Cargo Revenue 73.0 80.1 85.9 73.6 312.5 70.0 78.5 83.3 75.8 307.6 % QoQ Growth (4.7%) (2.5%) 5.3% (3.2%) 3.06% (4.1%) (1.9%) (2.9%) 2.9% (1.58%) Total Revenue 639.5 701.5 752.5 645.3 2,738.8 613.1 687.9 730.4 664.1 2,695.4

Available Seat Mile 4,681 4,901 5,124 4,896 19,602 4,845 5,073 5,303 5,068 20,288 Wages and Benefits (154.5) (161.7) (169.1) (161.6) (646.9) (159.9) (167.4) (175.0) (167.2) (669.5) per ASM 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% Aircraft fuel, including taxes and delivery (102.3) (106.4) (110.7) (104.8) (424.2) (103.4) (107.8) (113.5) (109.3) (434.0) Maintenance, materials and repairs (59.2) (62.0) (64.8) (61.9) (247.9) (61.3) (64.2) (67.1) (64.1) (256.6) per ASM 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% Aircraft and passenger servicing (32.7) (34.2) (35.8) (34.2) (136.8) (33.8) (35.4) (37.0) (35.4) (141.6) per ASM 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% Aircraft rent (30.4) (31.9) (33.3) (31.8) (127.5) (31.5) (33.0) (34.5) (33.0) (132.0) per ASM 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% Commissions and other selling (33.1) (34.7) (36.3) (34.7) (138.8) (34.3) (35.9) (37.6) (35.9) (143.7) per ASM 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% Other rentals and landing fees (24.8) (26.0) (27.2) (26.0) (104.0) (25.7) (26.9) (28.1) (26.9) (107.7) per ASM 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Other (51.8) (54.2) (56.7) (54.2) (216.9) (53.6) (56.1) (58.7) (56.1) (224.5) per ASM 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% Total Operating Expenses (488.8) (511.2) (533.8) (509.2) (2,043.0) (503.5) (526.8) (551.5) (527.8) (2,109.5)

EBITDA 150.7 190.3 218.6 136.1 695.8 109.6 161.1 178.9 136.3 585.9 Less: Depreciation and Amortization (28.8) (28.7) (30.8) (29.7) (118.0) (24.8) (27.8) (29.6) (26.9) (109.1) EBIT 121.9 161.7 187.8 106.4 577.8 84.8 133.3 149.3 109.4 476.8 Less: Tax Expense (40.6) (53.9) (62.6) (35.5) (192.6) (28.3) (44.4) (49.8) (36.5) (158.9) Implied Tax Rate 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% NOPAT 81.3 107.8 125.2 70.9 385.2 56.5 88.8 99.6 72.9 317.9 Add: Depreciation and Amortization 28.8 28.7 30.8 29.7 118.0 24.8 27.8 29.6 26.9 109.1 Less: Capital Expenditures (124.7) (118.3) (21.6) (59.3) (324.0) (64.5) (64.5) (64.5) (64.5) (258.0) Less: Change in Networking Capital (84.5) (2.1) 39.9 52.2 5.6 (92.1) (12.9) 28.7 44.9 (31.4) Unlevered Free Cash Flow (99.1) 16.0 174.3 93.6 184.8 (75.2) 39.3 93.3 80.2 137.6 Discounted Free Cash Flow -95.920564 15.25671 163.1661 86.14557 168.648 -68.1281 35.006 81.7724 69.092 117.743

RETURN TO TABLE OF CONTENTS Quarterly DCF – 2020-2022

2020 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2020P 2020P 2020P 2020P 2020P 2021P 2021P 2021P 2021P 2021P 2022P 2022P 2022P 2022P 2022P Passanger Revenue 571.0 634.8 686.7 619.8 2,512.5 584.5 666.0 714.1 657.0 2,621.6 614.0 681.9 749.1 683.1 2,728.1 % QoQ Growth 5.1% 4.2% 6.1% 5.4% 5.2% 2.4% 4.9% 4.0% 6.0% 4.3% 5.1% 2.4% 4.9% 4.0% 4.1% Cargo Revenue 73.6 81.8 88.5 79.8 323.6 75.3 85.8 92.0 84.6 337.7 79.1 87.8 96.5 88.0 351.4 % QoQ Growth 5.1% 4.2% 6.1% 5.4% 5.22% 2.4% 4.9% 4.0% 6.0% 4.34% 5.1% 2.4% 4.9% 4.0% 4.06% Total Revenue 644.6 716.6 775.2 699.7 2,836.1 659.8 751.8 806.1 741.6 2,959.3 693.1 769.8 845.6 771.1 3,079.5

Available Seat Mile 4,990 5,225 5,463 5,220 20,897 5,115 5,356 5,599 5,350 21,419 5,242 5,489 5,739 5,484 21,955 Wages and Benefits (164.7) (172.4) (180.3) (172.2) (689.6) (168.8) (176.7) (184.8) (176.6) (706.8) (173.0) (181.2) (189.4) (181.0) (724.5) per ASM 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% Aircraft fuel, including taxes and delivery (107.9) (112.8) (118.2) (113.0) (451.9) (110.8) (116.0) (121.3) (115.9) (463.9) (113.5) (118.9) (124.3) (118.8) (475.5) Maintenance, materials and repairs (63.1) (66.1) (69.1) (66.0) (264.3) (64.7) (67.7) (70.8) (67.7) (270.9) (66.3) (69.4) (72.6) (69.4) (277.7) per ASM 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% Aircraft and passenger servicing (34.8) (36.5) (38.1) (36.4) (145.8) (35.7) (37.4) (39.1) (37.3) (149.5) (36.6) (38.3) (40.0) (38.3) (153.2) per ASM 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% Aircraft rent (32.5) (34.0) (35.5) (33.9) (135.9) (33.3) (34.8) (36.4) (34.8) (139.3) (34.1) (35.7) (37.3) (35.7) (142.8) per ASM 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% Commissions and other selling (35.3) (37.0) (38.7) (37.0) (148.0) (36.2) (37.9) (39.6) (37.9) (151.7) (37.1) (38.9) (40.6) (38.8) (155.5) per ASM 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% Other rentals and landing fees (26.5) (27.7) (29.0) (27.7) (110.9) (27.1) (28.4) (29.7) (28.4) (113.7) (27.8) (29.1) (30.5) (29.1) (116.5) per ASM 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Other (55.2) (57.8) (60.5) (57.8) (231.3) (56.6) (59.3) (62.0) (59.2) (237.1) (58.0) (60.8) (63.5) (60.7) (243.0) per ASM 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% Total Operating Expenses (520.0) (544.3) (569.3) (544.1) (2,177.7) (533.2) (558.3) (583.7) (557.7) (2,232.8) (546.5) (572.2) (598.3) (571.7) (2,288.6)

EBITDA 124.7 172.3 205.9 155.6 658.4 126.6 193.5 222.5 183.9 726.5 146.6 197.5 247.3 199.4 790.9 Less: Depreciation and Amortization (12.0) (15.9) (36.4) (12.4) (76.7) (17.5) (20.0) (21.4) (19.7) (78.6) (12.3) (17.0) (41.9) (31.2) (124.6) EBIT 112.7 156.4 169.5 143.2 581.7 109.1 173.6 201.0 164.2 647.8 134.3 180.5 205.4 168.2 666.2 Less: Tax Expense (37.6) (52.1) (56.5) (47.7) (193.9) (36.4) (57.9) (67.0) (54.7) (215.9) (44.8) (60.2) (68.5) (56.1) (229.5) Implied Tax Rate 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% NOPAT 75.1 104.3 113.0 95.4 387.8 72.7 115.7 134.0 109.4 431.9 89.6 120.3 136.9 112.1 436.8 Add: Depreciation and Amortization 12.0 15.9 36.4 12.4 76.7 17.5 20.0 21.4 19.7 78.6 12.3 17.0 41.9 31.2 124.6 Less: Capital Expenditures (74.5) (34.9) (48.7) (20.3) (178.4) (67.9) (68.0) (16.2) (34.1) (186.1) (48.4) (48.4) (48.4) (48.4) (193.7) Less: Change in Networking Capital (95.0) (10.7) 31.4 52.2 (22.1) (105.9) (13.2) 36.6 53.1 (29.4) (106.8) (16.7) 41.2 54.3 (28.0) Unlevered Free Cash Flow (82.4) 74.5 132.1 139.8 264.0 (83.5) 54.5 175.9 148.2 295.0 (53.3) 72.2 171.7 149.2 339.7 Discounted Free Cash Flow -69.8229 62.094 108.289 112.755 213.3152 -66.2708 42.53 134.9803 111.871 223.1102 -39.6119 52.747 123.315 105.418 241.867

RETURN TO TABLE OF CONTENTS Industry Supply & Demand– 2018-2019

Hawaiian Airlines - Revenue Projections 2018P 2019P Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 HA ASM - Arrivals 2,365 2,340 2,451 2,562 2448 2,422 2,536 2,652 2,534 Growth % 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% Total Market Share 35.2% 34.5% 35.0% 35.2% 33.0% 32.1% 33.1% 33.1% 32.7%

United ASM - Arrivals 1,464 1,436 1,551 1,607 1,469 1,508 1,479 1,598 1,655 Growth % 0.4% 3.3% 0.6% 0.3% 3.0% 3.0% 3.0% 3.0%

LUV ASM - Arrivals 559 557 575 601 567 Growth % Total Market Share 7.5% 7.4% 7.5% 7.5% 7.3% West US Market Share (40%) 18.8% 18.4% 18.8% 18.7% 18.3%

Other - Arrivals 2,885 3,002 3,006 3,105 2,942 3,062 3,066 3,167 3,001 Growth % 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Industry ASM - Arrivals 6,714 6,779 7,008 7,274 7,419 7,550 7,657 8,018 7,757

Supply Growth % 0.9% 2.2% 2.8% 2.2% 10.5% 11.4% 9.3% 10.2% 4.6%

Demand Growth 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Supply/Demand Adj. 3.1% 1.8% 1.2% 1.8% -6.5% -7.4% -5.3% -6.2% -0.6%

PRASM 12.48 12.10 12.68 13.01 11.67 11.21 12.01 12.20 11.61 HA ASM 4,731 4,681 4,901 5,124 4,896 4,845 5,073 5,303 5,068 ASM Growth % 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% Passenger Revenue 590.6 566.6 621.5 666.6 571.6 543.2 609.4 647.0 588.3 Growth % 6.7% 5.4% 4.7% 5.3% -3.2% -4.1% -1.9% -2.9% 2.9%

Jet Fuel Cost (Per Gallon) 1.64 1.63 1.62 1.62 1.60 1.60 1.59 1.60 1.61 Adj. Fuel Price 1.64 1.63 1.62 1.62 1.60 1.60 1.59 1.60 1.61 HA ASM 4,731 4,681 4,901 5,124 4,896 4,845 5,073 5,303 5,068 Gallons per 1000 ASM 13.37 13.37 13.37 13.37 13.37 13.37 13.37 13.37 13.37 Gallons Used 63.25 62.58 65.53 68.51 65.46 64.77 67.82 70.91 67.75 Fuel Costs 103.5 102.3 106.4 110.7 104.8 103.4 107.8 113.5 109.3

RETURN TO TABLE OF CONTENTS Industry Supply & Demand – 2020-2022

Hawaiian Airlines - Revenue Projections 2020P 2021P 2022P Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 HA ASM - Arrivals 2,495 2,612 2,731 2,610 2,557 2,678 2,800 2,675 2,621 2,745 2,870 2,742 Growth % 3.0% 3.0% 3.0% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% Total Market Share 32.4% 33.2% 33.7% 33.1% 31.9% 33.5% 33.7% 33.7% 32.2% 32.9% 34.0% 33.7%

United ASM - Arrivals 1,506 1,546 1,516 1,638 1,689 1,536 1,577 1,546 1,670 1,722 1,567 1,609 Growth % 2.5% 2.5% 2.5% 2.5% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

LUV ASM - Arrivals 571 589 616 581 582 601 628 593 594 613 641 605 Growth % 2.5% 2.5% 2.5% 2.5% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Total Market Share 7.4% 7.5% 7.6% 7.4% 7.3% 7.5% 7.6% 7.5% 7.3% 7.4% 7.6% 7.4% West US Market Share (40%) 18.5% 18.7% 19.0% 18.4% 18.2% 18.8% 18.9% 18.7% 18.2% 18.4% 19.0% 18.6%

Other - Arrivals 3,124 3,128 3,231 3,061 3,186 3,190 3,295 3,122 3,250 3,254 3,361 3,185 Growth % 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Industry ASM - Arrivals 7,695 7,875 8,094 7,890 8,014 8,005 8,300 7,937 8,135 8,334 8,438 8,140

Supply Growth % 1.9% 2.9% 1.0% 1.7% 4.1% 1.6% 2.5% 0.6% 1.5% 4.1% 1.7% 2.6%

Demand Growth 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Supply/Demand Adj. 2.1% 1.1% 3.0% 2.3% -0.1% 2.4% 1.5% 3.4% 2.5% -0.1% 2.3% 1.4%

PRASM 11.44 12.15 12.57 11.87 11.43 12.44 12.75 12.28 11.71 12.42 13.05 12.46 HA ASM 4,990 5,225 5,463 5,220 5,115 5,356 5,599 5,350 5,242 5,489 5,739 5,484 ASM Growth % 3.0% 3.0% 3.0% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% Passenger Revenue 571.0 634.8 686.7 619.8 584.5 666.0 714.1 657.0 614.0 681.9 749.1 683.1 Growth % 5.1% 4.2% 6.1% 5.4% 2.4% 4.9% 4.0% 6.0% 5.1% 2.4% 4.9% 4.0%

Jet Fuel Cost (Per Gallon) 1.62 1.61 1.62 1.62 1.62 1.62 1.62 1.62 1.62 1.62 1.62 1.62 Adj. Fuel Price 1.62 1.61 1.62 1.62 1.62 1.62 1.62 1.62 1.62 1.62 1.62 1.62 HA ASM 4,990 5,225 5,463 5,220 5,115 5,356 5,599 5,350 5,242 5,489 5,739 5,484 Gallons per 1000 ASM 13.37 13.37 13.37 13.37 13.37 13.37 13.37 13.37 13.37 13.37 13.37 13.37 Gallons Used 66.71 69.86 73.03 69.79 68.38 71.60 74.86 71.53 70.09 73.39 76.73 73.32 Fuel Costs 107.9 112.8 118.2 113.0 110.8 116.0 121.3 115.9 113.5 118.9 124.3 118.8

RETURN TO TABLE OF CONTENTS D&A Calculations

Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2012 2017P 2017P 2018P 2018P 2018P 2018P 2018P 2019P 2019P 2019P 2019P 2019P Sales 590.6188 2354.160756 566.563 621.4602 666.5936 571.6269 2426.244 543.1508 609.3852 647.0355 588.279 2387.85 CapEx 101.861 300.00 124.7 118.3 21.6 59.3 324.0 64.5 64.5 64.5 64.5 258 % Sales 17.2% 12.7% 22.0% 19.0% 3.2% 10.4% 13.4% 11.9% 10.6% 10.0% 11.0% 10.8% 203.7 38.5% 36.5% 6.7% 18.3% 25.0% 25.0% 25.0% 25.0%

Depreciation (28.0) (111.1) (28.8) (28.7) (30.8) (29.7) (118.0) (24.8) (27.8) (29.6) (26.9) (109.1) % of CapEx 25.0% 25.0% 23.1% 24.2% 142.4% 50.1% 36.4% % of Sales 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% % of PPE 25.2% 24.4% 24.3% 26.1% 25.2%

Beginning PPE Less: Depreciation Add: CapEx Ending PPE

RETURN TO TABLE OF CONTENTS D&A Calculations

Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2012 2020P 2020P 2020P 2020P 2020P 2021P 2021P 2021P 2021P 2021P 2022P 2022P 2022P 2022P 2022P Sales 571.0425 634.8429 686.7471 619.8311 2512.46368 584.4854 666.0251 714.1488 656.9525 2621.612 614.0145 681.932 749.0837 683.0644 2728.095 CapEx 74.51358 34.93354 48.68236 20.26593 178.40 0.45 67.93542 67.99038 16.15031 34.06927 186.15 0.85 48.42653 48.42653 48.42653 48.42653 193.71 % Sales 13.0% 5.5% 7.1% 3.3% 7.1% 11.6% 10.2% 2.3% 5.2% 7.1% 7.9% 7.1% 6.5% 7.1% 7.1% 41.8% 19.6% 27.3% 11.4% 36.5% 36.5% 8.7% 18.3% 25.0% 25.0% 25.0% 25.0%

Depreciation (12.0) (15.9) (36.4) (12.4) (76.7) (17.5) (20.0) (21.4) (19.7) (78.6) (12.3) (17.0) (41.9) (31.2) (124.6) % of CapEx % of Sales 2.1% 2.5% 5.3% 2.0% 2.0% 3.0% 3.0% 3.0% 3.0% 3.0% 2.0% 2.5% 5.6% 4.6% 4.6% % of PPE

Beginning PPE Less: Depreciation Add: CapEx Ending PPE

RETURN TO TABLE OF CONTENTS PP&E Projections

2018P 2019P Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Property and equipment, less accumulated depreciation and amortization 1,697 1,708 1,719 1,730 1,740 1,751 1,761 1,771 Depreciation and Amortization 28.1 28.3 28.5 28.6 28.8 29.0 29.2 29.3 Capital Expenditures 39.4 39.4 39.4 39.4 39.4 39.4 39.4 39.4 % of CapEX 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7%

RETURN TO TABLE OF CONTENTS PP&E Projections

2020P 2021P 2022P Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Property and equipment, less accumulated depreciation and amortization 1,781 1,791 1,800 1,810 1,819 1,828 1,837 1,846 1,854 1,863 1,871 1,880 Depreciation and Amortization 29.5 29.7 29.8 30.0 30.2 30.3 30.5 30.6 30.8 30.9 31.0 31.2 Capital Expenditures 39.4 39.4 39.4 39.4 39.4 39.4 39.4 39.4 39.4 39.4 39.4 39.4 % of CapEX 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7%

RETURN TO TABLE OF CONTENTS NWC – 2018-2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Current Assets 2018 2018 2018 2018 2019 2019 2019 2019 Accounts receivable, net 93.0 102.0 109.4 93.8 89.1 100.0 106.2 96.5 Spare parts and supplies, net 20.4 21.3 22.3 21.3 20.7 21.7 22.7 21.5 Prepaid expenses and other ------Total Assets 113.3 123.3 131.7 115.1 109.9 121.7 128.9 118.1

Current Liablities Air Traffic Liability 605.3 627.3 577.5 504.7 595.7 630.6 589.7 528.0 Accounts payable 114.8 116.5 114.8 113.8 118.3 120.1 118.6 118.3 Other accrued liabilities 151.1 139.5 159.4 164.5 155.7 143.8 164.7 171.0 Total Liabilities 871.2 883.3 851.7 782.9 869.8 894.5 872.9 817.3

Net Working Capital ($757.90) ($759.95) ($720.02) ($667.79) ($759.89) ($772.78) ($744.06) ($699.19)

Change in NWC ($84.49) ($2.05) $39.94 $52.23 $5.62 ($92.10) ($12.89) $28.72 $44.87 ($31.40)

RETURN TO TABLE OF CONTENTS NWC – 2020-2022

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Current Assets 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 Accounts receivable, net 93.7 104.2 112.7 101.7 95.9 109.3 117.2 107.8 100.8 111.9 122.9 112.1 Spare parts and supplies, net 22.4 23.5 24.5 25.5 23.2 24.2 25.1 24.0 23.4 24.5 25.5 24.4 Prepaid expenses and other ------Total Assets 116.1 127.6 137.2 127.2 119.1 133.5 142.3 131.8 124.1 136.4 148.4 136.5

Current Liablities Air Traffic Liability 626.8 659.4 617.7 550.1 654.0 692.1 644.2 575.1 680.6 720.3 670.4 598.5 Accounts payable 122.4 124.3 122.7 122.0 126.2 128.3 126.4 125.7 129.9 132.1 130.2 129.5 Other accrued liabilities 161.1 148.8 170.4 176.4 166.0 153.5 175.5 181.7 171.0 158.2 180.7 187.1 Total Liabilities 910.3 932.5 910.8 848.5 946.2 973.9 946.1 882.5 981.6 1010.5 981.3 915.1

Net Working Capital ($794.16) ($804.90) ($773.54) ($721.31) ($827.17) ($840.36) ($803.79) ($750.68) ($857.44) ($874.16) ($832.93) ($778.65)

Change in NWC ($94.96) ($10.74) $31.36 $52.23 ($22.12) ($105.86) ($13.19) $36.56 $53.12 ($29.36) ($106.76) ($16.72) $41.22 $54.29 ($27.97)

Revenue 644.6 716.6 775.2 699.7 659.8 751.8 806.1 741.6 693.1 769.8 845.6 771.1

AR/Revenue 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5%

HA ASM 4,990 5,225 5,463 5,245 5,140 5,382 5,626 5,402 5,294 5,543 5,795 5,564 Spare Parts/ASM (1000s) 4.490 4.490 4.490 4.862 4.505 4.505 4.467 4.444 4.415 4.415 4.398 4.385

Opex 493 516 540 519 508 532 556 534 524 548 573 550 Prepaid/Opex

Accounts Payable/Opex 24.8% 24.1% 22.7% 23.5% 24.8% 24.1% 22.7% 23.5% 24.8% 24.1% 22.7% 23.5% ATL/Revenue 21.9% 23.4% 21.0% 18.9% 21.9% 23.4% 21.0% 18.9% 21.9% 23.4% 21.0% 18.9% OAL/Opex 32.67% 28.85% 31.54% 34.01% 32.67% 28.85% 31.54% 34.01% 32.67% 28.85% 31.54% 34.01%

Q/Q Revenue Growth 3.0% 11.2% 8.2% -9.7% 6.0% 14.0% 7.2% -8.0% 7.0% 11.1% 9.8% -8.8%

ATL/FTM Rev 22.1% 23.1% 21.4% 18.9% 22.1% 23.1% 21.4% 18.9% 22.1% 23.1% 21.4% 18.9%

RETURN TO TABLE OF CONTENTS LUV Projections – 2018-2019

Boeing 737 MAX 8 2018 2019P Seat Capacity 175 Q4 Q1 Q2 Q3 Q4 Current 14 Arrivals Per Day 14 14 14 15 14 ASM 559 557 575 601 567 Average Distance 2500 Days in Month 30.42 Multiple of Q4 1.00x 1.00x 1.03x 1.08x 1.01x

Daily Arrivals 14 Total Market Share 7.5% 7.4% 7.5% 7.5% 7.3% Quarterly ASM 559 West US Market Share 18.8% 18.4% 18.8% 18.7% 18.3%

INVESTMENT THESIS COMPANY OVERVIEW INDUSTRY OVERVIEW VALUATION RISKS AND MITIGANTS 3Y Return Graph

3Y Returns 400%

350%

300%

250%

200%

150%

100%

50%

0% 10/2014 1/2015 4/2015 7/2015 10/2015 1/2016 4/2016 7/2016 10/2016 1/2017 4/2017 7/2017 10/2017

-50%

HA LUV UAL ALK

RETURN TO TABLE OF CONTENTS 1Y Returns Graph

1Y Returns 60%

50%

40%

30%

20%

10%

0% 10/2016 11/2016 12/2016 1/2017 2/2017 3/2017 4/2017 5/2017 6/2017 7/2017 8/2017 9/2017

-10%

-20%

-30%

HA LUV UAL ALK

RETURN TO TABLE OF CONTENTS HA Correlation

HA Correlation LUV UAL ALK 1Y -0.18 0.62 0.53 2Y 0.37 0.62 0.56 3Y 0.59 0.31 0.71

RETURN TO TABLE OF CONTENTS Insider Trading - LTM

Insider Trading - Past 12M # of Shares Bought 336,615 # of Shares Sold 488,149 Total Shares Traded 824,764 Net Activity -151,534

RETURN TO TABLE OF CONTENTS Macquarie Research Coverage

▪ Rating: Outperform ▪ Target: $49.00 ▪ DATE: 9/25/17 ▪ THESIS:  “We believe the focus on new intra-island competition is overblown as it is minimal from a capacity standpoint. We also think that the airline is in good shape to offset upcoming new competition from United and potentially Southwest from the mainland, with international growth opportunities and a more flexible and nimble fleet to better tailor its West Coast markets to Hawaii”  No new costs from pilot contract reached in March 2017  Experience competing and retaining market share in Neighbor Island routes  Revenue diversification in international markets decreases potential impact of decline in North American revenue  Operational strength and cost agility defends against competition ● “Hawaiian’s strong roots in customer performance and solid operational reliability provides a buffer against new competition.”  United entry concentrated in new market areas; do not compete directly with Hawaiian routes ● “We expect the impact of United’s increase in flight service to Hawaii to be limited given the lack of direct overlap”  A321s represent Growth Opportunities into mid-sized markets ● “The introduction of the 189-seat A321neos should bring new North American growth opportunities to midsized cities.”

RETURN TO TABLE OF CONTENTS Imperial Capital, LLC Coverage

▪ Rating: Outperform ▪ Target: $74.00 ▪ DATE: 9/21/17 ▪ THESIS:  “HA is a formidable competitor on the West Coast due to its high quality product, low cost structure, and strong brand loyalty  HA has managed through competitive environments in the recent past, including when Alaska Air (ALK) built up its Hawaii operation between 2012-2015, and HA ended up gaining market share when the dust settled  Some of UAL’s capacity growth is from markets that HA does not serve directly, such as Denver and Chicago, and only 5% of HA’s traffic is connecting  HA has initiatives in place to offset potential unit revenue headwinds, including the completion of A330 reconfigurations by 1Q18  HA is expected to deploy the A321neos starting in January with the initial focus on underserved nonstop markets between secondary cities from the West Coast and Hawaii, such as Portland to Maui  International continues to produce strong results, and capacity growth is likely to be modest in FY18 with growth likely to resume in FY19  While Neighbor Island results are being impacted by Islandair’s growth short term, HA has impressive scale and loyalty in the market, in our view. ”

RETURN TO TABLE OF CONTENTS Deutsche Bank Coverage

▪ Rating: Hold ▪ Target: $52.00 ▪ DATE: 7/25/17 ▪ THESIS:  June Q beat; unit revenue growth slows sequentially ● HA reported June Q diluted EPS (ex-specials) of $1.58, ahead of our $1.50 forecast and $1.52 consensus. Top-line increased 13.6% y-o- y driven by capacity growth of 4.1% and RASM +9.2%. June Q's RASM gain represents a sequential improvement from Mar Q's +7.6%; however, RASM growth is expected to slow sequentially based on Sep Q RASM guidance of +4.5% - 7.5% despite an easier y-o-y comp/lower capacity growth at HA. While HA’s RASM performance has been industry-leading for multiple quarters, capacity increases in its core markets (inter-island, US mainland, and Pacific) for at least the next 6 – 12 months is likely to exert downward pressure on RASM; Hold.  North America and international PRASM continue positive trends in June Q ● HA June Q system PRASM increased 9.9% y-o-y, an improvement from Mar Q’s +7.7% result. Underlying the system result, domestic PRASM was up 11.9% and international PRASM grew 17% (on core market strength as the impacts of FX and fuel surcharges were “negligible” and “modest”, respectively, in the Q). Regarding the former, North America markets saw PRASM increase “in the mid- teens” while neighbor island PRASM fell “in the mid-single digits”. Management expect pressure in the neighbor island operation going forward as competitive capacity additions continue. Furthermore, the company’s Narita – Honolulu route, which has been a tailwind to international PRASM since its launch, will be anniversaried this month (July 2017).  Raising 2017 forecast; downside risk to 2018/2019 ● We are raising our 2017 EPS estimate from $5.00 to $5.20 (vs. consensus of $5.55) to reflect the June Q beat as well as our improved outlook for the Sep Q. We are maintaining our 2018 EPS estimate of $5.00 and our 2019 EPS estimate of $5.25 (vs. consensus of $5.13 and $4.65, respectively). However, given known competitive capacity additions and the potential for more announcements to come, there is downside risk to our 2018 and 2019 forecasts.  Valuation and risks ● While our earnings outlook has improved, we believe that the competitive capacity outlook has raised the equity premium for HA shares. As such, we are utilizing lower multiples to derive our 12-month price target, lowering our price target from $64 to $52. We are now applying a 10 P/E multiple, at the low end of its 5 year trading history, versus 13x previously. On an EV/EBITDAR basis, our price target is derived by applying a multiple of 5.2x to our 2017 EBITDAR estimate. Fuel price volatility is a major risk for Hawaiian: every 10% move in jet fuel (ceteris paribus) impacts our 2017 EPS estimate of $5.20 by approximately $0.50. See Page 4 for more.

RETURN TO TABLE OF CONTENTS Revenue Analysis and Distribution

Revenue Mix 800 13000 Japan 16.0% 700 12500 Other 600 International 11.0% North American 12000 49.0% 500

400 11500

Neighbor Island 300 24.0% 11000

200 Quarter 1 Quarter 2 10500 Growing Segments 100 Quarter 3 Quarter 4 Change in Real Disposable Personal Income scheduled 0 10000 passenger 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 revenue Change Change Change Segment (in millions) in Yield in RPM in ASM Domestic $104.2 0.10% 6.60% 2.90% ▪ Strongest demand in June, July, August and December International 15.9 ($4.7) 8.6 5.6 ▪ Historically strong in historically weaker revenue in Q1 Total Scheduled $120.1 -1.10% 7.20% 3.70% ▪ Roughly tracks US growth in discretionary income ▪ Pricing adjustment to obtain optimal load factor

RETURN TO TABLE OF CONTENTS HA Unit Cost Growth

“Hawaiian has had to absorb the costs of its new pilot contract, which was completed in March. This was most recently reflected in accounting for almost 3.5 percentage points of its 5.6% year over year unit cost increase in its recent June 2017 quarter. We expect more specifics on Hawaiian’s cost structure for 2018 to be revealed at Hawaiian’s Investor Day later this year.” –Macquarie Research

RETURN TO TABLE OF CONTENTS Flight Path Routes

Neighbor Island ▪ Daily service to all 6 Hawaiian islands

Domestic ▪ Daily service to 10 major cities, including Los Angeles and Seattle ▪ Only nonstop, year-round flight to and from New York

International ▪ Daily service to Sydney, Tokyo, and Osaka ▪ Scheduled service to 7 major cities, including Seoul, Brisbane, and Beijing ▪ Exclusive service in Sapporo, Pago Pago, Papeete

RETURN TO TABLE OF CONTENTS Flight Path Routes

Domestic Flights International Flights

Daily Service Daily Service ▪ Los Angeles ▪ Sydney, Australia ▪ Oakland ▪ Sacramento ▪ Tokyo and Osaka, Japan ▪ San Diego Scheduled Service ▪ San Francisco ▪ Pago Pago, American Samoa ▪ San Jose ▪ Papeete, Tahiti ▪ Las Vegas ▪ Phoenix ▪ Brisbane, Australia ▪ Portland ▪ Auckland, New Zealand ▪ Seattle ▪ Sapporo, Japan Scheduled Service ▪ Seoul, South Korea ▪ New York City Neighbor Island Routes ▪ Beijing, China ▪ Kauai ▪ Oahu ▪ Molokai ▪ Lanai ▪ Maui ▪ Hawaii (The Big Island)

RETURN TO TABLE OF CONTENTS Ground Facilities

Airport Name Location Phoenix Sky Harbor International Airport Phoenix, Arizona Los Angeles International Airport Los Angeles, California Oakland International Airport Oakland, California Sacramento International Airport Sacramento, California San Diego International Airport San Diego, California San Francisco International Airport San Francisco, California Norman Y. Mineta San Jose International Airport San Jose, California Hilo International Airport Hilo, Hawai'i Honolulu International Airport Honolulu, Hawai'i Kahului Airport Kahului, Hawai'i Kapalua Airport Lahaina, Hawai'i Kona International Airport Kona, Hawai'i Lana'i Airport Lana'i, Hawai'i Lihu'e Airport Lihu'e, Hawai'i Moloka'i Airport Moloka'i, Hawai'i McCarran International Airport Las Vegas, Nevada John F. Kennedy International Airport New York, New York Portland International Airport Portland, Oregon Seattle-Tacoma International Airport Seattle, Washington Pago Pago International Airport Pago Pago, American Samoa Brisbane International Airport Brisbane, Australia Sydney International Airport Sydney, Australia Beijing Capital International Airport Beijing, China Haneda International Airport Tokyo, Japan Kansai International Airport Osaka, Japan Narita International Airport Tokyo, Japan New Chitose International Airport Sapporo, Japan Auckland Airport Auckland, New Zealand Incheon International Airport Seoul, South Korea Faa'a International Airport Papeete, Tahiti

RETURN TO TABLE OF CONTENTS Mid-Market Expansion Map

HA currently only serves 12.5% domestic mid-sized markets

Possible Markets for Expansion  Anchorage  Minneapolis  Seattle  Chicago  Portland *  Newark  San Jose *  Boston  San Diego *  Washington, D.C.  Phoenix  Atlanta  Denver  Dallas  Salt Lake City  Houston

RETURN TO TABLE OF CONTENTS International Expansion Captures Demand

Market Share Growth China 4/16/14: Inaugural flight Beijing to Honolulu • 2014: Visitors from China 2010 grew 29.1% 2017 • 2015: 12.4%

Japan 12/21/16: Hawaiian Airlines Other International Japan begins nonstop service from Markets Haneda Airport (HND) to Kona International Airport (KOA) $187.2 M 5/17: Hawaii Tourism 20.8% Japanese tourist spending Authority credits new route with growth in Japanese 136,735 visitors and spending 9.1% Number of Japanese visitors

RETURN TO TABLE OF CONTENTS Market Share by Geography

RETURN TO TABLE OF CONTENTS International Growth Lowers NA Dependence

2010 2017 1% 9% 16%

11% 49% 33% 57%

24%

North America Neighbor Island Other Intl Japan North America Neighbor Island Other Intl Japan

▪ “In recent years, Hawaiian has expanded its focus on international flying, growing to now represent 27% of the airline’s overall revenues versus only 10% in 2010. Japan (accounting for 16% of the airline’s 2017 revenues versus 1% in 2010) has been a strong contributor, along with Australia, New Zealand, China, and North Korea. We think that this growth away from the North America market has made the airline less exposed to upcoming competition from United and potentially Southwest. ▪ Hawaiian’s strong performance on these routes have shown up in its recent 2Q17 International PRASM results, growing 17% for the quarter, which was its sixth consecutive quarter of sequential improvement. An eventual introduction of service to Hawaii from Southwest has been speculated on for some time, though Southwest has not made any official announcements, and we believe late 2018 is most likely the earliest timeframe for an entry. Additionally, while Southwest has a proven record of lowering fares over the long term when it enters a new market, it typically does so in a more judicious manner. Ultimately, we believe that Hawaiian’s network diversification strategy should help the airline balance any softness in one area with strength in other areas.” –Macquarie Research

RETURN TO TABLE OF CONTENTS West Coast PRASM

RETURN TO TABLE OF CONTENTS Cabin Configuration Timeline

RETURN TO TABLE OF CONTENTS Fuel Efficiency Program

RETURN TO TABLE OF CONTENTS Fuel Efficiency Software

RETURN TO TABLE OF CONTENTS Maintenance Costs

RETURN TO TABLE OF CONTENTS Fleet Age

RETURN TO TABLE OF CONTENTS Fleet Age Forecast

RETURN TO TABLE OF CONTENTS Fleet Schedule

Fleet as of December 31st, 2016 Seating Simple Capacity (Per Average Age Aircraft Type Leased Owned Total Aircraft) (In Years) A330-200 11 12 23 278-294 3.7 767-300 4 4 8 252-264 17.8 717-200 5 15 20 128 14.7 ATR turboprop - 6 6 48 18 Total 20 37 57 - -

Delivery Schedule Aircraft Type 2017 2018 2019 2020 2021 2022 A321neo 3 6 6 - - - A330-800 neo - - 2 2 2 - A330-200 1 - - - - - Total 61 67 75 77 79 79

Neighbor Island North America International 767-300 717-200 767-300 A330-200 ATR turboprop A330-200 A321neo A330-800neo A330-800neo A330-200 A330-200

RETURN TO TABLE OF CONTENTS Capacity Impact Comparison of New Planes

LUV’s 737 MAX 8 HA’s A321neo

▪ Replaces aging 737-300s and enables flying to ▪ Part of fleet upgrade plan to replace 767-300s with longer haul markets A330s/A321neos/A330neos ▪ Reduces fuel use and CO2 emissions by 14 percent ▪ Per seat fuel improvements of 20% along with over 737-300s additional range of 500 nautical miles over A320 However, LUV will begin operations with 737-800 fleet. family models

Q1’17 Q3’17 FY’18 Q1’17 Q3’17 FY’18 737-300 87 - - A330-200 23 24 24 737-700 494 508 512 767-300 8 5 2 717-200 20 20 20 737-800 142 181 202 ATR Turboprop 12 12 12 737-MAX8 - 14 27 A321neo - 3 9 Total 723 703 741 Total 63 67 73 Capacity 107,873 106,769 113,291 Capacity 11,778 11,857 12,217 % Change -1.02% 6.11% % Change 0.67% 3.04%

RETURN TO TABLE OF CONTENTS Airbus 321neo Seat Map and Features

Video AC Power Food Infants Hawaiian Airlines' A321neo features First Class and Extra Comfort seats Hawaiian Airlines offers Bassinets: Bassinets are available streaming content to your own hand- feature access to full AC power ports complimentary airline meals or snacks upon request. Please request one for held device, tablet or computer. In and USB ports. on every Trans-Pacific, South Pacific, your infant with Hawaiian Airlines order to stream content, download and Asia flight. The menu includes a Reservations when you book your their app from the iOS or Google Play wide array of entrees that combine flight. store before you fly and enjoy fine cuisine with traditional island movies, TV shows and exclusive flavors. Baby Changers: Diaper changing Hawaiian content. tables are present on all long-haul aircraft.

Food: Infant food is available. Please call Hawaiian Airlines Reservations for more information.

RETURN TO TABLE OF CONTENTS Management CapEx Projections

RETURN TO TABLE OF CONTENTS Management CapEx Projections

RETURN TO TABLE OF CONTENTS Management CASM Outlook

RETURN TO TABLE OF CONTENTS Management CASM Outlook

RETURN TO TABLE OF CONTENTS Management Fuel Forecast

RETURN TO TABLE OF CONTENTS Labor Relations

Employee Group Represented by Number of Employees Agreement amendable on Flight deck crew members Air Line Pilots Association (ALPA) 663 September 15, 2015 Association of Flight Attendants Cabin crew members 1,810 January 1, 2017 (AFA) International Association of Maintenance and engineering Machinists and Aerospace Workers 908 January 1, 2021 personnel (IAM-M) Clerical IAM-C 1,712 January 1, 2021 Flight dispatch personnel Transport Workers Union (TWU) 43 August 1, 2021

RETURN TO TABLE OF CONTENTS Labor Utilization

Source: Credit Suisse (November, 2015) RETURN TO TABLE OF CONTENTS Island Hopping Overview

Huffington Post The four main islands all offer flights to the US Mainland as well as a handful of international destinations, and flying time is five hours from anywhere on the west coast. To hop between the islands you will need to take a commuter airline (Hawaiian, Go!, Island Air, or Mokulele) on flights which range from 20-50 minutes. In addition to commercial airlines there are a handful of private companies which arrange inter-island tours. Molokai and Lanai can be reached by ferry from neighboring Maui, although getting there by from any other island will require a short flight. There are no ferries running between any of the other islands. Hawaiian Airlines ▪ Package booking for island hopping ▪ Code share & partner miles with other major carriers for island hopping ▪ Best inter-island flight coverage

RETURN TO TABLE OF CONTENTS Neighbor Island Capacity Growth

RETURN TO TABLE OF CONTENTS Intra-Island Capacity

▪ “Since its beginning in 1929, Hawaiian Airlines has been providing flight service throughout the islands. This is the backbone of Hawaiian travel. Competitive ferry service has been tried and proven unsuccessful through the years due to unreliable service resulting from choppy waters and environmental protests. With the demise of Aloha Airlines in 2008, Hawaiian had been enjoying minimal competition on these routes, with market share increasing to almost 90%.” ▪ “Today, Hawaiian flies 170 jet flights daily between the Hawaiian islands, with neighbor island flying on track to account for 22% of the airline’s 2017 revenues. This is down from 33% in 2010 due to the growth in international flying over recent years.” ▪ “Hawaiian’s market share has slipped a little, as Island Air, privately owned by PacifiCap Aviation Finance LLC and Malama Investments LLC, introduced new flight service between O‘ahu, Maui, Kaua‘i and Hawai‘i Island. Since the beginning of 2017, Island Air’s intra-island flying between O‘ahu, Maui, Kaua‘i and Hawai‘i Island has grown from 266 flights per week to 476 flights each week. Looking ahead, the airline plans to add up to seven new 78-seat Q400s by the end of the year while transitioning its existing fleet of five 64-seat ATR-72 aircraft out of service. This has decreased Hawaiian’s market share from 90% to 84% in 2017. While there has been an impact on Neighbor Island PRASM (down mid-single digit YoY for 2Q17), we don’t expect a precipitous drop, as Hawaiian is able to selectively price on matching flights, which is quite small.”

Source: Macquarie Research (September 25, 2017) RETURN TO TABLE OF CONTENTS Intra-Island Capacity by Month 2016-2017

RETURN TO TABLE OF CONTENTS Intra-Island Capacity by Year 2007-2017

RETURN TO TABLE OF CONTENTS Neighbor Island Competition

Aloha Airlines (1958-2008) Ferry Service ▪ March 20th, 2008: filed for Chapter 11 ▪ Failed due to bankruptcy  (1) unreliable service  (1) Fierce competition  (2) environmental protests  (2) Rising fuel prices ▪ Following 2008, HA market share rises to almost 90%

Island Air (1980- ) Hawaiian Airlines ▪ PacifiCap Aviation Finance LLC and Malama ▪ Best on-time performance Investments LLC. ▪ Longest presence in Hawaii (since 1929) ▪ Flight service between O‘ahu, Maui, Kaua‘i and Hawai‘i Island ▪ 476 flights each week

Customer Value Advantage Locked Rates Optionality Optimization for Tourists ▪ Prices remain fixed even as ▪ Four prepaid travel plans ▪ Island Guide travel planner seats available drop and ▪ Customized for leisure and available on website prices rise business ▪ Recommendations ▪ Valid for 12 months targeted to tourists

RETURN TO TABLE OF CONTENTS Mark B. Dunkerley, President and CEO

▪ During his tenure at the company, Hawaiian Airlines has become the U.S. industry’s leading airline for operational performance, delivered the highest levels of customer service and been one of the most financially successful U.S. carriers. Since 2010, Hawaiian has diversified its business by aggressively expanding in the Asia Pacific region. New services between Honolulu and Tokyo, Osaka and Sapporo, Japan; Seoul, South Korea; Brisbane, Australia; Auckland, New Zealand; and Beijing, China complement the carrier’s robust inter island and North America network. ▪ Prior to joining Hawaiian Airlines, Mr. Dunkerley was Chief Operating Officer of the Sabena Airlines Group located in Brussels, Belgium. In 2001, he served as a consultant with the Robert Roach firm, which specializes in providing strategic and economic consulting services to the aviation industry. He previously served as President, Chief Operating Officer and a member of the Board of Directors of Worldwide Flight Services. Mr. Dunkerley also spent 10 years at British Airways, rising to the position of Senior Vice President for the global carrier’s Latin America and Caribbean division. ▪ Mr. Dunkerley serves on the Boards of Directors for Airlines for America (A4A) and the National Air and Space Museum. He is also a member of the Board of Governors for the International Air Transport Association (IATA). In 2014, he received the Airline Strategy Award for Regional Leadership by Airline Business, recognizing his role in transforming Hawaiian Airlines from a bankrupt niche U.S. carrier to a strong and growing global player.

RETURN TO TABLE OF CONTENTS Aaron Alter, CLO and Executive VP

▪ Aaron Alter joined Hawaiian Airlines in 2016 as executive vice president, chief legal officer and corporate secretary. Alter oversees all legal, regulatory, and corporate governance matters, as well as the administration of quarterly board and annual shareholder meetings. ▪ Prior to joining Hawaiian, Alter was a partner at Wilson Sonsini Goodrich & Rosati in Palo Alto, Calif., where he practiced corporate and securities law since 1990. While at Wilson Sonsini, Alter’s practice spanned the gamut of corporate transactions, including initial public offerings, mergers, capital market transactions, and corporate governance. ▪ Alter holds a juris doctor degree from Harvard Law School and a master’s degree in business administration from Harvard Business School. He also received a bachelor’s degree in Economics and East Asian Studies from Harvard University, and is a graduate of Kaiser High School in Honolulu. Alter was selected to the Northern California Super Lawyers list from 2013-2015, and listed in the 2006-2016 editions of Best Lawyers in America.

RETURN TO TABLE OF CONTENTS Peter R. Ingram, COO and Executive VP

▪ Peter Ingram is the Executive Vice President and Chief Commercial Officer of Hawaiian Airlines, Inc., a position he has held since November 2011. As Executive Vice President and Chief Commercial Officer, Ingram oversees marketing and sales, revenue management, network planning, partnerships, and cargo for Hawaiian Airlines. Under his leadership, the 85-year-old destination carrier has expanded into new destination gateways throughout North America, Asia and South Pacific. ▪ Previously, he served for six years as the Chief Financial Officer of Hawaiian Airlines, from November 2005 to November 2011. Prior to joining Hawaiian Airlines, Ingram spent 11 years with AMR Corporation, parent company of American Airlines and American Eagle Airlines. From 2002 to 2005, he served as Vice President of Finance and Chief Financial Officer for American Eagle Airlines, after eight years in finance-related management positions for American Airlines. ▪ Ingram earned his MBA from Duke University’s Fuqua School of Business and graduated with honors from the University of Western Ontario. He was born in April 1966.

RETURN TO TABLE OF CONTENTS Shannon L. Okinaka, CFO and Executive VP

▪ Shannon Okinaka was appointed Executive Vice President and Chief Financial Officer for Hawaiian Airlines in May 2015. ▪ Previous to this appointment, Okinaka served as Senior Vice President and Interim Chief Financial Officer since January 2015. Okinaka joined the company as Senior Director in charge of Sarbanes-Oxley compliance and special projects before being promoted to Vice President – Controller in 2011. Prior to joining Hawaiian Airlines, Okinaka worked for Hawaiian Electric Co. and Coopers & Lybrand/PricewaterhouseCoopers. ▪ A certified public accountant, Okinaka graduated from the University of Hawai‘i at Mānoa, earning a Bachelor of Business Administration degree in Management Information Systems and Accounting. She was raised on Hawai‘i’s Big Island and graduated from Waiākea High School in Hilo. ▪ Okinaka serves on the Board of Directors of the Japanese Cultural Center of Hawai‘i, Island Insurance, and the Oahu Economic Development Board. She is also an appointee to the State of Hawaii Workforce Development Council.

RETURN TO TABLE OF CONTENTS Jon Snook, Executive VP and COO

▪ Jon Snook oversees all flight operations, in-flight services, customer service, maintenance and engineering, and operations analytics for Hawaiian Airlines. ▪ He brings to Hawaiian 29 years of broad commercial and operational experience leading business units in airline, cargo, trucking, tour operating and ground handling industries. Prior to joining Hawaiian, Snook successfully ascended through the ranks of American Airlines, starting on the front line as a ticket agent and most recently serving as senior vice president – customer service, where he led over 40,000 employees and directed the delivery of the airline’s end-to- end customer experience. He is also a member of the Episcale Corp advisory board. ▪ Snook completed the management executive program at Kellogg Northwestern University in Chicago. He speaks English and Swedish and holds dual British and U.S. citizenship.

RETURN TO TABLE OF CONTENTS Ann R. Botticelli, Senior VP, Corporate Communications and Public Affairs

▪ Ann Botticelli is the Senior Vice President - Corporate Communications & Public Affairs of Hawaiian Airlines, Inc., a position she has held since October 2011. As Senior Vice President - Corporate Communications & Public Affairs, Botticelli oversees strategic external and internal communications, as well as government relations and community relations for Hawaii’s largest and longest serving airline. ▪ Prior to joining Hawaiian Airlines, Botticelli served as Vice President for Community Relations and Communications at Kamehameha Schools from 2005 to 2011; Vice President of Communications at Child and Family Service from 2004 to 2005; and Vice President - Corporate Communications at Communications Pacific from 2002 to 2004. Prior to entering the communications field, Botticelli spent two decades as a news reporter in Honolulu, covering business, consumer affairs and state government for KITV-4, KHON-TV and The Honolulu Advertiser. ▪ Botticelli holds a Bachelor of Arts degree in journalism from Michigan State University.

RETURN TO TABLE OF CONTENTS Historic Flight Number

HA Number of Flights 90000

80000 Year Domestic International Total 2002 55,651 105 55,756 2003 49,913 116 50,029 70000 2004 48,768 367 49,135 2005 48,672 541 49,213 60000 2006 52,451 465 52,916 2007 56,406 416 56,822 2008 64,642 713 65,355 50000 2009 73,217 833 74,050 2010 68,480 937 69,417 40000 2011 67,405 2,567 69,972 2012 74,586 3,891 78,477 30000 2013 72,663 5,218 77,881 2014 74,839 4,571 79,410 2015 76,374 4,183 80,557 20000 2016 76,946 4,481 81,427 2017 39,046 1,353 20,054 10000

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

International Domestic

RETURN TO TABLE OF CONTENTS Historic Flight Number

HA % Change in Number of Flights 250.00%

200.00% Year Change in Domestic Change in International 2003 -10.31% 10.48% 2004 -2.29% 216.38% 2005 -0.20% 47.41% 150.00% 2006 7.76% -14.05% 2007 7.54% -10.54% 2008 14.60% 71.39% 2009 13.27% 16.83% 100.00% 2010 -6.47% 12.48% 2011 -1.57% 173.96% 2012 10.65% 51.58% 50.00% 2013 -2.58% 34.10% 2014 2.99% -12.40% 2015 2.05% -8.49%

2016 0.75% 7.12% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

-50.00%

International Domestic

RETURN TO TABLE OF CONTENTS Historic ASM

Year Change in Domestic Change in International 2003 11.97% -5.38% 2004 -1.92% 404.07% 2005 3.49% 50.55% 2006 6.00% -13.91% 2007 16.60% -11.56% 2008 0.18% 84.45% 2009 0.53% 17.74% 2010 3.63% 11.19% 2011 0.41% 158.16% 2012 10.22% 57.53% 2013 5.00% 34.89% 2014 9.10% -11.18% 2015 8.61% -6.23% 2016 2.88% 5.70%

Year Domestic International Total 2002 6,109,230 88,589 6,197,819 2003 6,840,375 83,819 6,924,195 2004 6,708,707 422,509 7,131,216 2005 6,943,063 636,099 7,579,162 2006 7,359,390 547,594 7,906,984 2007 8,581,234 484,278 9,065,512 2008 8,596,909 893,274 9,490,183 2009 8,642,837 1,051,742 9,694,579 2010 8,956,455 1,169,449 10,125,903 2011 8,993,182 3,019,078 12,012,260 2012 9,911,965 4,756,024 14,667,989 2013 10,407,235 6,415,180 16,822,415 2014 11,354,762 5,698,222 17,052,983 2015 12,332,759 5,343,236 17,675,995 2016 12,688,555 5,647,873 18,336,428 2017 5,970,245 1,634,176 4,513,659

RETURN TO TABLE OF CONTENTS Hawaii Average Fare

$400.00

$390.00

$380.00

$370.00

$360.00

$350.00

$340.00

$330.00

$320.00 2011 2012 2013 2014 2015 2016

Inflation Adjusted Unadjusted

Hawaii Average Fare 2011 2012 2013 2014 2015 2016 Inflation Adjusted $ 384.76 $ 368.19 $ 363.92 $ 384.32 $ 395.72 $ 393.77 Unadjusted $ 355.56 $ 347.29 $ 348.28 $ 373.78 $ 385.32 $ 388.26

RETURN TO TABLE OF CONTENTS Airline Classification

Domestic Airlines Market Share

Southwest • Spirit 14.6% Ultra-Low Other • Allegiant 24.5% Cost • Frontier

Traditional • Delta United Network • American 16.6% (Legacy) • United

• Southwest Hybrid • Alaska/Virgin America (Other) • JetBlue American 23.1% • Hawaiian Airlines Delta 21.2%

Source: IBIS World Domestic Airlines (August, 2017) RETURN TO TABLE OF CONTENTS ASM and RPM

ASM 2014 2015 2016 Southwest 131,003,957 140,501,409 148,522,051 Alaska/Virgin America 36,078 39,914 44,135 Spirit 16,340,142 21,246,156 25,494,645 Delta 239,676 246,764 251,867 Hawaiian 17,073,630 17,726,322 18,384,637 Allegiant 8,945,616 10,526,610 12,375,505 JetBlue 44,994 49,258 53,620 American 237,522,000 239,375,000 241,734,000 Frontier 12,539,000 15,495,000 18,359,000 United 246,021,000 250,003,000 253,590,000

RPM 2014 2015 2016 Southwest 108035133 117499879 124797986 Alaska/Virgin America 30718 33578 37209 Spirit 14159860 17995311 21581611 Delta 202925 209625 213098 Hawaiian 13921147 14462191 15492509 Allegiant 7825962 8944952 10282827 JetBlue 37813 41711 45619 American 195651000 199467000 199014000 Frontier 11154000 13395000 16009000 United 205559000 208611000 210309000

RETURN TO TABLE OF CONTENTS Revenue Block Hours

Revenue Block Hours Operated 2014 2015 2016 Southwest 2,501,224 2,587,191 2,700,452 Alaska/Virgin America 736,063 772,251 864,619 Spirit 267,305 337,956 389,914 Delta 2,790,414 2,966,095 3,063,843 Hawaiian 166,362 173,546 179,254 Allegiant 135,572 160,431 190,706 JetBlue 843,100 902,730 965,933 American 2,253,112 3,478,489 3,464,933 Frontier 222,116 258,321 277,806 United 2,652,307 2,687,068 2,722,538

RETURN TO TABLE OF CONTENTS Average Utilization

Average Utilization 2014 2015 2016 Southwest 11.0 10.5 10.5 Alaska/Virgin America 11.8 11.9 12.1 Spirit 12.7 12.7 12.4 Delta 10.2 10.3 10.4 Hawaiian 9.5 9.6 9.8 Allegiant 11.8 11.9 12.0 JetBlue 11.8 11.9 12.1 American 9.8 9.8 10.1 Frontier 11.5 12.4 12.0 United 10.4 10.4 10.3 Industry Average 10.3 10.2 10.1

14.0 12.4 12.1 12.0 12.1 12.0 12.0 10.5 10.4 10.3 9.8 10.1 10.1 10.0

8.0

6.0

4.0

2.0

- Southwest Alaska/Virgin Spirit Delta Hawaiian Allegiant JetBlue American Frontier United Industry America 2014 2015 2016 Average

RETURN TO TABLE OF CONTENTS Average Aircraft Stage Length

Average Aircraft Stage Length 2014 2015 2016 Southwest 721 750 760 Alaska/Virgin America 1,182 1,195 1,225 Spirit 980 987 979 Delta 1,184 1,147 1,125 Hawaiian 818 825 844 Allegiant 918 900 889 JetBlue 1,088 1,092 1,093 American 1,325 1,226 1,230 Frontier 904 1,006 1,066 United 1,720 1,684 1,633

2,000

1,800 1,633 1,600 1,400 1,225 1,230 1,125 1,200 1,093 1,066 979 1,000 844 889 760 800 600 400 200 - Southwest Alaska/Virgin Spirit Delta Hawaiian Allegiant JetBlue American Frontier United America

2014 2015 2016

RETURN TO TABLE OF CONTENTS RASM and PRASM

16.00¢ 13.33¢ 13.44¢ 13.75¢ 14.00¢ 12.35¢ 12.37¢ 11.55¢ 12.15¢ RASM 2014 2015 2016 12.00¢ 10.89¢ Frontier 10.09¢ 7.71¢ 5.91¢ 10.00¢ 9.11¢ Spirit 11.82¢ 10.08¢ 9.11¢ 8.00¢ 5.91¢ Allegiant 12.66¢ 11.82¢ 10.89¢ 6.00¢ American 12.97¢ 12.13¢ 11.55¢ 4.00¢ Delta 13.17¢ 12.80¢ 12.15¢ 2.00¢ United 13.66¢ 13.09¢ 12.35¢ 0.00¢ JetBlue 12.93¢ 13.03¢ 12.37¢ Hawaiian 13.56¢ 13.07¢ 13.33¢ Alaska/Virgin America 14.88¢ 14.03¢ 13.44¢ Southwest 14.20¢ 13.98¢ 13.75¢ 16.00¢ 13.41¢ PRASM 2014 2015 2016 14.00¢ 12.52¢ 11.21¢ 11.23¢ 11.34¢ 11.55¢ 11.68¢ Spirit 8.63¢ 7.04¢ 6.08¢ 12.00¢ 10.12¢ Frontier 11.34¢ 8.92¢ 6.77¢ 10.00¢ 8.00¢ 6.77¢ Allegiant 11.89¢ 11.11¢ 10.12¢ 6.08¢ 6.00¢ JetBlue 11.88¢ 11.96¢ 11.21¢ 4.00¢ United 12.43¢ 11.89¢ 11.23¢ 2.00¢ Alaska/Virgin America 12.69¢ 12.01¢ 11.34¢ 0.00¢ American 12.97¢ 12.13¢ 11.55¢ Hawaiian 11.99¢ 11.44¢ 11.68¢ Southwest 13.48¢ 13.02¢ 12.52¢ Delta 14.58¢ 14.10¢ 13.41¢

2014 2015 2016

RETURN TO TABLE OF CONTENTS Passenger Yield

Passenger Yield 2014 2015 2016 Change in Yield 2015 2016 Frontier 11.34¢ 8.92¢ 6.77¢ Frontier -21.34% -24.10% Spirit 13.64¢ 11.90¢ 10.76¢ Spirit -12.76% -9.58% Allegiant 13.59¢ 13.08¢ 12.18¢ Allegiant -3.78% -6.91% JetBlue 14.13¢ 14.13¢ 13.18¢ JetBlue 0.00% -6.72% Alaska/Virgin America 14.91¢ 14.27¢ 13.45¢ Alaska/Virgin -4.29% -5.75% Hawaiian 14.70¢ 14.02¢ 13.86¢ United -4.26% -4.83% American 15.74¢ 13.56¢ 14.02¢ Delta -3.66% -4.46% Southwest 16.34¢ 15.57¢ 14.90¢ Southwest -4.71% -4.30% United 16.42¢ 15.72¢ 14.96¢ Hawaiian -4.63% -1.14% Delta 17.22¢ 16.59¢ 15.85¢ American -13.85% 3.39%

RETURN TO TABLE OF CONTENTS Passenger Load Factor

Passenger Load Factor (RPM/ASM) 2014 2015 2016 American 82.37% 83.33% 82.33% United 83.55% 83.44% 82.93% Allegiant 87.48% 84.97% 83.09% Southwest 82.47% 83.63% 84.03% Hawaiian 81.54% 81.59% 84.27% Alaska/Virgin America 85.14% 84.13% 84.31% Delta 84.67% 84.95% 84.61% Spirit 86.66% 84.70% 84.65% JetBlue 84.04% 84.68% 85.08% Frontier 88.95% 86.45% 87.20% Averages 84.69% 84.19% 84.25%

Passenger Load Factor 2016 88.00% 87.20% 87.00% 86.00% 85.08% 84.61% 84.65% 85.00% 84.03% 84.27% 84.31% 84.00% 82.93% 83.09% 83.00% 82.33% 82.00% 81.00% 80.00% 79.00% American United Allegiant Southwest Hawaiian Alaska/Virgin Delta Spirit JetBlue Frontier America

RETURN TO TABLE OF CONTENTS CASM

CASM 2014 2015 2016 Spirit 9.65¢ 7.68¢ 7.37¢ 14.00¢ 12.22¢ 12.37¢ 12.98¢ Frontier 10.85¢ 8.58¢ 7.57¢ 11.18¢ 11.22¢ 11.94¢ 12.00¢ 10.38¢ Allegiant 10.95¢ 8.45¢ 8.02¢ 10.00¢ 7.37¢ 7.57¢ 8.02¢ Alaska/Virgin America 12.21¢ 10.77¢ 10.38¢ 8.00¢ Hawaiian 12.12¢ 10.67¢ 11.18¢ 6.00¢ 4.00¢ Southwest 12.50¢ 11.18¢ 11.22¢ 2.00¢ American 13.42¢ 12.03¢ 11.94¢ 0.00¢ United 14.03¢ 12.42¢ 12.22¢ JetBlue 12.93¢ 13.03¢ 12.37¢ Delta 15.92¢ 13.33¢ 12.98¢

CASM Excluding Fuel & Special Items 2014 2015 2016 Spirit 5.88¢ 5.50¢ 5.45¢ 12.00¢ 9.54¢ 9.87¢ 10.13¢ Frontier 6.81¢ 6.34¢ 5.86¢ 10.00¢ 8.71¢ 8.76¢ 7.59¢ 8.23¢ Allegiant 6.61¢ 5.81¢ 5.94¢ 8.00¢ 5.45¢ 5.86¢ 5.94¢ JetBlue 7.48¢ 7.51¢ 7.59¢ 6.00¢ Alaska/Virgin America 8.36¢ 8.30¢ 8.23¢ 4.00¢ Hawaiian 8.15¢ 8.31¢ 8.71¢ 2.00¢ Southwest 8.46¢ 8.60¢ 8.76¢ 0.00¢ American 8.63¢ 8.99¢ 9.54¢ United 9.33¢ 9.37¢ 9.87¢ Delta 9.76¢ 9.77¢ 10.13¢

RETURN TO TABLE OF CONTENTS Fuel Expense

Fuel Expense per ASM 2014 2015 2016 Frontier 4.10¢ 2.20¢ 1.70¢ Hawaiian 3.97¢ 2.36¢ 1.87¢ Alaska/Virgin America 3.93¢ 2.39¢ 1.88¢ Southwest 1.17¢ 0.30¢ -0.12¢ JetBlue 4.25¢ 2.74¢ 2.00¢ Spirit 0.94¢ 0.57¢ 0.40¢ Allegiant 4.34¢ 2.64¢ 2.08¢ American 4.46¢ 2.60¢ 2.10¢ United 4.30¢ 2.80¢ 2.10¢ Delta 5.64¢ 3.07¢ 2.38¢

Average Cost Per Gallon 2014 2015 2016 Southwest 2.93¢ 1.90¢ 1.82¢ Alaska/Virgin America 3.08¢ 1.88¢ 1.50¢ Spirit 2.99¢ 1.82¢ 1.48¢ Delta 3.47¢ 1.90¢ 1.49¢ Hawaiian 2.95¢ 1.78¢ 1.41¢ Allegiant 3.01¢ 1.86¢ 1.49¢ JetBlue 2.99¢ 1.93¢ 1.41¢ American 2.91¢ 1.72¢ 1.41¢ Frontier 3.10¢ 1.78¢ 1.47¢ United 2.98¢ 1.96¢ 1.49¢

RETURN TO TABLE OF CONTENTS Industry System Fees Revenue

$250.00 System Service Fees and Ticketed Revenue, Q2 2016

$13.07

$200.00

$14.11 $24.12 $15.15

$150.00 $9.51

$9.50 $7.25 $224.57 $100.00 $37.26 $22.39 $171.55 $45.65 $157.01 $162.86 $141.44

$111.60 $115.50 $50.00 $75.81 $75.99 $57.17

$0.00 Frontier Spirit Allegiant Hawaiian Southwest JetBlue Alaska / Virgin American Delta United America Ticket Charge Fee Charge

Source: Oliver Wyman Airline Economic Analysis (2017) RETURN TO TABLE OF CONTENTS Southwest Management Quotes

Mike Van de Ven, Southwest COO October 4, 2017 at University of Texas at Austin Seminar ▪ “Hawaii will definitely be a new challenge for us. First of all, we need to get certification to fly to the island, which requires getting the plane to pass certain tests and changing our entire maintenance system. Our crew would also need to be trained.” ▪ “I don’t believe international flights will ever be a huge target for us. I look at international routes and ask myself why we would branch out somewhere where we don’t have expertise. Southwest is really good at what we do, so I don’t think there is a need to expand substantially into international markets. I don’t see international markets consisting of maybe more than 5% of our total capacity in my term.” ▪ “One issue with flying our longer routes, in the Caribbean for example, is the relative sparseness of our network. We just don’t have the same density down there that we have up there.”

RETURN TO TABLE OF CONTENTS Southwest Management Quotes

Ed Haas, Data Platform Services Manager October 11, 2017 at University of Texas at Seminar ▪ “There are a number of things that need to happen before Southwest can fly to Hawaii. First the planes need to get certified. We do fly to places like the Caribbean, but even those routes, they mainly occur close to land. Hawaii is a different story – you’re flying over water five, six hours at a time. That means the crew needs to be certified to handle water landings and the airplane and its engines also need to pass certain tests to make sure it is capable of making the trip. From a technology standpoint, we would have to change the maintenance system, the scheduling system, and in some cases, the database. The fact that planes do not have access to communication signals when over the water since currently, communications rely on radar rather than GPS satellite technology, is also a challenge. I don’t see Hawaii really being an option until maybe two or three years.” ▪ “Operationally, Hawaii also means we have to implement certain changes. For one, the planes would likely be going there and staying there since the distance is longer, instead of flying multiple times like planes on other routes currently do. The crew and pilots also have to be scheduled differently since there are certain restrictions on how long personnel can fly.”

RETURN TO TABLE OF CONTENTS Increasing US Arrivals Despite NK Activity

US Arrivals by Air 2001-2005 6,000

4961786 5,000 4573379 4263219 4069477.4 4,000

3,000

2,000 US Arrivals (Thousands) Arrivals US

1,000

0 2002 2003 2004 2005

RETURN TO TABLE OF CONTENTS Stock Ownership

RETURN TO TABLE OF CONTENTS ETOPS Certification

Part 1. Aircraft Type Approval Aircraft Type Approval is the first step of the two part ETOPS approval process. The aircraft model type must be approved for extended operations. To gain approval, manufacturers must include extra redundancy for key systems like electrical, hydraulics, fire suppression, and communications. Based on the design of the plane and engines used, federal agencies (like the FAA or EASA) will grant the aircraft model an ETOPS “type approval” that designates how many minutes it can safely operate with one engine inoperative. The Boeing 777 ETOPS models have a type approval of ETOPS-330. The Airbus A350XWB was granted ETOPS-370. These two aircraft are certified to fly over 5 hours from an emergency diversion airport – on one engine. Thousands of hours of engine performance and maintenance data are required before and airplane can acquire these impressive ratings. Part 2. Operational Certification Once the aircraft has ETOPS type approval, airlines must receive their own approval based on the routes they plan to fly. Aircraft certified for ETOPS have demanding maintenance requirements. Airlines must develop a special maintenance program for the aircraft they want certified. The higher the ETOPS rating, the more stringent the maintenance requirements. Frequent inspections for key aircraft systems with special attention to the engines are necessary. Airlines must also fly validation (test) flights on proposed ETOPS routes to demonstrate procedures to federal regulators. ETOPS also requires special flight crew and dispatcher training, additional weather planning, special fuel quantity considerations, and enhanced communication capabilities (satellite communication is often used). A very important requirement for each ETOPS route flown is a passenger recovery plan.

RETURN TO TABLE OF CONTENTS