Hawaiian Air Makes Remarkable Turnaround

Hawaiian Airlines Friday announced its final financial results for the fiscal year ended December 31, 2003, showing that the company reported an operating profit of $77.5 million (including a $17.5 million security fee reimbursement from the federal government) on revenue of $706.1 million, compared to an operating loss of $55.2 million on revenue of $632.0 million for 2002.

The results reflect an operating profit turnaround of $132.7 million and Hawaiian's most profitable annual operating result ever.

Said Joshua Gotbaum, Hawaiian's trustee, "It was an amazing year. Hawaiian's management and employees have done a spectacular job. Building on a new fleet, they have reformed almost every part of Hawaiian's operations. Hawaiian, always known for excellent service, is now also the nation's most punctual airline as well as one of the most profitable.

"Even so," Gotbaum said, "we're not resting on our laurels. Airline competition is fierce, and every year is a new chance to remind travelers about Hawaiian's unique combination of service and value."

The operational success of 2003 meant Hawaiian finished the year as the third most profitable airline in the nation, which, as Gotbaum says, "is an incredible story all by itself."

Many positive changes contributed to Hawaiian's improvement in 2003. Passenger revenue increased by $85 million, cargo revenue by $7 million. The newly acquired fleet produced savings of $41 million in aircraft maintenance, while increased use of Hawaiian's web site and direct booking saved some $10 million in distribution costs.

Operational Improvements

The year was marked by several accomplishments that contributed to Hawaiian's financial success, including the full conversion to a new fleet of transpacific aircraft with the retirement of the last DC-10 jet in February 2003.

In addition, the company revamped its web site, which generated a steady increase in web sales activities throughout the year as customers responded to the special fares and travel deals offered online.

Hawaiian also introduced several technology-based initiatives that improved its operational efficiency including a full conversion to e-ticketing, the installment of Self Check-In Hele On (Hurry Up) terminals at all Hawaii airports to speed transits, and the introduction of Web Check-In Hele On at the airline's website, allowing customers to check in from home or the office up to 24 hours before departure.

This helped contribute to Hawaiian's operational success for the year, which was reflected in the airline finishing 2003 as the nation's number one on-time carrier for November and December - which were the first two months the company submitted traffic statistics - according to monthly reports filed by the Department of Transportation.

FMI: www.hawaiianair.com