Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the fourth quarter and full year 2020.

"While 2020 has been the most challenging year the airline industry has experienced, we are encouraged that the re-opening of Hawai'i to tourism through the state's pre-travel testing program and Hawaiian's successful testing partnerships have allowed us to begin the journey to recovery," said Peter Ingram, president and CEO of Hawaiian Airlines. "My colleagues inspire me every day with their resolve to persevere and emerge from the pandemic strongly as they navigate through challenges and create innovative solutions to position Hawaiian for long-term success. The negative impacts of COVID-19 will create a challenging beginning of 2021, but we are confident that the structural pieces are in place for a sustained recovery."

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.

Liquidity and Capital Resources

As of December 31, 2020 the Company had:

• Unrestricted cash, cash equivalents and short-term investments of $864 million .
• Outstanding debt and finance lease obligations of $1.3 billion .
• Air traffic liability of $534 million .

In January 2021 , the Company applied to participate in the Payroll Support Program Extension program (the "PSP Extension"), part of the Consolidated Appropriations Act of 2021, and expects to receive approximately $168 million in funds through the program.

Fourth Quarter 2020

On October 15, 2020 , the Company reached an important inflection point in its recovery from the COVID-19 pandemic with the re-opening of Hawai'i to tourism through the launch of the state of Hawai'i's pre-travel testing program, which allows guests to avoid quarantine with evidence of a negative COVID-19 test, subject to certain island-specific requirements.

During the fourth quarter, the Company reinstated non-stop service from Honolulu to Las Vegas , Phoenix , San Jose , Oakland , New York and Boston , restoring service to all of its pre-pandemic origin points on the U.S. mainland, as well as non-stop service from Honolulu to Tokyo-Haneda, Japan ; Osaka, Japan ; and Seoul, South Korea . While the Company doubled its capacity as compared to the third quarter of 2020, its capacity was down 72 percent compared to the same period in 2019.

As testing is key to the resumption of Hawai'i travel, the Company launched an array of testing options for travelers, including access to mail-in test kits and proprietary drive-through testing labs in select U.S. mainland gateways.

To increase liquidity, the Company raised approximately $41 million in net proceeds through the sale of approximately 2.1 million shares of common stock under the Company's at-the-market offering program (ATM Program) during the fourth quarter. The Company may sell up to 5 million shares in total under the ATM Program.

On October 1, 2020 , the Company implemented both permanent and extended voluntary leave programs with each of its workgroups. In total, the Company reduced its workforce by approximately 2,400 employees, or more than 32 percent of all employees, of which approximately 2,100 were through voluntary means. As of January 26, 2021 , all employees who were subject to an involuntary furlough between October 1, 2020 and January 15, 2021 have been sent recall notices pursuant to the PSP Extension.

In October 2020 , the Company executed an amendment with the U.S. Treasury increasing the total amount of the CARES Act Economic Relief Program (ERP) loan under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) from $420 million to $622 million , of which $577 million is undrawn. The Company has until May 28, 2021 to determine how much of the remaining ERP funds to borrow.

In October 2020 , the Company reached an agreement with Boeing to delay 787-9 deliveries under its purchase agreement for 10 aircraft.  The Company expects to take delivery of 787-9 aircraft from 2022 to 2026 with its first aircraft to be delivered in September 2022 .

Guest Experience

During the fourth quarter, the Company continued its enhanced cleaning procedures and guest-facing protocols in an effort to minimize the risk of transmission of COVID-19, including:

• Performing enhanced aircraft cleaning between flights and during overnight parking, including recurring electrostatic spraying of all aircraft.
• Frequent cleaning and disinfecting of counters and self-service check-in kiosks in airports.
• Ensuring hand sanitizers are readily available for guests at airports we serve.
• Requiring guests and guest facing employees to wear a face mask or covering, with guests required to wear masks from check-in to deplaning (except when eating or drinking on board).
• Modifying boarding and deplaning processes.
• Modifying in-flight service to minimize close interactions between crew members and guests.
• Eliminating change fees on all domestic and international flights in order to provide guests with travel flexibility across the Company's network.

During the first quarter of 2021, the Company, in coordination with the state of Hawai'i, will implement the Hawai'i Pre-Clear Program across its mainland network to improve the arrivals process for its guests by validating the state's pre-travel testing requirement prior to departure.

Environmental, Social and Corporate Governance

In December 2020 , the Company published its inaugural Corporate Kuleana Report outlining its progress advancing various environmental, social and governance (ESG) initiatives. A link to the report can be found through the Investor Relations, Corporate Responsibility section of Hawaiian's website.

Among key environmental accomplishments, the Company lowered its pre-pandemic carbon emissions while increasing flight operations in 2018 and 2019. In 2019, Hawaiian increased Available Seat Miles (ASMs) by 2.1 percent and Revenue Passenger Miles (RPMs) by 3.6 percent while reducing CO2 greenhouse gas emissions by 1.4 percent. When adjusted for year-over-year growth in flying, as measured by RPMs, Hawaiian reduced its CO2 emissions by 4.8 percent during this period.

Multibillion-dollar fleet modernization investments and state-of-the-art flight programs and strategies have allowed Hawaiian to lower jet fuel burn by approximately 8.5 million gallons annually between 2015 and 2019. This decline in jet fuel burn has reduced CO2 emissions by 75,540 metric tons, or the equivalent of removing, on average, more than 16,000 cars from the roads, annually in this period. Hawaiian has also cut energy use at its headquarters by approximately five percent between 2016 and 2018 through motion sensors, LED lighting and tinted windows. In partnership with Carbon Lighthouse, Hawaiian aims to lower energy consumption at its Airport Center building by approximately 24 percent by the end of 2021. In February 2020 , Hawaiian became the first U.S. airline to join the U.S. Department of Energy's Better Buildings Challenge, committing to a 20 percent reduction in electricity use by 2026.

First Quarter 2021 Outlook

The Company announced on December 8, 2020 that it will launch four new routes in March and April 2021 ; non-stop flights from Honolulu to Austin, Texas ; Orlando, Florida , and Ontario , California as well as a new flight from Long Beach, California to Maui .

The Company expects its first quarter 2021 capacity to be down about 50 percent compared to the first quarter of 2019, with the state of Hawai'i's pre-travel testing program anticipated to remain in place throughout the first quarter.

The Company expects its full year 2021 capital expenditures to be approximately $50 - $70 million .

Statistical information, as well as a reconciliation of the non-GAAP financial measures, can be found in the accompanying tables.