November/December 2022 Hōʻike

‘OHANA FEST PSS DRESS REHEARSAL NĀ LEO RESULTS

KŪPONO REFRESH

NOVEMBER / DECEMBER 2022

2022

An Exciting Year, and More to Come

Financial Results: 3Q 2022

H

AWAIIAN HOLDINGS, our parent company, reported an adjusted net loss of $7.7 million for the third quarter — a significant improvement from the year prior, but well below the more than $80 million in adjusted net income in the comparable quarter from 2019. Those results, which were in line with expectations, reflect headwinds from two geographies:

Japan Restoration: The end of most COVID-19 restrictions on Oct. 11 is improving bookings, but the return of this market will not be like the “off-on” switch we saw with the U.S. Mainland market. The strength of the dollar against the yen and the cost of accommodations in Hawai‘i, along with a longer-term booking curve, will stretch the recovery well into 2023. “Our current plan is to restore capacity throughout the next couple of quarters,” said Chief Revenue Officer Brent Overbeek. “Our capacity in Japan will likely align with the broader industry capacity plans.” ■

Inter-island Competition: During the third quarter, Southwest announced increased capacity and $39 fares through the end of 2022 — “unusually aggressive pricing,” noted President & CEO Peter Ingram during the 3Q investors call. “These fares, even if 100% of seats are occupied, do not cover the cost of operations.”

We have responded with broadly available matching fares and loyalty program enhancements through the end of the year.

“Exactly how long this will last is difficult to predict at this time,” Peter said. “But for now, it will be a headwind to the recovery of our bottom line.”

Company Scorecard Update: 3Q 2022

ON TARGET?

$738.2M

$543.6M

$638.5M

Adjusted Net Income (Loss)

($7.7M)

($48.7M)

$81.5M

Adjusted Earnings Per Share

($0.15)

($0.95)

$1.72

Financial

■ On the Kūpono Program page on HApeople, you can find

information about the selection process, including how a committee made up of representative employees selects the winners

CASM ex fuel, special items, 10%

■ Quarterly leader Kūpono winners will be eligible to win a

CSAT NPS, 20%

new Leader of the Year award.

Employee

20%

Total Operating Expenses, Less Special Items

Adjusted EBITDA, 20%

Customer

20%

$755.2M

Our Rewards team in Human Resources partnered with our Purpose & Values activation team to revisit the program to ensure alignment with our Purpose & Values and best practices for programs like these. Here are some of the updates for 2023:

OVERALL SCORE

30%

3Q 2019

$508.8M

Over the years, our employee recognition program has helped us honor those teammates who go above and beyond at work and select an Employee of the Year.

PAYOUT ELIGIBILITY

30%

3Q 2021

$741.2M

Kūpono Program Refreshed for 2023

With our 2022 Nā Leo results in (visit page 3 for next steps), we are officially green for this year’s employee metric that measures the reach of our Purpose & Values. Operational challenges are weighing on metrics tracking baggage irregularity, costs per available seat mile (CASM), and relative on-time performance (OTP). Those challenges were met with strong summer demand, which has Customer Satisfaction (CSAT) trending below goal in the third quarter.

METRIC

3Q 2022 Total Operating Revenue

Nā Leo Survery, Employee Sentiment 20%

■ Enhanced rewards include a Kūpono paddle

Operational

■ The nomination forms have been redesigned to provide you

Relative OTP, 15%

with more guidance on what information is needed, with a deeper connection to our Purpose & Values.

Baggage Irregularity, 15%

“We want to ensure the Kūpono Program gives employees a meaningful way to recognize their peers and the company a consistent way to celebrate exemplary employees,” said Melodi Pieper, Senior Director, Human Resources. “We encourage you to nominate a deserving teammate.” ■

“What it all boils down to is we’re looking at some risk in terms of where our overall Balanced Scorecard comes in,” Peter said during the Nov. 30 Hawaiian Live Webcast. “The range we expect for the full year will likely be 0.8 to 0.89 relative to a target of 1.0. We still have some opportunity to improve that over the next few weeks.” ■ 2

STRENGTHS Statement

Results & Action Item Our 2022 annual employee survey was conducted from Sept. 12 to Oct. 3, and 3,440 employees representing 49% of the company participated. Most of those respondents are engaged, familiar with our values, and have a sense of purpose at work. However, acting on survey feedback, decision making, collaboration, and employee connection are key to driving higher employee engagement. Based on your feedback, we’ve identified an action item: supporting managers to communicate more effectively.

Employee Engagement 80

This tracks the degree to which employees invest themselves in helping the company succeed, using these two highly predictive survey items:

75

71

I would recommend Hawaiian Airlines as a great place to work.

It measures your willingness to recommend Hawaiian Airlines as a great place to work.

Engagement Score

60

How happy are you working at Hawaiian Airlines? It measures your satisfaction at work.

Intent to Stay. I plan to be working at Hawaiian Airlines two years from now.

82

-1

Familiarity with Values. I am familiar with Hawaiian Airlines company values of Mālama (Care), Ho‘okipa (Hospitality), Lōkahi (Collaboration), and Po‘okela (Excellence).

82

0

Purpose. The work that I do at Hawaiian Airlines is meaningful to me.

81

-1

Role. My role is an excellent fit with my strengths.

79

0

Physical Safety. I feel safe at my workplace.

76

+6

Customer Focus. Hawaiian Airlines delivers a great guest experience.

72

-1

Team. I am satisfied with my work team.

Employee Engagement: 71

Our score this year is one point above last year’s score, and four points below Glint’s Global Benchmark that tracks more than 1,300 companies worldwide.

40

20

70

+1

Work Life Balance. I am able to successfully balance my work and personal life.

70

-1

Prospects. I am excited about Hawaiian Airlines’ future.

69

0

Respectful Treatment. I am treated with respect and dignity.

69

+2

Empowerment. I feel empowered to make decisions regarding my work.

69

+1

Manager. I would recommend my manager to others.

68

+2

Belonging. I feel a sense of belonging at Hawaiian Airlines.

67

+1

Growth. I have good opportunities to learn and grow at Hawaiian Airlines.

67

+1

0

At Hawaiian Airlines

Glint Global Benchmark

OPPORTUNITIES Statement

Measuring our Values: 82 & 59 The employee metric on our 2022 Company Scorecard measures how we answered two Nā Leo questions related to how our values are seen and felt in the employee experience:

82

82

Familiarity with Values: “I am familiar with Hawaiian Airlines’ company values of Mālama (Care), Ho‘okipa (Hospitality), Lōkahi (Collaboration), and Po‘okela (Excellence).”

■ 2021

■ 2022

58

59

Live our Values: “People at Hawaiian Airlines live the company values.”

Our scores of 82 (familiar) and 59 (live) indicate a steady state over last year’s result, which means we’re on track on our employee metric in the Company Scorecard — but there are opportunities to grow the impact of our values across the company.

Score vs. 2021

Familiar with Values

Live our Values

Taking Action You shared that our company has more to do to improve how teams get information about decisions that impact them. Communications can help address this by providing greater support for our managers to share important information — by providing more context, greater consistency across different operational groups and a range of shifts, and enhancing clarity and tone. We’ve identified a companywide action item: supporting managers to communicate more effectively. Some initial strategies include: Briefing Model: Develop a consistent means of sharing information with frontline teams; convene focus groups with frontline managers to understand barriers and guide work All-Manager Calls: Live Q&A opportunity for managers prior to major announcements so they can better deliver on context for their teams Communications Workshop: Work with Learning & Development to create a workshop to help hone skills around consistency, clarity and tone 3

Score vs. 2021

Action Taking. I believe meaningful action will be taken as a result of this survey.

50

+1

Decision Making. Overall, I am satisfied with how decisions are made at Hawaiian Airlines.

53

-1

Collaboration. Teams at Hawaiian Airlines collaborate effectively to get things done.

54

+1

Employee Connection. Hawaiian Airlines is doing a good job helping employees feel connected to one another.

57

+2

Leadership. I have confidence in the leadership team.

58

0

Communication. Hawaiian Airlines does a good job of communicating with employees.

58

0

Live Our Values. People at Hawaiian Airlines live the company values.

59

+1

Resources. I have the resources I need to do my job well.

59

-1

Recognition. I feel satisfied with the recognition or praise I receive for my work.

62

+1

Care. At work, I feel cared about as a person.

63

N/A

Excellence. Hawaiian Airlines demonstrates a high level of excellence.

66

0

65

+2

Culture. Hawaiian Airlines has a great culture.

66

0

Career. I have good career opportunities at Hawaiian Airlines.

67

+1

Feedback. My manager provides me with feedback that helps me improve my performance.

* The full results presented are ranked based on average score and its impact on engagement.

‘Ohana Fest

“We couldn’t honor these retirees in the way that we normally would with gatherings, hugs, and lei, so we promised when conditions changed, we would get together and honor them properly—and here at Hawaiian Airlines, when we make a promise, we keep it.”

President & CEO Peter Ingram

“I’m so grateful Hawaiian put something like this together. It allows us to reconnect and see how Hawaiian has grown.”

Sandra C. Wong, HA retiree Magic Island lived up to its name on Nov. 19 with the return of ‘Ohana Fest — our first big company gathering since the pandemic. We hosted a day of live entertainment, food and refreshment, keiki bouncy houses, and a regatta for employees and families, with lei and a VIP tent for our honored guests: former teammates who took retirement packages in 2020 to help the company through the worst of the pandemic.

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Rehearsing the Big Move

Data accuracy and integrity will be crucial to a smooth transition of our PSS (passenger service system) from Sabre to Amadeus. More than 30 teammates recently rehearsed procedures to safely move all information associated with a guest’s journey – from reservations to day-of-travel operations, along with the background accounting, revenue management, and reporting details – and have it accessible in the new system when it goes live in mid-April.

“There’s a lot of transformation and mapping of data that isn’t quite compatible between the two systems,” noted Data Migration Lead Ron Byrd. There’s also a lot of data to be moved. This test involved migrating more than 2 million tickets, 250,000 EMDs (electronic miscellaneous documents) containing ancillary product information, and more than 500,000 active PNRs (passenger name records) holding our guests’ contact, reservation, and ticketing details. During the actual cutover, the bulk of the data will have been moved to Amadeus a week or two prior to activation, with updated records migrating just before we go live.

Sabre and activate Amadeus, capping one of the biggest projects in our company’s history.

“One of the tests of an excellent company is its ability to do hard things, and this project is a really hard thing,” noted Vice President of Marketing & E-Commerce, and overall project lead, Rob Sorensen. “I’ve been so impressed by each individual on this project as they double down and work as a team to accomplish the hard tasks in front of them.” ■

The Business Check-Out Dress Rehearsal resembled an emergency operations center with representation from a wide cross section of project stakeholders. It tested the collaboration skills that always play a major role in a project of this magnitude.

“Seeing so many people darting around the Excel file and working together to accomplish all the business cases within the 30-minute window was inspiring,” recalled Managing Director of Pricing & Revenue Management Aaron Sacharski.

Our teams will use lessons learned from this dress rehearsal to hone their skills for the next practice run scheduled for January, and fine tune them even further for the day when we switch off

Project Lead Rob Sorensen and teammates share details about the dress rehearsal: watch on HApeople.

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2022 – A Year of Resurgence and Opportunities

It began with the Omicron stumble, but as COVID cases began to wane and travel restrictions eased, 2022 roared into action.

A surge in travel demand allowed us to continue restoring our route network with travelers eager to take to the skies. We also pointed toward new horizons, exploring new business opportunities that will strengthen our company.

JANUARY

■ Mask mandate ends for our offices

MAY ■ Long Beach check-in operations move to new terminal.

■ JFK operations move from T5 to T4.

■ LGB Maintenance Facility begins operations ■ Carbon Offset program with Conservation International launches ■ Amadeus project formally begins with the appointment of Rob Sorensen as Business Lead and John Jacobi as IT Lead, along with the formation of nearly 150 workstreams to manage our transition from Sabre to Amadeus in April 2023.

APRIL ■ Mask mandate lifted for aircraft and airports

■ IAM Locals 141 & 142 ratify new collective bargaining agreement.

■ Preferred Seats option introduced on mid-range and long-haul aircraft.

JUNE

FEBRUARY ■ FAA recognizes Tech Ops with Award for Excellence

■ Equity investment and partnership announced with REGENT to develop all-electric seaglider vehicles.

■ Mananalu water introduced in the Premium Cabin and on Pau Hana Snack Carts on East Coast and International flights, eliminating 142,000 plastic water bottles annually from our long-haul operations.

■ NMG Network takes on publishing responsibilities for Hana Hou! magazine.

■ U.S. drops pre-departure testing requirements on international flights.

■ New collective bargaining agreement reached with the Transport Workers Union, representing our Dispatchers.

■ Dance celebrity Mark Kanemura kicks off #RainbowRunwayChallenge for Pride Month.

■ Agreement signed with SpaceX Internet provider Starlink for high-speed Wi-Fi on our mid-range and long-haul aircraft.

■ Agreement signed with Par Hawaii to study commercial viability of sustainable aviation fuel.

MARCH ■ Hiring campaign begins to support our growing operation ■ State ends Hawai‘i Safe Travels program, removing all remaining barriers to Hawai‘i travel

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■ Aloha Week at the Phoenix Technology Center and PHX Station includes a visit from President & CEO Peter Ingram

■ After more than two years away, Pualani returns to Auckland.

■ Australia drops all remaining COVID-19 restrictions.

■ Travel+Leisure readers vote Hawaiian Airlines as best domestic airline in the magazine’s World’s Best Awards.

■ Capt. Kiki Culler retires as our longestserving Pilot after 38 years of service.

■ Deal reached to maintain and operate leased A330 freighters for Amazon

■ New Zealand removes all remaining COVID-related entry restrictions.

■ Uniform guidelines updated to better reflect the diversity of our ‘ohana.

■ A330, B717, and Bellanca make appearance at the return of the Kāne‘ohe Bay Air Show.

Photo: Stefano Rapisarda: First Officer-

JULY

OCTOBER

■ Hawaiian Airlines hires instructors to augment the Aeronautics Maintenance Technology program at Honolulu Community College.

■ French Polynesia drops entry restrictions.

■ Forbes ranks Hawaiian Airlines as the state’s best employer.

■ Hawaiian Airlines Foundation grants $100,000 to Kāko‘o ‘Ōiwi to build a washand-pack station to support local farmers.

■ South Korea removes remaining entry restrictions.

■ Hawaiian Airlines represented at Pride Parade.

NOVEMBER ■ Employees and ‘ohana gather at Magic Island to honor retirees who left in 2020 with the return of the Hawaiian Airlines ‘Ohana Fest.

■ Rarotonga flights announced with service to begin in May ■ Hawaiian Airlines and Arizona State University partner to offer scholarship for Hawai‘i students.

DECEMBER

SEPTEMBER ■ Mahalo Van brings cheer across the Islands and goodies to teammates at stations abroad.

AUGUST

■ Japan reinstates visa-free entry for foreigners.

■ Teammates march in the Honolulu City Lights parade

■ Hawaiian Airlines joins UH Leap-Start program to cultivate local IT talent.

■ Capt. Kamelia and First Officer Maria Zarka operate our first mother-daughter flight.

■ Haneda flights resume for the first time since start of the pandemic

■ The Mahalo Van returns with ho-hoholiday cheer

■ Plan announced to move Hawaiian Contract Services employees into the mainline operation starting in the fall.

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He Lā Kū‘oko‘a

Ma hope o ka Lā Ho‘omaika‘i, a ma mua ho‘i o ke au Kalikimaka, aia nō he Lā Kulāia Hawai‘i ma ka lā 28 o Nowemapa e laulaha hou a‘e nei i waena o ko kākou kaiāulu: ‘o ka Lā Kū‘oko‘a nō ia. He lā ia e ho‘omana‘o ai ko Hawai‘i i ka ho‘iho‘i ‘ia ‘ana o ko kākou kūlana he aupuni kū‘oko‘a, i ka wā o ka Mō‘ī.

I kēia makahiki i mea e ho‘ohanohano ai, ua nui ko kākou ho‘olaule‘a ‘ana. Ua mālama ‘ia he papa ‘Imi ‘Ike me ka Limu Hui, a a‘o mākou i ka limu pīkala me ia mau kupa o ka ‘āina o ka makani Limulīpu‘upu‘u.

A, mālama pū ‘ia nō ho‘i he papa ulana lauhala ma lalo o ka malu o ‘Anakē Lorna Pacheco. Ma ka hopena o ia pule, ua mālama ‘ia ka paikau kukui o Honolulu, a ua ho‘okāhiko ‘ia kā kākou ka‘a paikau i mea e ho‘okohu ai ia ka mana‘o nui o ka lauhala kekahi. Eia he wahi hakina mo‘olelo mai loko mai o ka nūpepa Ke Aloha Aina ma ka lā 2 o Kēkēmapa, 1899 e pili ana i ka Lā Kū‘oko‘a. Between Thanksgiving and Christmas, there is a Hawaiian holiday on Nov. 28 that is experiencing a resurgence in our community: Hawaiian Independence Day (Lā Kū‘oko‘a) when the Hawaiian Kingdom’s sovereign status was returned to them during the monarchy period. This year we commemorated the event with two ‘Imi ‘Ike sessions: a class on uses of limu (seaweed, especially Hawaiian types) by the Limu Hui of Waimānalo, and a lauhala (pandanus leaves) weaving class with Aunty Lorna Pacheco. Lauhala was also woven into our Honolulu City Lights Parade float. Below, we share a short story from the Dec. 2, 1899, issue of the Hawaiian newspaper Ke Aloha Aina about Lā Kū‘oko‘a.

HE LĀ KŪ‘OKO‘A / HAWAIIAN INDEPENDENCE DAY He mea ‘oia‘i‘o, he lā hemolele loa ia i loko o ko ke kanaka ola ‘ana, ua ‘ike ‘o ia, ‘o ka loa‘a ‘ana iā ia o ka noho ‘ana kū‘oko‘a, ua like nō ia me kona noho ho‘opa‘a ‘ole ‘ia ‘ana ma lalo o kekahi haku hana, he mana kona leo, he lanakila kona noho ‘ana, a ‘o ia nō ka mana ma luna o kona waiwai pono‘ī, a ua hiki ke ‘ōlelo ‘ia ia ‘ano, he lani i luna a he honua i lalo, a ua hiki ke hāhā a‘e ma kou ‘ao‘ao i kāu mea i makemake ai me ka ho‘āhewa ‘ole ‘ia. It is indeed a great day in the life of a man when he has achieved independence, it is as if he is freed from the control of his master. His voice is powerful, his living is victorious, and he controls his own wealth. It can be said that all is in balance, and you can obtain what you need without accusation.

‘O kēia lā kū‘oko‘a a kākou e mālama nei, ua nalo aku kona ‘e‘ehia mai iā kākou aku, a eia kākou ke hau‘oli nei ma kona kino aka wailua, me ka mau nō na‘e o ka pumehana o ke aloha i loko o ko kākou mau na‘au, a ola nō ho‘i kā kākou a pau e hau‘oli ai, ma ke ‘ano, e nonoi aku kā kākou mau leo pule i ka pepae kapu o ka noho ali‘i o ka Mea Mana Loa e ho‘iho‘i hou mai ‘o ia i ke kū‘oko‘a o ko kākou ‘āina i hao ‘ia, a i nā pōmaika‘i nō a pau o ka noho ‘ana lanakila, e like me ia ma mua o ka ho‘okāhuli aupuni ‘ana, a ke nonoi pū a‘e nei ho‘i e ho‘iho‘i hou ‘ia mai ka Hae nani o Hawai‘i ma luna o nā pahu hae o kona ‘āina aloha. The Hawaiian Independence Day that is being recognized has perhaps lost some of its allure, but its spirit remains one of joy, and is something that brings warmth to the soul. It brings hope that through our prayers to that great seat of the All Powerful that our independence will once again be restored, as it was taken from us again. Then, we will once again know the victory of independence and our Hawaiian flag will flutter above our beloved nation. ■ Hō‘ike is published monthly by the Internal Communications team.

Between issues, get the latest information at HApeople.com

Please direct any comments or suggestions to HA.Corporate Communications@HawaiianAir.com.

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