Hawaiian Matches Competitors With New Fees

HONOLULU, July 30 /PRNewswire-FirstCall/ -- In response to the unprecedented economic challenges facing the airline industry, Hawaiian Airlines has announced that it is matching certain fees that its major competitors have recently adopted.

Effective with tickets purchased on or after August 1 for travel commencing on or after October 1, 2008, Hawaiian will charge $15 for passengers' first piece of checked luggage for flights between the mainland U.S. and Hawaii.

On interisland flights between the islands of Hawaii, the first piece of checked luggage will continue to be free.

Effective September 1, 2008, Hawaiian will begin charging a ticketing fee for bookings made over the telephone rather than online, $10 for interisland travel and $20 for all other routes. For ticketing at airport locations, the fee will be $25. No ticketing fees apply to transactions on HawaiianAirlines.com.

Hawaiian is also adjusting its frequent flyer mileage requirements (see attached chart) for award travel on or after September 1, 2008. Hawaiian last changed its minimum mileage requirements for award travel 14 years ago, when oil was less than $20 per barrel. The program will retain its innovative 3-tier combinable one-way awards structure that makes it easier for members to use their miles with 25 different award combinations for a round trip.

Mark Dunkerley, president and chief executive officer, said Hawaiian is seeking a balance between the company's need to cover high fuel costs with its sense of obligation to provide the local community in Hawaii with sustainable frequent, reliable and affordable service.

"Our latest financial results demonstrate why Hawaiian needs to match the revenue initiatives of our competitors. Nonetheless, we are mindful of the special needs of our kama'aina travelers and so we have resisted levying the full complement of new fees on interisland travel," Dunkerley said.

Hawaiian previously matched competitors' introduction of a fee for the second piece of checked luggage: $17 on interisland flights and $25 on mainland flights. A fee of $25 for bags heavier than 50 pounds on all mainland and interisland flights remains in effect.

    HawaiianMiles Award Changes

    One-Way Combinable Awards

                    Interisland             Transpacific
    Coach         Current   Sep-08        Current   Sep-08
    SuperSaver     5,000     7,500        17,500    20,000
    Saver          7,500    10,000        25,000    30,000
    Anytime       10,000    15,000        35,000    40,000

    First Class
    Saver         10,000    15,000        30,000    40,000
    Anytime       20,000    30,000        60,000    80,000

About Hawaiian Airlines

The nation's top-ranked airline for service in the 2007 Airline Quality Ratings, Hawaiian has led all U.S. carriers in on-time performance for each of the past four straight years (2004-2007) and in fewest misplaced bags for the past three years (2005-2007) as reported by the U.S. Department of Transportation. Consumer surveys by Conde Nast Traveler, Travel + Leisure and Zagat have all ranked Hawaiian as the top domestic airline serving Hawaii.

Now in its 79th year of continuous service in Hawaii, Hawaiian is the state's biggest and longest-serving airline, as well as the second largest provider of passenger air service between the U.S. mainland and Hawaii. Hawaiian offers nonstop service to Hawaii from more U.S. gateway cities (10) than any other airline, as well as service to the Philippines, Australia, American Samoa, and Tahiti. Hawaiian also provides approximately 155 daily jet flights among the Hawaiian Islands.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (Nasdaq: HA). Additional information is available at HawaiianAirlines.com.