EX-99.1 2 file002.htm FINANCIAL INFORMATION

HAWAIIAN AIRLINES, INC.

FEBRUARY 2005

FINANCIAL INFORMATION

NOTE (1): CAUTIONARY STATEMENT

To comply with the monthly United States Trustee's Operating and Reporting
Requirements for Chapter 11 Cases, Hawaiian Airlines, Inc. (the "Company") is
filing with the bankruptcy court its unaudited condensed balance sheet as of
February 28, 2005, and related unaudited condensed statement of operations and
cash flows for the one- and two-month period ended February 28, 2005, as well as
supporting schedules and other financial information (the "Operating Report").
The Company is in the process of completing its year-end closing process, which
is far more extensive than its preliminary monthly closing process. The Company
expects that the final preparation and audit of the financial statements for the
year ended December 31, 2004, will result in a variety of adjustments, some of
which may be material and may have an impact on February 2005 results.
Therefore, THE COMPANY CAUTIONS AGAINST PLACING UNDUE RELIANCE ON THE
INFORMATION CONTAINED IN THE MONTHLY OPERATING REPORT. When the Company
concludes its year-end closing process and audit, it will report final results
in accordance with generally accepted accounting principles.

HAWAIIAN AIRLINES, INC.
CONDENSED STATEMENT OF OPERATIONS (UNAUDITED - SEE NOTE (1))

(Actual amounts in thousands) ONE MONTH ENDED TWO MONTHS ENDED
FEBRUARY 28, FEBRUARY 28,
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2005 2005
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Operating Revenues:
Passenger ........................................... $ 51,296 $ 107,828
Charter ............................................. 1,120 2,680
Cargo ............................................... 2,265 4,615
Other ............................................... 2,096 4,496
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Total ............................................. 56,777 119,619
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OPERATING EXPENSES:
Wages and benefits .................................. 18,569 37,422
Aircraft fuel, including taxes and oil .............. 11,855 23,919
Maintenance materials and repairs ................... 4,440 8,931
Aircraft rent ....................................... 8,717 17,425
Other rental and landing fees ....................... 1,787 3,737
Sales commissions ................................... 432 940
Depreciation and amortization ....................... 731 1,455
Other................................................ 10,682 21,798
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Total ............................................. 57,213 115,627
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OPERATING INCOME (LOSS) ............................... (436) 3,992
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NONOPERATING INCOME (EXPENSE):
Reorganization items, net ........................... (1,929) (3,881)
Interest and amortization of debt expense ........... (111) (216)
Gain (loss) on disposition of equipment ............. (35) (35)
Other, net .......................................... (23) (568)
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Total ............................................. (2,098) (4,700)
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NET LOSS BEFORE TAXES ................................. (2,534) (708)

INCOME TAXES:
Income tax benefit (expense) ........................ 629 (492)
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NET LOSS .............................................. $ (1,905) $ (1,200)
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HAWAIIAN AIRLINES, INC.
CONDENSED BALANCE SHEET (UNAUDITED - SEE NOTE (1))

(Actual amounts in thousands) FEBRUARY 28,
2005
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ASSETS
Current Assets:
Cash and cash equivalents ....................................... $ 113,230
Restricted cash ................................................. 54,438
Accounts receivable ............................................. 32,833
Inventories ..................................................... 8,894
Prepaid expenses and other ...................................... 36,800
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Total current assets .......................................... 246,195
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Noncurrent Assets:
Property and equipment, less accumulated depreciation ........... 53,540
Reorganization value in excess of identifiable assets ........... 27,731
Other assets .................................................... 34,896
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Total noncurrent assets ....................................... 116,167
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Total Assets .............................................. $ 362,362
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LIABILITY AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Current portion of long-term debt ............................... $ 13
Current capital lease obligation ................................ 44
Accounts payable ................................................ 51,741
Accrued liabilities ............................................. 31,911
Air traffic liability ........................................... 143,751
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Total current liabilities ..................................... 227,460
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Noncurrent Liabilities:
Long-term debt .................................................. 30
Other liabilities and deferred credits .......................... 213,721
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Total noncurrent liabilities .................................. 213,751
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Total Liabilities ............................................. 441,211
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Liabilities Subject to Compromise ................................. 214,659
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Shareholders' Deficit:
Common and special preferred stock .............................. 278
Capital in excess of par value .................................. 60,084
Notes receivable from optionholders ............................. (49)
Minimum pension liability adjustment ............................ (120,716)
Unrealized gain/(loss) on hedge instruments ..................... 4,591
Accumulated deficit ............................................. (237,696)
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Shareholders' Deficit ......................................... (293,508)
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Total Liabilities and Shareholders' Deficit ............... $ 362,362
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HAWAIIAN AIRLINES, INC.
CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED - SEE NOTE (1))

(Actual amounts in thousands)
ONE MONTH TWO MONTHS
ENDED ENDED
FEBRUARY 28, FEBRUARY 28,
2005 2004
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss ........................................................... $ (1,905) $ (1,200)

Adjustments to reconcile net loss to net cash provided
by operating activities before reorganization activities:
Reorganization items, net ...................................... 1,929 3,881
Depreciation ................................................... 699 1,392
Amortization ................................................... 32 63
Net periodic postretirement benefit cost ....................... 660 1,320
Loss on disposition of property and equipment .................. 35 35
Increase in restricted cash .................................... (4,843) (6,536)
Increase in accounts receivable ................................ (762) (9,512)
Decrease (increase) in inventory ............................... 636 (367)
Increase in prepaid expenses and other ......................... (3,311) (199)
Increase in accounts payable ................................... 551 4,644
Increase in air traffic liability .............................. 8,625 14,219
Increase (decrease) in accrued liabilities ..................... (761) 963
Other, net ..................................................... 3,695 1,343
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Net cash provided by operating activities
before reorganization activities ........................... 5,280 10,046
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Reorganization activities:
Professional fees paid ......................................... (2,140) (4,311)
Interest on accumulated cash balances .......................... 211 430
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Net cash used by reorganization activities .................. (1,929) (3,881)
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Net cash provided by operating activities ................... 3,351 6,165
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment ................................ (3,003) (3,455)
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Net cash used in investing activities ....................... (3,003) (3,455)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from optionholders notes receivable ....................... 20 20
Repayment of debt .................................................. (5) (9)
Principal payments under capital lease obligation .................. (61) (138)
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Net cash used in financing activities ....................... (46) (127)
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Net increase in cash and cash equivalents ................... 302 2,583
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Cash and Cash Equivalents - Beginning of Period .......................... 112,928 110,647
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Cash and Cash Equivalents - End of Period ................................ $ 113,230 $ 113,230
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HAWAIIAN AIRLINES, INC.
TRAFFIC STATISTICS (SCHEDULED AND CHARTER)
(UNAUDITED - SEE NOTE (1))

FEBRUARY
2005
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SCHEDULED TOTAL

PAX 423,895
RPMS 450,269,175
ASMS 539,208,797
LF 83.5%

CHARTER
PAX 6,446
RPMS 17,900,542
ASMS 20,433,166
LF 87.6%

SYSTEM TOTAL (INCLUDES CHARTERS)

REV PAX 430,341
RPMS (000) 468,170
ASMS (000) 559,642
CARGO/MAIL TON MI 5,968,297
LOAD FACTOR (%) 83.7%