1172222--3/23/2006--HAWAIIAN_HOLDINGS_

related topics

{operation, natural, condition}

{competitive, industry, competition}

{product, market, service}

{debt, indebtedness, cash}

{condition, economic, financial}

{regulation, government, change}

{cost, operation, labor}

{customer, product, revenue}

{personnel, key, retain}

{control, financial, internal}

{regulation, change, law}

{loss, insurance, financial}

{stock, price, share}

{cost, regulation, environmental}

Risks Relating to our Business Our business is adversely affected by increases in fuel prices. Our business is highly dependent on tourism, and our financial results could suffer if there is a downturn in tourism levels. Our business is subject to substantial seasonal and cyclical volatility. Our business is impacted by the competitive advantages held by full service airlines in the transpacific market. Our business is increasingly impacted by competition from low cost carriers. Additional potential competitors have announced their intentions to launch interisland air service. Demand for interisland service is declining, and is expected to decline for the foreseeable future. Our business requires substantial financial and operating leverage. We are dependent on satisfactory labor relations. Our operations may be adversely affected if we are unable to attract and retain key executives, including our Chief Executive Officer. We are increasingly dependent on technology to operate our business. We are highly reliant on third-party contractors to provide certain facilities and services for our operations, and termination of our third-party agreements could have a potentially adverse effect on our financial results. We are subject to various risks as a result of our fleet concentration in Boeing 717s. Our business may be adversely impacted by the existence of a provision in Hawaiian s aircraft leases with one of its lessors which could lead to the termination of up to seven 767-300ER leases beginning in 2007. Our substantial debt could adversely affect our financial condition. Certain of our financing agreements include financial covenants that impose substantial restrictions on our financial and business operations. We have identified a material weakness in our internal control over financial reporting, which, if not remedied effectively, could have an adverse effect on our business. Our share price could be subject to extreme price fluctuations, and stockholders could have difficulty trading shares. Risks Relating to the Airline Industry The continued threat of terrorist attacks may adversely impact our business. The airline industry is highly competitive, and if we cannot successfully compete in the marketplace, our financial condition and results of operations will be adversely affected. The airline industry is subject to extensive government regulation, and new regulations could have an adverse effect on our financial condition and results of operations. Our operations may be adversely impacted by increased security measures mandated by regulatory authorities. Our insurance costs have increased substantially in recent years and further increases in insurance costs or reductions in coverage could have an adverse effect on our financial results. We are at risk of losses and adverse publicity in the event of an aircraft accident. We are at risk of losses in the event of an outbreak of diseases.

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1172222--3/23/2006--HAWAIIAN_HOLDINGS__INC