Securing our Long-Term Sustainability

As the world resumed travel in 2022, Hawai‘i remained a popular leisure destination. We were the carrier of choice for nearly 10 million guests who boarded our flights to, from and within the islands – bringing us to 91% of our pre-pandemic (2019) capacity.

In shifting from rebuilding to sustainable growth, we are investing in our people and systems, elevating our guest experience, and strengthening our finances to position us for success.

Furthering our Environmental, Social and Governance (ESG) priorities is critical to our business, and I am pleased to share some highlights of our work in these areas.

Advancing Our Environmental Commitment

This year we detailed our commitment to net zero greenhouse gas (GHG) emissions by laying out a more defined roadmap and interim targets. These targets, particularly those within the next decade, are a rallying cry for our organization to act urgently to address our carbon emissions.

And we are taking action. We continue to modernize our fleet with fuel-efficient aircraft and explore low-carbon propulsion technologies, including through our equity investment in a battery-electric powered seaglider being developed by REGENT. However, replacing petroleum-based jet fuel with sustainable aviation fuel (SAF) will be the biggest driver to help us reach our 2050 goal. To that end, we have contracted to purchase 50 million gallons of SAF from biofuel company Gevo, Inc., with deliveries to our gateway cities in California expected to start in 2029, and are studying the commercial viability of SAF production in Hawai‘i with Par Hawaii, the state’s largest provider of energy products.

As we work to meet our ambitious targets, we must continue to partner with fuel producers, other airlines, as well as states and the federal government, to help accelerate SAF production and distribution at commercially viable prices.

Phasing out single-use plastics from our in-flight service by 2029 is another important goal, and last year we carried 7% less single-use plastic per transpacific flight compared to 2021. We also increased locally produced food and beverage items on our Hawai‘i departures to 32% of our spend, up from 29% in 2021 and closer to our 2025 40% spending target.

BUILDING A THRIVING, DIVERSE TEAM

In 2022, we were delighted to welcome 1,371 new teammates to our ‘ohana (family) – an astonishing 20% of our year-end workforce of 7,108 people. In the last 12 months, we completed contract negotiations with all our labor groups, offering significant improvements to wages and meaning we currently have no amendable contracts.

To develop our future workforce, this year we initiated multiple school-to-career pipeline partnerships to increase opportunities for students, especially those in Hawai‘i, to pursue aviation and technology careers.

Our dedication to diversity, inclusion and belonging is an important driver of our recruiting and retention strategy. Today, approximately 80% of our employees identify as racially or ethnically diverse, 48% are female, and we are committed to building an increasingly diverse leadership team.

Strong Governance And Safety Standards

Running a safe operation and ensuring a safe environment for our employees is our priority and core to our values of Malama (care) and Po‘okela (excellence). Earlier this year, in partnership with Intelex, we launched a new, modern safety reporting application for all employees to augment our robust safety management system (SMS).

CONNECTING THE PACIFIC, SUPPORTING COMMUNITIES

With North America demand fully restored and international markets recovering, last year we reestablished flights between Hawai‘i and Auckland, New Zealand, and Haneda, Japan, and we brought Fukuoka back to our network this past April. We are enthusiastic about expanding our Oceania presence in May 2023 with the launch of weekly service between Honolulu and Rarotonga in the Cook Islands – a Pacific archipelago that shares strong cultural ties with Hawai‘i.

Within the islands, we remain a key engine of the local economy, carrying more than 70% of kama‘āina (residents) and visitors traveling throughout the state, as noted in our 2022 Economic Impact Report, which also showed we stimulated $10.2 billion in economic activity in Hawai‘i, which generated more than $600 million in Hawai‘i state tax revenue.

As I reflect on 2022, I am especially proud of how our teams executed on our priorities while showing mālama (care) for our neighbors in need and our natural resources. Over 1,200 employees volunteered a combined 6,795 hours last year to support 175 organizations in Hawai‘i and across our network, cleaning beaches, helping food banks and protecting threatened species and habitats.

I am grateful for their dedication to our guests and communities and inspired by their accomplishments to make Hawaiian a stronger and more sustainable airline.

I am proud of the progress we are making, but we have more to do.

Turning to ESG initiatives, our Board of Directors, along with Hawaiian’s senior management, remain deeply engaged in assessing our risks and opportunities. For the second year, our Corporate Kuleana Report includes reporting aligned with the Task Force on Climate-Related Disclosures (TCFD), in addition to the Sustainability Accounting Standards Board (SASB) metrics we have provided since 2020.

Mahalo, Peter Ingram, President and CEO