Professional Documents
Culture Documents
Ha Kuleana Report 2023
Ha Kuleana Report 2023
Ha Kuleana Report 2023
2023 A N N UA L S U S TA I N A B I L I T Y R E P O R T
Table
of Contents
2 Corporate Kuleana 39 Caring for Our
People and Community
A MESSAGE FROM OUR CEO
5 Protecting Our
57 Leadership
Environment
and Governance
74 Appendix
S A S B I N D E X , TC F D I N D E X
2023 H AWA I I A N A I R L I N E S A N N UA L S U S TA I N A B I L I T Y R E P O R T
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.
A DVA N C I N G O U R E N V I R O N M E N TA L C O M M I T M E N T
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.
2
C O N N E C T I N G T H E PAC I F I C ,
BUILDING A THRIVING, DIVERSE TEAM SUPPORTING COMMUNITIES
In 2022, we were delighted to welcome 1,371 new With North America demand fully restored and international
teammates to our ‘ohana (family) – an astonishing 20% markets recovering, last year we reestablished flights
of our year-end workforce of 7,108 people. We currently between Hawai‘i and Auckland, New Zealand, and Haneda,
have no amendable labor contracts after completing Japan, and we brought Fukuoka back to our network this
negotiations with all of our unionized team members and past April. We are enthusiastic about expanding our Oceania
offering significant improvement to wages. presence in May 2023 with the launch of weekly service
between Honolulu and Rarotonga in the Cook Islands – a
To develop our future workforce, this year we initiated Pacific archipelago that shares strong cultural ties with
multiple school-to-career pipeline partnerships to increase Hawai‘i.
opportunities for students, especially those in Hawai‘i,
to pursue aviation and technology careers. Within the islands, we remain a key engine of the local
economy, carrying more than 70% of kama‘āina (residents)
Our dedication to diversity, inclusion and belonging is an and visitors traveling throughout the state, as noted in
important driver of our recruiting and retention strategy. our 2022 Economic Impact Report, which also showed we
Today, approximately 80% of our employees identify stimulated $10.2 billion in economic activity in Hawai‘i,
as racially or ethnically diverse, 48% are female, which generated more than $600 million in Hawai‘i state tax
and we are committed to building an increasingly diverse revenue.
leadership team.
As I reflect on 2022, I am especially proud of how our teams
executed on our priorities while showing mālama (care)
S T R O N G G OV E R N A N C E A N D S A F E T Y S TA N DA R D S for our neighbors in need and our natural resources. Over
1,200 employees volunteered a combined 6,795 hours last
Running a safe operation and ensuring a safe environment year to support 175 organizations in Hawai‘i and across
for our employees is our priority and core to our values of our network, cleaning beaches, helping food banks and
Malama (care) and Po‘okela (excellence). Earlier this year, in protecting threatened species and habitats.
partnership with Intelex, we launched a new, modern safety
reporting application for all employees to augment our I am grateful for their dedication to our guests and
robust safety management system (SMS). communities and inspired by their accomplishments to
make Hawaiian a stronger and more sustainable airline.
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, Mahalo,
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. Peter Ingram, President and CEO
3
Protecting
Our Environment
2023 H AWA I I A N A I R L I N E S A N N UA L S U S TA I N A B I L I T Y R E P O R T 5
Greenhouse Gas Emissions
Our 2022 Carbon Footprint
Total Scope 1, Scope 2 and Scope 3 well-to-tank jet fuel: 2.8 million metric tons carbon dioxide equivalent (CO2e)
82.7%
SCOPE 1
DIRECT EMISSIONS
(99% J E T F U E L )
2.8 million
0.2%
SCOPE 2
INDIRECT EMISSIONS
metric tons PURCHASED ELECTRICITY
CO2e
17.1%
SCOPE 3
INDIRECT EMISSIONS FROM
VA LU E C H A I N
( I N C LU D I N G O N LY
W E L L - TO - TA N K J E T F U E L ) 1
The vast majority (~99%) of our Scope 1 carbon emissions result from jet fuel consumption on our
flights and we have been reporting jet fuel emissions annually since 2019. For our 2022 Greenhouse
Gas Emissions (GHG) inventory, we expanded our Scope 1 data to include estimated emissions from
ground vehicle fuels, which represent less than 1% of our Scope 1 emissions. These emissions are
not included in prior years’ Scope 1 inventory and would not materially change previous reporting.
6
Scope 1, Jet Fuel Emissions:
In 2022, including passenger and cargo-only flights, our GHG emissions intensity per ASM increased
by 4% compared to 2021 (Table B). This deterioration was driven by (1) higher load factors across
our network, (2) more long-haul flying, and (3) the impact of air traffic control (ATC) routing changes
in our Honolulu hub. However, our emissions intensity per ASM remained about 2% better than
2019, driven primarily by the increase in fuel-efficient Airbus A321neo aircraft flying. Excluding
emissions from cargo-only flights operated in 2022, our GHG emissions intensity was lower by
approximately 3% compared to 2019.
We anticipate that our contracted freight operation for Amazon will begin in the fourth quarter of
2023. We are determining how emissions associated with that operation will be represented in our
portfolio and will provide updates in a future report.
7
Table A, Operational statistics (‘000s)
2019 2020 2021 2022 2022 VS 2021 2022 VS 2019
GALLONS OF
JET FUEL -
269,787 96,950 176,253 238,384 35% -12%
PASSENGER
FLIGHTS ONLY
1. RTMs for 2019 through 2021 have been revised to use the 2022 average of 230 lbs per passenger, including bags, in order to present metric on a comparable basis.
2. Jet fuel emissions calculated based on a factor of approximately 9.624 kg CO2 per gallon of jet fuel. MTCO2e stands for metric tons of CO2 equivalent.
3. Ground vehicle fuel emissions were not measured in 2019-2021 but will be going forward.
8
Table B, Scope 1 Emissions (MTCO2e)
2019 2020 2021 2022 2022 VS 2021 2022 VS 2019
SCOPE 1
2,598,397 1,022,273 1,727,389 2,304,897 33% -11%
EMISSIONS - TOTAL
JET FUEL
EMISSIONS 2- 2,598,397 1,022,273 1,727,389 2,302,277 33% -11%
ALL FLIGHTS
GROUND
VEHICLE FUEL 2,620 N/A N/A
EMISSIONS3
SCOPE 1
EMISSIONS 2 -
2,596,338 933,014 1,696,198 2,294,126 35% -12%
PASSENGER
FLIGHTS ONLY
PER THOUSAND
1.09 1.47 1.29 1.14 -11% 4%
RTM
S C O P E 1 J E T F U E L E M I S S I O N S I N T E N S I T Y - PA S S E N G E R F L I G H T S O N LY
P R OT E C T I N G O U R E N V I R O N M E N T 9
Scope 2: Indirect Emissions
from Purchased Electricity
Last year, we reported our 2021 Scope 2 emissions from eight properties we track as part of the U.S.
Department of Energy Better Buildings Challenge (BBC) program, including our primary corporate
office and maintenance facility, various cargo facilities, and an office building we have since sold and
now partially occupy in Honolulu (Airport Center). This year we modified our Scope 2 methodology
for our 2022 inventory to include all properties, owned or leased, where we have operational control,
including corporate and airport offices, and maintenance and cargo facilities. We measure and
report our Scope 2 emissions in line with the GHG Protocol using the location-based method.
In 2022, our location-based Scope 2 emissions for BBC properties dropped by 4% compared to 2021
and 11% compared to 2019 (Table C). These decreases can be attributed to reduced operations
because of the pandemic, efficiency measures implemented at our corporate offices and
at the Airport Center, as well as evolving grid emissions factors.
Table C, Scope 2 Indirect Emissions from Purchased Electricity
2019 2020 2021 2022 2022 VS 2021 2022 VS 2019
ELECTRICITY CONSUMPTION
9,164 N/A N/A
(MWH)
ELECTRICITY CONSUMPTION
15.4 N/A N/A
PER SQ FT (MWH/SQ FT)
ELECTRICITY CONSUMPTION
9,965 9,248 9,177 9,016 -2% -10%
(MWH)
ELECTRICITY CONSUMPTION
18.4 17.1 16.9 16.6 -2% -10%
PER SQ FT (MWH/SQ FT)
EMISSIONS FROM
PURCHASED ELECTRICITY 7,503 6,962 6,905 6,641 -4% -11%
(LOCATION BASED) (MTCO2e)
Table C emissions calculated using GHG Protocol location-based method. MTCO2e stands for metric tons of CO2 equivalent.
Note: We have been reporting Scope 2 emissions for BBC properties, including a building we owned in 2022 and continue to partially occupy, since 2019;
in 2022, we refined our Scope 2 emissions to include all properties where we have operational control, and allocate emissions from BBC properties based on occupancy.
P R OT E C T I N G O U R E N V I R O N M E N T 11
Scope 3: Indirect Emissions
from Value Chain
In 2022, we incorporated our Scope 3 emissions associated with the upstream production of jet fuel
into our GHG inventory (Table D). While we have not yet performed a full inventory of our Scope 3
emissions, we expect that upstream production of jet fuel will be the largest category. We plan to
conduct a more in-depth review of our Scope 3 emissions within the next two years.
250 2.50
2.00
1.78
200
1.32 1.38 1.50
163
1.00
152
149
150 143
152
149 148
141 0.50
0 0.00
Per Thousand RTM, All Flights Per Million ASM, All Flights
Per Million ASM, Passenger Flights
12
Table D
S C O P E 3 - U P S T R E A M E M I S S I O N S F R O M T H E P R O D U C T I O N O F J E T F U E L ( M TC O 2e)
WELL-TO-TANK JET
538,485 211,853 357,979 477,118 33% -11%
FUEL - ALL FLIGHTS
WELL-TO-TANK JET
FUEL - PASSENGER 538,058 193,355 351,516 475,429 35% -12%
FLIGHTS ONLY
L I F E - C YC L E J E T F U E L E M I S S I O N S ( M TC O 2 e )
WELL-TO-WAKE JET
3,136,882 1,234,126 2,085,368 2,779,395 33% -11%
FUEL - ALL FLIGHTS
WELL-TO-WAKE
JET FUEL - PAX 3,134,396 1,126,369 2,047,714 2,769,554 35% -12%
FLIGHTS ONLY
W E L L - TO - WA K E J E T F U E L E M I S S I O N S I N T E N S I T Y - A L L F L I G H T S ( M TC O 2e)
PER THOUSAND
1.32 1.78 1.55 1.38 -11% 4%
RTM
W E L L - TO - WA K E J E T F U E L E M I S S I O N S I N T E N S I T Y - PA S S E N G E R F L I G H T S O N LY ( M TC O 2e)
Well-to-tank emissions calculated using factor of 1.994 kg CO2E per gallon of jet fuel; life-cycle (well-to-wake) jet fuel emissions include jet fuel emissions from both
Scope 1 and Scope 3. MTCO2e stands for metric tons of CO2 equivalent.
P R OT E C T I N G O U R E N V I R O N M E N T 13
Emissions Reduction
Commitments
In line with the broader airline industry, our paramount environmental priority is to achieve net-zero
carbon emissions by 2050. Over the past year, we have been developing a strategy to achieve our
long-term net-zero goal, and in March 2023, we published our roadmap as well as interim targets.
We have established a 2035 well-to-wake (life cycle) jet fuel emissions intensity target as well as
other targets designed to track the progress of specific decarbonization initiatives. We will report
annually on our progress in our Corporate Kuleana Report. We understand that our roadmap may
need to be updated and could require more aggressive emissions reductions to align with evolving
scientific consensus.
2030:
REPLACE 10% OF OUR
JET FUEL WITH SAF
64%
2035: Sustainable
REDUCE EMISSIONS Aviation
INTENSITY BY 45% Fuel (SAF)
10% Offets
Target Emissions
Pathway
2020 2025 2030 2035 2040 2045 NET ZERO
BY 2050
Updated March 2023. Subject to change as underlying assumptions evolve. MTCO2e stands for metric tons of CO2 equivalent.
14
Our Emissions and Efficiency Targets
TA R G E T YEAR
AC H I E V E N E T - Z E R O C A R B O N E M I S S I O N S 2050
Reduce life-cycle jet fuel emissions intensity per revenue ton mile (RTM) by 45%2 2035
Replace 10% of conventional jet fuel with sustainable aviation fuel (SAF) 2030
1. Includes properties tracked through the U.S. DOE Better Buildings Challenge program.
2. From 2019 levels.
These targets add to our existing pledge to cap emissions from international flights in accordance
with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for
International Aviation (CORSIA).
We remain engaged with the Sustainability Business Forum (SBF), a Hawai‘i business consortium
that we helped found to spur collaboration toward a sustainable future for Hawai‘i, and Hawai‘i
Green Growth UN Local2030 Hub, a public-private partnership committed to advancing the United
Nations Sustainable Development Goals and the Aloha+ Challenge. The SBF continues to develop
additional localized Environmental, Social and Governance metrics tracked publicly on the
Aloha+ Dashboard while collaborating with public and private sector leaders on the role of data and
ESG investing within the context of the Pacific islands. Looking ahead, the SBF has committed to
two priority areas and launched the Local Food and the Energy Efficiency Working Groups to drive
private-sector action within these two spaces and at their intersection. Hawaiian is actively engaged
as the co-chair of the Local Food Working Group.
In 2022, we joined the Climate Coalition, an initiative of the Hawai‘i Executive Collaborative, which
Our commitment includes dozens of local organizations committed to reducing emissions and working collaboratively
to environmental to accelerate climate solutions. The Coalition provides a platform to drive systemic climate
stewardship is outlined
in our Environmental progress—particularly on climate policy and increasing investment in equitable climate solutions.
Policy Statement. The Coalition’s Climate Pledge can be found here.
15
Environmental
Sustainability Strategy
( T R - A L -110 A .2)
We are currently focused on sourcing SAF in California, which is our largest market outside of Hawai‘i
and where the state’s regulatory framework incentivizes uplift of SAF. In March 2023, we announced
our commitment to purchase 10 million gallons of SAF annually over five years from Gevo, a SAF
producer that plans to build multiple SAF facilities in the U.S. mid-west. The facility that will produce
our SAF is expected to be completed by 2028 and reach full commercial volumes by 2029. This initial
commitment is an important step forward, but we continue to seek additional supply of SAF to meet
our considerably larger needs.
16
We are also working to develop SAF supply in our home state of Hawai‘i. In 2022, we announced
a partnership with Par Hawaii, the largest refinery in the state (pictured above), to explore SAF
production. With Par, we are jointly focused on three areas: (1) conducting an engineering study
to evaluate the feasibility of converting a portion of Par’s facilities to produce SAF, (2) exploring
the potential to grow oil-yielding crops in Hawai‘i as well as import sustainable feedstock, and (3)
evaluating the best policy mechanisms to advance SAF in Hawai‘i. We are making progress in all
three areas, and are encouraged by Par’s plans to invest $90 million to develop the state’s largest
liquid renewable fuels manufacturing facility at its Kapolei refinery. We are excited about the
potential to produce SAF in Hawai‘i, which would support the decarbonization of aviation in Hawai‘i,
establish a new green industry, and advance the state’s energy independence and economic
development goals.
P R OT E C T I N G O U R E N V I R O N M E N T 17
Sustainable Aviation Fuel (SAF)
Emissions Life Cycle
2
Convert to SAF
1
Begin with
sustainable feedstock
80%
Up to
3
Blend SAF up
to 50/50 with
conventional
reduction jet fuel
in life-cycle
emissions*
5
Fly aircraft with
reduced life-cycle
emissions
4
Deliver blended SAF to existing infrastructure
at airport for storage and fueling**
18
W H AT I S S A F ?
Sustainable Aviation Fuel (SAF) is jet fuel made from sustainable feedstock rather than petroleum.
Some examples of sustainable feedstocks include plant oils, waste oils, crop sugars, municipal solid
waste, and agricultural residues, among others. As a drop-in fuel, SAF can be used on our existing
aircraft and engines, up to a blend of 50% with conventional jet fuel. The blend limit is expected to
increase substantially in coming years.
SAF is better for the environment because it has a lower life-cycle carbon intensity compared
to petroleum fuel. A fuel’s ‘life cycle’ (see page 18) includes all of its associated GHG emissions,
starting with sourcing feedstock, through refining, distribution and combustion. Although SAF
and conventional jet fuel release the same GHG emissions in the combustion phase, carbon from
petroleum jet fuel had been stored underground for millions of years, while carbon from SAF was
recently absorbed from the atmosphere by feedstock through photosynthesis, meaning its intensity
nets to zero during the combustion phase.
Our long-haul fleet of Airbus A330s and A321neos is one of the most fuel efficient and youngest in
the U.S. industry at an average age of 7.2 years.
We continue to use Airbus A330-200 aircraft – which are about 5% more fuel efficient than the
Boeing 767-300, our previous widebody fleet type – on our transpacific long-haul, U.S. east coast,
and busiest western U.S. routes, and the A321neo – the most fuel efficient and quietest aircraft of its
type – to serve our mid-sized U.S. transpacific markets.
In 2022, our fuel efficiency per ASM was 2% better than 2019, and we are targeting a 4%
improvement in fuel efficiency per ASM compared to 2019 due to the impact of our Boeing 787s and
other fuel efficiency initiatives by 2028.
There are several emerging alternative propulsion technologies, such as battery-electric and
hydrogen, that have the potential to contribute to our decarbonization goals. The first advances in
these technologies will likely be in the nine to 19-seat range for short-haul flights later this decade.
At Hawaiian, while we have a robust network of short-haul flights within the Hawaiian Islands that
could be suited for these emerging technologies, these short-haul markets see very high traffic
volumes. We currently operate about 150 daily flights between the islands with 19 128-seat Boeing
717s and it would be inefficient to operate the same capacity with significantly smaller aircraft.
Based on industry forecasts, we expect it will take 10 to 15-plus years before these technologies
advance to allow for more than 100 passengers to travel over interisland distances on a battery-
electric or hydrogen aircraft.
P R OT E C T I N G O U R E N V I R O N M E N T 21
While there are no near-term alternative
propulsion vehicles to replace our 717s, we are
making investments to help advance promising
technologies. In 2022, we announced a
strategic investment in REGENT, a company
developing a battery-electric powered seaglider.
We are also acting as design partner for REGENT’s larger, 100-plus seat vehicle concept (rendered
below), which is slated to be introduced some time after the launch of its smaller 12-seat vehicle.
A seaglider is a vehicle that would operate out of harbor infrastructure instead of airports and uses
‘ground effect’ by flying within a wingspan of the sea. The potential for ground effect could allow
for battery-electric powered operations with much larger capacity over the distances between the
islands compared to other emerging electric alternatives. While REGENT is still in the early stages
of development of its smaller vehicle, we are excited to support the technology through our equity
investment and we look forward to evaluating the technology and infrastructure requirements further.
While these emerging technologies may allow us to serve our interisland routes and reduce our
emissions, they are not expected to be viable on our North America or International routes before
2050. Our roadmap contemplates a next-generation airplane with jet engine technology that
incorporates a meaningful efficiency improvement compared to existing generation aircraft arriving
in the late 2040s.
P R OT E C T I N G O U R E N V I R O N M E N T
We strive to reduce our fuel burn and emissions at every phase of the flight.
For example, where possible we take the following steps:
LANDING
We monitor airport weather conditions and communicate with Air Traffic
Control to ensure our descent follows the best and most fuel-efficient approach.
AT THE GATE
During boarding and deplaning, we turn off our engines and APU (Auxiliary
Power Unit) and use cleaner electrical power supplied by the airport to keep our
avionics systems running and to air condition our aircraft.
23
Air Traffic Control Modernization
Air Traffic Control (ATC) modernization (also called NextGen) is a Federal Aviation Administration
(FAA) program to modernize our country’s ATC system, which would bring fuel savings to all airlines
operating in U.S. airspace. While not a specific Hawaiian Airlines initiative, we have included an
estimate for the potential impact of the NextGen program on our carbon footprint in our roadmap.
While material, the potential is lower for Hawaiian than some other U.S. carriers because we operate
relatively fewer flights into congested airports where NextGen will have the most impact.
Carbon Offsets
While we are focused on in-sector measures to achieve our decarbonization goals, we have also
committed to offsetting our employee business travel as well as offering guests the option to offset
emissions generated by their Hawaiian Airlines flights through our partnership with Conservation
International. Our offset program for 2022 represents an estimated 2,400 acres of forest protected.
Propane 173
Diesel 95
Unleaded 75
24
25
Energy Efficient Facilities
While emissions from flight operations account for the vast majority of our carbon footprint, we are
also focused on improving the emissions profile of all areas of our business.
As of January 2023, we have lowered energy use per square foot in our facilities by 10% (compared
to a 2019 baseline) and we remain on track to cut electricity use by 20% by 2030 – a goal that
we committed to achieving as the first airline participating in the U.S. Department of Energy’s
Better Buildings Challenge. Our improvement compared to 2019 is primarily driven by efficiency
gains such as the use of motion sensors, LED lighting, and automatic heating, ventilation and air
conditioning (HVAC) control valves.
REDUCE, REUSE
AND BE PONO
C L I C K H E R E TO
LEARN MORE
P R OT E C T I N G O U R E N V I R O N M E N T 27
Task Force on Climate-Related
Financial Disclosures
( TC F D )- A L I G N E D C L I M AT E C H A N G E Q UA L I TAT I V E R I S K A S S E S S M E N T
In 2022, we performed our first impact review of the TCFD-recommended climate change risk
categories, and we refreshed our assessment in this year’s report. We gathered input from our senior
leaders and a cross-functional team from various departments including Accounting and Finance,
Corporate Audit, Investor Relations, Law, Marketing, Operations, Safety, and Sustainability, as well as
guidance from aviation industry experts. The output was a qualitative assessment of the top climate-
related risks and opportunities for Hawaiian Airlines over the short, medium and long term, as well
as mitigation and adaptation actions we are taking. (See Top Identified Climate-Related Risks and
Opportunities on the next page).
To arrive at the overall impact-rating of each climate-related risk and opportunity, we assessed the
likelihood of an event occurring against the potential business impacts of the event. We identified
risks through industry analysis and discussion with our leadership team.
S H O R T - T E R M : 0-4 Y E A R S
M E D I U M - T E R M : 5-10 Y E A R S
LO N G - T E R M : 11-30 Y E A R S
Transition cost
The base case cost of abatement for
to low emissions Medium Short Term Likely 4, 5, 11
SAF or direct air capture is high.
technology
1. Corrected July 2023. Original publication of this report omitted this risk type.
P R OT E C T I N G O U R E N V I R O N M E N T 29
Key Physical Risks
TIME RISK
RISK TYPE IMPACT DESCRIPTION IMPACT HORIZON LIKELIHOOD MANAGEMENT
Climate change has the potential to have a major impact on our business
as changes in long-term weather patterns result in sea level rise, more
frequent and extreme weather, and rising mean temperatures.
Sea level rise may impact locations close to the shore, including
airport runways and visitor destinations, which could disrupt our
flight operations, affect demand, and lower our revenue.
1. Corrected July 2023. Original publication of this report included incorrect risk management legend references for this risk type.
Key Opportunities
OPPORTUNITY
OPPORTUNITY OPPORTUNITY TIME REALIZATION
TYPE DESCRIPTION IMPACT DESCRIPTION IMPACT HORIZON LIKELIHOOD STRATEGY
Use of more
RESOURCE efficient Opportunity to decrease operating costs through Long
High Very Likely 10, 11
EFFICIENCY modes of the use of more fuel- efficient aircraft. Term
Transportation
30
Risk Management and Opportunity
Realization Strategy Legend
We are proactively lobbying for incentives and tax credits to accelerate SAF uptake, and we continue to evaluate how offsets and other
1
investments will factor into our emissions reduction strategy.
2 We have reported on SASB metrics since 2020, and we incorporated TCFD-aligned reporting in 2022.
3 We monitor regulatory developments, including those related to ESG, and integrate these into our processes and plans.
We are currently exploring SAF offtake agreements with providers in continental U.S. markets and working toward developing SAF supply
4 in the Hawai‘i market. In 2022, we established a partnership with Par Hawai‘i to explore production of SAF in Hawai‘i and in March 2023, we
entered into an agreement with Gevo to purchase 10 million gallons of SAF annually over five years starting in 2029.
We are engaging with SAF producers and airframe and aircraft engine manufacturers to evaluate new low-carbon technologies. In 2022, we
5
made a strategic investment in REGENT, a company that is developing a battery-electric powered seaglider.
6 We continue to enhance our Travel Pono program introduced in 2020 to encourage responsible tourism.
We are committed to reducing our carbon emissions in line with industry goals and continue to be transparent about our impact and
7
progress. In 2023, we established interim targets to support our 2050 net zero carbon emissions goal.
We perform preparedness sessions and planning exercises with operational leaders to mitigate the impacts of physical risks. Additionally,
8
we can reposition our fleet to mitigate impacts of extreme weather and consider options for relocating or re-routing flights.
We coordinate closely with the State of Hawai‘i Department of Transportation on our respective sustainability initiatives to ensure a
9
collaborative approach to addressing potential impacts of climate change on airport infrastructure and possible mitigation measures.
Ongoing fleet investment is a critical component of our carbon reduction goal, and we expect to begin operating our fuel-efficient Boeing
10
787-9 fleet starting in 2024.
We provide guests with the ability to offset their emissions when flying with us, and we continue to make our products more sustainable,
12 including via our commitment to replace 50% of single-use plastics from in-flight service items with sustainable alternatives by 2025, and
eliminate single-use plastics altogether by 2029.
31
Our commitment
to a more sustainable
in-flight product:
Eliminate Single-Use Plastics Onboard by 2029
Preventing Waste
and Sourcing Local
Plastic pollution is a significant threat to our environment, especially our marine life and its benefit
to the health of the ecosystem of the Hawaiian Islands. In 2022, we committed to replacing 50% of
single-use plastics from in-flight service items with sustainable alternatives by 2025 and eliminating
single-use plastics completely by 2029.
As of December 2022, our total consumption of single-use plastics is higher than our December 2021
baseline due to an increase in volume of flying. However, when viewed on an individual flight basis,
our transpacific flights are carrying about 7% less single-use plastic per flight. We are committed to
achieving our goals and are working with our vendors to identify potential sustainable alternatives.
2023 P R OT E C T I N G O U R E N V I R O N M E N T 33
Our ongoing company-wide waste reduction
efforts include recycling of cans, bottles and
menus, and initiatives to source compostable
products for our in-flight service items, such as
stir sticks and cutlery, as well as amenity kits
featuring paper packaging.
In 2022, we partnered with Mananalu to start phasing out plastic water bottles from our cabins
and replace them with recyclable aluminum bottles. Over the first nine months of our Mananalu
partnership, we diverted almost 360,000 plastic bottles from our cabins.
HAWAIIAN AIRLINES
PARTNERS WITH
JASON MOMOA’S WATER
COMPANY MANANALU,
FEATURING INFINITELY
RECYCLABLE
ALUMINUM BOTTLES
C L I C K H E R E TO
LEARN MORE
34
Food sustainability is another important issue for us and our home state, and we actively support
local food production. Local sourcing of food both supports Hawaii’s economy and reduces
greenhouse gas emissions associated with the shipping of products. In 2022, we committed
to increasing our share of spend from local sources on in-flight food and beverage products at
our Hawai‘i hubs from 29% in 2021, to 40% by 2025. We include Hawai‘i-made products from
companies such as Kona Chips, Honolulu Cookie Company and LaTour Bakehouse, among others,
in our in-flight offerings. In 2021, we expanded our partnership with local business accelerator
Mana Up to support and promote up-and-coming entrepreneurs from across the state, including
chocolate makers, coffee growers and honey producers.
As of December 2022, our share of spend from local sources increased to approximately 32% as we
replaced several liquor items with locally grown and distilled Kohana Rum, and we are also flying
more international routes where we offer a higher share of locally sourced items.
We’ve also committed to providing monthly volunteer service days at Kāko‘o ‘Ōiwi through
our Team Kokua program.
Last year we committed to source 100% cage-free eggs (shell, liquid, and egg products) for our
onboard catering on all flights departing from Hawai‘i by 2025, and on all domestic flights by 2027.
As of December 2022, we reached both goals and have transitioned to 100% cage-free eggs on all
domestic flights.
P R OT E C T I N G O U R E N V I R O N M E N T 37
Caring for Our People
and Community
2023 H AWA I I A N A I R L I N E S A N N UA L S U S TA I N A B I L I T Y R E P O R T 39
2022 was a banner recruitment year for
Hawaiian Airlines as we welcomed 1,371 new
teammates – representing approximately 20%
of our 7,108 workforce at year’s end. As we grow
back our business, we were thrilled to return
to in-person career outreach by participating
in over 80 events and conferences and
visiting college campuses in Hawai‘i and the
Continental U.S. to recruit talented people.
Last year, we also entered into two new, separate five-year labor contracts that recognize the
contributions of our aircraft and ground service equipment mechanics, inspectors, aircraft
appearance personnel, as well as more than 1,500 employees in cargo, central reservations control,
crew scheduling, guest services, ramp, purchasing, records, and supply; among others within
the International Association of Machinists and Aerospace Workers (IAM) Districts 141 and 142,
and Dispatch teammates within the Transport Workers Union (TWU) Local 592. This March, we
entered into a new four-year contract with the Air Line Pilots Association that provides significant
compensation increases for our 1,000-plus pilots. We are pleased to report that none of our labor
agreements are amendable as of the date of this report.
40
Diversity, Inclusion
and Belonging
Our commitment to diversity, inclusion and
belonging remains an important driver of our
recruitment and retention strategy.
We continue to expand our searches for qualified veterans, women and other historically
underrepresented groups. In 2022, we were proud to once again lead major U.S. airlines
in having the highest percentage of women pilots at more than 9.5%, well above the
5.8% 2021 global average.
WORKFORCE
7% IDENTIFY AS VETERANS
D I R E C TO R A N D A B OV E
>50% OF OUR DIRECTOR-LEVEL AND ABOVE EMPLOYEES IDENTIFY AS RACIALLY OR ETHNICALLY DIVERSE
H O N O LU LU C O M M U N I T Y C O L L E G E A E R O N AU T I C S M A I N T E N A N C E
T E C H N O LO GY P R O G R A M
We formed an innovative program with Honolulu Community College to graduate more local
students as highly skilled aviation maintenance technicians, a field experiencing soaring
demand. Starting in the fall 2022 semester, Hawaiian Airlines mechanics began teaching classes
for the school’s Aeronautics Maintenance Program – an arrangement expected to help the campus
double enrollment by the 2023 fall semester.
42
U N I V E R S I T Y O F H AWA I ‘ I L E A P - S TA R T P R O G R A M
A student poses in front
of an aircraft used in the We are partnering with the University of Hawai‘i (UH) to develop a workforce readiness program
HonCC’s Aeronautics
for recent or approaching graduates in the high-demand fields of information technology and
Maintenance Technology
(AERO) program cybersecurity through part-time internships. In October 2022, we hosted a virtual informational
session with UH to share exciting IT opportunities at Hawaiian and selected four students to
participate in the Leap-Start program. Students attended an IT bootcamp hosted by UH prior to
beginning work with us in March 2023.
A R I ZO N A S TAT E U N I V E R S I T Y S C H O L A R S H I P
We are encouraging Hawai‘i students to pursue careers in information technology with the
establishment of a $100,000 scholarship fund in partnership with Arizona State University’s W. P.
Carey School of Business. The Hawaiian Airlines New Horizons Scholarship will provide $10,000
awards each year for up to two undergraduate students enrolling in the school’s Information
Systems program, starting in the fall 2023 semester.
E M B RY R I D D L E A E R O N AU T I C A L U N I V E R S I T Y
We are excited to have joined the Aviation Maintenance Technology SkillBridge program with
Embry-Riddle Aeronautical University and look forward to the opportunity to have veterans
and military spouses who have obtained their airframe and powerplant certification join our
maintenance team. Service members who live on the island of O‘ahu can learn more about the
program in bi-weekly informational briefings at Schofield Barracks.
In 2022, 250 of our employees signed up to become Hawaiian Airlines Career Ambassadors.
G I R L S I N AV I AT I O N DAY
In September 2022, our Wāhine in Aviation Employee Resource Group (ERG) and the Women in
Aviation International Aloha Chapter hosted 40 girls ages 12 to 17 and provided a glimpse into
careers at Hawaiian. Sixty employees from across our company volunteered at this event, where the
group experienced our flight simulators, and learned about various roles in technical operations as
well as emergency procedures.
O B A P AC E AC A D E M Y
In July, we partnered with the Organization of Black Aerospace Professionals (OBAP) to host 16
middle-to-high-school students enrolled in the nonprofit’s annual Aerospace Center Education
(ACE) Academy. Over 40 employees and OBAP members volunteered to give students a tour of our
operations, including our pilot and flight attendant training facilities.
C H I L D R E N ’S D I S C OV E RY C E N T E R S T E M C A M P W I T H WA H I N E
( W O M E N ) I N AV I AT I O N E R G
In August, our Wāhine in Aviation ERG was invited back to support the Children’s Discovery Center
in Honolulu with a science presentation and hands-on activity with students enrolled in its summer
STEM Camp. The children learned about basic physics principles that allow an aircraft to speed up,
slow down and change direction, as well as the important role of gravity. Our aviation display at
the Children’s Discovery Center has fired the imaginations of children since our maintenance and
engineering team redesigned and renovated the exhibit in 2013.
44
HAWAIIAN INSPIRES
LOCAL YOUTH TO DREAM
BIG AT ANNUAL GIRLS IN
AAVIATION DAY
C L I C K H E R E TO
LEARN MORE
A N E N H A N C E D O N B OA R D I N G E X P E R I E N C E
We welcome new employees with a two-day, interactive, in-person “Horizons” orientation program
that demonstrates mālama (care) and a commitment to employees’ personal and professional
backgrounds and growth. We facilitate opportunities for networking and lōkahi (collaboration), and
provide the essential tools and resources for success and po‘okela (excellence) at Hawaiian Airlines.
R E I N V I G O R AT E D B U D DY P R O G R A M
In March 2023, we hosted our first in-person Buddy Program social since 2020. Launched in 2016,
the Buddy Program is a learning and support partnership for new non-contract employees as they
acclimate to working at Hawaiian Airlines. It has created a forum for knowledge sharing, guidance
and support of what it’s like to live and work in Hawai‘i.
46
E M P LOY E E R E S O U R C E G R O U P S
We embrace our work ‘ohana’s (family) diversity and interests by supporting the following
employee resource groups: ASCEND (A Support Community for Employees Nurturing Diverse
Abilities); Ha‘aheo (LGBTQA+); Network for Black Employees and Allies (NBEA); Sustainability;
Hawaiian Airlines Veterans Employee Network (HAVEN); and Wāhine (Women) in Aviation. We have
established and supported these resource groups – which have a combined membership of over
500 employees – to give them a voice in implementing our company’s vision on diversity and to
inform the development of our roadmap and goals.
The Hawaiian Airlines Network for Black Employees and Allies ERG led a company-wide celebration for
Juneteenth by working with community leaders to host a series of impactful events focused on
educating employees and honoring the historical and cultural significance of June 19, 1865.
C L I C K H E R E TO
LEARN MORE
48
N U R T U R I N G H AWA I I ’S C U LT U R E
Our employees are proud to share Hawaii’s culture with our guests and each other. We offer
employee-led hula and ‘ōlelo Hawai‘i (Hawaiian language) classes, recognize those who speak the
language and encourage them to use it with our guests and colleagues.
GENDER-NEUTRAL UNIFORMS
We want our teammates to feel comfortable coming to work as their authentic selves. Last August,
our uniform committee of unionized and non-unionized employees representing every workgroup
joined members of our Ha’aheo ERG to help us remove gender-based distinctions in our uniform
pieces and in our grooming standards.
N U R S I N G M OT H E R S M I L K S H I P P I N G R E I M B U R S E M E N T
In 2022, the Wāhine in Aviation ERG proposed and secured a reimbursement option for our
teammates who are nursing mothers and need to travel for work. Reimbursement for the cost to ship
milk back to their children became an approved expense. This policy takes Hawaiian a step forward
in ensuring our mothers are supported while pursuing and advancing their careers at Hawaiian.
In early 2022, our Board of Directors adopted our Human Rights Policy Statement to formalize
our commitment to human rights and heighten awareness of these issues among our employees.
Human trafficking remains a significant issue for our industry globally and we provide our guest-
facing employees initial and recurrent training on awareness and response strategies.
50
Total Impact of Hawaiian Airlines in Hawai‘i
MOLOKA‘I, MAUI,
STATEWIDE O‘AHU LĀNA‘I & KAHO‘OLAWE KAUA‘I & NI‘IHAU HAWAI‘I
INDUSTRY OUTPUT
($ BILLIONS) $10.2 B $5.6 $2.3 $0.9 $1.4
TAX IMPACT
($ MILLIONS) $607.5 M $388.2 $103.5 $44.7 $71.1
INDUSTRY OUTPUT
MULTIPLIER x1.99 x2.30 x1.70 x1.73 x1.73
Note: Secondary effects in this assessment are summarized throughout as multipliers. For example, $1 of direct activity produces a total effect that is 2.0 times greater
than the initial spending. So, every dollar of direct industry output generated by Hawaiian Airlines translates to roughly $2.00 returned to the economy of Hawai‘i. Job and
industry output multipliers represent, for every job or dollar in output that Hawaiian Airlines directly supports, the subsequent jobs and industry activity that are supported
across the islands. Source: ICF analysis
51
Stakeholder Feedback
More than 90% of our employees are Hawai‘i-based, live in all of the state’s non-military zip
codes and are a part of the fabric of the community. Our employees serve on school committees,
neighborhood associations and nonprofit boards. Others volunteer at community and cultural
events, coach youth sports and are active members of their religious or spiritual congregations.
L I S T E N I N G TO O U R G U E S T S
Our Voice of the Customer program surveys every direct booking guest, receiving about 85,000
survey responses each year, and results are analyzed and shared weekly with operational leaders.
Quarterly reviews are held with our CEO and senior leaders to review guest satisfaction and identify
areas for improvement and investment. Our Consumer Affairs team corresponds with guests about
issues after their travel, and regularly reports their feedback to our management team to help
improve our service.
E N G AG I N G O U R S H A R E H O L D E R S
We engage with our shareholders formally on a quarterly basis to provide business updates. We
also proactively reach out to our investors through a variety of platforms including conferences,
roadshows, news announcements and individual meetings.
52
HANDS IN THE SAND,
HAWAIIAN AIRLINES JOINS
THE NEW ZEALAND SEA
CLEANERS IN CARING
FOR O‘AHU’S NORTHERN
COASTLINE
In commemorating
International Coastal Cleanup
Day (Sept. 17, 2022), the Sea
Cleaners youth ambassadors
gathered at the James Campbell
National Wildlife Refuge, an
oceanside system of protected
lands, marshes and waters
managed by the U.S. Fish and
Wildlife Service. The group
worked alongside 14 Hawaiian
Airlines Team Kōkua volunteers
and representatives from
Hawai‘i Tourism Oceania, the
O‘ahu Visitors Bureau and the
Australian Consulate-General.
C L I C K H E R E TO
LEARN MORE
C L I C K H E R E TO
LEARN MORE
54
We continued to sponsor a wide range of community organizations throughout our route network
and in Hawai‘i, including: American Heart Association, Bishop Museum, Council for Native Hawaiian
Advancement, Eddie Aikau Foundation, Hawai‘i Agricultural Foundation, Hawai‘i Agricultural
and Culinary Alliance, Hawai‘i Children’s Discovery Center, Hawai‘i Food Industry Association,
Hawai‘i High School Athletics Association, Hawai‘i International Film Festival, Hawai‘i LGBT Legacy
Foundation, Hawai‘i Opera Theater, Honolulu Museum of Art, Kāhuli Leo Le‘a, Ke Kula ‘o Samuel M.
Kamakau (Kai Loa Inc.), Mana Up, Maui Chamber of Commerce, POW!WOW! Hawai‘i, Shidler School
of Business at the University of Hawai‘i at Mānoa, Special Olympics Hawai‘i, the Maui Farm, and the
University of Hawai‘i Athletics.
In 2022, we strengthened our support for the Ko‘olau Mountain Watershed Partnership to better
support its efforts to repopulate native forests in O‘ahu’s Ko‘olau Mountain Range.
For a third consecutive year, we encouraged 6,447 people worldwide to holoholo (go out) and
prioritize their wellness during the annual Holoholo Challenge. The Hawai‘i inspired fitness
experience in October invited participants to track their progress with virtual routes inspired
by scenic roads that wind through Hawai‘i Island. More than $33,000 was raised for local
nonprofit Friends of Hakalau Forest National Wildlife Refuge, which protects a 32,830-acre parcel on
the Big Island that’s home to 29 critically endangered species, including seven birds, one insect, one
mammal and 20 plants found nowhere else in the world.
START STRETCHING!
C L I C K H E R E TO
LEARN MORE
55
Leadership
and Governance
2023 H AWA I I A N A I R L I N E S A N N UA L S U S TA I N A B I L I T Y R E P O R T 57
The Hawaiian values of Mālama (care), Ho‘okipa
(hospitality), Lōkahi (collaboration) and Po‘okela
(excellence) guide how we lead and govern at all
levels of our company. Our Board of Directors
and our management team are deeply engaged in
Environmental, Social and Governance (ESG)
initiatives and climate-related issues.
B OA R D O F D I R E C TO R S
Our Board is directly involved in evaluating strategies, programs, policies and communications
related to ESG. The Board consists of current and retired senior business leaders who have a wide
range of knowledge and experience in governance matters, including those concerning climate
and sustainability. Additionally, all Board members are typically present for each Board committee
meeting, increasing Board awareness of climate and other ESG-related topics.
The Board holds regularly scheduled quarterly meetings. ESG and climate-related issues, such
as key priorities, strategies, updates and other related matters, are discussed with the Board on
a regular cadence. Additionally, the Board is kept apprised of material regulatory developments,
including those related to ESG.
B OA R D C O M M I T T E E S
While the Board oversees ESG risks, strategy and performance, the Governance and
Nominating Committee of the Board has responsibility for reviewing and reporting findings
and recommendations to the Board regarding the company’s ESG strategy and for periodically
reviewing our policies and public disclosures related to ESG, as stated in its charter. Our other
Board Committees also regularly address ESG issues relevant to their respective oversight areas.
For example, the Board Safety Committee has oversight of Safety Risk Management processes and
governance, including short-term climate-related physical risks (e.g. extreme weather events).
58
Management’s Role
I N A S S E S S I N G A N D M A N AG I N G E S G R I S K S A N D O P P O R T U N I T I E S
D E S I G N AT E D E X E C U T I V E S
Executive sponsors – the Chief Legal Officer and Chief Marketing and Communications Officer
– liaise between management and the Board, oversee climate-related efforts throughout the
organization, and present ESG updates to our Board at each quarterly Board meeting.
In 2019, we formed an ESG Working Group consisting of representatives from various departments,
including Accounting and Finance, Brand, Community Relations, Facilities, Flight Operations,
Government Affairs, Human Resources, Investor Relations, Law, Marketing, Safety, and Supply Chain
Management, as well as external legal counsel. The ESG Working Group meets regularly to gather
information related to the company’s various ESG efforts and reports to and receives feedback
from our executive sponsors, who report to and receive input from the Board. In 2021, we created a
Managing Director-level Sustainability role with responsibility for sustainability initiatives including
completion of a yearly climate risk assessment that aligns with the TCFD framework and program
oversight for key sustainability initiatives. We review with our Board’s Governance and Nominating
Committee the climate-related risks and opportunities identified through the TCFD assessment.
L E A D E R S H I P A N D G OV E R N A N C E 59
Risk Management Integration
C O R P O R AT E AU D I T A N D E N T E R P R I S E R I S K M A N AG E M E N T ( E R M )
Our Audit and Finance Committee tasks our Corporate Audit team with conducting an annual
enterprise risk assessment, which includes identification and assessment of relevant risks and
opportunities across the business.
S A F E T Y R I S K M A N AG E M E N T ( S R M )
We regularly monitor and assess near-term extreme weather risks, including climate change-driven
events, using our Safety Risk Management (SRM) process. More information on our Safety Risk
Management (SRM) process can be found here.
Our Emergency Response and Business Continuity teams perform annual drills to practice
responding to material physical risks such as extreme weather events. We use a standard risk matrix
to assess the likelihood and severity of risks. We also conduct separate business continuity tabletop
exercises periodically through the Safety Risk Management process so that departments throughout
the company practice and refine their plans.
60
This diagram shows the ways in which
various functions within our organization
work to support the company’s ESG efforts.
Board Committees
The Governance and Nominating Committee reviews ESG strategy and
disclosures, and reports findings and recommendations to the Board, as
stated in its charter. Other Board committees regularly address ESG issues
relevant to their respective oversight areas, including climate–related issues.
P R E S E N T AT E AC H Q UA R T E R LY B OA R D M E E T I N G ( 4 T I M E S / Y E A R )
Designated Executives
CHIEF LEGAL OFFICER , CHIEF MARKETING AND COMMUNICATIONS OFFICER
The executive sponsors liaise between management and the Board, oversee climate related efforts
throughout the organization, and present ESG efforts at each quarterly Board meeting.
REGULAR REPORTS
Management Committees
ESG WORKING GROUP
The ESG working group gathers information on ESG efforts and includes representatives from throughout the company,
including a Managing Director of Sustainability Initiatives.
61
Information Security
Hawaiian Airlines understands the importance of protecting both our corporate assets and the
personal information of our customers and employees, and strives to comply with applicable laws,
regulations, policies, and contractual and other legal obligations relating to privacy, data protection
and data security. We have adopted a risk-based approach to cybersecurity that is based upon
the National Institute of Standards and Technology (“NIST”) 800-series security standards. Our
information security program is evaluated annually using the NIST Cybersecurity Framework, and
we conduct ongoing vulnerability scanning, independent third-party penetration tests, and risk
assessments of our technology infrastructure. We also conduct enterprise-wide cybersecurity training
for our personnel and regularly test their preparedness using real world scenarios.
Our team of certified information security professionals operates our information security program
and reports to our Chief Information Officer. Members of our executive management team receive
bimonthly updates on our information security. Our Board oversees our cybersecurity risks and
receives regular updates regarding our information security program and cybersecurity issues
affecting our airline and the aviation industry.
We collaborate with our peers on cybersecurity matters and stay abreast of cybersecurity issues
affecting the aviation industry as a contributing member to the Aviation Information Sharing and
Analysis Center (A-ISAC) and the Airlines for America Cybersecurity Council.
62
Public Policy
and Political Advocacy
Hawaiian Airlines is subject to extensive regulation at the federal, state and local levels, and changes
in legislation and governmental policy can significantly affect our business. We seek to inform
lawmakers, the public and various stakeholders about issues that are important to our business and
that impact our operations, workforce and the communities we serve. We support public policies
that: enhance the safety and security of our guests, employees, equipment and facilities; provide
federal and state incentives to support reducing environmental impacts; promote efficient ground
and air operations; and limit burdensome and unnecessary legislative and regulatory measures that
threaten Hawaiian’s ability to grow and effectively compete.
We conduct our political activity in an ethical manner and report our political activities as required
by applicable law. Our Chief Legal Officer oversees our Government Affairs group and political
activity, including HAPAC, and our management team periodically reviews Hawaiian’s public policy
priorities and political activity with our Board. Our Code of Ethics sets forth our policy on political
contributions and related activities. The Audit and Finance Committee of our Board reviews and
oversees the administration of our Code of Ethics. Our stated policies provide that no corporate
funds, merchandise or service may be paid or furnished, directly or indirectly, to a political party,
committee, organization, political candidate or incumbent, government official or government
employee, except if legally permissible and approved in advance in writing by the Chief Legal Officer.
We generally do not use corporate funds to contribute to candidates, political parties, political action
committees, or for independent political expenditures. In 2022, political donations were made using
corporate funds in the state of California, below the level that would be required to be reported
under applicable law.
We established the HAPAC to provide eligible team members an opportunity to participate in the
political process. Contributions to the HAPAC by members of our Board and by company officers
are completely voluntary and have no bearing on employment. HAPAC makes contributions on
a bipartisan basis to support our public policy goals, and without regard to individual officers’ or
directors’ political preferences. Factors considered in making contributions include leadership
positions, committee assignments and representation of geographies served on our route network.
HAPAC’s contributions are not an endorsement of a candidate’s overall political views. We report
HAPAC donations to the Federal Election Commission (the “FEC”), and current and historic reports
may be viewed at the FEC website.
L E A D E R S H I P A N D G OV E R N A N C E 63
We belong to trade and industry associations and chambers of commerce. While our views may at
times differ from their positions, participating in these organizations helps us gain insight into issues
affecting the airline, travel and hospitality industries, share operational knowledge and technical
expertise, and advocate on a collective basis. Senior leaders approve and oversee our participation
in trade associations.
Contributions to state and local candidates are reported as required by law. Contributions to Hawai‘i
state and local candidates are reported to the Hawai‘i Campaign Spending Commission (the “HCSC”)
and may be viewed at the HCSC website. Our lobbying activities are conducted in compliance with
applicable law. We submit reports on our federal lobbying activities on the U.S. House and Senate
websites, which may be viewed at https://disclosurespreview.house.gov by searching for ‘Hawaiian
Airlines, Inc.’ under Registrant Name. We also file lobbying activity reports with state and local
agencies, as required by law. We submit reports on our Hawai‘i state lobbying activities on the Hawai‘i
State Ethics Commission website annually. Our lobbying activities and HAPAC’s contributions are
regularly reviewed by outside counsel for compliance with applicable laws.
Our primary trade association memberships in 2022, together with the amount of our 2022 dues
attributed to lobbying activities by each organization, are listed below:
A I R L I N E S F O R A M E R I C A : $254,400
I N T E R N AT I O N A L A I R T R A N S P O R T A S S O C I AT I O N : $2,744
C H A M B E R O F C O M M E R C E H AWA I ‘ I : $696
We contribute dues to our trade associations with the understanding that they will not be used for
independent campaign expenditures or contributions to federal, state or local candidates or political
party committees.
64
A Culture of Safety
( T R - A L -540 A .1)
M A N AG I N G S A F E T Y
We have an unwavering commitment to safety, which starts at the top with our president
and CEO, who is the executive directly accountable for safety.
The Safety Committee of the Board oversees our commitment to maintain and promote a culture of
safety, adopt best practices to produce industry leading safety performance, and to ensure our highest
priority is the safety and security of our guests and employees. Our Safety department coordinates
safety programs across our operations and monitors safety performance and compliance.
Employees at every level – from pilots, flight attendants, dispatchers and maintenance technicians
to ground support employees at airports and offices – are responsible for identifying hazards,
promoting safety awareness, complying with regulations and adhering to published procedures. We
hold a systemwide briefing each morning to review any operational safety matters, and employees
across the organization are encouraged to report potential concerns through a confidential system
without fear of reprisal.
66
H AWA I I A N A I R L I N E S S A F E T Y M A N AG E M E N T SYS T E M ( S M S )
POLICY
Our Safety Policy, which can be found here, is the foundation of our SMS. It is
broadly communicated across the company to promote employee awareness
of our safety culture and objectives and the methods and organizational
structures that make it possible to maintain an effective SMS.
STRUCTURE
TRAINING
We provide crewmembers and operational leaders with the training and tools to
maintain the SMS within their area of responsibility. This includes training in change
management, safety risk management, risk analysis and acceptance procedures,
and specialized SMS leadership training for members of each SRB.
L E A D E R S H I P A N D G OV E R N A N C E 67
Safety Risk Management (SRM)
SRM is our formal process for assessing risks, including the actions required to mitigate those risks.
We use specialized risk analysis tools to evaluate the probability and severity of adverse safety
outcomes and determine the resources needed to prevent or mitigate them.
Each SRM risk assessment identifies a crew leader or committee to either accept or direct actions
to mitigate the risk. Our SRM process also includes procedures for communicating changes
throughout the company, notifying key stakeholders and technical subject-matter experts, and
identifying hazards related to those changes. Identified hazards are addressed through the Quality
Assurance program described below.
Safety Programs:
F L I G H T O P E R AT I O N A L Q UA L I T Y A S S U R A N C E ( F O QA )
FOQA is a flight data analysis program that monitors flight and aircraft trends, and screens for
significant events requiring further analysis.
S A F E T Y H OT L I N E
Our Safety department maintains a hotline staffed 24 hours per day, seven days a week. It is available
to all employees for reporting safety or operational issues and to receive assistance.
Q UA L I T Y A S S U R A N C E
Our internal evaluation program provides continuous oversight of safety regulations and best
practices and reviews hazards identified through our SMS. Quality Assurance reports are made to
our Safety leadership and to executives via the ISRB as appropriate.
AV I AT I O N S A F E T Y AC T I O N P R O G R A M ( A S A P )
ASAP encourages voluntary reporting of safety issues and events by pilots, aircraft technicians
and dispatchers. Employees who submit reports accepted into ASAP are protected from FAA
Enforcement Action.
68
I N T E R N A L AU D I T S BY O P E R AT I O N A L D E PA R T M E N T S
We maintain several internal audit programs that provide oversight of internal procedural
compliance in various departments including flight operations, airport operations, dispatch,
maintenance and engineering, in-flight, and cargo. These include the Internal Evaluation Program
(IEP), Continual Airworthiness and Surveillance System (CASS) for Technical Operations and a Line
Check program for Flight Operations.
E X T E R N A L AU D I T S
Our SMS, and the airline, are audited externally every two years by the International Air
Transportation Association (IATA) Operational Safety Audit (IOSA) program as well as by the U.S.
Department of Defense. Additionally, we participate in annual Codeshare Partner Airline Audits, and
are routinely audited through the FAA’s Certificate Management Office.
Our Emergency Response and Business Continuity (ERBC) teams maintain the company’s Emergency
Operations Plan and continuously assess the company’s overall emergency response readiness. We
conduct corporate and department level exercises to ensure our people, technology and processes are
capable of responding to aviation, man-made and natural disaster events. Our ERBC teams work with
individual departments to develop their business continuity plans, ensuring we are ready to recover
from the entire range of possible disruptions, including man-made and weather-related events, with
minimal impact to our operations and our guests. Our goal is to ensure that we are prepared to take
care of our employees and our guests efficiently and compassionately in any situation.
L E A D E R S H I P A N D G OV E R N A N C E 69
Occupational Health and Safety
We closely monitor our safety performance through a variety of metrics including the Occupational Safety and Health Administration
(OSHA) Recordable Injury Incidence Rate. Direct engagement with our 24/7 Clinical Nurse Consultation group, our insurance
provider, and weekly departmental oversight enables us to quickly learn the root causes of injury and remediate future incidents.
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Moving Forward
Our ESG commitment runs deep and is core to our values. We will continue to:
Table 1
S U S TA I N A B I L I T Y D I S C LO S U R E TO P I C S A N D AC C O U N T I N G M E T R I C S
Gross global Scope 1 emissions Quantitative Metric tons (t) CO2-e TR-AL-110a.1
(1) Number of work stoppages and (2) total days idle Quantitative Number, Days Idle TR-AL-310a.2
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TA S K F O R C E O N C L I M AT E - R E L AT E D F I N A N C I A L D I S C LO S U R E S ( TC F D ) I N D E X
GOVERNANCE
Describe management’s role in assessing and managing climate-related Management’s Role in Assessing and Managing
risks and opportunities. ESG Risks and Opportunities
Describe the climate-related risks and opportunities the organization has Top Identified Climate-Related Risks and
identified over the short, medium, and long term. Opportunities
RISK Describe the organization’s processes for managing climate-related risks. Risk Mitigation
MANAGEMENT
METRICS
Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas Scope 1 GHG emissions;
AND TARGETS
(GHG) emissions, and the related risks. Scope 2 GHG emissions
APPENDIX 75
Labor Practices
( T R - A L -310 A .1)
The percentage of Hawaiian Airlines employees under collective bargaining agreements for the past four years is as follows:
( T R - A L -310 A .2)
Hawaiian Airlines has not had any work stoppages, strikes or idle days in its 94-year history.
Competitive Behavior
( T R - A L -520 A .1)
Hawaiian Airlines had no anticompetitive behavior claims or lawsuits in the reporting period (2022).
In 2022, Hawaiian Airlines had one incident (Airbus A330 pitch trim anomaly) resulting in no injuries or aircraft damage,
and one accident (Airbus A330 severe turbulence) resulting in six (6) serious injuries, as defined according to Annex 13 of the
International Civil Aviation Organization (ICAO) Convention on International Civil Aviation.
G OV E R N M E N TA L E N F O R C E M E N T AC T I O N S O F AV I AT I O N S A F E T Y R E G U L AT I O N S ( T R - A L -540 A .3)
Hawaiian Airlines had no material government enforcement actions in 2022 from the Federal Aviation Administration (FAA) or the
European Union Aviation Safety Agency (EASA), or equivalent national authority relating to aviation safety events, which cover
categories that include but are not limited to aircraft maintenance, transportation of hazardous materials, drug testing, records and
reports, training and noise.
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C O R P O R AT E K U L E A N A / 2023 A N N UA L S U S TA I N A B I L I T Y R E P O R T