Hawaiian — Merger or Acquisition (December 2023)
27 slides from Hawaiian's merger presentation, Dec 4, 2023
Slide 1: Investor Presentation December 3, 2023
INVESTOR PRESENTATION DECEMBER 3, 2023 =)Va)
Slide 2: Safe Harbor for Forward-Looking Statements
SAFE HARBOR FOR FORWARD-LOOKING SHE LS a timing of the losing of the pending season (the “Transaction”) ork Hawaiian ookit (0 the safe harbor protection provided by the federal securities | statements relating to the expected | Holdings ne. (Hawalian Holdings") by Alaska Air Camp Inc. sae Air Group”
Slide 3: Additional Disclaimers
ADDITIONAL DISCLAIMERS Important Additional Information and Where to Find It proxies to approve the Transaction. Danie! W. Akins, Wendy A. Beck, Earl E. Fry, Lawrence S. Hershfield, C. Jayne Hrdlicka, Peter R. Ingram, Michael E. McNamara, Crystal K. Rose, Mark D. Schneider, Craig E. Vosburg, Duane E
Slide 4: Today's Presenters
TODAY'S PRESENTERS BEN MINICUCCI SHANE TACKETT PETER INGRAM President & Chief Executive Officer ee cutive Vice President, President & Chief Executive Officer Alaska Airlines 8 = = ~—_—*FFinance & Chief Financial Officer Hawaiian Airlines
Slide 5: Agenda
AGENDA TRANSACTION STRATEGIC VALUE COMMITMENT SUMMARY RATIONALE CREATION TO HAWAI'I
Slide 6: Combining Two Carriers with Strong Histories, Cultures and Values
COMBINING TWO CARRIERS WITH STRONG HISTORIES, CULTURES AND VALUES 90+ year legacies of service, including to air travel dependent communities customer service, hospitality, and best-in-class operations Rooted in local communities and local cultures |: cere eens Aligned values of care, excellence, an
Slide 7: Transaction Summary
TRANSACTION SUMMARY TRANSACTION OVERVIEW | FINANCIAL TERMS | CLOSING CONSIDERATIONS = $18 per share all-cash paid to Hawaiian = Customary closing conditions, including regulatory . ion equity clearance and Hawaiian shareholder approval value of $1.0B m Hawaiian shareholder vote expected in 1Q 2024 A
Slide 8: Transaction Summary: Compelling Transaction Rationale
TRANSACTION SUMMARY COMPELLING TRANSACTION RATIONALE ACCELERATES EXISTING STRATEGY AND DRIVES VALUE CREATION BETTER, BROADER | LEADERSHIP IN ENHANCED ROBUST FINANCIAL | IMPROVED SHARED NETWORK PREMIUM MARKET | MARGIN PROFILE | RETURNS CONSUMER CHOICE | VALUES Adds Becomes leader in pddisonicg . Deli
Slide 9: Strategic Rationale
NEED DESIGN FILES TO CHANGE COLOR
Slide 10: Enhances West Coast Network with Another Hub in a Top-25 U.S. Market
STRATEGIC RATIONALE ENHANCES OU ANOTHER HUB SEA is Seat Share: 58% R WEST COAST NETWORK WITH IN A TOP-25 U.S. MARKET al Market Rank ®: #8 Market Size ®: $7B+
Slide 11: Adds a Leading Position in the Highly Attractive Hawai'i Market
ADDS A LEADING POSITION IN THE STRATEGIC RATIONALE HIGHLY ATTRACTIVE HAWAI‘! MARKET TOP GLOBAL LEISURE DESTINATION with $8B+ annual passenger revenue “) > 50+% HAWAI‘T MARKET SHARE enables attractive hub economics STRONG MIX OF INTERNATIONAL TRAVELERS 9M+ annual visitors by air and most popular outb
Slide 12: A A Al l las as aska + ka + ka + H H
A A Al l las as aska + ka + ka + H H Haw aw awai ai aii i ian an an UA WN AA DL AS AS+ +H HA A UA WN DL AA
Slide 13: Creates Stronger Competitor to Network Carriers with Award-Winning Service
STRATEGIC RATIONALE CREATES STRONGER COMPETITOR TO NETWORK CARRIERS WITH AWARD-WINNING SERVICE HIGH-VALUE, LOW-FARE BRAND HAWAIIAN 9 TRAVEL+ i LONG-HAUL PREMIUM PRODUCT LEISURE SU trip: ONEWORLD © mT LIES BEST WAY TO TRAVEL THE BEST DOMESTIC EoITOR'S CHOICE AWARD — CONNECTING THE HAWAIIAN ISLANDS “M
Slide 14: Alaska + Hawaiian By The Numbers
STRATEGIC RATIONALE ALASKA + HAWAIIAN BY THE NUMBERS Maska. HAWAIIAN AIRLINES. } REVENUE $10.4B $2.8B $13.1B (+27%) 5B fe 2019 ADJ. EBITDAR'” $1.98 $0.68 Bessy ASMS 2 65.8B 20.08 85.8B (+30%) DAILY DEPARTURES ~1,100 + ~240 = ~1,340 (+22%) PASSENGERS 2) 43.8M 10.9M 54.7M (+25%) ACTIVE LOVALTY MEMBERS
Slide 15: Acquiring a Carrier with a Historical Track Record of Profitability
ACQUIRING ACARRIER WITH AHISTORICALTRACK RECORD OF PROFITABILITY AT AN ATTRACTIVE VALUATION ADDS os MAL BASE WITH PROFIT UPSIDE... .-AT ATTRACTIVE TRANSACTION uals Hawaiian Historical Revenue and Adjusted EBITDAR © Margin action Enterprise Value / Last Twelve Months Reve $2.8 LTM 9/30/2023 Industry
Slide 16: Generating Robust Financial Returns While Maintaining Balance Sheet Strength
GENERATING ROBUST FINANCIAL RETURNS WHILE “ MAINTAINING BALANCE SHEET STRENGTH EXPECTED TO BE ACCRETIVE NEAR-TERM. WITH A RETURN TO ba oe LEVELS WITHIN i Per i Pro Forma Net Leverage 9) +High-Teens % +High Single Digit % < 60% < 50% Within 2 Years 3+ Years Mm Adjusted EP: Phase: wit Return on Invest
Slide 17: Value Creation: Substantial Synergy Opportunity
VALUE CREATION COMBINATION CREATES SUBSTANTIAL SYNERGY OPPORTUNITY HIGH CONFIDENCE IN ABILITY TO REALIZE SYNERGIES UPSIDE FROM OTHER OPPORTUNITIES EBITDA Annual EB Contribution = Accelerated Asia-Pacific travel recovery = New domestic pathways = International connection growth $110M = Co-brand cardh
Slide 18: Mostly Owned Fleet Provides Flexibility and Net Equity Value
MOSTLY OWNED FLEET PROVIDES VALUE CREATION FLEXIBILITY AND NET EQUITY VALUE 40 OF 61" OPERATING AIRCRAFT ARE OWNED WITH ABILITY T0 TAILOR FUTURE GROWTH Current Hawaiian Fleet © = A321neo fleet is young (4.8 years) and majority 2 14 10 owned = Leased A330s are up for renewal in near term, providing f
Slide 19: Commitment to Hawai'i
COMMITMENT TO HAWAI'I COMMITTED TO THE FUTURE OF HAWAI'I * Retain and grow union * Combine and expand our _—-*_ Carbon emissions reduction represented jobs in Hawai'i two airlines’ commitments, & path to net zero = Preserve pilot, flig and work with local waco = Development of locally- attendant, an
Slide 20: Creating Value for All Stakeholders
COMMITMENT TO HAWAI'I CREATING VALUE FOR ALL STAKEHOLDERS 4s OUR PEOPLE Respect retained role as top local Sl As OUR GUESTS Sustains two highly-respected brands with represented jobs in Hawai 138 direct destinations in com! 7 je to workforce development programs Competitive pay and benefits Stronger
Slide 21: Thank You
THANK YOU GM)
Slide 22: Appendix
APPENDIX
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Slide 25: Valuation Is Very Attractive Relative to Recent Airline Transactions
VALUATION IS VERY ATTRACTIVE RELATIVE TO RECENT AIRLINE TRANSACTIONS ATTRACTIVE VALUATION ON REVENUE BASIS... ~-AND EBITDAR BASIS Transaction Enterprise Value / Last Twelve Months Revenue Transaction Enterprise Value / Last Twelve Months Adjusted EBITDAR LLY Ym Va LYE Ym «Ye LTM 9/30/2023 LTM 12/31/
Slide 26: Non-GAAP Reconciliations - Alaska
Non-GAAP Reconciliations - Alaska ns) GAAP Operating Income ‘Twelve months ended December 31, 2019 $1,063 Adjusted for: 44 Mark-to-market fuel hedge adjustments ©) Depreciation & amortization 423 Aircraft rent 331 EBITDAR $1,855 Source: Company filings.
Slide 27: The financial information concerning Alaska Air Group, Inc. included in this presentation will not
The financial information concerning Alaska Air Group, Inc. included in this presentation will not be deemed to be incorporated (by reference or otherwise) into any other filing of Hawaiian Holdings, Inc.
Hawaiian Holdings — Merger or Acquisition (December 2023) on 6ix