Cargolux would like to confirm that one of its aircraft, Boeing 747-400F bearing registration mark LX-OCV, suffered a significant landing incident at Luxembourg airport on Sunday evening at 18:52.
The aircraft was unable to retract its landing gear on take-off from Luxembourg. As a result, it was forced to safely dump fuel in order to return to land at the airport. On its landing roll its right body landing gear detached from the aircraft. The aircraft however came to a controlled stop and was attended to by the emergency services.
No persons on board nor on the ground suffered any injuries. The relevant authorities have been informed of the incident. The aircraft remains on the runway and recovery efforts are underway.
Although Avianca repeatedly sought to safeguard Viva’s existence and thus protect consumers, employment, and regional connectivity, unfortunately, the conditions to the transaction defined by Aerocivil would not only avoid Viva to be a financially and operationally viable airline but could also jeopardize the stability of Avianca.
Avianca will continue to be an ally for Colombians and will take measures to help the stability of the sector. Among others, it will seek to add aircraft to strengthen regional connectivity, offer employment options to Viva employees, and extend the protection for users affected by Viva and Ultra until May 31.
Avianca consistently reiterated for months its conviction that integration was the best solution to respond to Viva’s financial crisis, and to protect consumers, employees and air connectivity. However, after studying Aerocivil’s resolution 873 of 2023 in detail, and noting that Aerocivil’s conditions make Viva’s recovery impossible and could even affect Avianca’s stability, the Company was unfortunately forced to desist from the integration.
The technical shortcomings of Resolution 873 are numerous. Among others, the following stand out:
1. Little regulatory flexibility to provide certainty about the conditions for reactivation of Viva’s operations.
2. Failure to adjust the conditions to Viva’s current reality and to the time elapsed between the start of the process on August 8, 2022 and the date of a firm decision. The conditions require Avianca to assume obligations, routes, and service and price level commitments that do not match Viva’s remaining capacity after two months of suspended operations.
3. Despite Avianca’s willingness to return more than 75% of Viva’s slots at El Dorado -and more than 72% of Viva’s slots in “premium” slots-, the authority demanded the return of such a number of slots that would not allow Viva to base a single aircraft at the country’s main airport efficiently. This would make Viva economically unviable, and explicitly contradicts other conditions that require that Viva continue to provide connectivity on the historic routes where it was the only operator, and that passengers affected by the cessation of Viva’s operations, which according to official figures exceed 500,000, be protected.
Despite this unfortunate outcome – in which other airlines in the market played a detrimental role, improving their competitive position in the market by delaying the authority’s decisions – Avianca’s intention is to continue being an ally of Colombians, so it will seek to increase its number of aircraft to provide better connectivity to the regions, while implementing mechanisms to offer employment options to Viva employees. In view of its intention to make this important investment, Avianca respectfully calls for a clear and fair application of the Colombian Aeronautical Regulations (RAC) to all operators equally.
Adrian Neuhauser, President and CEO of Avianca, said: “Unfortunately, the conditions of this resolution, which is already a firm decision, make it impossible to rescue Viva by making it not only unviable as an airline, but also, if the integration were to take place under the conditions imposed by Aerocivil, it would jeopardize Avianca’s stability and Colombia’s connectivity.
From the beginning of the request for integration we have been respectful of the process. However, it is our responsibility to protect Avianca and put it at the service of the country as a key piece of development, while taking care of our employees and our customers, and responding to the shareholders who have believed in us by investing billions of dollars over the past few years.
During the current crisis in the sector, in which not only Viva but also Ultra have stopped flying, Avianca has constantly sought to propose solutions: not only is it the only company that made a concrete proposal to save Viva, but it has mobilized more than 160 thousand people free of charge (compared to less than 10.000 that have been rescued by all the other airlines in the sector as a whole) and has provided additional flights to critical destinations such as San Andres, Medellin, Riohacha or Buenos Aires, among many others. In this sense, it maintains its conviction of being a key player in connectivity and avoiding a deeper crisis and will continue to protect affected Viva and Ultra users until May 31st.
“Unfortunately, this long process puts Viva, the airline that brought the low-cost model to the country, allowed millions of Colombians on flights at competitive prices, and provided direct and indirect employment to thousands of families, at imminent risk of disappearing. Now the challenge for the country will be to advance plans to protect the sector and prevent Colombia from continuing to lose competitiveness, diverting the flow of passengers to countries such as Panama, Chile and Peru” concluded Neuhauser.
3,000 United Airlines pilots, joined by ALPA president Capt. Jason Ambrosi, fellow ALPA pilots, and union supporters stood shoulder to shoulder in a coast-to-coast picketing event on May 12 to make their voices heard as management makes no significant movement to modernize their antiquated contract.
United pilots, represented by the Air Line Pilots Association, Int’l (ALPA), protested management’s refusal to recognize the vital role the pilots play in their company’s success.
“I am proud to stand here today to send United Airlines management a message that the airline’s pilots have the full backing of their international union in their fight for the contract they have earned,” said Ambrosi. “United management needs to stop slow-rolling negotiations that have dragged into their fifth year and do the right thing for their pilots.”
“United pilots will always be there for our customers,” said Capt. Garth Thompson, United ALPA Master Executive Council (MEC) chair. “Unfortunately, the same cannot be said about management, who seems to think that a last-minute cancelation of a United pilot’s scheduled day off, or abrupt trip reassignments that extend into planned days off is acceptable for a United pilot’s family. This is an example of how this old pilot contract impacts our ability to maintain a healthy work-life balance. United pilots will deal with this adversity in our usual professional and safe manner. We will continue to work in 2023 despite staffing shortages in Air Traffic Control facilities, aggressive summer schedules, capacity constraints, and weather. And most importantly, United pilots want the company and the public to know that the bold ‘United Next’ growth plans cannot work without an updated pilot contract.”
Norwegian has reported its results for the first quarter of 2023. The figures demonstrate Norwegian’s ability to reduce capacity in the quieter winter period before ramping up towards the end of the quarter with the start of the summer programme. With strong booking numbers that continue to be encouraging, Norwegian prepares for what is expected to be one of the company’s strongest summers ever.
For the first quarter of 2023, Norwegian limited its operating loss (EBIT) to NOK 916 million. Profit before tax (EBT) amounted to a loss of NOK 992 million. The liquidity position improved through the quarter with cash and cash equivalents at quarter-end increasing to NOK 8.6 billion. At quarter-end, Norwegian’s operational fleet comprised 72 aircraft.
“This quarter is a strong demonstration of our ability to adjust capacity to seasonal fluctuations in demand and to prepare well for the busy summer travel season ahead. Ahead of the summer season, we have phased in eleven latest generation aircraft and welcomed many new colleagues. I am very glad that we will not depend on wet-lease capacity this summer. Instead, we will be able to serve our customers entirely with our own aircraft and crew,” said Geir Karlsen, CEO of Norwegian.
In the first quarter of 2023, Norwegian had 3.8 million passengers, up from 2.2 million in the first quarter of 2022. Production (ASK) was 6.0 billion seat kilometres, while passenger traffic was 4.9 billion seat kilometres. Production was down 13 percent from the previous quarter as Norwegian utilised its fleet flexibility to match capacity to seasonally lower demand. The quarterly load factor was 80.9 percent which shows that capacity was well adjusted to lower demand.
High regularity despite challenging weather conditions
In 2022, Norwegian was named the most punctual airline in the Nordics, and the positive trend continues in the first quarter of 2023 despite challenging conditions, including poor weather conditions and French ATC strikes. Share of flights departing on schedule was 83.5 percent, while regularity, share of flights taking place, was 99.4 percent.
Well positioned for historically strong summer
“We are in the process of improving the customer experience at Oslo airport Gardermoen where we have welcomed 150 new colleagues to our newly established customer-facing ground handling services. This makes us well prepared, both on the ground and in the air, to welcome all passengers on board in what I believe will be the strongest summer ever for the airline,” said Karlsen.
Norwegian relaunched the award winning ‘Norwegian Reward’ loyalty programme this winter with new benefits made available to all members. Exclusive priority benefits are available to the most frequent travellers, making it even more attractive for the increasing number of corporate travellers that choose Norwegian as their preferred airline. Norwegian’s loyalty programme was recently named the best loyalty programme in Europe and Africa at the prestigious Freddie Awards.
Looking ahead to a strong 2023 and a sustainable future
Norwegian recognises its responsibility to take a leading role in the sustainable transformation of the aviation sector. In addition to the renewal of Norwegian’s fleet, sustainable aviation fuel will play a vital role in securing the airline’s sustainability goals. In April, the company announced a landmark strategic partnership with Norsk e-Fuel to build the world’s first full-scale e-fuel plant in Mosjøen, Norway, including an investment of over NOK 50 million. The plant will produce sustainable aviation fuels (SAF), marking an important milestone towards Norwegian’s target of 45 percent emissions reduction by 2030.
American Airlines Airbus A319-112 N723UW (msn 1109) MIA (Bruce Drum). Image: 105925.
In April, American Airlines partnered with the USO and other organizations to take 19 military service members and their families on a trip to Walt Disney World as part of the Salute to the Troops event. These families — all impacted by cancer — had the chance to escape their worries back home and make unforgettable memories together.
American chartered an Airbus A319 aircraft from Washington, D.C. (DCA) to Orlando, Florida (MCO), and planned a special inflight experience and hero’s welcome for the participants. The airline participates in events like Salute to the Troops year-round that have benefited hundreds of wounded and ill military service members and their families.
This year, the event took on special meaning for one of our team members when an American Airlines pilot who is also an Army Reserve Officer had the opportunity to attend with his family. First Officer Michael Huber’s wife is battling cancer and the trip provided much-needed fun and relaxation for the Huber family.
In honor of Military Appreciation Month in May, we salute the country’s military service members — past and present — including the 8,500 American Airlines team members who are veterans or currently serving in the National Guard or Reserves. The airline has a long history of honoring our nation’s heroes, and that work continues through programs and partnerships led by our Military and Veterans Initiatives program.
Video:
Top Copyright Photo: American Airlines Airbus A319-112 N723UW (msn 1109) MIA (Bruce Drum). Image: 105925.
American Airlines aircraft photo gallery (Airbus):
United Airlines Boeing 737-9 MAX 9 N37549 (msn 64475) BFI (Brian Worthington). Image: 960503.
United Airlines is joining other U.S. carriers coming under pressure to match or exceed the landmark contract that Delta Air Lines signed with its pilots.
United’s pilots are demanding a new contract that would exceed the Delta contract.
J.D. Power issued their latest survey on airline satisfaction:
A combination of soaring demand, limited supply and surging airfares have helped airlines book record revenues during the past two quarters, but this golden age of enhanced revenues is coming at the expense of customer satisfaction. According to the J.D. Power 2023 North America Airline Satisfaction Study,SM released today, customer satisfaction with major airlines is down significantly for a second consecutive year, introducing the risk of possible brand damage if the current pattern of price hikes, staffing shortages and reduced routes continues.
“If yield management were the only metric airlines needed to be successful in the long term, this would be a banner year for the industry because they are operating at peak economic efficiency,” said Michael Taylor, travel intelligence lead at J.D. Power. “From the customer perspective, however, that means planes are crowded, tickets are expensive and flight availability is constrained. While these drawbacks have not yet put a dent in leisure travel demand, if this trend continues, travelers will reach a breaking point and some airline brands may be damaged.”
Following are some of the key findings of the 2023 study:
Overall passenger satisfaction declines, driven largely by cost of airfare: Overall passenger satisfaction is 791 (on a 1,000-point scale), down 7 points from a year ago. This is the second consecutive year of waning passenger satisfaction, following a 22-point decline in 2022 from 2021. The biggest factor driving this year’s decline in satisfaction is cost and fees, which has fallen 17 points from 2022.
First-class passengers buck the trend: While overall satisfaction is down, passengers in the first/business segment have had a decidedly more positive experience. Passenger satisfaction scores in this segment are up 9 points year over year. The gains are due in part to increases in food and beverage scores as many services were reinstated for upper class cabins in the post-pandemic period.
Low-cost carriers feel the pinch: Annual declines in passenger satisfaction are most pronounced in the economy/basic economy segment where price-conscious passengers have found fewer airfare bargains this year. Satisfaction with cost and fees in the economy/basic economy segment is down 19 points from a year ago.
One thing everyone can agree on: One of the few areas showing improvement across all segments this year is food and beverage, which is up 12 points overall from 2022.
Study Rankings: JetBlue Airways ranks highest in customer satisfaction in the first/business segment for a second consecutive year, with a score of 893. Delta Air Lines (865) ranks second and United Airlines (848) ranks third.
Southwest Airlines ranks highest in customer satisfaction in the economy/basic economy segment for a second consecutive year, with a score of 827. Delta Air Lines (801) ranks second and JetBlue Airways (800) ranks third.
The North America Airline Satisfaction Study measures passenger satisfaction with airline carriers in North America based on performance in eight factors (in alphabetical order): aircraft; baggage; boarding; check- in; cost and fees; flight crew; in-flight services; and reservation. The study measures passenger satisfaction in three segments—first/business, premium economy and economy/basic economy—and is based on responses from 7,774 passengers. Passengers needed to have flown on a major North America airline within the past month of completing a survey. The study was fielded from March 2022 through March 2023.
WestJet Airlines Boeing 737-8 MAX 8 C-FNWD (msn 60517) BFI (Brian Worthington). Image: 960499.
WestJet on May 11 celebrated the announcement of its nonstop transborder service between Winnipeg and Atlanta. The new route will commence on September 6, 2023, operating five times weekly, on a year-round basis. The new route which will unlock direct connectivity between Manitoba to the southeast United States and beyond while furthering the airline’s commitment to boosting economic growth by significantly strengthening the province’s air access.
Route
Start Date
Frequency
Departure
Arrival
Winnipeg – Atlanta
September 6, 2023
5x weekly
9:00 a.m.
13:09 a.m.
Atlanta – Winnipeg
September 6, 2023
5x weekly
14:00 p.m.
16:20 p.m.
Delta codeshare partnership
Guests travelling beyond Atlanta will have access to a broad network and benefits through WestJet’s strong relationship with Delta Air Lines. This includes codeshare flights to over 50 connecting destinations now accessible with only one stop from Winnipeg, the ability to earn and redeem WestJet Rewards on both airlines and top tier frequent flyer benefits through the entire journey.
WestJet guests have access to Delta’s broad network on a single purchased ticket with check-in for all flights at the first departure, baggage tagged to their final destination and lounge access for select guests.
WestJet’s service announcement between Winnipeg and Atlanta comes less than a year after the airline announced direct service between Manitoba’s capital and Los Angeles. Since beginning service between Winnipeg to Los Angeles in October 2022, WestJet has seen consistently strong demand for transborder travel.
Top Copyright Photo: WestJet Airlines Boeing 737-8 MAX 8 C-FNWD (msn 60517) BFI (Brian Worthington). Image: 960499.
Air Canada Boeing 787-9 Dreamliner C-FRTU (msn 37183) LAX (Michael B. Ing). Image: 960496.
Air Canada today reported its first quarter 2023 financial results.
“Air Canada’s impressive first quarter performance reflects the strength of our brand, the very strong demand environment across all markets and the effective execution of our strategic plan. When compared to the same quarter in 2022, passenger revenues more than doubled and hit a first quarter record of close to $4.1 billion, supported by our diversified network and our strong international franchise. Adjusted EBITDA surged by $554 million to $411 million, and our adjusted CASM* fell nearly seven per cent from a year ago,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.
“Our first quarter financial results exceeded both internal and external expectations and we expect demand to persist, supported by strong advance bookings for the remainder of the year. For this reason, as well as lower-than-expected fuel costs, we increased our 2023 adjusted EBITDA guidance last week. I thank all employees for their continued focus on improving all aspects of our company through effective and positive teamwork, and our customers for their loyalty.
*Adjusted CASM, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, leverage ratio, net debt, adjusted pre-tax income (loss), adjusted net income (loss), adjusted earnings (loss) per share, and free cash flow are referred to in this news release. Such measures are non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Refer to the “Non-GAAP Financial Measures” section of this news release for descriptions of these measures, and for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure.
“All areas of the business contributed meaningfully during the quarter. Air Canada Cargo is expanding its network and fleet, Aeroplan is gaining more members and gross billings have increased 50% when compared to the first quarter of 2022, and Air Canada Vacations produced remarkable results. System yields improved approximately 9 per cent compared to the first quarter of 2022. We achieved a strong free cash flow* of nearly $1 billion. This will allow us to continue investing in our future, including by further deleveraging our balance sheet,” said Mr. Rousseau.
First Quarter 2023 Financial Results
First quarter operating revenues of $4.887 billion increased $2.314 billion from the same quarter in 2022, primarily from higher passenger revenues due to increased travel demand. Compared to the first quarter of 2019, operating revenues increased about 10 per cent. Operated capacity increased about 53 per cent from the first quarter of 2022 (about 84 per cent of first quarter 2019 ASMs), in line with the projection provided in Air Canada’s February 17, 2023 news release.
Operating expenses of $4.904 billion increased $1.781 billion or 57 per cent from the first quarter of 2022. The increase included the impact of the year-over-year capacity increase, an increase of about 83 per cent in passengers carried and an approximate 30 per cent increase in jet fuel prices.
Operating loss of $17 million, improved from an operating loss of $550 million in the first quarter of 2022.
Net income of $4 million, increased $978 million from the first quarter of 2022. Diluted loss per share of $0.03compared to a diluted loss per share of $2.72 in the first quarter of 2022.
Adjusted net loss* of $188 million improved $559 million from the first quarter of 2022. Adjusted loss per share* of $0.53 compared to an adjusted loss per share of $2.09 in the first quarter of 2022.
Adjusted CASM (adjusted cost per available seat mile) of 14.52 cents improved 6.9 per cent from the first quarter of 2022. The unit cost improvement resulting from higher operated capacity was partially offset by a favourable maintenance cost adjustment of $159 million recorded in the first quarter of 2022. First quarter 2023 CASM of 20.38 cents increased 2.5% from the first quarter of 2022 due to significantly higher fuel prices, higher ground package costs and higher passenger service costs due to higher traffic and higher selling costs, which are largely driven by revenues.
Adjusted EBITDA of $411 million, with an adjusted EBITDA margin of 8.4 per cent, improved from a negative adjusted EBITDA of $143 million in the first quarter of 2022.
Net cash flows from operating activities of $1.437 billion increased $1.070 billion from the first quarter of 2022.
Free cash flow of $987 million increased $896 million from the first quarter of 2022.
Outlook
For the second quarter of 2023, Air Canada plans to increase its ASM capacity by about 22 per cent from the same quarter in 2022. On May 4, 2023, Air Canada updated its 2023 guidance:
Metric
FY 2023 guidance
ASM capacity
About 23 per cent increase versus 2022 (approximately 90 per cent of 2019 levels)
Adjusted CASM
About 0.5 to 2.5 per cent below 2022 levels
Adjusted EBITDA
About $3.5 – $4.0 billion
Major Assumptions
Assumptions were made by Air Canada in preparing and making forward-looking statements. As part of its assumptions, Air Canada assumes moderate Canadian GDP growth for 2023, that the Canadian dollar will trade, on average, at C$1.34 per U.S. dollar for the full year 2023 and that the price of jet fuel will average C$1.09 per litre for the full year 2023.
The revised guidance for adjusted EBITDA reflects expected earnings resulting from an improvement in traffic and yield from a stronger-than-anticipated demand environment and lower-than expected fuel price. The revised guidance for adjusted CASM reflects adjustments to various expense items including those resulting from the higher-than-expected traffic. Air Canada’s 2023 capacity guidance remains substantially unchanged.
Air Canada also modified the baseline comparison for its 2023 adjusted CASM guidance, comparing it to a 2022 instead of a 2019 baseline. Given the new cost environment, prior comparisons to the 2019 baseline are no longer as meaningful, and comparisons to 2022 are more appropriate.
Air Canada is not updating its 2024 targets at this time and will continue evaluating them as it progresses with its plans and executes on its strategic priorities.
Non-GAAP Financial Measures
Below is a description of certain non-GAAP financial measures and ratios used by Air Canada to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results.
Adjusted CASM
Air Canada uses adjusted CASM to assess the operating and cost performance of its ongoing airline business without the effects of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, impairment of assets, and freighter costs as these items may distort the analysis of certain business trends and render comparative analysis across periods less meaningful and generally allows for a more meaningful analysis of Air Canada’s operating expense performance and a more meaningful comparison to that of other airlines.
In calculating adjusted CASM, aircraft fuel expense is excluded from operating expense results as it fluctuates widely depending on many factors, including international market conditions, geopolitical events, jet fuel refining costs and Canada/U.S. currency exchange rates. Air Canada also incurs expenses related to ground packages at Air Canada Vacations which some airlines, without comparable tour operator businesses, may not incur. In addition, these costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison across periods when such costs may vary.
Air Canada also incurs expenses related to the operation of freighter aircraft which some airlines, without comparable cargo businesses, may not incur. Air Canada had six Boeing 767 dedicated freighter aircraft in its operating fleet as at March 31, 2023 compared to one Boeing 767 dedicated aircraft as at March 31, 2022. These costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison of the passenger airline business across periods.
Adjusted CASM is reconciled to GAAP operating expense as follows:
(Canadian dollars in millions, except where indicated)
First Quarter
2023
2022
Change
Operating expense – GAAP
$
4,904
$
3,123
$
1,781
Adjusted for:
Aircraft fuel
(1,375)
(750)
(625)
Ground package costs
(318)
(129)
(189)
Impairment of assets
–
(4)
4
Freighter costs (excluding fuel)
(31)
(11)
(20)
Operating expense, adjusted for the above-noted items
$
3,180
$
2,229
$
951
ASMs (millions)
21,907
14,297
53.2 %
Adjusted CASM (cents)
¢
14.52
¢
15.59
¢
(1.07)
EBITDA and Adjusted EBITDA
EBITDA (earnings before interest, taxes, depreciation and amortization) is commonly used in the airline industry and is used by Air Canada as a means to view operating results before interest, taxes, depreciation and amortization as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. In calculating adjusted EBITDA, Air Canada excludes impairment of assets as this may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful.
Adjusted EBITDA Margin
Adjusted EBITDA margin (adjusted EBITDA as a percentage of operating revenues) is commonly used in the airline industry and is used by Air Canada as a means to measure the operating margin before interest, taxes, depreciation and amortization as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets.
EBITDA, adjusted EBITDA and adjusted EBITDA margin are reconciled to GAAP operating income (loss) as follows:
First Quarter
(Canadian dollars in millions, except where indicated)
2023
2022
Change
Operating loss – GAAP
$
(17)
$
(550)
$
533
Add back:
Depreciation and amortization
428
403
25
EBITDA
$
411
$
(147)
$
558
Remove:
Impairment of assets
–
4
(4)
Adjusted EBITDA
$
411
$
(143)
$
554
Operating revenues
$
4,887
$
2,573
$
2,314
Operating margin (%)
(0.3)
(21.4)
21.1 pp
Adjusted EBITDA margin (%)
8.4
(5.6)
14.0 pp
Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share – Diluted
Air Canada uses adjusted net income (loss) and adjusted earnings (loss) per share – diluted as a means to assess the overall financial performance of its business without the after-tax effects of impairment of assets, foreign exchange gains or losses, net financing expense relating to employee benefits, gains or losses on financial instruments recorded at fair value, gains or losses on the sale and leaseback of assets, gains or losses on debt settlements and modifications, and gains or losses on disposal of assets as these items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.
Adjusted net income (loss) and adjusted earnings (loss) per share are reconciled to GAAP net income as follows:
(Canadian dollars in millions)
First Quarter
2023
2022
$ Change
Net income (loss) – GAAP
$
4
$
(974)
$
978
Adjusted for:
Impairment of assets
–
4
(4)
Foreign exchange gain
(127)
(99)
(28)
Net interest relating to employee benefits
(6)
(4)
(2)
(Gain) loss on financial instruments recorded at fair value
(38)
173
(211)
Income tax, including for the above reconciling items (1)
(21)
153
(174)
Adjusted net loss
$
(188)
$
(747)
$
559
Weighted average number of outstanding shares used in computing diluted income per share (in millions)
358
358
–
Adjusted loss per share – diluted
$
(0.53)
$
(2.09)
$
1.56
(1)
In 2023, the deferred income tax expense recorded in other comprehensive income related to remeasurements on employee benefit liabilities is offset by a deferred income tax recovery that was recorded through Air Canada’s consolidated statement of operations. This recovery is removed from adjusted net income (loss). In comparison, a deferred income tax expense was removed from adjusted net income (loss) for the year 2022.
The table below reflects the share amounts used in the computation of basic and diluted earnings per share on an adjusted earnings per share basis.
(In millions)
First Quarter
2023
2022
Weighted average number of shares outstanding – basic
358
358
Effect of dilution
–
–
Weighted average number of shares outstanding – diluted
358
358
Free Cash Flow
Free cash flow is a non-GAAP financial measure used by Air Canada as an indicator of the financial strength and performance of its business, indicating how much cash it can generate from operations after capital expenditures. Free cash flow is calculated as net cash flows from operating activities minus additions to property, equipment, and intangible assets, net of proceeds from sale and leaseback transactions. Such measure is not a recognized measure for financial statement presentation under GAAP, does not have a standardized meaning, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results.
The table below reconciles free cash flow to net cash flows from (used in) operating activities for the periods indicated.
First Quarter
(Canadian dollars in millions)
2023
2022
$ Change
Net cash flows from operating activities
$
1,437
$
367
$
1,070
Additions to property, equipment, and intangible assets
(450)
(276)
(174)
Free cash flow
$
987
$
91
$
896
Net Debt
Net debt is a capital management measure and a key component of the capital managed by Air Canada and provides management with a measure of its net indebtedness. It refers to total long-term debt liabilities (including current portion) less cash, cash equivalents. and short- and long-term investments.
Net Debt to Trailing 12-Month Adjusted EBITDA (Leverage Ratio)
Net debt to trailing 12-month adjusted EBITDA ratio (also referred to as “leverage ratio”) is commonly used in the airline industry and is used by Air Canada as a means to measure financial leverage. Leverage ratio is calculated by dividing net debt by trailing 12-month adjusted EBITDA.
(Canadian dollars in millions)
March 31, 2023
December 31, 2022
Change
Total long-term debt and lease liabilities
$
14,901
$
15,043
$
(142)
Current portion of long-term debt and lease liabilities
1,163
1,263
(100)
Total long-term debt and lease liabilities (including current portion)
16,064
16,306
(242)
Less cash, cash equivalents and short and long-term investments
(9,532)
(8,811)
(721)
Net debt
$
6,532
$
7,495
$
(963)
Adjusted EBITDA (trailing 12 months)
$
2,011
1,457
554
Net debt to adjusted EBITDA ratio
3.2x
5.1x
(1.9)
For further information on Air Canada’s public disclosure file, including Air Canada’s 2022 Annual Information Form dated March 29, 2023, consult SEDAR at www.sedar.com.
First Quarter 2023 Conference Call
Air Canada will host its quarterly analysts’ call today, Friday, May 12, 2023, at 8:00 a.m. ET. Michael Rousseau, Air Canada President and Chief Executive Officer, Amos Kazzaz, Executive Vice President and Chief Financial Officer, Mark Galardo, Executive Vice President, Revenue and Network Planning, will present the results and be available for analysts’ questions. Immediately following the analysts’ Q&A session, Mr. Kazzaz and Pierre Houle, Vice President and Treasurer, will be available to answer questions from term loan B lenders and holders of Air Canada bonds.
Top Copyright Photo: Air Canada Boeing 787-9 Dreamliner C-FRTU (msn 37183) LAX (Michael B. Ing). Image: 960496.
Frontier Airlines (2nd) Airbus A320-251N WL N394FR (msn 10981) (Rivero, the Puerto Rican Crested Toad) BWI (Tony Storck). Image: 959455.
Frontier Airlines launched nonstop service on May 11 from Hartsfield-Jackson Atlanta International Airport (ATL) to Las Américas International Airport in Santo Domingo, Dominican Republic (SDQ), San Diego International Airport (SAN) and Ontario International Airport in Southern California (ONT).
Additionally, on May 12, Frontier will launch nonstop service from ATL to La Aurora International Airport in Guatemala City, Guatemala (GUA) and Salt Lake City International Airport (SLC). With the new service, Frontier serves a total of 38 nonstop destinations from ATL.
Service from Hartsfield-Jackson Atlanta International Airport (ATL):
SERVICE TO:
SERVICE START:
SERVICE FREQUENCY:
INTRO FARE:
Ontario, Calif. (ONT)
May 11, 2023
Daily
$59*
Santo Domingo (SDQ)
May 11, 2023
2x/week
$79*
San Diego (SAN)
May 11, 2023
Daily
$59*
Salt Lake City (SLC)
May 12, 2023
3x/week
$59*
Guatemala City (GUA)
May 12, 2023
2x/week
$99*
Additionally the carrier launched daily nonstop service on May 11 from Phoenix Sky Harbor International Airport (PHX) to Tampa International Airport (TPA). With the new service, Frontier serves a total of 19 destinations from PHX.
Top Copyright Photo: Frontier Airlines (2nd) Airbus A320-251N WL N394FR (msn 10981) (Rivero, the Puerto Rican Crested Toad) BWI (Tony Storck). Image: 959455.
Delta’s first-of-its-kind platform curates the onboard experience for customers and will soon be available on flights equipped with free Wi-Fi presented by T-Mobile.
Every journey is unique—from the sights, smells and experiences that await at your destination to the discoveries you make along the way. Introducing Delta Sync Exclusives—the curated front page to your experience helping to make every trip feel fit for you—now testing on select aircraft and rolling out this summer.
First announced at CES 2023, the new digital experience for mobile devices brings together exclusive content, access and offers to customers beginning with Delta’s domestic mainline fleets equipped with free Wi-Fi presented by T-Mobile. Simply connect to onboard Wi-Fi and log in with SkyMiles credentials to discover the power of Delta Sync. Not a Member? No problem. Join SkyMiles for free prior to travel or onboard as you connect.
“Delta Sync Exclusives is an entirely new platform for entertainment and discovery designed to elevate the experience for every customer,” said Ranjan Goswami, SVP – Customer Experience Design. “Customers deserve a journey that feels seamlessly fit for them, and that means delivering meaningful, personalized and relevant touch points in compelling new ways.”
Delta began testing the new platform in late April on select aircraft flying domestically, with plans to introduce the platform on more than 540 aircraft with fast, free Wi-Fi by the end of July. By year’s end more than 700 domestic mainline aircraft set to upgrade to Delta’s new free Wi-Fi and support Delta Sync Exclusives. Delta will bring the platform and high-speed Wi-Fi to its entire global fleet by the end of 2024.
Use the browser-based experience to choose “My Exclusives” for entertainment, access and offers from mainstay brands you know and love, or click into the “My Trip” tab for inspiration on what awaits at your destination along with what you need to know about your journey.
Read more below for insight into the experiences that await when the platform begins to roll out over the coming weeks.
MY EXCLUSIVES
Delta Sync Exclusives is packed with experiences and offers available only to SkyMiles Members. After logging in, customers will be greeted with a welcome message and land on the “My Exclusives” screen with a curated set of tiles leading to experiences, entertainment and exclusive offers.
At the start of the rollout, customers can:
Access a free trial to Paramount+ and stream the complete collection, including original series, popular movies and live sports and news on your mobile device. Simply tap “Get started” to begin.1
Access and play New York Times Games favorites, including challenging word, number and logic puzzles like Wordle, Sudoku, Mini Crossword and more.
Explore exclusive offers from T-Mobile, American Express and other Delta experience partners yet to come.
Customers can also conveniently access existing SkyMiles loyalty offers via Delta Sync Exclusives. An interactive dashboard helps ensure the customer’s SkyMiles account is linked to partner offers as well, from Starbucks to Lyft.
MY TRIP
Whether keeping track of your current itinerary, making plans for when you arrive at your destination, or planning your next trip, the ‘My Trip’ tab on Delta Sync Exclusives hosts quick access to help you along the way.
Experiences include:
Effortlessly reserve a table at the top restaurant in town with Resy before you land, along with specially curated dining guides on select routes.
Find inspiration with exclusive video and editorial content from Atlas Obscura—the definitive guide to the world’s hidden wonders. Explore awe-inspiring places directly from Delta Sync Exclusives.
Familiar Delta self-service tools, resources and insights that offer real-time support for your experience.
Delta plans to partner with additional premium brands to bring more destination-specific content and experiences over time. Together with the Fly Delta app, delta.com and the Delta people, the airline is bringing digital and physical experiences together to elevate the travel experience.
Through the warmth and service of the Delta people and the power of innovation, Delta never stops looking for ways make every trip feel made for you. Learn more about Delta Sync on delta.com/sync.
1Free trial of Paramount+ available to SkyMiles® Members age 18+ traveling on select Delta flights originating in the U.S. Additional terms apply: www.DeltaWiFi.com.
Southwest Airlines Pilots Association’s (SWAPA) strike authorization vote has closed after just a week and half with 98% participation and 99% of pilots voting to authorize a strike. This historic vote from the pilot union was scheduled to run through the end of May, but the pilots of Southwest Airlines have already made their voices heard about the operational disasters and the lack of progress after three-plus years of stagnant negotiations. “This is a historic day, not only for our pilots, but for Southwest Airlines,” said SWAPA President Casey Murray. “The lack of leadership and the unwillingness to address the failures of our organization have led us to this point. Our pilots are tired of apologizing to our passengers on behalf of a company that refuses to place its priorities on its internal and external customers.”
Murray continued, “Today, our Pilots have empowered our Negotiating Committee Chair, Captain Jody Reven, to petition the National Mediation Board to release us to self-help imminently at which time we will follow the process set forth by the Railway Labor Act and continue toward a strike. We want our passengers to understand that we do not take this path lightly and are disheartened that the LUV airline has gotten so far away from the values set forth by Herb Kelleher. We want our customers to be prepared for the path ahead and make arrangements on other carriers so that their plans through the summer and fall are not disrupted.”
Turkis Airlines is taking a major step in June. The fast-growing airline is set to order a total of 600 aircraft in June.
In April the airline added a new record to its 90-year history with the number of flights and passengers carried on its domestic and international routes in a single day.
The new aircraft will be delivered in the next 10 years according to its chairman, Ahmet Bolat.
No details were provided and the manufacturers have not yet made any form order announcements.
✈️ Soaring to the top with the goal of becoming the most prestigious airline in the world on our 100th anniversary!
We constantly aim to provide our guests with maximized flight comfort with new investments in the field of customer experience.#TurkishAirlinespic.twitter.com/RLZYobpyDe
Here is the official announcement by Alaska Airlines on the new livery on N559AS:
Growing up near the shores of Juneau, Crystal Kaakeeyáa Rose Demientieff Worl was used to seeing Alaska Airlines fly over the mountains into her hometown. She says she dreamed of having her artwork displayed on a plane for years — and today, that dream became a reality.
Video:
“Every time I looked at an Alaska plane, I couldn’t help but visualize the salmon being in formline, or having some sort of design that represents identity. I can’t help but look at things and see how to Indigenize them,” says Crystal.
Photos by Ingrid Barrentine
Today, we’re honored to reveal Crystal’s latest masterpiece: Xáat Kwáani (Salmon People). It’s the first aircraft in the history of any domestic airline to be named in an Alaska Native language and to depict the ancestral importance through Northwest Coast formline art.
“My heart is so full and warm,” says Crystal. “Every time I create something big or small, it’s the same feeling of just fulfilling this need and wanting to create something and share my story, to stimulate something that’s in me that feels connected. It feels good to say that I live in Juneau and fish and hunt here and eat off this land. My family’s been here for a long time, and I can say my ancestors are from here, and I’m eating the same food in the same place that they once were, and that’s really special to be able to share that and say that and feel that—and to create and retell their stories through my eyes. It’s powerful.”
Crystal’s expressive designs purposefully blend the old and new. Her work, whether it’s printmaking, painting or public art, recreates and modernizes her ancestors’ stories and explores the relationships and bonds that her people, the land and the animals share with Alaska so that generations learn its importance through traditional formline design, which dates back thousands of years. She says this aircraft will serve as a gateway to represent Alaska Natives, and she’s incredibly proud.
Her grandmother, Rosita Worl, remembers how even as a young toddler, Crystal couldn’t sit still, “The only thing that would slow her down were bright, bold, contrasting colors or patterns. I knew then she was going to be an artist,” she said.
Rosita Worl (top left) serves as the president of Sealaska Heritage Institute (SHI). Crystal and her family recently honored their clan’s origins at SHI’s celebration ceremony of 12 new totem poles along Juneau’s waterfront for its Kootéeyaa Deiyí, or Totem Pole Trail.
“When people look at my art, I hope they feel inspired, they feel motivated, but I also want them to know, it’s not easy, it’s challenging,” says Crystal. “There’s a lot of things people don’t see … they see the end piece, which is the outcome of a lot of hard work … a lot of sweat, blood. Every piece I’ve done, that gets bigger and bigger, my life has been building up to it. And I’ve been working really hard to get there.”
A tribute to strength and resilience
As a tribute to salmon and its ancestral importance, this aircraft is the first in the country to be named in an Alaska Native language and the first time Alaska Airlines has featured a language besides English on the main door of an aircraft.
“This will be significant to have Indigenous language on an airplane,” says Crystal. “People will see it, they’ll read it, they’ll try to say ‘Xáat Kwáani’ (Salmon People), and they’ll want to know more and be curious to learn about it and want to feel connected to it. I think that’s significant in terms of the relationship we need to make between our languages that need speakers. So, I’m excited to be part of this.”
Learn to pronounce Xáat Kwáani
During the design process, Crystal worked with people close to her and we shared the design with employees from our Native Employee Network (NEN) business resource group, and multiple community leaders in Alaska, the Pacific Northwest and the West Coast.
Crystal even redesigned the NEN logo with a fresh take on formline art, featuring the beloved salmon. Her mother, Beverly Demientieff, who is Deg Hit’an Athabascan from Holy Cross, Alaska, was actually one of the founding members of Alaska’s NEN group when she was a customer service agent in Fairbanks, Alaska. “Everything about this project has come together in a really beautiful, connected way,” she said.
Worl’s art features a lot of Northwest Coast formline design, which she practiced while apprenticing under Robert Davidson, who heavily impacted Worl’s understanding of the practice.
“Having read about Crystal, seen her murals in Juneau and Anchorage and knowing her love of monumental art, she came to mind when we had the opportunity to paint a very large canvas— a 737-800,” said Marilyn Romano, regional vice president in Alaska. “Only this time, instead of remaining stationary and having viewers come to the art, we will take the art everywhere this plane flies, inviting guests to learn more about Alaska Native and Native American history, art, culture and language.”
Talk about kismet: In 2020, Crystal and her friends tagged @alaskaair on Instagram with the caption: “Are you ready for me @alaskaair?? I’m ready for you.” She says she’s been manifesting the idea to create a plane for Alaska … and three years later, here it is.
At a family gathering recently, her uncle, Marcelo Quinto, shared the significance of Crystal’s latest work, “She is part of us, she is part of the state of Alaska — her art is something that belongs to all of us here in Alaska, and it’s just fitting that it’s going on Alaska Airlines so that it gets to go through the whole state of Alaska. So, I hope everybody congratulates her and will enjoy knowing this is all a part of us.”
Uncle Marcelo sharing a proud moment with Crystal at a family gathering.
Crystal has high hopes that this aircraft will encourage people to learn and embrace Indigenous culture, values — and to do our part to make the world a better place for the salmon.
Salmon has a special meaning and significance in the State of Alaska and the West Coast. For Alaska Natives and Native American cultures of this region, the salmon is part of a spiritual and cultural identity.
“Salmon are perhaps probably the strongest beings on earth,” she said. “We have a great amount of respect for salmon because they’re feeding my family, clan members, community members, and Alaskans. The nutrients in their bodies feed our people, this community. It’s how our Tongass rainforest is so lush and how our animals are so big and strong. Their muscles feed our muscles and stimulate so many facets of our existence and have for thousands of years — I just hope that will remain for the next generations.”
Crystal standing in front of her 60-foot by 25-foot mural of Tlingit activist Elizabeth Peratrovich on Juneau’s downtown library building, which is designed in a modernized version of the Lukaax̱.ádix̱ clan crest, the Sockeye Salmon along with Peratrovich’s moiety, the Raven in formline design.
Watch timelapse video of the aircraft being painted:
“We are honored to share the vibrant art of Northwest Coast formline with Alaska Airlines and the world. We see the ‘Salmon People’ design symbolizing the Tlingit, Haida and Tsimshian cultural value of Wooch. Yax, Gu dlúu, Ama Mackshm: social and spiritual balance. Our Indigenous artists continue to utilize and evolve formline art, honoring our ancestors and inspiring future generations.” – Sealaska and Sealaska Heritage Institute
“For me, this plane is confirmation that the art, language and culture that our Ancestors practiced and hoped to pass on to future generations is not only alive and well but is thriving. It is a statement for all Indigenous people that we are still here.”– Dawn Smith, Tsimshian, clan is wolf. Co-Chair, Native Employee Network Alaska Airlines
Co-Chairs of Alaska’s Native Employee Network Dawn Smith (Tsimshian, clan is wolf) and Robyn Downs (Steilacoom Indian Tribe, Steilacoom, WA)
“Alaska has always been, and will always be, a Native place with deep, rich cultural heritages. For too long, Alaska has been viewed primarily through a geographical lens, when it is the many Indigenous cultures and peoples that truly make our state unique. We honor and appreciate Alaska Airlines’ commitment to ensuring that from the moment someone sets foot on this airplane, they will have an opportunity to learn about Alaska’s First Peoples, who have inhabited Alaska since time immemorial.”– Emily Edenshaw President and CEO, Alaska Native Heritage Center
About the Artist | Crystal Worl
⦿ Crystal Kaakeeyáa Rose Demientieff Worl is Tlingit Athabascan from Raven moiety, Lukaax.̱ádi Sockeye Clan, from the Raven House and is Deg Hit’an Athabascan from Fairbanks, Alaska, and Filipino.
⦿ Crystal has created several public art installations in Alaska including a design on the side of a Juneau’s Capitol City Fire Rescue ambulance, a steel cut medallion installed in downtown Juneau, and last year, painted a mural 125- foot by 48-foot in Anchorage.
⦿ In March, Crystal designed “The Art of Skateboarding” stamps for the U.S. Postal Service that laud the sport of skateboarding — and what Indigenous groups have brought to the skating culture.
⦿ Today, Crystal lives in Juneau, Alaska, as a co-owner and co-designer of Trickster Company with her brother Rico Worl. Trickster Company promotes innovative Indigenous design focused on the Northwest Coast art and exploring themes and issues in Native culture.
Ryanair welcomed the EU General Court’s rulings on discriminatory State aid favoring Lufthansa and SAS over other EU airlines.
The German government granted a blockbuster €6 billion recapitalization aid package to Lufthansa, while the Swedish and Danish governments recapitalized SAS to the tune of €1 billion.
While the COVID-19 crisis caused serious damage to all airlines, many national governments, including Germany, Sweden and Denmark, rushed through discriminatory subsidy schemes for their former flag carriers, ignoring other airlines that contribute to the economy and the connectivity of the European Union. Ryanair appealed the European Commission’s approval of these illegal subsidies to the EU General Court in 2021.
The EU General Court found the European Commission made a number of egregious errors in its approval of the aid to Lufthansa, including ignoring Lufthansa’s dominance in Germany, and failing to assess whether Lufthansa could have obtained financing on the markets instead of obtaining distortive State aid from the German government. In the SAS judgment, the General Court found that the recapitalisation measure lacked conditions incentivising swift exit of the governments. Today’s judgments are a victory for the EU internal market and are damning of the European Commission’s head-in-the-sand approach to massive and discriminatory bailouts of ailing flag carriers by EU Member States with deep pockets.
Ryanair’s spokesperson said:
“One of the EU’s greatest achievements is the creation of a single market for air transport. The European Commission’s approval of theGerman recapitalisation aid to Lufthansa and the Swedish and Danish recapitalisation aid to SAS went against the fundamental principles of EU law. Today’s judgments confirm that the Commission must act as a guardian of the level playing field in air transport and cannot sign-off discriminatory State aid under political pressure by national governments. The Court’s intervention is a triumph for fair competition and consumers across the EU.
During the COVID-19 pandemic over €40bn in discriminatory State subsidies has been gifted to EU flag carriers. Unless halted by the EU Courts in line with today’s ruling, this State aid spree will distort the market for decades to come. Europe’s emergence from the COVID-19 crisis with a functioning single market depends on airlines being allowed to compete on a level playing field. Undistorted competition eliminates inefficiency and benefits consumers through low fares and choice. Unjustified subsidies, on the other hand, encourage ineffectiveness and will harm consumers for decades to come”.
Qatar Airways is re-introducing a direct Doha to Auckland flight, which commences on September 1, 2023 and will operate seven times a week/departing daily at 01:50 local time.
Qatar Airways will be operating an Airbus A350-1000 on the route with 46 Business Class and 281 Economy Class seats. A key feature of the service is the Qsuite, which is available to Business Class passengers.
Daily Flight Schedule:
Doha (DOH) to Auckland (AKL) QR920 departs at 01:50 and arrives at 02:45 (+1) local time.
Auckland (AKL) to Doha (DOH) QR921 departs at 15:00 and arrives at 23:15 local time.
From September 24, 2023, due to daylight saving time changes in Auckland, both QR920 and QR921 will arrive and depart one hour later, respectively.
Qatar Airways recently had the opportunity to add a small number of Boeing 737-8 MAX 8 aircraft to its fleet, the first of which arrived in Doha on April 15, 2023.
Since its arrival the aircraft has undergone post-delivery maintenance which has included IFE streaming installation and the aircraft has been used for pilot training almost every day.
The utilization of the Boeing 737-8s will add capacity to help drive future growth, especially in short haul markets, which will be expanded from the Doha-Kuwait-Doha route to other nations, principally in the GCC as further approvals take place. As a rapidly growing airline, these efficient and modern aircraft are a welcome addition to the narrow body fleet to support our sustainable expansion plans as the world’s leading airline. Qatar Airways has now received its second Boeing 737-8 and will receive the remaining 7 aircraft by end of July.
Qatar Airways is a leading customer for the Boeing 737-10 with 25 of this type ordered at the Farnborough Airshow in 2022. The Boeing 737-10 and Boeing 737-8 have a number of operational synergies, particularly in pilot training and ground handling, which will deliver value to customers, though there are differences in onboard amenities such as the Oryx One Play Wireless Inflight Entertainment, rather than the Individual IFE screens which will be available on the Boeing 737-10. Whilst the Boeing 737-8 will operate on shorter sectors, these are not expected to be exclusively operated with this aircraft and will flexibly utilise the Boeing 777 and Airbus A350 depending on demand and capacity.
For nearly two years, Lufthansa has offered its passengers on cross-border European flights lasting more than an hour a varied, high-quality range of fresh meals, packaged snacks and drinks for purchase. The fresh meals, such as salads, bowls and sandwiches, are prepared fresh daily by catering company Gate Gourmet according to recipes from dean&david at the Frankfurt and Munich locations. Cake specialties from Dallmayr are also offered. Because they are deliberately prepared without colorants or preservatives, they have a short shelf life and must be disposed of if they are not sold on the designated flights.
Now Lufthansa is launching the “Onboard Delights Last Minute” initiative: passengers have the opportunity to purchase fresh products that have not been sold by then shortly before landing on all flights to Frankfurt and Munich on which Onboard Delights are offered, at the lower price of a uniform 3.50 euros, and take them with them. This is a further step toward reducing food waste, after Lufthansa already introduced the option of pre-ordering these products in February of this year.
Another new feature of Lufthansa Onboard Delights is that award miles can be collected and redeemed when purchasing food and beverages from the Onboard Delights range. At least one award mile is credited per euro when the Miles & More card is presented.
Lufthansa Group catering concepts for less waste
Sustainability is one of the Lufthansa Group’s top priorities. On short-haul flights, the amount of food waste is to be reduced by 50 percent by 2025 compared to 2019. To achieve this, the Lufthansa Group is optimizing catering processes, offering passengers the opportunity to order meals in advance, and reducing the amount of products held in stock as standard. As a result, Lufthansa was already able to reduce the proportion of discarded perishable food by 45 percent in 2022 compared to the previous year.
Austrian, SWISS and Eurowings have already been offering unsold food at reduced prices since 2022. As a result, about 80,000 food products were consumed in 2022 that would otherwise have been disposed of.
Air New Zealand has today revealed more details around its Skynest – the world’s first sleep pods in the sky.
Skynest confirmed on New York and Chicago routes from 2024
Will be designed and installed in Aotearoa New Zealand
More details about what Skynest includes
The announcement was made at TRENZ – New Zealand’s largest international tourism business event – where a real-life Skynest experience was available for the first time.
Air New Zealand Chief Customer and Sales Officer Leanne Geraghty says Skynest is going to be a real game changer, adding more flexibility to the economy travel experience.
“Our 83-year history is marked by a commitment to innovation and pushing the boundaries of what’s possible. SkyNest is the latest example, and we’re proud to be leading the way with this world-first cabin feature.
“SkyNest has captured the imagination of a global audience and its uniqueness has already been acknowledged by multiple awards – the latest being a finalist in the Crystal Cabin Awards. We’re delighted that customers are as excited about this new innovation as we are. Our extensive research and design process, which spanned five years and 170,000 hours, has resulted in a product that we’re confident will revolutionise the in-flight experience for Economy passengers.”
Skynest to feature on ultra-longhaul flights
“We’re delighted to announce that our innovative Economy Skynest will be launching on ultra-long haul flights, starting with the popular Auckland – New York and Auckland – Chicago routes.
“North America is the perfect market for Skynest, as it has a premium segment that values comfort and sleep during long-haul travel.
“With our ultra-long haul routes to destinations such as New York and Chicago, Skynest provides a unique and innovative way for our passengers to rest and recharge, making their journey with us even more enjoyable. By launching Skynest on these routes, we are bringing to life our commitment to providing choice, alongside the best possible experience for our passengers, and to continue to innovate and lead the way in the aviation industry.
Skynest to be designed and installed in New Zealand
“As a proudly New Zealand company, we’re delighted to announce that Skynest will be designed and installed right here in Aotearoa.
“While our overall 787 refit will occur offshore in the best Boeing facilities, our best engineers and designers will develop SkyNest in New Zealand, using the latest in cutting-edge technology and design.
More details about Skynest
The Skynest will be a six-pod configured sleep zone that offers sessions for economy passengers to lie down when travelling long haul. It will be available from September 2024.
Each pod will include a full-size pillow, sheets and blanket, ear plugs, a separate reading light, personal device USB outlet, ventilation outlet, and lighting designed for rest.
Each passenger will be limited to one session, with families travelling on the same ticket able to book a session for each passenger, pending availability. Skynest provides economy passengers another opportunity to lie flat and rest during longer flights.
The Skynest will be located between Premium Economy and Economy, and each pod will come with a separate seatbelt to ensure passengers can fasten them and stay in the pod should the seat belt sign come on during turbulence. The bedding will be changed between each session, and a 30-minute transition time will be allowed for this. The lights will gently come on at the end of each session, and crew will politely wake any passengers who sleep through this.
“We’re still working through the exact details of how the booking process will work, and we have yet to determine the price. At this stage are looking at around $400 to $600 for the 4-hour period.”
ANZ has also introduced a retro livery on one of its Airbus A320s:
airBaltic has published its flight schedule for the upcoming winter season, starting from the end of October 2023. The airline is launching 11 new routes from the Baltics and Tampere (Finland), and will offer around 80 routes across its network to connect Riga and other cities in the region.
The first sales campaign of the new winter season destinations will begin on May 16.
Destination served
Flight frequency
Start date
Price *,GREEN
Riga–Agadir (Morocco)
1 flight weekly
November 4, 2023
169 €
Riga–Alicante (Spain)
2 flights weekly
February 26, 2024
129 €
Tallinn–Tampere (Finland)–Amsterdam (the Netherlands)**
7 flights weekly
October 29, 2023
65 €
Tallinn–Tenerife (Spain)
2 flights weekly
October 30, 2023
225 €
Tallinn–Geneva (Switzerland)
1 flight weekly
December 30, 2023
115 €
Vilnius–Brussels (Belgium)
4 flights weekly
October 30, 2023
99 €
Vilnius–Tenerife (Spain)
2 flights weekly
October 31, 2023
215 €
Vilnius–Dubai (UAE)***
2 flights weekly
November 1, 2023
239 €
Vilnius–Turin (Italy)
1 flight weekly
December 23, 2023
109 €
Tampere–Tenerife (Spain)
2 flights weekly
November 1, 2023
235 €
Tampere–Kittila (Finland)**
2 flights weekly
December 22, 2023
99 €
*Lowest fare (one-way), including taxes, fees and service charges.
**Tickets for these routes will be available on airBaltic website in the coming weeks.
***Subject to government approval. Tickets for these routes will be available on airBaltic website in the coming weeks.
In the upcoming winter season, airBalticplans to add a total of 11 new routes – two from Riga, three from Tallinn, four from Vilnius, and two from Tampere.
Top Copyright Photo: airBaltic Airbus A220-300 (Bombardier CS300 – BD-500-1A11) YL-AAR (msn 55053) MUC (Gunter Mayer). Image: 960488.
