Frontier Airlines CEO Barry Biffle joins ‘Maria Bartiromo’s Wall Street’ to discuss a new report by the Government Accountability Office claiming airlines were to blame for 60% of cancellations from October through December 2021.
Strong demand with 19.7m passengers onboard, up 35% versus 2022
Group revenues at €6.3bn, an improvement of €1.9bn (+42%) compared to last yearthanks to continuous strong market demand
Group unit cost1 per ASK stable at +0.7% versus 2022
Operating result at –€0.3bn with operating margin at -4.8%, above 2022 level (-7.9%)
Positive Adjusted operating free cash flow at €0.7bn and solid cash at hand at €9.7bn
Net debt down by €0.9bn euros, compared to end of 2022
Continued deleveraging: Net debt/EBITDA ratio at 1.5x versus 1.8x end of 2022
Commenting on the results, Mr. Benjamin Smith, Group CEO, said:” In the first quarter, Air France-KLM further capitalized on the recovery momentum in the airline industry. I’d like to thank all my colleagues who have worked tirelessly throughout the quarter to ensure we continue on our path to sustained profitability. The Group continued to show strong revenue growth as well as robust cash flow generation thanks to the very encouraging summer ticket sales. This is paving the way for a busy holiday season across our global network, which all of our teams are actively gearing up for. I am also pleased that we have now fully repaid all State aid, which releases us from the associated restrictions and gives us back our full strategic autonomy. We now stand on our own feet. Looking ahead, we remain focused on further strengthening our balance sheet and delivering the transformation efforts that will enable us to continue to improve our competitiveness while accelerating our decarbonization efforts.“
Alaska Airlines applauds Washington state Governor Jay Inslee, and bill sponsor, State Senator Andy Billig, for the signing of new legislation to help drive growth in the market for Sustainable Aviation Fuel (SAF) in Washington state.
Investing in SAF has multilayered benefits, including the creation of family wage manufacturing jobs. Using SAF is also the most significant way we can reduce the greenhouse gas emissions of aviation over the next several decades. This legislation will help ensure that SAF is more available at a cost and scale that enables its use and continues to position Washington State as a leader on climate action.
This is a step in the right direction, and we look forward to working with public and private partners to realize its full potential.
Top Copyright Photo: Alaska Airlines Boeing 737-9 MAX 9 N973AK (msn 43346) BUR (Michael B. Ing). Image: 960473.
Spirit Airlines entered a new chapter in its 20+ year history on May 5 in Puerto Rico by launching its expansion at Luis Muñoz Marín International Airport (SJU).
Travelers now have convenient, daily nonstop flight options between San Juan and destinations across the eastern half of the U.S. to include Atlanta (ATL), Chicago (ORD), Dallas/Fort Worth (DFW), and Detroit (DTW), with a nonstop flight to Hartford (BDL) starting on June 7.
In addition to the new routes, Spirit on May 5 increased SJU service to include five daily flights to Orlando (MCO), and two daily flights to Baltimore (BWI), Fort Lauderdale/Hollywood (FLL) and Newark (EWR).
Spirit Airlines Routes at San Juan (SJU)
Destination:
Flights Available:
Launch Date:
Atlanta (ATL) NEW
Daily
May 5
Boston (BOS)
Daily
Existing
Hartford (BDL) NEW
3x Weekly
June 7
Baltimore (BWI)
2x Daily
Frequency increase on May 5
Dallas (DFW) NEW
Daily
May 5
Detroit (DTW) NEW
Daily
May 5
Newark (EWR)
2x Daily
Frequency increase on June 7
Fort Lauderdale (FLL)
2x Daily
Frequency increase on April 5
Orlando (MCO)
5x Daily
Frequency increase on May 5
Miami (MIA)
Daily
Existing Service
Chicago (ORD) NEW
Daily
May 5
Philadelphia (PHL)
Daily
Existing Service
Tampa (TPA)
Daily
Existing Service
In addition to serving its Guests, Spirit and its partners employ nearly 1,000 Puerto Ricans on the island across three airports and its aircraft maintenance facility in Aguadilla. This new expansion will also create about 80 new jobs in San Juan.
Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N903NK (msn 7011) FLL (Jay Selman). Image: 404292.
Air Canada is updating its guidance for 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 is also modifying 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 providing the following updates to its 2023 guidance.
Metric
Full Year 2023 Guidance
Prior Guidance (Provided on February 17, 2023)
Updated Guidance (Provided on May 4, 2023)
ASM capacity
About 24 per cent increase versus 2022 (~90 per cent of 2019 levels)
About 23 per cent increase versus 2022 (~90 per cent of 2019 levels)
Adjusted CASM*
About 13 to 15 per cent above 2019 levels
About 0.5 to 2.5 per cent below 2022 levels
Adjusted EBITDA*
About $2.5 – $3.0 billion
About $3.5 – $4.0 billion
Air Canada is not updating its 2024 targets at this time and will continue evaluating them as it progresses towards its plans and executes on its strategic priorities.
*Adjusted CASM and adjusted EBITDA referred to in this news release, are non-GAAP financial measures. 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. 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.
Major Assumptions
Assumptions were made by Air Canada in preparing its updated guidance. As part of its assumptions, Air Canada assumes moderate Canadian GDP growth for 2023. Air Canada also assumes 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.
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 dedicated freighter aircraft in its fleet as at March 31, 2023. Prior to 2021, Air Canada did not incur any costs related to the operation of dedicated freighter aircraft. 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)
Full Year
2022
Operating expense – GAAP
$
16,743
Adjusted for:
Aircraft fuel
(5,276)
Ground package costs
(474)
Impairment of assets
(4)
Freighter costs (excluding fuel)
(86)
Operating expense, adjusted for the above-noted items
$
10,903
ASMs (millions)
82,558
Adjusted CASM (cents)
¢
13.21
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.
EBITDA and adjusted EBITDA are reconciled to GAAP operating income (loss) as follows:
(Canadian dollars in millions, except where indicated)
Full Year
2022
Operating loss – GAAP
$
(187)
Add back:
Depreciation and amortization
1,640
EBITDA
$
1,453
Impairment of assets
4
Adjusted EBITDA
$
1,457
Top Copyright Photo: Air Canada Boeing 737-8 MAX 8 C-GMIW (msn 61246) LAX (Michael B. Ing). Image: 960466.
Porter Airlines is launching its summer schedule at Toronto Pearson International Airport (YYZ), with additional flexibility when travelling between YYZ and Ottawa (YOW), Montreal (YUL), Halifax (YHZ), Vancouver (YVR), Edmonton (YEG) and Calgary (YYC).
The new schedule comes into effect on June 1, adding more desirable flight times that are well-distributed throughout the day. Certain routes will see a further increase in flights by August. A greater number of coast-to-coast connecting flight options via Porter’s YYZ hub are also created with this new schedule.
Porter operates the 132-seat Embraer E195-E2 on all Toronto Pearson routes, featuring an all-economy, two-by-two configuration. Porter is the only airline with no middle seats on every flight.
Frontier Airlines on May 4 launched nonstop service from Luis Muñoz Marín International Airport in San Juan (SJU) to Cleveland (CLE), Baltimore (BWI), Chicago Midway (MDW), and Dallas-Fort Worth (DFW).
Additionally, Frontier also launched nonstop service from Rafael Hernández International Airport in Aguadilla (BQN) to Tampa (TPA) and from Mercedita International Airport in Ponce (PSE) to Orlando (MCO).
On May 5, Frontier will launch service from SJU to Detroit (DTW).
Frontier will also begin service from SJU to Cancún, Mexico (CUN) on May 11. With these new routes, Frontier now offers a total of 20 nonstop routes from the island, the most of any airline.
Service from San Juan’s Luis Muñoz Marín International Airport (SJU):
SERVICE TO:
SERVICE START:
SERVICE FREQUENCY:
INTRO FARE:
Cleveland (CLE)
May 4, 2023
4x/week
$79*
Baltimore (BWI)
May 4, 2023
Daily
$69*
Chicago Midway (MDW)
May 4, 2023
6x/week
$89*
Dallas-Fort Worth (DFW)
May 4, 2023
Daily
$79*
Detroit (DTW)
May 5, 2023
4x/week
$79*
Cancún, Mexico (CUN)
May 11, 2023
3x/week
$69*
Service from Aguadilla’s Rafael Hernández International Airport (BQN):
SERVICE TO:
SERVICE START:
SERVICE FREQUENCY:
INTRO FARE:
Tampa (TPA)
May 4, 2023
3x/week
$59*
Service from Ponce’s Mercedita International Airport (PSE):
SERVICE TO:
SERVICE START:
SERVICE FREQUENCY:
INTRO FARE:
Orlando (MCO)
May 4, 2023
3x/week
$89*
Frequency and times are subject to change.
Top Copyright Photo: Frontier Airlines (2nd) Airbus A320-251N WL N331FR (msn 8239) (Choo, the Pika) MIA (Jay Selman). Image: 404291.
Emirates Airline and Etihad Airways have signed a Memorandum of Understanding (MoU) to expand their interline agreement and provide travellers additional itinerary options when visiting the UAE. This first of its kind agreement between the two UAE carriers aims to capitalise on opportunities to boost tourism to the UAE from key source markets by enabling visitors to experience more than one destination in a single itinerary.
This summer, customers of each airline will be able to purchase a single ticket to fly into either Dubai or Abu Dhabi, with a seamless return via the other airport. The new agreement also provides travellers planning to explore the UAE with the flexibility of one-stop ticketing for their full journey and convenient baggage check-in.
In the initial stages of the expanded interline, each carrier will focus on attracting visitors to the UAE by developing inbound interline traffic from select points in Europe and China. The ‘open jaw’ arrangement will allow visitors to cover as much ground as possible when exploring Abu Dhabi, Dubai or any other emirate, saving time by removing the need to fly home via their arrival airport. Customers travelling into the UAE also have the option of ‘multi-city flights’, with the choice to travel from one city on both carriers’ networks, and conveniently returning to another point served by either Emirates or Etihad.
The MoU was signed at Arabian Travel Market by Adnan Kazim, Emirates’ Chief Commercial Officer, and Mohammad Al Bulooki, Chief Operating Officer, Etihad Airways, in the presence of Sir Tim Clark, President, Emirates Airline, and Antonoaldo Neves, Etihad CEO, along with other senior representatives.
The expanded interline partnership draws upon the commitment of both airlines to support the UAE government’s objective to promote tourism to the UAE and enhance the UAE’s position as a preferred global destination. Tourism is one of the key pillars of the UAE Economy and is expected to contribute to 5.4% of the nation’s total GDP, or AED 116.1 billion (USD 31.6 billion), supporting over 1 million jobs by 2027.*
This is the second time the airlines have announced a collaboration. In 2018, Emirates Group Security and Etihad Aviation Group (EAG) signed a Memorandum of Understanding (MoU) to strengthen aviation security, including the sharing of information and intelligence in operational areas both within and outside the UAE. Last year, Emirates signed an MoU with the Department of Culture and Tourism – Abu Dhabi, to boost tourist numbers to the UAE capital from key source markets across the airline’s global network.
The market in April was weaker than expected. The decline is due to several factors. Widerøe is in line with a number of other Norwegian companies characterized by large cost increases as a result of a weak Norwegian krone. This is particularly reflected in cost increases for currency and fuel, and the costs here have increased by 70 per cent since 2019. There has therefore been a need to pass some of the cost increase on to customers and Widerøe has raised the prices somewhat in April. The unit income of Widerøe has nevertheless only been adjusted in line with the CPI, and far less than what the increase in costs would indicate. We see the result directly in the demand for tickets, and for the first time we see that the total market is smaller than in 2022. This applies not only to Widerøe, but to plane tickets in general, and the decrease for Widerøe is 13.7 percent.
The price increase towards customers is probably perceived as stronger than just the CPI adjustment, as Air Passenger Duty is back at the top of the price adjustment. Altogether, this has a large negative impact on demand.
The market outlook going forward is considered uncertain. Necessary price adjustments have a direct impact on demand, and a continued weak krone exchange rate will continue to negatively affect the company’s profitability.
April was weaker than planned and bears the mark of a price increase with a subsequent failure in demand, says CEO of Widerøe Stein Nilsen. – The industry is in a very difficult situation where a weak krone exchange rate results in large cost increases which we can only partially pass on to customers. This, combined with a large increase in taxes and fees compared to 2022, means that the total market is for the first time smaller than in 2022, concludes Nilsen.
We start May with good news. Widerøe and Norwegian are expanding their collaboration to also include foreign destinations. This means that our passengers can now travel on non-stop journeys from Berlevåg to Rome with Widerøe and Norwegian, with one ticket, non-stop luggage and with far shorter layovers than before. It also means that passengers arriving in Norway with Norwegian and going onward with Widerøe can now make use of Domestic Transfer at Gardemoen.
Air Transat has unveiled the details of its 2023-2024 winter flight program for Quebec travellers, slated to begin on November 1, 2023. The airline continues to develop its operations, and will offer, at the peak of the season, more than 180 direct flights per week from Montreal and Quebec City to over 30 destinations in the Caribbean, Mexico, Central and South America, the United States and Europe.
At the peak of the season, Air Transat’s overall program will include over 300 direct flights per week departing from eight Canadian cities. In addition to Montreal and Quebec City, it will also offer flights from Toronto, Ottawa, London, Hamilton, Halifax and Moncton.
Sun destinations: more accessible than ever
Compared to last year, over 30 additional flights will be scheduled from Montreal and Quebec City, reinforcing the airline’s commitment to meet travellers’ needs while offering even greater travel day flexibility.
In particular, the company is strengthening its position as the primary Canadian airline serving the Dominican Republic. At the peak of the season, two additional direct flights will be offered each week between Montreal and Punta Cana, while one additional direct flight will be offered between Quebec City and Punta Cana and between Quebec City and Puerto Plata.
Air Transat is also significantly enhancing its Cuba offer with two additional flights departing from Montreal to Cayo Coco, three to Holguín, two to Varadero and one to Santa Clara.
The company continues to develop its Mexican market, with one additional flight departing from Montreal and one from Quebec City to Cancún, as well as two additional flights from Montreal to Puerto Vallarta.
Air Transat is also setting its sights on high-growth markets such as Colombia, Costa Rica, El Salvador and Saint Martin. Each week, one additional direct flight will be departing from Montreal to Cartagena, Liberia, Philipsburg, San José and San Salvador.
Destination
From Montreal
From Quebec City
ACAPULCO – Mexico
1
CANCÚN – Mexico
14
5
CARTAGENA – Colombia
3
CAYO COCO – Cuba
5
2
FORT-DE-FRANCE – Martinique
3
LIBERIA – Costa Rica
4
HAVANA – Cuba
2
HOLGUÍN – Cuba
6
1
MONTEGO BAY – Jamaica
4
PHILIPSBURG – St. Maarten
3
POINTE-À-PITRE – Guadeloupe
3
PORT-AU-PRINCE – Haiti
1
PUERTO PLATA – Dominican Republic
6
2
PUERTO VALLARTA – Mexico
7
2
PUNTA CANA – Dominican Republic
14
6
RIO HATO – Panama
2
SAMANA – Dominican Republic
5
1
SAN JOSÉ – Costa Rica
4
SAN JUAN – Puerto Rico
1
SAN SALVADOR – El Salvador
2
SANTA CLARA – Cuba
3
2
VARADERO – Cuba
6
2
Number of weekly flights at the peak of the season
Direct flights to Europe year-round
Departing from Montreal, Air Transat will be offering direct flights to seven European destinations. In accordance with the strategy announced earlier this year, the airline is reducing the seasonal nature of its operations in Europe by offering year-round service to Marseille and Lyon and by extending its flights to Nantes until mid-January.
Departing from Quebec City, the number of flights to Paris will rise to two per week.
Destination
From Montreal
From Quebec City
LISBON – Portugal
2
LONDON – UK
3
LYON – France
3
MALAGA – Spain
3
MARSEILLE – France
2
NANTES – France (until January 13, 2024)
2
PARIS – France
7
2
Number of weekly flights at the peak of the season
Air Transat has also unveiled the details of its 2023-2024 winter flight program for Ontario travellers, slated to begin on November 1, 2023. The airline continues to develop its operations and will offer, at the peak of the season, more than 110 direct flights per week from Toronto, Ottawa, London and Hamilton to over 20 destinations in the Caribbean, Mexico, Central and South America and Europe.
At the peak of the season, Air Transat’s overall program will include over 300 direct flights per week departing from eight Canadian cities. In addition to Toronto, Ottawa, Hamilton and London, it will also offer flights from Montreal, Quebec City, Moncton and Halifax.
Sun destinations: more accessible than ever
Compared to last year, over 20 additional flights will be scheduled departing from Ontario, reinforcing the airline’s commitment to meet travellers’ needs while offering even greater travel day flexibility.
In particular, the company is strengthening its position as the primary Canadian airline serving the Dominican Republic. At the peak of the season, four additional direct flights will be offered each week between Toronto and Punta Cana, while one additional direct flight will be offered between Toronto and Puerto Plata, as well as Toronto and Samana. One additional direct flight will connect Ottawa and London with Punta Cana.
Air Transat is also significantly enhancing its Cuba offer with two additional flights departing from Toronto to Cayo Coco and one additional flight to Holguín, Varadero and Santa Clara.
The company continues to develop its Mexican market, with four additional flights departing from Toronto to Cancún and two to Puerto Vallarta. One additional flight will depart from Ottawa and London to Cancún.
Destination
From Toronto
From Ottawa
From London
From Hamilton
CANCÚN – Mexico
14
3
2
1
CARTAGENA – Colombia
1
CAYO COCO – Cuba
5
1
1
LIBERIA – Costa Rica
4
LA ROMANA – Dominican Republic
1
HOLGUÍN – Cuba
5
MONTEGO BAY – Jamaica
7
PHILIPSBURG – St. Maarten
1
PUERTO PLATA – Dominican Republic
5
1
1
PUERTO VALLARTA – Mexico
4
PUNTA CANA – Dominican Republic
14
3
2
1
RIO HATO – Panama
2
SAMANA – Dominican Republic
3
SAN JOSE – Costa Rica
3
SAN JUAN – Puerto Rico
1
SANTA CLARA – Cuba
3
1
VARADERO – Cuba
5
1
Number of weekly flights at the peak of the season
Direct flights to Europe year-round
Departing from Toronto, Air Transat will be serving six European destinations, for a total of 20 direct flights to Europeeach week. The airline is boosting the frequency of its weekly service to Faro to two direct flights.
Destination
FromToronto
FARO – Portugal
2
GLASGOW – UK
1
LISBON – Portugal
2
LONDON – UK
7
MANCHESTER – UK
2
PORTO – Portugal
2
Number of weekly flights at the peak of the season
Top Copyright Photo: Air Transat Airbus A330-243 C-GUBT (msn 732) LGW (Richard Vandervord). Image: 960465.
Korean Air has painted a Boeing 777-300ER (HL7204) in this special livery in support of the bid by the City of Busan to host the World Expo 2030.
The airline issued this statement:
Korean Air hosted an event at the airline’s hangar at Incheon International Airport to showcase a special livery in support of Korea’s successful bid to host the World Expo 2030 in Busan.
To support the bid, the airline unveiled a special Boeing 777-300ER livery featuring BLACKPINK, world-renowned K-pop group. Recognized globally, BLACKPINK is on a world tour to meet its 1.5 million global fans. In March, Korean Air signed a partnership agreement with YG Entertainment, and became the official airline sponsor of BLACKPINK’s world tour.
The special livery will begin its journey on May 4 departing from Seoul Incheon for Paris Charles de Gaulle and make stops in multiple destinations served by the 777-300ER fleet on the airline’s global network.
In addition to rendering travel arrangements for the Bureau International des Expositions (BIE) Enquiry Mission in April, the airline is also featuring promotional video clips on its inflight entertainment system and at Seoul Incheon International Airport lounges. Korean Air’s inflight magazine, Morning Calm, also features promotional articles highlighting Busan’s capabilities to host the World Expo.
In other news, Korean AIr has also unveiled a logo jet dedicated to its employees with this announcement:
During a recent employee appreciation event, Korean Air unveiled a unique way to show its gratitude: a 777-300ER aircraft featuring the names of its over 20,000 staff worldwide.
Painted on the sides of the plane’s classic livery are the phrases “Our Pride” and “We are Korean Air” along with thousands of names of the airline’s employees from around the globe. This custom aircraft joins Korean Air’s fleet of 25 Boeing 777-300ERs and will fly on multiple long-haul routes to Europe, the Americas and Australia, among others.
The aircraft was introduced at Korean Air’s Family Day weekend on April 29-30, where close to 9,000 airline employees and their families were treated to food trucks, cotton candy stands, massage chairs, photo booths and play zones at the airline’s Seoul Gimpo hangar. Children also participated in safety sessions, including hands-on CPR sessions hosted by Korean Air’s in-house Aeromedical Center.
Stars from the Korean Air Jumbos volleyball team were on the scene to take pictures with fans and hand out autographed volleyballs.
Korean Air organized the event to recognize its employees’ resolve and hard work and to provide an opportunity for family members and friends to better understand the airline.
In showcasing the special livery at the employee event, the airline demonstrated its commitment to actively support a positive workplace culture, and will continue to introduce policies that allow its people to feel connected to the company and its culture.
Allegiant Travel Company (Allegiant Air) today reported the following financial results for the first quarter 2023, as well as comparisons to the prior year:
Consolidated
Three Months Ended March 31,
Percent Change
(unaudited) (in millions, except per share amounts)
2023
2022
YoY
Total operating revenue
$ 649.7
$ 500.1
29.9 %
Total operating expense
554.9
492.9
12.6 %
Operating income
94.8
7.2
1,216.7 %
Income (loss) before income taxes
74.4
(10.6)
801.9 %
Net income (loss)
56.1
(7.9)
810.1 %
Diluted earnings (loss) per share
3.09
(0.44)
802.3 %
Sunseeker special charges, net of recovery
(1.6)
—
N/A
Diluted earnings per share excluding recovery of Sunseeker special charges(1)(4)
3.04
(0.44)
790.9 %
Airline only
Three Months Ended March 31,
Percent Change(2)
(unaudited) (in millions, except per share amounts)
2023
2022
YoY
Airline operating revenue (1)
$ 649.7
$ 500.1
29.9 %
Airline operating expense (1)
552.1
489.9
12.7 %
Airline operating income(1)
97.6
10.2
856.9 %
Airline income (loss) before income taxes (1)
78.9
(5.6)
1,508.9 %
Airline net income (loss) (1)(3)
59.9
(4.3)
1,493.0 %
Airline operating margin
15.0 %
2.0 %
13.0 %
Airline diluted earnings (loss) per share(1)
3.30
(0.24)
1,475.0 %
(1)
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information and for calculation of per share figures
(2)
Except Airline Operating Margin, which is percentage point change
(3)
Utilizing an effective tax rate of 24.0% for 2023 and 23.6% for 2022
(4)
Adjusted to exclude insurance recoveries from property damage to Sunseeker Resort
“I am happy to report we delivered strong financial results during the first quarter with diluted earnings per share of $3.09,” stated John Redmond, CEO of Allegiant Travel Company. “The team worked tirelessly to ensure operational integrity, and our controllable completion of 99.9 percent for the quarter is a testament to their efforts. Running a safe, reliable operation is a critical component to our success, and I could not be prouder of the team’s performance.
“Demand remained strong throughout the quarter resulting in total operating revenue of $650 million, a 30 percent increase year-over-year. Notably, we see continued momentum in total ancillary per passenger, finishing the quarter at $75.19 per passenger, the highest quarterly result in our history. The Allways rewards credit card helped elevate this number with record new cardholder acquisitions and increased cardholder spend during the quarter. Enhanced technology, an expanded roll-out of Allegiant Extra in the fleet, and the opening of Sunseeker Resort later this year should act as tailwinds for this number in the coming years.
“Turning to our 2023 outlook, we have updated guidance and estimate a full-year, airline-only earnings per share of roughly $11. The increase is driven by a reduction in our estimated fuel cost per gallon offset slightly by a two-and-a-half point reduction in full-year capacity. The industry continues to experience challenges from supply chain delays to ATC constraints that present the most stress during peak, high demand periods. We are positioning our forward plan to achieve a full-year, controllable completion of at least 99.5 percent. And we will continue to monitor and respond as we see appropriate to achieve our goal. Despite the tweaks to capacity, booking data continues to reflect a strong demand environment, particularly during peak summer travel periods. We are closely monitoring macro-economic trends, but we have not observed a change in booking behavior or peak leisure demand.
“Finally, we remain on track to open Sunseeker Resort in mid-October. Although we are still working through insurance claims related to Hurricane Ian, we have better line of sight regarding completion and final budget. Given inflationary pressures and supply chain issues, we expect the final capital expenditure budget to be $695 million, which is inclusive of Aileron Golf Club. In early April, we unveiled the 20 original, world-class food and beverage offerings, which will be available on site. The team continues to attract high-quality group business with over $12 million in contracted future bookings. As we enter the final stages of construction, we could not be happier with how the property is progressing.”
First Quarter 2023 Results
Income before income tax of $74.4 million, yielding a pre-tax margin of 11.5 percent
Airline-only income before income tax(1) of $78.9 million, yielding a pre-tax margin of 12.1 percent
Operating income of $94.8 million, yielding an operating margin of 14.6 percent
Airline-only operating income(1) of $97.6 million, yielding an airline-only operating margin of 15.0 percent
Consolidated EBITDA(1) of $149.5 million, yielding an EBITDA margin of 23.0 percent
Airline-only EBITDA(1) of $152.2 million, a 23.4 percent margin
Total operating revenue was $649.7 million, up 29.9 percent over prior year
Total fixed fee contracts revenue of $14.1 million, the highest first-quarter total in company history
TRASM of 13.89 cents, up 28.8 percent year-over-year
Load factor of 85.8 percent, a 6.9 point improvement year-over-year, among the highest in the industry
Total average fare of $154.12, up 17.5 percent year-over-year, the highest quarterly average fare in company history
Total average ancillary fare of $75.19, up 10.7 percent as compared to 2022 driven by overall strength in core products and promising early results related to the Allegiant Extra rollout
Acquired over 46 thousand new Allways rewards credit card holders during the quarter, the highest quarterly acquisition in program history
Received $28 million in remuneration during the quarter
Airline-only Operating CASM, excluding fuel, of 7.75 cents, up 9.8 percent year-over-year
Allegiant recently named to the Forbes’ America’s Best Midsize Employers for 2023, Newsweek’s America’s Greatest Workplaces for Diversity 2023, and Fortune’s America’s Most Innovative Companies 2023 lists
(1)
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information and for calculation of per share figures
Balance Sheet, Cash and Liquidity
Total available liquidity at March 31, 2023 of $1.5 billion, which includes $1.1 billion in cash and investments, and $412.2 million in undrawn revolving credit facilities and PDP facilities
Repurchased 118 thousand shares during the first quarter at an average share price of $100.33
$215.4 million in cash from operations during first quarter 2023, the highest first quarter in company history
Total debt at March 31, 2023 was $2.1 billion
Net debt at March 31, 2023 was $1.0 billion
Debt principal payments of $51.5 million during the first quarter
Air traffic liability at March 31, 2023 was $479.5 million
Airline Capital Expenditures
First quarter capital expenditures of $92 million, which includes $56 million for aircraft purchases and inductions, pre-delivery deposits, and other related costs, and $36 million in other airline capital expenditures
First quarter deferred heavy maintenance spend was $15 million
Sunseeker Resort Charlotte Harbor
Total capital expenditures(1) as of March 31, 2023 were $571 million
First quarter capital expenditures(1) were $82 million
Previously recorded special charges were reduced by $1.6 million for approved insurance net recoveries related to outstanding insurance claims at Sunseeker Resort
(1)
Total capital expenditures is inclusive of Sunseeker Resort and Aileron Golf Club. This number excludes capitalized interest and operating expenses. This number also excludes impairments related to COVID and insurance events
Guidance, subject to revision
Full-year 2023 guidance
Previous
Current
System ASMs – year over year change
2 to 6%
0 to 3%
Scheduled service ASMs – year over year change
2 to 6%
0 to 3%
Fuel cost per gallon
$ 3.60
$ 3.00
Available seat miles (ASMs)/gallon
~84
~84
Depreciation expense (millions)
$230 to $240
$230 to $240
Interest expense (millions)
$150 to $160
$150 to $160
Capitalized interest (1) (millions)
($40) to ($50)
($35) to ($45)
Interest income (millions)
$30 – $40
$35 to $45
Earnings per share – airline only(2)
$5.00 – $9.00
$9.00 – $13.00
Loss per share – Sunseeker (3)
N/A
~($1.25)
Airline CAPEX
Aircraft, engines, induction costs, and pre-delivery deposits (millions)(4)
$550 to $570
$550 to $570
Capitalized deferred heavy maintenance (millions)
$50 to $60
$50 to $60
Other airline capital expenditures (millions)
$130 to $150
$130 to $150
Recurring principal payments (millions)
$175 to $185
$175 to $185
Sunseeker Resort Charlotte Harbor Project (millions)
Total projected capital expenditures (5)
$618
$695
Capital expenditures funded or expected to be funded by Allegiant
$345
Project debt incurred through March 31, 2023
$350
(1)
Includes capitalized interest related to Sunseeker as well as on pre-delivery deposits on new aircraft
(2)
Earnings per share calculation is airline only. It includes accruals for increases in pilot and flight attendant compensation beginning in May. Actual results will differ based on economic terms agreed upon and the timing of the collective bargaining agreements. These differences may be material
(3)
Excludes recoveries to be received related to business interruption insurance claim
(4)
Excludes capitalized interest related to pre-delivery deposits on new aircraft
(5)
Total projected capital expenditures does not reflect the impairment or special charges related to COVID or insurance claims. Previous budget of $618 million did not include expenditures related to Aileron Golf Club. Excludes amounts to remediate physical damage to the property resulting from Hurricane Ian, or other subsequent insurance events
Aircraft Fleet Plan by End of Period
Aircraft – (seats per AC)
1Q23
2Q23
3Q23
YE23
A319 (156 seats)
35
35
35
35
A320 (177 seats)
19
19
19
19
A320 (180-186 seats)
70
72
73
73
Total
124
126
127
127
The table above is provided based on the company’s current plans and is subject to change. The numbers exclude aircraft expected to be delivered before the end of 2023 for revenue service beginning in 2024
Top Copyright Photo: Allegiant Air Airbus A320-214 WL N190NV (msn 6669) BOS (Fred Freketic). Image: 960463.
Global Crossing Airlines Group, Inc. (GlobalX) has announced it has taken delivery of its seventh passenger A320 on lease from Airborne Capital (“Airborne”). The aircraft is a sistership to four ex-Alaska A320 aircraft currently operating at GlobalX, with a 12 business-138 economy seat configuration and installed Wi-Fi.
Airbus A320-214 N837VA (msn 4558) now sports a special Global Crossing Airlines-GCA livery:
GlobalX expects, subject to additional US DOT and the FAA approvals, to take delivery of the following additional aircraft in 2023:
* This aircraft to be used for ETOPS certification.
Assuming all of these aircraft are delivered, GlobalX will be operating twelve passenger A320 series aircraft, and six A321 Freighters by the end of 2023.
Alaska Airlines, in partnership with Kenmore Air, is ready to take you to one of Western Washington’s iconic vacation spots: the San Juan Islands, located north of Seattle.
You’ll fly on Alaska through Paine Field-Snohomish County Airport in Everett and connect on Kenmore Air’s modern fleet of Cessna Caravan aircraft to Friday Harbor on San Juan Island or Eastsound on Orcas Island.
We’ve been serving guests at Paine Field in Everett since regularly scheduled commercial service began there in March 2019. In the past four years, we’ve flown more than 1.6 million guests to and from Everett.
Alaska currently offers 28 daily flights in Everett – 14 arrivals and 14 departures a day – to seven destinations; on April 17, our seasonal flight to Palm Springs is replaced by daily service to Los Angeles:
Anchorage, 1 daily flight
San Francisco, 5 daily flights
San Diego, 1 daily flight
Las Vegas, 2 daily flights
Phoenix 2 daily flights
Orange County, 2 daily flights
Palm Springs, 1 daily flight.
Horizon Air provides most of our service at Paine Field with the Embraer 175 jet, with 737 service on select flights operated by Alaska.
Air Moldova on May 2 suspended all operations as the company restructures its debts.
The airline issued this statement:
Air Moldova announces: Accelerated restructuring of the company, with the aim of saving it!
On May 2, 2023, the airline company Air Moldova, submitted to the court the application for the approval of the accelerated restructuring of the company, which is an action plan, which aims to avoid the bankruptcy of the airline, solve the existing problems and accept investments.
The restructuring requested in court by Air Moldova represents the use of a complex of instruments in order to overcome financial difficulties and restore the economic viability of the company.
The restructuring procedure is the solution identified by the company that would allow external investment.
Investors are ready to invest around $50 million dollars in Air Moldova. These investments would allow solving the company’s financial problems and replenishing its own fleet.
Investments in the company cannot be made without the accelerated restructuring procedure due to the increased risk of an attack by existing creditors.
The accelerated restructuring will allow the company to receive these investments strictly for the development of the company, so that later, in time, the existing debts will also be paid.
Thus, until the decision of the court, regarding the acceptance or rejection of the request submitted by Air Moldova, the company will suspend the operation of flights and ticket sales starting on May 2, 2023. The resumption of the activity will be possible within 3 days after the decision of to the court.
All the actions undertaken by the Air Moldova Company Management are aimed at saving the National operator from bankruptcy. Accelerated restructuring is a unique opportunity for Air Moldova, being an international practice.
Top Copyright Photo: Air Moldova Airbus A321-211 ER-AXR (msn 808) AYT (Ton Jochems). Image: 947537.
Virgin Atlantic is restarting its much-anticipated flights to Shanghai, re-establishing essential business and leisure connections between the United Kingdom and China. The daily service resumed on May 1, 2023.
The move comes following a relaxation in travel restrictions between the two countries, which sees the borders reopening to foreign nationals for the first time since December 23, 2020. Shanghai is Virgin Atlantic’s final route to be re-instated following the global pandemic, having been impacted by suspensions and closures since February 1, 2020.
Virgin Atlantic’s Shanghai flights will continue to operate on a Boeing 787-9 Dreamliner. The return to China will complement the rest of Virgin Atlantic’s global route network which includes the USA & Caribbean, South Africa, Nigeria and India. The airline’s Tel Aviv service has doubled capacity this summer, operating a double daily service. New routes to the Maldives and Turks and Caicos will also commence later this year.
Top Copyright Photo: Virgin Atlantic Airways Boeing 787-9 Dreamliner G-VNYL (msn 37981) SEA (Bruce Drum). Image: 104713.
Norse Atlantic Airways is adding four new routes this winter, three from London Gatwick to Barbados, Kingston and Montego Bay and from Oslo to Bangkok.
Norse Atlantic Airways made this announcement:
New winter sun routes to Barbados, Kingston and Montego Bay will provide customers with lower fares while increasing competition to these traditionally expensive holiday destinations.
The three new routes from London Gatwick join, New York, Washington, Los Angeles, San Francisco, Boston, Orlando, Fort Lauderdale/Hollywood which are already on sale for the winter.
In total Norse Atlantic will serve 10 destinations from London Gatwick in winter 2023 and become the second largest long haul operator by seat capacity.
From today customers can book direct Norse Atlantic Airways flights between London Gatwick to Barbados, Kingston and Montego Bay from only £449 return including taxes.
Flights to Barbados will operate daily from October 29, 2023 with fares starting from £449 return including all taxes.
Flights to Kingston will operate three times a week from October 31, 2023 with fares starting from £579 return including all taxes.
Flights to Montego Bay will operate four times a week from October 29, 2023 with fares starting from £559 return including all taxes.
Norse Atlantic exclusively operates Boeing 787 Dreamliner aircraft. The cabin offers passengers a relaxed and comfortable travel experience with each seat including a personal state of the art entertainment experience. Our Premium cabin offers an industry leading 43” seat pitch and 12” recline allowing passengers to arrive at their destination feeling refreshed and ready to explore their destination.
As part of the airline’s winter program Norse Atlantic will also launch flights between Oslo and Bangkok twice weekly from November 2, 2023.
Top Copyright Photo: Norse Atlantic Airways Boeing 787-9 Dreamliner LN-FND (msn 38788) LGW (Robbie Shaw). Image: 959452.
Figure 1: Bomber 139 flightpath from Busselton to Fitzgerald River National Park
Source: FlightAware, annotated by ATSB
Earlier on the day, at 1015, and then again at 1215 and 1310, the WA Department of Biodiversity, Conservation and Attractions (DBCA) submitted aerial fire suppression requests to the State Operations Air Desk (SOAD). The request was for fixed-wing assets to the location of a fire 24 km west-north‑west of Hopetoun, WA under the criteria of ‘known high fuel loads and likelihood of excessive ROS [rate of spread] and/or extreme fire danger’. In response, the SOAD:
identified the aerial assets available
established a fire common traffic advisory frequency (F-CTAF)
spoke to the pilots
sent tasking messages at 1012, 1127, 1407 and 1505.
Bomber 139 was included in the 1127, 1407 and 1505 taskings. The SOAD LAT SARWATCH log[2] recorded Bomber 139 departing from Busselton on these taskings at 1208 and 1330, returning each time before departing on the accident flight at 1530.
At 1519 the bird-dog[3] responsibility for the LATs at the fireground transferred from bird-dog 125 (BD125) to BD123 (due to BD125 refuel requirements) with BD682 stationed above as the primary air attack aircraft.[4] Before BD125’s departure, a familiarisation flight of the fire zone was conducted with BD123 to discuss the layout of the fire, tactics, retardant drops, and objectives for the drops. No hazards were discussed. The crew of Bomber 139 contacted BD123 when they were 15 minutes from the fireground. The crew of BD123 acknowledged and advised an altimeter QNH[5] setting of 1003 hPa. Bomber 139’s crew acknowledged the altimeter setting and informed BD123 they would contact BD682 when they were 5 minutes from the fireground.
The pilot of BD682 subsequently cleared Bomber 139 to enter the F-CTAF not above an altitude of 2,500 ft and Bomber 139’s crew notified them they would be working with BD123 on an altimeter setting of 1003. The crew of BD123 queried BD682 if the drop zone was clear and were advised that no ground personnel had been sighted and that they were not expected for about another hour. At this stage, Bomber 139’s co-pilot advised the captain of their drop airspeeds, which included a target drop airspeed (VDROP) of 133 kt (1.25 VS[6]). When the crew of Bomber 139 reported BD123 in sight, they were asked if they wanted a ‘show-me’ run or to follow BD123 straight to the drop. Bomber 139’s crew responded that they would follow them and go straight to the drop. The crew of BD123 then obtained confirmation that right-hand circuits would be acceptable due to visibility.
Bomber 139 was briefed by the bird‑dog that the plan was to tag and extend the existing line of retardant while keeping the smoke off to the left side. Bomber 139’s crew subsequently reported to BD123 that they were in position and the captain called for the pre-drop checklist from the co-pilot. The crew of Bomber 139 notified BD123 their target speed would be 135 kt for final and then set their flaps to flap-40 (full flap). Bomber 139’s crew was then briefed on the drop by BD123, which included a straight exit, no hazards, a downslope, and target altitude initially of 500 ft descending to 400 ft. The co-pilot subsequently reported to the captain that the checklist was complete and BD123 reported turning onto final for the drop, which was on a heading of 155º.
Once on final, BD123’s crew advised Bomber 139 to ’start at the road and keep all smoke to the left, 3, 2, 1, start, your target altitude is 500 descending to 400’. Bomber 139 descended to about 400 ft and completed a partial drop of three-quarters of their tank at about 70% N1[7]before the captain stopped the drop because their retardant line was starting to enter area that was burnt. The partial drop was reported to BD123, and another circuit commenced to tag and extend the line with the remaining retardant, with the captain remarking to the bird‑dog ‘…and head down off the hill’.
The captain instructed the co-pilot to conduct the pre-drop checklist for the second drop. The co‑pilot reported that 118 kt would be their drop airspeed and the captain requested BD123 slow to 120 kt for the next drop, which they acknowledged. BD123’s crew then briefed Bomber 139 to ’tag and extend all existing retardant, it is start at the hill as it pushes down, target altitude 500 descending 400’. The co-pilot reported that flap-40 was set and the pre-drop checklist completed. The crew of BD123 then provided the following commentary, ‘this is final, fully retardant drop out here in a second, standby, [pause], retardant’s right at our 12 o’clock, [pause], 3, 2, 1, tag and extend existing retardant’.
During the second drop, Bomber 139 descended through 400 ft altitude (80 ft radio height) at about 110 kt computed airspeed[8] and 30% N1 (engines at high idle)[9] as the retardant line was extended downslope (Figure 2). The captain started to advance the throttle levers about 2 seconds before the aircraft’s rate of descent peaked at about 1,800 ft/min and started to pitch the nose up.
The nose up pitch preceded the acceleration of the engines, resulting in a reversal of the rate of descent, but also a decay of the airspeed. The captain then announced ’fly airplane’ followed immediately, at about 1614,[10] by the activation of the stick shaker[11] and an abrupt vertical acceleration associated with the aircraft impacting a ridgeline at an elevation of about 222 ft at 104 kt computed airspeed with the engines at 85-89% N1.
Bulldozer fire tracks constructed after the accident.
Source: ATSB
The co-pilot did not announce any deviations during the drop and accident sequence and later reported their focus of attention was likely on the airspeed indicator and radio altimeter, monitoring for any adverse trends. After the impact with the ridgeline, the aircraft cleared a small line of foliage before impacting the ground a second time and then sliding to rest. In response to the collision, BD123’s crew made an all-stations mayday[12] call.
After motion had ceased, the co-pilot started the evacuation checklist. Both pilots were unable to open the cabin door as it had buckled and the co-pilot was unable to open the right-side window. The captain observed out of the left side window that a post‑impact fire had started and managed to open that window on their second attempt. Both pilots then exited out of the left window and moved clear of the wreckage and fire. They were subsequently rescued by a helicopter involved in the fire control activities after 2 single-engine air tankers had dropped retardant on the aircraft fire believing the crew were still inside. The crew suffered minor injuries and the aircraft was destroyed. Figure 3 depicts Bomber 139’s recorded flightpath at Fitzgerald River National Park.
Figure 3: Bomber 139 recorded flightpath at Fitzgerald River National Park
Source: FlightAware, annotated by ATSB
Context
Aircraft information
The aircraft was a Boeing 737-3H4, serial number 28035, registration N619SW, issued with a certificate of airworthiness in the transport category[13] on 9 November 1995 and fitted with 2 CFM56-3 turbofan engines. It entered service with a United States airline on 12 November 1995 and accumulated 69,016 hours before transfer of ownership to Coulson Aviation on 8 August 2017. The latest certificate of registration was issued on 14 November 2017 and was valid until 30 November 2023.
On 10 November 2018, Coulson Aviation were issued with a supplemental type certificate (ST04050NY) for the installation of the Coulson Aerial Firefighter Tanker Modification to Boeing model 737-300 series aircraft, which limited passengers to persons related to firefighting mission‑essential activities. The tanker modification was completed on 30 May 2022. At the time of the accident, the airframe had accumulated 69,187.6 hours.
Meteorological information
On the day of the accident there was a low-pressure trough crossing southern WA, resulting in thunderstorms and wind direction changes from the north-east to the south-east to the south-west. The graphical area forecast for the accident site included moderate turbulence from the surface to 10,000 ft with thermals. A SIGMET[14] was issued at 1400 for frequent thunderstorms associated with the trough. While the north-western boundary of the SIGMET was close to the accident site, satellite and radar imagery indicated there were no thunderstorms in the vicinity of the accident site at the time of occurrence. The Hopetoun North weather station, located about 24 km east‑north‑east of the site, did not record any rainfall and the 10-minute weather data from the station is provided in Table 1.
Table 1: Hopetoun North weather station recordings
Time (WST)
Air temp (ºC)
Dew point temp (ºC)
Average 10 min wind speed (kt)
Highest 10 min wind speed (kt)
Average 10 min wind direction
Rainfall in last 10 min (mm)
1550
23.4
18.7
14.8
20.4
ESE
0
1600
23.2
18.7
14.0
19.6
SE
0
1610
23.1
18.6
11.6
17.1
SE
0
1620
23.4
18.7
11.4
15.0
ESE
0
1630
23.1
18.8
11.5
14.4
SE
0
1640
23.1
19.0
9.9
15.0
SE
0
Wreckage and impact information
The aircraft’s approach to the ridgeline left 2, distinct jet-blast lines evidenced by trees broken in the opposite direction of travel (Figure 4). Closer to the ridgeline trees were broken in the direction of travel, likely from contact with the aircraft’s engines and airframe with evidence of retardant transfer from the airframe to the foliage just below the ridgeline. The length of the jet‑blast lines were about 74 m and 62 m respectively for the left and right engines. After contacting the ridgeline, the aircraft became airborne for about 69 m, shedding engine, wing, and fuselage debris before impacting a second time in a slight nose down attitude on a heading of about 140º.
Figure 4: Jet-blast corridors and ridgeline impact
Bulldozer fire tracks constructed after the accident.
Source: ATSB
The aircraft came to rest about 176 m from the ridgeline yawed left to the direction of travel onto a heading of about 080º. The fuselage had a main fracture near the tail and the left engine had separated from the left pylon and was resting adjacent to the forward fuselage (Figure 5). The left engine pylon exhibited a 70º upward bend, which was likely from the impact with the ridgeline, noting the left engine debris field started from the ridgeline and there was no evidence of left engine drag marks. The aircraft was consumed by fire, but there was no evidence of:
fire trail[15] or fuel spill before the aircraft came to rest
any debris separating from the aircraft before it impacted the ridgeline.
Bulldozer fire tracks constructed after the accident.
Source: ATSB
The flight data recorder (FDR) and cockpit voice recorder (CVR) were recovered on the first day of the site and wreckage inspection and retained by the ATSB for examination and download. Due to the extensive fire damage, only a limited inspection of the aircraft was achievable. This included establishing the positions of the leading-edge flaps, trailing-edge flaps, and horizontal stabiliser, with no anomalies found. The trailing-edge flap ballscrews were in the fully extended position, consistent with a flap-40 setting.
The left main landing gear was found adjacent to the aircraft and part of its support structure was in the debris field indicating it was torn from the aircraft prior to it coming to rest. The nose and right main landing gear were retracted in place. The extent of the fire damage precluded an inspection of the cockpit and flight instruments. Figure 6 depicts the horizontal distances and elevations (measured with a differential global positioning system), and the angles presented by the foliage damage associated with the accident sequence.
Figure 6: Accident sequence distances and elevations
Source: ATSB
Recorders
The CVR (Honeywell SSCVR P/N 980-6022-001) and FDR (Honeywell SSFDR P/N 980-4700-001) were transported by a recorder specialist from the accident site to the ATSB’s Canberra technical facility (Figure 7).
Figure 7: FDR and CVR as recovered and prior to disassembly
Source: ATSB
As a result of fire damage to the recorders the data recovery process required disassembly, inspection, and repair of the memory boards inside the crash survivable memory unit. The FDR memory board exhibited discoloration, melting and flow of the conformal coating with multiple controller pins desoldered.
The CVR exhibited discoloration of the heat indicator, several controller pins had separated from the memory board and multiple short-circuits were identified. Following repairs to both memory boards, successful downloads of data were achieved. The FDR provided 25.5 hours of flight data and the CVR 30 minutes of audio on 4 channels (pilot, co-pilot, public address, and cockpit area microphone). A preliminary flight data recorder plot with the first and second drops is shown at Figure 8. The time parameter (UTC)[16] is an approximate calculation based on the aircraft’s auxiliary telemetry unit (ATU) global positioning system recording of the retardant drops.
Figure 8: Flight data recorder plot with first and second retardant drop identified
Source: ATSB
During the final low-level retardant drop the throttle levers (TLA) were positioned at high idle (0°) while at a radio height above the ground of less than 100 ft. As the engine N1 speed decreased to about 30%, the rate of descent increased to 1,800 ft/min before the thrust levers were advanced while the aircraft continued to descend. About 2 seconds prior to impact, at a radio altitude of about 28 ft with the flaps at 40º, an increasing aircraft nose-up pitch attitude resulted in the vane angle of attack exceeding 20°, which triggered the stick shaker. The aircraft only attained a positive rate of climb just before impact with terrain. Figure 9 provides a plot of the final 30 seconds before the impact with the ridgeline with the approximate position of the accident retardant drop inserted.
Figure 9: Flight data recorder plot of final 30 seconds
Final 30 seconds of flight data showing corrected altitude, radio height, pitch angle, angle of attack (same scale), throttle lever angle, engine N1 speed, computed airspeed, groundspeed, vertical speed, stick shaker and approximate position of the retardant drop.
Source: ATSB
Safety action
Following the accident, Coulson Aviation issued operations bulletin 2023-01 advising their large air tanker pilots operating in Australia that their minimum retardant drop heights and VDROPairspeeds had been increased from 150 ft above ground level and 1.25 VS to 200 ft above ground level and 1.35 VS. Their B-737 normal checklist was amended accordingly to reflect their new minimum VDROP airspeeds.
interviewed the accident flight crew and bird-dog crew
recovered the flight data recorder and cockpit voice recorder files
collected documents and recorded data from Coulson Aviation
collected records from the WA Department of Fire and Emergency Services (DFES)
liaised with the United States National Transportation Safety Board (NTSB) and Boeing.
The investigation is continuing and will include validation of the recorded data and a review of the:
communication procedures for bird-dog and large air tanker pilots
operator’s crew resource management procedures and practices
standards and safety margins for the Boeing 737 Fireliner retardant drop.
Should a critical safety issue be identified during the course of the investigation, the ATSB will immediately notify relevant parties so appropriate and timely safety action can be taken.
A final report will be released at the conclusion of the investigation.
Acknowledgements
The ATSB acknowledges the support provided by the Hopetoun Police, WA Department of Fire and Emergency Services (DFES), WA Department of Biodiversity, Conservation and Attractions (DBCA), the United States National Transportation Safety Board (NTSB), Boeing, and Coulson Aviation for their assistance with the investigation.