Luxair-Luxembourg Airlines has announced its has ordered two additional Boeing 737-8 MAX 8s bring the total orders to four aircraft.
Luxair orders two more Boeing 737-8 MAX 8s
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airBaltic receives its 41st Airbus A220-300
On April 29, 2023, the Latvian national airline airBaltic welcomed its 41st Airbus A220-300 jet, registered as YL-ABO, in Riga. This was the second Airbus A220-300 delivery for airBaltic in 2023. It is a part of the 50 Airbus A220-300 which airBaltic has ordered. In addition, airBaltic holds 30 options and purchase rights for the same aircraft type.
Thus far, airBaltic has carried approximately 11,260,000 passengers on the Airbus A220-300 aircraft. Airbus A220-300s of the airline have completed more than 130 000 flights and flown over 280 000 block hours.
Since May 2020, airBaltic operates all its flights with a single aircraft type – Airbus A220-300, thus minimizing the complexity and benefiting from the additional efficiency provided by the aircraft.
WestJet and Unifor reach tentative agreement
WestJet and Unifor, the certified union representing WestJet airport employees at Toronto Pearson International Airport (YYZ), reached a tentative agreement on the first collective bargaining agreement between the organizations. Both parties now await the ratification vote to be put forward to membership.
“WestJet is pleased to have reached a tentative agreement that recognizes the important contributions of our valued airport employees at YYZ,” said Diederik Pen, WestJet Executive Vice-President and Chief Operating Officer. “Our airport employees play an integral role in supporting our operations and this settlement reflects WestJet’s commitment to supporting them as they continue to provide the friendly, reliable service our guests know and expect of the WestJet Group.”
Southwest introduces “Imua One” on N8710M as a tribute to Hawaii
Southwest Airlines today unveiled a new logo jet dedicated to the state of Hawaii.
Boeing 737-8 MAX 8 N8710M (msn 42567) now displays the rich colors of the island state.
Southwest Airlines issued this statement:
Southwest Airlines, on the anniversary of its first interisland flights within Hawaii, commemorates beginning a fifth year of serving the Aloha State by introducing Imua One™, a Hawaii-themed aircraft livery that symbolizes an enduring partnership between the Hawaiian Islands and Southwest Airlines®. The high-flying tribute is dedicated to Southwest® Employees and to communities across Hawaiithat welcomed the carrier with warm aloha. Imua is a rallying cry in the Hawaiian language that translates to an urging forward, and it underscores a key value at Southwest—Teamwork. For more than five decades, the People of Southwest have moved together toward an ever-brighter future with their unmistakably unique strength of courage and spirit.
Oahu-based Osaki Creative Group designed Imua One with the guidance of Herman Piikea Clark, Kanaka Maoli/indigenous Hawaiian artist, designer, and researcher. Its distinctive design features eight elements that represent concepts in Hawaiian culture that also align with Southwest values. The aircraft design features stars for each of the five airports in Hawaii Southwest serves (Honolulu, Lihue (Kauai), Kahului (Maui), Kona (Island of Hawaii), and Hilo (Island of Hawaii); six paddlers in an outrigger bring to life the concept of Imua; and six turtles in two groups of three to represent harmony and balance. Emblazoned near the nose of the aircraft, a lei honors unique Islands through their official flowers. Reflective of distinctive colors in the Southwest Heart livery, including bold blue, warm red, and sunrise yellow, a gradient transition from blue to yellow represents the evolution from night to day, and honors Hawaiian history of journeying the Pacific using wind, and following the guidance of the sun, stars, and moon to navigate.
The eight central visual elements of the Imua One livery hold significance in Hawaii and at Southwest:
- Ohana (Family): Root in relationships
- Honu (Turtle): Move with perseverance
- Aina (Land): Find common ground
- Ama (Support): Connect to strengthen and balance
- Hoku (Star): Guide with purpose
- Kai (Ocean): Harness good energy
- Lokahi (Unity): Succeed with Teamwork
- Imua (Forward): Go forward with strength, courage, and strong spirit
Southwest unveiled Imua One at Long Beach Airport, one of eight mainland gateways where Southwest offers nonstop service to the Islands, facilitating seamless connections to airports across the western two-thirds of the U.S. mainland. Southwest Employees across the country watched through a livestream as Kahu Kordell C. L. Kekoa, a Hawaiian church Minister, led a blessing and dedication of the aircraft, witnessed by Southwest Employees and Customers, many with ties to the rich culture in Hawaii. Before its first touchdown, Imua One traveled from a painting facility in Spokane, Wash., where citizens of the Spokane Tribe of Indians joined Kahu Kekoa in a special ceremony that brought together Washington First Nations and Kanaka Maoli/indigenous Hawaiian people to share a blessing and pay tribute to the launch of Imua One.
Southwest also donated $10,000 to eight organizations in the Islands to underscore a commitment to longtime community partners in Hawaii. These organizations support causes close to the Heart of Southwest and align with elements and themes featured on Imua One:
- AccesSurf
- Boys & Girls Club Hawaii
- Hoola Na Pua
- Liv. Pregnancy and Women’s Wellness
- National Tropical Botanical Garden
- Native Hawaiian Hospitality Association
- Pacific Whale Foundation
- UH Institute for Astronomy
Leading up to today’s dedication, Southwest Employees watched a weekly, eight-part video series, “Honoring the Heart of Hawaii,” in which Southwest Employees, known to one another as Cohearts, shared deeper, personal meaning behind the symbols.
Imua One is the first Southwest aircraft with in-seat power available at every seat. It is the third Boeing 737 MAX 8 in the Southwest fleet of specialty liveries. The other 737 MAX 8 aircraft with special paint schemes include the Herbert D. Kelleher, dedicated to Southwest’s beloved Founder, and the Heroine of the Heart, a tribute to Southwest President Emeritus Colleen C. Barrett. Other special paint schemes in the Southwest fleet dedicated to specific states include: Arizona One, California One, Colorado One, Florida One, Freedom One (flag of the United States of America), Illinois One, Lone Star One (Texas), Louisiana One, Maryland One, Missouri One, Nevada One, New Mexico One, and Tennessee One.
Following a dedication in Long Beach, Calif., Imua One will fly first to Honolulu, and during the weekend will visit each airport in Hawaii served by Southwest. The tour allows Southwest Employees and community members to share in the special tribute. Imua One then will re-join the Southwest fleet and fly throughout the Southwest network on regularly scheduled service.
Since its first service to Hawaii in 2019, Southwest is grateful to have grown to serve five airports in the Aloha State, and to link the Hawaiian Islands to the mainland with nonstop service through eight gateway airports: Long Beach, Calif.; Oakland, Calif.; Sacramento, San Jose, Calif.; Los Angeles(LAX); San Diego; Las Vegas; and Phoenix. Today, Southwest offers 90 departures a day, including 60 daily flights within the Islands.
Southwest Customers, followers, and fans are invited to track the aircraft (tail number N8710M) and share photos of Imua One on social media using #ImuaOne.
The airliner was painted at Spokane, WA.
Video:
Southwest hints at a new logo jet
Etihad Airways plans to triple passengers, double fleet amid strategy shift
From Reuters:
“Etihad Airways aims to triple the number of passengers it carriers to 30 million and nearly double its fleet to 150 planes by the end of the decade, the airline’s chief told Reuters in an interview in New Delhi on Thursday.
Etihad’s plans come amid a shift in its strategy to focus on medium to long-haul destinations, moving away from operating ultra long-haul flights where competition is intense and profitability challenging, CEO Antonoaldo Neves said.”
Read the full article:
Boeing expands ecoDemonstrator flight testing with ‘Explorer’ airplanes, announces 2023 plan
Boeing is expanding its ecoDemonstrator flight-test program to further accelerate innovation for sustainability and safety. The company today announced its 2023 plan to assess 19 technologies on the Boeing 777 ecoDemonstrator, while also adding “Explorer” airplanes that will focus tests on specific technologies.
The first ecoDemonstrator Explorer, a 787-10 Dreamliner, will conduct flight tests in June from Seattle to Tokyo, Singapore and Bangkok to demonstrate how coordinating navigation across global airspace jurisdictions can improve operational efficiency, which can reduce an airplane’s fuel use and emissions by up to 10%. Utilizing today’s onboard capabilities, Boeing and air navigation service providers (ANSPs) in the U.S., Japan, Singapore and Thailand will collectively sequence the airplane’s routes to achieve the optimal flight path across multiple regions, factoring in conditions such as weather, air traffic and airspace closures. The airplane will fly on the highest available blend of sustainable aviation fuel (SAF) at each location.
In 2023, Boeing also will use its current flagship ecoDemonstrator airplane, a 777-200ER (Extended Range), to test 19 technologies including:
- Sustainable wall panels in the cargo hold that are made of 40% recycled carbon fiber and 60% resin made from a bio-based feedstock
- A fiber optic fuel quantity sensor compatible with 100% SAF
- An Electronic Flight Bag application featuring Smart Airport Maps, a component of Jeppesen FliteDeck Pro, which reduces operational costs and supports safe taxi operations with the depiction of contextual airport data
- For all flight tests, the airplane will fly on the highest available blend of SAF locally
Since its initial flights in 2012, the Boeing ecoDemonstrator program has accelerated innovation by taking new technologies out of the lab and testing them in an operational environment. Including the 2023 plan, the program will have tested about 250 technologies to help decarbonize aviation, improve operational efficiency and enhance safety and the passenger experience. Approximately a third of tested technologies have progressed onto Boeing’s products and services.
Lufthansa announces new long-haul destinations for the winter
Lufthansa is launching new Airbus A380 destinations from Munich in the coming winter. From October 5 on, the airline will be flying again an A380 daily to the Californian metropolis of Los Angeles. Shortly before the start of the winter flight schedule on October 28, there will be a special premiere: For the first time, a Lufthansa Airbus A380 will take off from Munich to the Thai capital Bangkok, increasing the seat capacity by almost 75 percent compared to the A350. Lufthansa offers a greater premium product on this connection than ever before: the A380 offers 8 seats in First Class, 78 seats in Business Class and 52 seats in Premium Economy.
New connections to India
Lufthansa is expanding its service to India. The new destination from Munich is Bangalore, which, in addition to Delhi and Bombay, will be served by an Airbus A350. LH764 departs Sundays, Wednesdays and Fridays at 12:10 p.m. to the southern Indian metropolis. Lufthansa guests will be able to enjoy one of the Lufthansa Group’s most modern and economical long-haul aircraft, the Airbus A350-900. After a longer break, Lufthansa will also include again Hyderabad in its flight schedule from Frankfurt. This will once again provide a direct connection from Germany to India’s pharmaceutical and high-tech industries. Lufthansa will announce further details in midMay.
Lufthansa will offer a total of five destinations to the Indian subcontinent from its two hubs in Frankfurt and Munich in the coming winter.
Top Copyright Photo: Lufthansa Airbus A380-841 D-AIMC (msn 044) LAX (Michael B. Ing). Image: 948759.
Lufthansa aircraft photo gallery:
Azerbaijan Airlines expands its long-haul fleet, finalizing an order for additional Boeing 787 Dreamliners
Azerbaijan Airlines and Boeing today announced the national flag carrier has ordered eight 787-8 Dreamliners to support the growth of its long-haul fleet.
Azerbaijan Airlines is one of the largest carriers in Central Asia, serving 40 destinations across 25 countries, with a fleet that includes Boeing 757, 767 and 787 jets.
Top Copyright Photo: Azerbaijan Airlines Boeing 787-8 Dreamliner VP-BBR (msn 37920) JFK (Fred Freketic). Image: 934847.
Azerbaijan Airlines aircraft photo gallery:
Condor Airlines announces its North American summer flight schedule to Europe
Condor Airlines is increasing its presence across North America with more nonstop flights to Frankfurt. Condor’s planes are becoming easier to spot in the skies over the U.S. and Canada and at airports from New York to San Francisco thanks to its new, colorful, eye-catching striped Airbus A330neo flying more transatlantic routes this summer. From its Frankfurt hub, Condor offers easy connecting service to more than 100 destinations throughout Europe via a network of airline and rail partners including Lufthansa, SAS, Aegean Airlines and more. In addition, North American travelers can take advantage of Condor’s interline partners Alaska Airlines, JetBlue and WestJet and their network of feeder flights to Condor’s gateway markets.
New York (JFK): up to seven flights a week starts May 01
Los Angeles (LAX): up to seven flights a week starts May 01
Seattle/Tacoma (SEA): up to seven flights a week starts May 01
San Francisco (SFO): up to seven flights a week starts May 01
Toronto (YYZ): five times a week service starts May 01
Las Vegas (LAS): three times a week service starts May 02
Vancouver (YVR): five times a week service starts May 03
Anchorage (ANC): three times a week service starts May 18
Phoenix (PHX): three times a week service starts May 18
Portland/Oregon (PDX): three times a week service starts May 19
Baltimore-Washington (BWI): three times a week service starts May 20
Halifax (YHZ): three times a week service starts May 20
Boston (BOS): three times a week service starts May 22
Minneapolis/St. Paul (MSP): three times a week service starts May 22
Edmonton/Jasper (YEG): twice a week service starts May 26
Whitehorse (YXY): one a week service starts May 28
Fairbanks (FAI): once a week service starts June 15
Overview of Condor’s North American 2023 timetable long-haul service to Frankfurt:
| Destination | Day(s) of Departure |
| Anchorage (ANC) | Thu, Sat, Sun |
| Baltimore-Washington (BWI) | Mon, Wed, Sat |
| Boston (BOS) | Mon, Thu, Sat |
| Edmonton/Jasper (YEG) New | Tue, Fri |
| Fairbanks (FAI) | Thu |
| Halifax (YHZ) | Tue, Thu, Sat |
| Las Vegas (LAS) | Tue, Thu, Sun |
| Los Angeles (LAX) | Daily |
| Minneapolis (MSP) | Mon, Thu, Sat |
| New York (JFK) | Daily |
| Phoenix (PHX) | Mon, Thu, Sat |
| Portland/Oregon (PDX) | Tue, Fri, Sun |
| San Francisco (SFO) | Daily |
| Seattle (SEA) | Daily |
| Toronto (YYZ) | Mon, Tue, Wed, Fri, Sat |
| Vancouver (YVR) | Mon, Wed, Thur, Sat, Sun |
| Whitehorse (YXY) | Sun |
View the entire seasonal flight schedule here.
This summer will see the arrival of more of Condor’s recently introduced Airbus A330neo aircraft in the U.S. and Canada. By 2024, Condor will have an all A330neo long-haul fleet serving all gateways across North America. The A330neo is the new version of the popular A330 widebody. Incorporating the latest generation Rolls-Royce Trent 7000 engines, new wings and aerodynamic innovations, the aircraft reduces Condor’s fuel consumption and CO2emissions by 20 percent.
More Comfort Inflight This Summer
Condor’s A330neo will offer unrivalled inflight passenger comfort and will accommodate 310 passengers, featuring 30 seats in Business, 64 seats in Premium Economy and 216 seats in Economy class. The A330neo features an award-winning, whisper quiet Airspace cabin, providing passengers with a high level of comfort, ambience, and design. This includes offering more personal space, larger overhead bins, a new lighting system, and the ability to offer the latest in-flight entertainment systems and connectivity. The A330neo also features a state-of-the-art cabin air system, ensuring a clean and safe environment during the flight.
Best-in-Class, New Business and Premium Economy Class
The new Condor Business Class offers 30, lie-flat (180 degree) seats in a 1-2-1 configuration with direct aisle access for all guests. The seat conveniently converts to a 76-inch long by 19-inch-wide bed. Business Class guests have access to the latest movies, series, podcasts, and games, all accessible on a 17.3-inch screen in 4K mode, with touchscreen and remote control. The first row of Business Class will also feature four “Prime Seats”, with added space large enough to accommodate two guests who wish to dine together and an extra-large, 24-inch entertainment screen. The “Prime Seats” will feature added in-flight amenities including a premium travel kit, inflight pajamas, and a premium snack basket.
In Premium Economy Class, guests enjoy more personal space thanks to a generous extra seat pitch of 35 inches and a greater backrest angle of up to six inches. In addition, the multi-adjustable headrest and footrest at every seat ensure a significantly more comfortable flight experience. Both the Premium Economy Class and Economy Class seats have 13.3-inch in-seat 4K monitors with touchscreens, which can be used to enjoy the extensive in-flight-program. Condor’s A330neo features a 2-4-2 seating configuration in both classes.
A brand-new feature awaits guests in all three classes: Condor’s new A330neo offers high-speed broadband internet and onboard connectivity. The latest in-flight-entertainment technology provides a wide of films, series, and podcasts. Each seat has an extra holder for mobile device, so that streaming is also possible. In addition, personal Bluetooth headphones can be connected to the aircraft’s in-flight-entertainment system.
The cabin also features mood lighting in all three classes that can be individually adjusted to suit the time of day. This helps guests aboard to fall asleep easily and wake up more relaxed.
“Flex Plus” Fares Provides More Flexibility When Plans Change
Top Copyright Photo: Condor Flugdienst Airbus A330-941 D-ANRA (msn 1966) (Condor Island) FRA (Bernhard Ross). Image: 959797.
Condor aircraft photo gallery:
American Airlines Group bucks industry trend and produces a net profit of $10 million in the first quarter
American Airlines Group Inc. today reported its first-quarter 2023 financial results, including:
- First-quarter net income of $10 million, or $0.02 per diluted share. Excluding net special items1, first-quarter net income of $33 million, or $0.05 per diluted share.
- Record first-quarter revenue of $12.2 billion, which represents a 37% increase year over year.
- Generated record operating cash flow of $3.3 billion2 and record free cash flow of $3.0 billion2 in the first quarter.
- Ended the quarter with $14.4 billion of total available liquidity.
- Reiterating full-year 2023 adjusted earnings per diluted share3 target of $2.50 to $3.50
“The American Airlines team ran a great operation and delivered on our financial guidance for the quarter, resulting in a first-quarter profit for the first time in four years,” said American’s CEO Robert Isom. “Looking ahead to the remainder of 2023, we remain focused on reliability, profitability, strengthening the balance sheet, and creating even more value for our shareholders, team members, customers and the communities we serve.”
Running a reliable operation
The American Airlines team delivered a strong operational performance during the first quarter. American and its regional partners operated more than 476,000 flights in the first quarter, with an average load factor of 80.0%.
American delivered its best-ever first quarter completion factor and controllable completion factor, resulting in 13 mainline, 11 regional, and five combined mainline and regional zero-cancellation days, a significant improvement over the same period last year. American also outperformed the industry in on-time departures for the quarter, ranking first among the nine largest U.S. carriers.
Returning to profitability
American produced revenues of $12.2 billion in the quarter, a record for the first quarter and an increase of 37% versus the first quarter of 2022 on 9.2% more capacity. The strong revenue performance was driven by the continued strength of the demand environment. The company produced an operating margin of 3.6% on a GAAP basis and 3.7% excluding the impact of net special items. American produced net income of $10 million in the first quarter on a GAAP basis.
Demand for American’s product remains strong. Domestic and short-haul international revenue continue to perform well, and the airline has seen noticeable strength in long-haul international demand and yield performance this year.
American will make a profit-sharing payment to its team members for the first time in three years. The company has accrued approximately $211 million to its profit-sharing pool, which for the purposes of 2022 was measured as the 12-month period ended March 31, 2023, and will be paid to team members in May.
Liquidity and balance sheet
American generated record operating and free cash flow of $3.3 billion2 and $3.0 billion2, respectively, in the first quarter. The company reduced total debt4 by more than $850 million in the quarter. Strengthening the balance sheet continues to be a top priority, and the company is approximately 60% of the way to its goal of reducing total debt by $15 billion by the end of 2025. As of March 31, 2023, American had reduced its total debt by more than $9 billion from peak levels in the second quarter of 2021. The company ended the quarter with approximately $14.4 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.
Guidance and investor update
Based on demand trends and the current fuel price forecast and excluding the impact of special items, the company expects its second-quarter 2023 adjusted earnings per diluted share3 to be between $1.20 and $1.40. American continues to expect its full-year 2023 adjusted earnings per diluted share3 to be between $2.50 and $3.50. The company’s forecasts include the estimated impact of anticipated new labor agreements.
For additional financial forecasting detail, please refer to the company’s investor update, furnished with this press release with the SEC on Form 8-K. This filing will also be available at aa.com/investorrelations.
Conference call and webcast details
The company will conduct a live audio webcast of its financial results conference call at 7:30 a.m. CT today. The call will be available to the public on a listen-only basis at aa.com/investorrelations. An archive of the webcast will be available on the website through May 27.
Notes
See the accompanying notes in the financial tables section of this press release for further explanation, including a reconciliation of free cash flow and all GAAP to non-GAAP financial information.
- The company recognized $23 million of net special items after the effect of taxes in the first quarter, which principally included charges associated with debt refinancings and extinguishments.
- Excludes the cash flow impact of financial assistance received pursuant to Payroll Support Program Agreements with the U.S. Department of the Treasury in prior periods. Please see the accompanying notes for the company’s definition of free cash flow, a non-GAAP measure.
- Adjusted earnings per diluted share guidance excludes the impact of net special items. The company is unable to reconcile certain forward-looking projections to GAAP as the nature or amount of net special items cannot be determined at this time.
- All references to total debt include debt, finance leases, operating lease liabilities and pension obligations.
Avelo Airlines to expand at Central Oregon’s Bend-Redmond Municipal Airport (RDM)
Avelo Airlines has announced it is expanding service at Central Oregon’s Redmond Municipal Airport (RDM) with new nonstop service to Sonoma / Santa Rosa, California.
Avelo will be the only airline offering nonstop flights between Central Oregon and California Wine Country’s Charles M. Schulz-Sonoma County Airport (STS).
Avelo’s nonstop service between RDM and Sonoma County will begin on June 23 and operate twice weekly on Mondays and Fridays utilizing Boeing Next-Generation 737 aircraft.
Southwest Airlines reports a net loss of $159 million in the first quarter
Southwest Airlines Company today reported its first quarter 2023 financial results:
- Net loss of $159 million, or $0.27 loss per diluted share
- Net loss, excluding special items1, of $163 million, or $0.27 loss per diluted share
- Record first quarter operating revenues of $5.7 billion
- Liquidity2 of $12.7 billion, well in excess of debt outstanding of $8.0 billion
Bob Jordan, President and Chief Executive Officer, stated, “As expected, we incurred a first quarter 2023 net loss that resulted from the negative financial impact of approximately $380 million pre-tax, or $294 million after-tax, related to the December 2022 operational disruption. The majority of this impact was driven by a negative revenue impact of approximately $325 million, as a result of cancellations of holiday return travel and a deceleration in bookings for January and February 2023 travel. Despite that, travel demand and revenue trends in March 2023 were strong and resulted in solid profitability for the month and record first quarter revenues.
“Our operational performance was also strong in first quarter 2023. Southwest ranked number two in domestic ontime performance year-to-date through March 20233, as our People successfully navigated nine named storms. During first quarter 2023, we completed our reviews of the December 2022 operational disruption and released the report summary and action plan publicly at www.southwest.com/travel-disruption-action-plan. We expect to meet our goals to complete the action plan by winter 2023. We continue to make operational investments and remain intensely focused on running a safe, reliable, and efficient operation while delivering our legendary Customer Service.
“We recently reached a tentative agreement with the Transport Workers Union Local 550 (TWU 550), representing our Meteorologists, and I commend the spirit of cooperation by both Negotiating Committees. Currently, this brings us to contract ratification or tentative agreement with six workgroups represented by collective bargaining agreements in the past six months. We are glad we can reward our People, and we remain focused on negotiations of the three remaining open contracts.
“While we are mindful of the uncertain economic environment, demand for domestic air travel remains strong, thus far. Our goal remains to manage inflationary cost increases and maintain our competitive cost advantage. Due to recent delivery delays at The Boeing Company (Boeing), we are further reducing planned 2023 aircraft deliveries to 70 from 90, resulting in an approximate one-point decrease in year-over-year planned 2023 capacity. Based on current revenue trends and our cost outlook, which includes market wage rate accruals for all open labor contracts, we expect solid profits in second quarter 2023 and continue to expect solid profits and year-over-year growth in both margins and return on invested capital for full year 2023. We also continue to expect our network to be roughly restored to pre-pandemic levels by the end of this year. We remain confident in our low-cost, low-fare business model and our long-term strategy, which is supported by a robust set of strategic initiatives designed to drive significant financial value. I am very grateful for the tremendous efforts of our Employees and their unwavering focus on delivering Reliability and Hospitality to our valued Customers.”
Guidance and Outlook:
The following tables introduce or update selected financial guidance for second quarter and full year 2023, as applicable:
| 2Q 2023 Estimation | |||||||||||||||||||||||||||||||
| RASM (a), year-over-year | Down 8% to 11% | ||||||||||||||||||||||||||||||
| ASMs (b), year-over-year | Up ~14% | ||||||||||||||||||||||||||||||
| Economic fuel costs per gallon1,4 | $2.45 to $2.55 | ||||||||||||||||||||||||||||||
| Fuel hedging premium expense per gallon | $0.06 | ||||||||||||||||||||||||||||||
| Fuel hedging cash settlement gains per gallon | $0.13 | ||||||||||||||||||||||||||||||
| ASMs per gallon (fuel efficiency) | 78 to 80 | ||||||||||||||||||||||||||||||
| CASM-X (c), year-over-year5 | Up 5% to 8% | ||||||||||||||||||||||||||||||
| Scheduled debt repayments (millions) | ~$10 | ||||||||||||||||||||||||||||||
| Interest expense (millions) | ~$65 | ||||||||||||||||||||||||||||||
2023 Estimation | Previous estimation | |||||||||||||||||
| ASMs (b), year-over-year | Up 14% to 15% | Up 15% to 16% | ||||||||||||||||
| Economic fuel costs per gallon1,4 | $2.60 to $2.70 | $2.65 to $2.75 | ||||||||||||||||
| Fuel hedging premium expense per gallon | $0.06 | No change | ||||||||||||||||
| Fuel hedging cash settlement gains per gallon | $0.10 | No change | ||||||||||||||||
| CASM-X, year-over-year5 | Down 2% to 4% | Down 3.5% to 5.5% | ||||||||||||||||
| Scheduled debt repayments (millions) | ~$85 | No change | ||||||||||||||||
| Interest expense (millions) | ~$250 | No change | ||||||||||||||||
| Aircraft (d) | 814 | 833 | ||||||||||||||||
| Effective tax rate | 23% to 24% | No change | ||||||||||||||||
| Capital spending (billions) (e) | ~$3.5 | ~$4.0 | ||||||||||||||||
| (a) Operating revenue per available seat mile (RASM, or unit revenues). |
| (b) Available seat miles (ASMs, or capacity). The Company’s flight schedule is currently published for sale through November 4, 2023. The Company currently expects third quarter 2023 capacity to increase in the range of 11 percent to 13 percent, and fourth quarter 2023 capacity to increase in the range of 20 percent to 22 percent, both year-over-year. Included in the Company’s updated capacity guidance is a decrease in previously planned year-over-year capacity as a result of delivery delays at Boeing, planned in the post-summer time period from September through December 2023. |
| (c) Operating expenses per available seat mile, excluding fuel and oil expense, special items, and profitsharing (CASM-X). |
| (d) Aircraft on property, end of period. Due to delivery delays, the Company now estimates approximately 70 Boeing 737-8 (-8) aircraft deliveries in 2023, compared with its previous guidance of approximately 90 -8 aircraft deliveries. The Company now expects to retire 26 Boeing 737-700 (-700) aircraft in 2023, compared with its previous guidance to retire 27 -700 aircraft. As a result, the Company now expects to end 2023 with 814 aircraft. The delivery schedule for the Boeing 737-7 (-7) is dependent on the Federal Aviation Administration (FAA) issuing required certifications and approvals to Boeing and the Company. The FAA will ultimately determine the timing of the -7 certification and entry into service, and Boeing may continue to experience supply chain challenges, so the Company therefore offers no assurances that current estimations and timelines are correct. |
| (e) The Company now estimates its 2023 capital spending to be approximately $3.5 billion, which assumes approximately 70 -8 aircraft deliveries, compared with its previous 2023 capital spending estimate of approximately $4.0 billion, which assumed approximately 90 -8 aircraft deliveries. The Company now estimates its full year 2023 aircraft capital spending to be approximately $2.3 billion, compared with its previous guidance of approximately $2.8 billion, and continues to estimate its full year 2023 non-aircraft capital spending to be approximately $1.2 billion. |
Revenue Results and Outlook:
- Record first quarter 2023 operating revenues of $5.7 billion, a 21.6 percent increase, year-over-year—in line with the Company’s previous guidance
- First quarter 2023 RASM increased 9.8 percent, year-over-year, driven primarily by a passenger yield increase of 10.6 percent, coupled with a load factor increase of 0.6 points
- March 2023 managed business revenues nearly restored to March 2019 levels
Despite a negative revenue impact of approximately $325 million—associated with the December 2022 operational disruption—the Company’s first quarter 2023 revenue performance was strong. The negative revenue impact was primarily isolated to January and February 2023, with March 2023 experiencing a robust recovery, driven by strong yields and notable strength in Rapid Rewards® redemptions. March 2023 managed business revenues improved significantly compared with January and February 2023 and were nearly restored to March 2019 levels. The Company is pleased with its managed business revenue recovery thus far, due to investments in Southwest Business and expansion into Global Distribution Systems aimed at continuing to grow the Company’s presence in the corporate travel space.
The current booking curve appears to have returned close to pre-pandemic norms, and leisure demand and yields continue to be strong heading into the busy summer travel season. While March 2023 managed business revenues largely recovered to March 2019 levels, the Company expects corporate revenue trends to continue to be choppy as Customer travel patterns evolve post-pandemic. However, the Company continues to expect further sequential recovery in managed business revenues in second quarter 2023 compared with first quarter 2023, driven by anticipated growth in corporate accounts and passengers.
The Company’s second quarter 2023 RASM guidance includes a headwind of approximately four and a half points, year-over-year. This headwind is driven by approximately $300 million of additional breakage revenue in second quarter 2022—a higher-than-normal amount related to flight credits issued during the pandemic that were set to expire unused—and the Company’s July 2022 policy change to eliminate expiration dates on qualifying flight credits6, which resulted in the percentage of breakage revenue normalizing to historical levels beginning in third quarter 2022. Flight credits that never expire6, along with Rapid Rewards points that never expire7, are industry-leading, Customer-friendly policies.
The Company recently selected the Amadeus Network Revenue Management product as its new revenue management system provider—slightly ahead of the mid-2023 implementation timing outlined at the Company’s 2022 Investor Day. The Company was pleased with initial observations during the production pilot and is excited about the potential for incremental revenue, driven primarily by improved science in forecasting and network optimization. The Amadeus product is now fully implemented and is currently managing all bookings and departure dates.
Fuel Costs and Outlook:
- First quarter 2023 fuel costs were $3.19 per gallon1—near the high end of the Company’s previous guidance range—and included $0.06 per gallon in premium expense and $0.12 per gallon in favorable cash settlements from fuel derivative contracts
- First quarter 2023 fuel efficiency was roughly flat, year-over-year
- As of April 19, 2023, the fair market value of the Company’s fuel derivative contracts settling in second quarter 2023 through the end of 2025 was an asset of $418 million
The Company’s multi-year fuel hedging program continues to provide insurance against spikes in energy prices and significantly offset the market price increase, year-over-year, in jet fuel in first quarter 2023. The Company’s current fuel derivative contracts contain a combination of instruments based in West Texas Intermediate and Brent crude oil, and refined products, such as heating oil. The economic fuel price per gallon sensitivities4 provided in the table below assume the relationship between Brent crude oil and refined products based on market prices as of April 19, 2023.
| Estimated economic fuel price per gallon, including taxes and fuel hedging premiums | |||||||||
| Average Brent Crude Oil price per barrel | 2Q 2023 | 2023 | |||||||
| $60 | $1.85 – $1.95 | $2.20 – $2.30 | |||||||
| $70 | $2.15 – $2.25 | $2.40 – $2.50 | |||||||
| $80 | $2.35 – $2.45 | $2.60 – $2.70 | |||||||
| Current Market (a) | $2.45 – $2.55 | $2.60 – $2.70 | |||||||
| $90 | $2.60 – $2.70 | $2.75 – $2.85 | |||||||
| $100 | $2.80 – $2.90 | $2.90 – $3.00 | |||||||
| $110 | $3.00 – $3.10 | $3.05 – $3.15 | |||||||
| Fair market value | $70 million | $262 million | |||||||
| Estimated premium costs | $30 million | $121 million | |||||||
| (a) Brent crude oil average market prices as of April 19, 2023, were $83 and $82 per barrel for second quarter and full year 2023, respectively. |
In addition, the Company is providing its maximum percentage of estimated fuel consumption8 covered by fuel derivative contracts in the following table:
| Period | Maximum fuel hedged percentage (a) | ||||||||||||||||||
| 2023 | 50 % | ||||||||||||||||||
| 2024 | 51 % | ||||||||||||||||||
| 2025 | 10 % | ||||||||||||||||||
| (a) Based on the Company’s current available seat mile plans. The Company is currently 51 percent hedged for second quarter 2023 and 48 percent hedged for second half 2023. |
Non-Fuel Costs and Outlook:
- First quarter 2023 operating expenses of $6.0 billion increased 23.6 percent, year-over-year
- First quarter 2023 operating expenses, excluding fuel and oil expense, special items, and profitsharing, increased 17.3 percent, year-over-year
- First quarter 2023 CASM-X increased 5.9 percent, year-over-year—in line with the Company’s previous guidance
The majority of the Company’s first quarter 2023 CASM-X increase, year-over-year, was attributable to continued inflationary cost pressures, in particular with higher labor rates, including market wage rate accruals, for all Employee work groups, increased technology spending, and higher rates for airport and benefits costs. The remainder of the increase was driven primarily by operational disruption-related expenses, including travel expense reimbursements to Customers and an increase in the expected redemption rate of Rapid Rewards points offered as a gesture of goodwill to Customers.
The Company expects second quarter 2023 CASM-X to increase in the range of 5 percent to 8 percent, year-over-year. In addition to general inflationary cost pressures, the year-over-year increase is primarily due to higher labor rates, including market wage rate accruals, for all Employee work groups, as well as the timing of planned maintenance expenses for the Company’s Boeing 737-800 (-800) fleet.
The Company currently expects its full year 2023 CASM-X to decrease in the range of 2 percent to 4 percent, year-over-year—approximately one and one-half points higher than its previous guidance to decrease in the range of 3.5 percent to 5.5 percent, year-over-year. Approximately one point of the increase versus previous guidance is due to lower available seat miles in 2023, attributable to fewer planned aircraft deliveries in light of recent delays from Boeing. The remainder of the increase is primarily due to the timing of planned maintenance expenses for the Company’s -800 fleet.
First quarter 2023 net interest expense, which is included in Other expenses, decreased $146 million, year-over-year. The decrease was primarily due to a $122 million increase in interest income driven primarily by higher interest rates, coupled with a $27 million decrease in interest expense driven primarily by various debt repurchases and repayments throughout 2022.
Capacity, Fleet, and Capital Spending:
The Company’s first quarter 2023 capacity increased 10.7 percent, year-over-year, which was higher than its previous guidance of up approximately 10 percent, due to a higher than expected March completion factor. During first quarter 2023, the Company received 30 -8 aircraft, as expected, and retired seven -700 aircraft, compared with its previous guidance of five -700 retirements, shifting forward two -700 aircraft retirements from the second half of 2023. The Company ended first quarter 2023 with 793 aircraft.
Based on anticipated aircraft delivery delays from Boeing, the Company now expects it will receive approximately 70 -8 aircraft deliveries in 2023, compared with its previous guidance of approximately 90 -8 deliveries. As such, the Company is planning on flight reductions in second half 2023, most notably in fourth quarter, and now expects its 2023 capacity to increase approximately 14 percent to 15 percent, year-over-year, roughly one point lower than the Company’s previous guidance.
The Company’s planned deliveries continue to differ from its order book displayed in the table below. In addition, the Company now expects to retire 26 -700 aircraft in 2023, compared with its previous guidance of 27 -700 retirements, due to shifting one -700 retirement into 2024. As a result of the revision in aircraft deliveries and retirements, the Company now expects to end the year with 814 aircraft, compared with its previous guidance of 833 aircraft.
The Company’s first quarter 2023 capital expenditures were $1.0 billion, driven primarily by aircraft-related capital spending, as well as technology, facilities, and operational investments. Due to the recent changes to expected 2023 aircraft deliveries, the Company now estimates its 2023 capital spending to be approximately $3.5 billion, compared with its previous guidance of approximately $4.0 billion. This assumes approximately $2.3 billion in aircraft capital spending, compared with its previous guidance of approximately $2.8 billion, and continues to assume approximately $1.2 billion in non-aircraft capital spending, which includes tens of millions in operational disruption-related investments.
Since the Company’s previous disclosure on January 26, 2023, the Company exercised five -7 options for delivery in 2024 and converted 11 2024 -7 firm orders to -8 firm orders. In addition, in April 2023, the Company exercised 11 -7 options for delivery in 2024 and converted eight 2024 -7 firm orders to -8 firm orders. The following tables provide further information regarding the Company’s order book and compare its order book as of April 27, 2023, with its previous order book as of January 26, 2023. For purposes of the delivery schedule below, the Company continues to include the remaining 46 of its 2022 contractual undelivered aircraft (14 -7s and 32 -8s) within its 2023 commitments. Given Boeing’s current supply chain and aircraft delivery delays, the Company will continue working with Boeing to solidify future delivery dates.
| Current 737 Order Book as of April 27, 2023: | |||||||||||||||||||||
| The Boeing Company | |||||||||||||||||||||
| -7 Firm Orders | -8 Firm Orders | -7 or -8 Options | Total | ||||||||||||||||||
| 2023 | 31 | 105 | — | 136 | (c) | ||||||||||||||||
| 2024 | 48 | 19 | 19 | 86 | |||||||||||||||||
| 2025 | 30 | — | 56 | 86 | |||||||||||||||||
| 2026 | 30 | 15 | 40 | 85 | |||||||||||||||||
| 2027 | 15 | 15 | 6 | 36 | |||||||||||||||||
| 2028 | 15 | 15 | — | 30 | |||||||||||||||||
| 2029 | 20 | 30 | — | 50 | |||||||||||||||||
| 2030 | — | 55 | — | 55 | |||||||||||||||||
| 2031 | — | — | — | — | |||||||||||||||||
| 189 | (a) | 254 | (b) | 121 | 564 | ||||||||||||||||
| (a) The delivery timing for the -7 is dependent on the FAA issuing required certifications and approvals to Boeing and the Company. The FAA will ultimately determine the timing of the -7 certification and entry into service, and the Company therefore offers no assurances that current estimations and timelines are correct. |
| (b) The Company has flexibility to designate firm orders or options as -7s or -8s, upon written advance notification as stated in the contract. |
| (c) Includes 30 -8 deliveries received through March 31, 2023. In addition, the Company has included the remaining 46 of its 2022 contractual undelivered aircraft (14 -7s and 32 -8s) within its 2023 commitments. Due to Boeing’s supply chain challenges and the current status of the -7 certification, the Company currently estimates approximately 70 -8 aircraft deliveries in 2023. The 2023 order book detail is as follows: |
| The Boeing Company | ||||||||||||||||||||
| -7 Firm Orders | -8 Firm Orders | Total | ||||||||||||||||||
| 2022 Contractual Deliveries Remaining | 14 | 32 | 46 | |||||||||||||||||
| 2023 Contractual Deliveries | 17 | 73 | 90 | |||||||||||||||||
| 2023 Total | 31 | 105 | 136 | |||||||||||||||||
| Previous 737 Order Book as of January 26, 2023 (a): | ||||||||||||||||||||||||
| The Boeing Company | ||||||||||||||||||||||||
| -7 Firm Orders | -8 Firm Orders | -7 or -8 Options | Total | |||||||||||||||||||||
| 2023 | 31 | 105 | — | 136 | ||||||||||||||||||||
| 2024 | 51 | — | 35 | 86 | ||||||||||||||||||||
| 2025 | 30 | — | 56 | 86 | ||||||||||||||||||||
| 2026 | 30 | 15 | 40 | 85 | ||||||||||||||||||||
| 2027 | 15 | 15 | 6 | 36 | ||||||||||||||||||||
| 2028 | 15 | 15 | — | 30 | ||||||||||||||||||||
| 2029 | 20 | 30 | — | 50 | ||||||||||||||||||||
| 2030 | — | 55 | — | 55 | ||||||||||||||||||||
| 2031 | — | — | — | — | ||||||||||||||||||||
| 192 | 235 | 137 | 564 | |||||||||||||||||||||
| (a) The ‘Previous 737 Order Book’ is for reference and comparative purposes only. It should no longer be relied upon. See ‘Current 737 Order Book’ for the Company’s current aircraft order book. |
Liquidity and Capital Deployment:
- The Company ended first quarter 2023 with $11.7 billion in cash and short-term investments and a fully available revolving credit line of $1.0 billion
- The Company had a net cash position9 of $3.6 billion as of March 31, 2023, and it remains the only U.S. airline with an investment-grade rating by all three rating agencies
- The Company returned $214 million to its Shareholders through the payment of dividends during first quarter 2023
- The Company paid $59 million during first quarter 2023 to retire debt and finance lease obligations, including the retirement of $50 million in principal related to a lease buyout transaction and $9 million in scheduled lease payments
Awards and Recognitions:
- Named to FORTUNE’s list of World’s Most Admired® Companies; ranked #23 overall and #3 on the airline industry list
- Named the #2 domestic airline by the 2023 Elliot Readers’ Choice Awards
- Named to Glassdoor’s Best Places to Work list for the 14th consecutive year
- Recognized by Newsweek as one of America’s Greatest Workplaces for Diversity 2023
- Recognized by Newsweek as one of America’s Greatest Workplaces for Women
- Designated a 2023 Military Friendly Company by Viqtory
- Recognized by Newsweek as one of America’s Most Responsible Companies
- Designated one of the 25 Best Companies for Latinos to Work 2023 by Latino Leaders Magazine
- Named Domestic Carrier of the Year by the Airforwarders Association
Environmental, Social, and Governance (ESG):
- Published a Supplier Code of Conduct and began integrating sustainability questions in the Company’s request for proposal process with its suppliers
- Purchased offsets equivalent to the carbon emissions generated by the Company’s Employee business10 and charitable11 travel for 2022
- Became the launch customer with SMBC Aviation Capital to purchase over 400,000 carbon credits from their portfolio of projects. The agreement is expected to result in Southwest acquiring carbon credits certified by either Gold Standard or Verra over a five-year timeframe from SMBC Aviation Capital’s funded projects in Africa and Central America
- Highlighted National Human Trafficking Prevention Month in January 2023 to educate Employees and Customers on ways to help combat this issue. Southwest is proud to support multiple nonprofit organizations whose efforts help with the rescue, recovery, and restoration of human trafficking survivors
- Celebrated Black History Month and Women’s History Month throughout February and March 2023, respectively. Southwest shared internally and externally ways its Employees and Customers could Celebrate with Service by supporting different organizations through donations or volunteerism
- Launched Employee Resource Groups (ERGs) for Southwest Employees. ERGs are formed through the efforts of Employees and are organized around a significant and specific dimension of diversity or identity. Southwest will align its initial ERGs with the seven Cultural, Heritage, and Pride months Southwest recognizes
- Launched applications for the Southwest Scholarship Program, which includes two scholarship opportunities. The Southwest Airlines Scholarship seeks to build a diverse talent pipeline, while inspiring future generations to find careers within the airline industry. The Herbert D. Kelleher and Rollin W. King Scholarship was established for eligible dependents of Southwest Airlines Employees to pursue higher education
- Launched applications for the ¡Lánzate!/Take Off! Travel Award Program which helps college students stay connected to their families while pursuing higher education by providing travel grants
- Announced Auburn University as a university partner in the airline’s First Officer development and recruitment program: Destination 225°
- Visit southwest.com/citizenship for more details about the Company’s ongoing ESG efforts
Alaska Airlines launches a partnership with STARLUX Airlines
Alaska Airlines is celebrating its newest global airline partner: STARLUX Airlines, a Taipei-based premium carrier, which on April 26 launched its inaugural transpacific service between Taipei and Los Angeles. Alaska is STARLUX’s first airline partner.
From Southern California, STARLUX opens a new international gateway through its main hub in Taipei for connections to 16 destinations across Asia, including Bangkok, Thailand; Hanoi, Vietnam; Penang, Malaysia; Manila, Philippines; Singapore; Macau and Sapporo, Japan. Los Angeles (LAX) is one of Alaska’s hubs along the West Coast allowing for convenient connectivity to STARLUX flights for our guests.
STARLUX operates the transpacific route with its new-generation Airbus A350-900 aircraft configured in a four-class layout: First, business, premium economy and economy. Travelers in first and business classes enjoy a private space with a sliding door and seats with full-flat and Zero G mode for full relaxation. The extra-legroom premium economy section features a 40-inch Recaro seat with a leg rest and footrest bar. Economy class seats are equipped with leather headrests and a wide seat pitch.
Inflight service on STARLUX includes Taiwanese signature dishes and amenities prepared for passengers in all classes. STARLUX will be offering first and business guests a selection of the best top chef’s creations and local Taiwanese delicacies. The popular STARLUX signature dish yakiniku donburi is served on board. And to bring greater individuality to their air travel experience, all passengers can pre-order meals online so they can enjoy the meal they want.
Avolon commits to ordering 40 Boeing 737 MAX aircraft
Avolon, the international aircraft leasing company, has announced a commitment to order 40 Boeing 737 MAX aircraft. The aircraft are scheduled for delivery between 2027 and 2030; and are valued at over $4 billion at current list price.
Avolon delivered the first 737 MAX in 2017, along with the one thousandth 737 MAX earlier this year. This commitment builds on our strong relationship with Boeing and demonstrates our confidence in the long-term demand for this aircraft type. It will increase the overall size of Avolon’s owned, managed and committed fleet to 870 aircraft.
The 737 MAX provides Avolon’s customers with greater flexibility across their networks, while reducing fuel use and emissions by up to 20% compared to the aircraft they will replace. This commitment reinforces Avolon’s efforts to increase the proportion of new technology fuel-efficient aircraft in its fleet, supported by the 737 MAX’s use of the latest CFM International LEAP-1B engines and advanced technology winglets.
Spirit Airlines reports a net loss of $103.9 million in the first quarter, partners with Lewis University for new pilot pathway
Spirit Airlines, Inc. reported first quarter 2023 financial results.
First Quarter 2023 (unaudited)
As Reported
Adjusted1
$(91.3) Million $(89.4) million
Total operating revenues $1,349.8 million $1,349.8 million
Operating income (loss) $(112.4) Million
Operating margin (8.3)% (6.8)%
Net income (loss) $(103.9) million
Diluted earnings (loss) per share $(0.95) $(0.82)
“For the first quarter 2023, our adjusted operating margin came in better than expected, helped by lower fuel and a strong revenue per available seat mile (“TRASM”) performance. Looking ahead to the second quarter, demand continues to be strong and industry capacity remains constrained, both of which are beneficial for unit revenue. Our core business is solid, and the team is doing an excellent job solving for the problems within our control,” said Ted Christie, Spirit’s President and Chief Executive Officer. “Earlier this month, the Fort Lauderdale area experienced severe flash floods, requiring a 40-hour closure of the Fort Lauderdale airport. As a result of this weather event, Spirit canceled disrupting travel plans for a substantial number of our Guests. Despite the significant and out-sized disruption to our network, our team was primed and ready to go on Friday morning once the airport re-opened. This quick recovery is a testament to the diligent efforts of our entire team as well as the innovative changes have put in place to help accelerate recovery operations.”
Fleet
Spirit took delivery of five new A320neo aircraft during the first quarter 2023 and retired four A319ceo aircraft. The Company ended the quarter with 195 aircraft in its fleet, an increase of 10.8 percent since the end of first quarter 2022.
Liquidity and Capital Deployment
Spirit ended first quarter 2023 with unrestricted cash and cash equivalents, short-term investment securities and liquidity available under the Company’s revolving credit facility of $1.7 billion.
Total capital expenditures for the three months ended March 31, 2023, were $86.0 million, primarily related to net outflows of aircraft pre-delivery deposits, expenditures related to the building of Spirit’s new headquarters campus in Dania Beach, Florida and spare parts, including one spare engine.
In other news, Aspiring pilots in the Chicago area can soon soar from a college classroom to the flight deck at Spirit Airlines. The carrier and Lewis University today announced a new partnership to launch the Spirit Wings Pilot Pathway program at the university’s College of Aviation, Science and Technology in Romeoville, Illinois. The program provides graduates with a direct path to a rewarding career flying for Spirit. Lewis University students can gain valuable experience and complete the steps needed to become a Spirit First Officer while attending a leading aviation university and finishing their college degree.
Lewis University students pursuing an aviation technology degree can apply for the program after obtaining a recommendation from a faculty member in the College of Aviation, Science and Technology and completing their sophomore year. If successful in Spirit’s interview process, they will receive a conditional offer of employment, a Spirit Electronic Flight Bag (EFB) and mentorship as they complete their degree and all Federal Aviation Administration (FAA) requirements for a Restricted Airline Transport Pilot (R-ATP) certificate. Graduates who meet all program requirements will join the team as a Spirit First Officer.
Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N967NK (msn 11128) FLL (Jay Selman). Image: 404290.
Spirit Airlines aircraft photo gallery:
Finnair puts its stamp on 100 years of flying
To celebrate Finnair’s centenary, the airline has partnered with the Finnish postal service to create a special stamp.
Designed by graphic designer Ilkka Kärkkäinen, the special centenary stamp will be available to buy from September 2023.
The stamps can only be used for post within Finland and, like all domestic Finnish stamps, don’t have currency values printed on them.
Featuring a classic blue and white colour scheme and emblazoned with a design to evoke flying and the Finnair logo, the stamps look sure to be snapped up by collectors around the world.
The special centenary stamps are the third time the airline has partnered with the Finnish post office, having earlier done so to celebrate its 50th and 70th anniversaries in 1973 and 1993, respectively.
The special stamps will be available for sale throughout Finland from 6 September 2023 from Posti outlets, the Posti online shop, kiosks, as well as most grocery shops, bookshops and department stores.
Dedicated philatelists are expected to add the new Finnair stamp to their collections as soon as it goes on sale.
The Posti partnership also highlights the significant role played by the Finnish postal service which provided mail for Finnair to carry on its first commercial flight, from Helsinki to Tallinn in Estonia in 1924.
These services have been continued through to the modern day, with Finnair consistently connecting the world with airmail.
Finnair is marking its momentous 100th birthday with a year-long programme of activities, involving customers, colleagues and stakeholders around the airline.
In March, the airline revealed a special Moomin livery for two of widebody A350 aircraft, flying to various destinations in Finnair’s worldwide network, such as London, Dallas, Tokyo and Bangkok.
In addition to the Moomin livery, Finnair Technical Operations in Helsinki have painted the centenary slogan: ‘Bringing us together since 1923’ on three other aircraft.
Finnair also recently partnered with Finnish music producer and rising star Perttu to create an exclusive immersive and soothing Spotify soundtrack to take customers on a relaxing journey through Nordic skies, whether in the air, on the ground.
MGA-Mavi Gök Airlines debuts at Katowice Airport
In the night from April 25 to 26, 2023, a 339 seats Boeing 777-300ER, property of Mavi Gök, a Turkish charter airline, took 325 passengers to Antalya, Turkey. Consequently, the carrier has debuted at Katowice Airport.
MGA-Mavi Gök Airlines is the property of Anex Tour, a Turkish touristic consortium. During the “Summer 2023” season, Mavi Gök Airlines aircraft will handle charter flights connecting Katowice Airport and Antalya on behalf of the Polish division of the Anex Group, i.e. the Orex Travel by Anex travel agency. In order to do so, the airline will utilize wide-body aircraft (Boeing 777-300ER), as well as narrow-body aircraft (Boeing 737-800/Boeing 757-300). Welcome Airport Services sp. z o.o. is responsible for providing ground handling of Mavi Gök Airlines aircraft at Katowice Airport.
Anex Tour Group, which was founded over 20 years ago, is the biggest touroperator in Turkey, and one of the biggest touroperators in Germany. Currently, it has offices in nearly 40 countries around the world. In addition to its own airline, the group also owns a hotel chain in Turkey. Anex Group is present in Poland since 2015.
Boeing reports a GAAP net loss of $425 million in the first quarter
First Quarter 2023
- Still expect to deliver 400-450 737 airplanes in 2023; plan to increase production to 38 per month later this year
- Revenue increased to $17.9 billion primarily reflecting 130 commercial deliveries
- Operating cash flow of ($0.3) billion and free cash flow of ($0.8) billion (non-GAAP); cash and marketable securities of $14.8 billion
- Total company backlog of $411 billion, including over 4,500 commercial airplanes
- Reaffirm guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion of free cash flow (non-GAAP)
| Table 1. Summary Financial Results | First Quarter | |||||||||||||||||||
| (Dollars in Millions, except per share data) | 2023 | 2022 | Change | |||||||||||||||||
| Revenues | $17,921 | $13,991 | 28 % | |||||||||||||||||
| GAAP | ||||||||||||||||||||
| Loss From Operations | ($149) | ($1,162) | NM | |||||||||||||||||
| Operating Margin | (0.8) | % | (8.3) | % | NM | |||||||||||||||
| Net Loss | ($425) | ($1,242) | NM | |||||||||||||||||
| Loss Per Share | ($0.69) | ($2.06) | NM | |||||||||||||||||
| Operating Cash Flow | ($318) | ($3,216) | NM | |||||||||||||||||
| Non-GAAP* | ||||||||||||||||||||
| Core Operating Loss | ($440) | ($1,445) | NM | |||||||||||||||||
| Core Operating Margin | (2.5) | % | (10.3) | % | NM | |||||||||||||||
| Core Loss Per Share | ($1.27) | ($2.75) | NM | |||||||||||||||||
| *Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
The Boeing Company [NYSE: BA] recorded first-quarter revenue of $17.9 billion, GAAP loss per share of ($0.69), and core loss per share (non-GAAP)* of ($1.27)(Table 1). Boeing reported operating cash flow of ($0.3) billion and free cash flow of ($0.8) billion (non-GAAP). Results improved on commercial volume and performance.
“We delivered a solid first quarter and are focused on driving stability for our customers,” said Dave Calhoun, Boeing president and chief executive officer. “We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term. Demand is strong across our key markets and we are growing investments to advance our development programs and innovate strategic capabilities for our customers and for our future.”
| Table 2. Cash Flow | First Quarter | |||||||||||||||||||||||
| (Millions) | 2023 | 2022 | ||||||||||||||||||||||
| Operating Cash Flow | ($318) | ($3,216) | ||||||||||||||||||||||
| Less Additions to Property, Plant & Equipment | ($468) | ($349) | ||||||||||||||||||||||
| Free Cash Flow* | ($786) | ($3,565) | ||||||||||||||||||||||
| *Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
Operating cash flow was ($0.3) billion in the quarter reflecting higher commercial deliveries and favorable receipt timing (Table 2).
| Table 3. Cash, Marketable Securities and Debt Balances | Quarter-End | |||||||||||||
| (Billions) | Q1 23 | Q4 22 | ||||||||||||
| Cash | $10.8 | $14.6 | ||||||||||||
| Marketable Securities1 | $4.0 | $2.6 | ||||||||||||
| Total | $14.8 | $17.2 | ||||||||||||
| Consolidated Debt | $55.4 | $57.0 | ||||||||||||
| 1 Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.” |
Cash and investments in marketable securities totaled $14.8 billion, compared to $17.2 billion at the beginning of the quarter (Table 3). Debt was $55.4 billion, down from $57.0 billion at the beginning of the quarter due to the pay down of debt maturities. The company has access to credit facilities of $12.0 billion, which remain undrawn.
Total company backlog at quarter-end was $411 billion.
Segment Results
Commercial Airplanes
| Table 4. Commercial Airplanes | First Quarter | |||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | Change | |||||||||||||||||||||||||||||
| Commercial Airplanes Deliveries | 130 | 95 | 37 % | |||||||||||||||||||||||||||||
| Revenues | $6,704 | $4,194 | 60 % | |||||||||||||||||||||||||||||
| Loss from Operations | ($615) | ($897) | NM | |||||||||||||||||||||||||||||
| Operating Margin | (9.2) | % | (21.4) | % | NM | |||||||||||||||||||||||||||
Commercial Airplanes first-quarter revenue increased to $6.7 billion driven by higher 737 and 787 deliveries, partially offset by 787 customer considerations (Table 4). Operating margin of (9.2) percent also reflects abnormal costs and period expenses, including research and development.
On the 737 program, earlier this month the program’s fuselage supplier notified Boeing that a non-standard manufacturing process was used on two fittings in the aft fuselage section of certain 737 airplanes. This is not an immediate safety of flight issue and the in-service fleet can continue operating safely. While near-term deliveries and production will be impacted as the program performs necessary inspections and rework, the program still expects to deliver 400-450 airplanes this year. On production, the supplier master schedule remains unchanged including anticipated production rate increases, which will result in higher inventory levels. The company expects final assembly production to recover in the coming months with plans to increase to 38 per month later this year and 50 per month in the 2025/2026 timeframe.
The 787 program is producing at three per month with plans to ramp production to five per month in late 2023 and to 10 per month in the 2025/2026 timeframe.
During the quarter, Commercial Airplanes secured net orders of 107. Also during the quarter the company secured commitments from Air India for 190 737 MAX, 20 787, and 10 777X airplanes and from Riyadh Air and Saudi Arabian Airlines for up to 121 787 airplanes. Commercial Airplanes delivered 130 airplanes during the quarter and backlog included over 4,500 airplanes valued at $334 billion.
Defense, Space & Security
| Table 5. Defense, Space & Security | First Quarter | |||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | Change | |||||||||||||||||||||||||||||
| Revenues | $6,539 | $5,483 | 19 % | |||||||||||||||||||||||||||||
| Loss from Operations | ($212) | ($929) | NM | |||||||||||||||||||||||||||||
| Operating Margin | (3.2) | % | (16.9) | % | NM | |||||||||||||||||||||||||||
Defense, Space & Security first-quarter revenue was $6.5 billion. First-quarter operating margin of (3.2) percent primarily reflects a $245 million pre-tax charge on the KC-46A Tanker program largely driven by the previously shared supplier quality issue resulting in factory disruption and rework. Results also include the continued operational impact of labor instability and supply chain disruption on other programs.
During the quarter, Defense, Space & Security captured awards from the U.S. Army for 184 Apaches and from the U.S. Air Force for 15 KC-46A Tankers and the initial E-7 development contract. Backlog at Defense, Space & Security was $58 billion, of which 30 percent represents orders from customers outside the U.S.
Global Services
| Table 6. Global Services | First Quarter | |||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | Change | |||||||||||||||||||||||||||||
| Revenues | $4,720 | $4,314 | 9 % | |||||||||||||||||||||||||||||
| Earnings from Operations | $847 | $632 | 34 % | |||||||||||||||||||||||||||||
| Operating Margin | 17.9 | % | 14.6 | % | 3.3 pts | |||||||||||||||||||||||||||
Global Services first-quarter revenue of $4.7 billion and operating margin of 17.9 percent reflect higher commercial volume and favorable mix.
During the quarter, Global Services committed to set up the first Boeing Converted Freighter line in India in collaboration with GMR Aero Technic, delivered AerCap’s 50th 737-800 Boeing Converted Freighter and broke ground on a new component operations facility in Jacksonville, Florida.
Additional Financial Information
| Table 7. Additional Financial Information | First Quarter | |||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | ||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Unallocated items, eliminations and other | ($42) | $— | ||||||||||||||||||||||
| Earnings/(loss) from Operations | ||||||||||||||||||||||||
| FAS/CAS service cost adjustment | $291 | $283 | ||||||||||||||||||||||
| Other unallocated items and eliminations | ($460) | ($251) | ||||||||||||||||||||||
| Other income, net | $302 | $181 | ||||||||||||||||||||||
| Interest and debt expense | ($649) | ($637) | ||||||||||||||||||||||
| Effective tax rate | 14.3 | % | 23.2 | % | ||||||||||||||||||||
The increase in loss from Other unallocated items and eliminations was driven by timing of allocations and deferred compensation expense. Other income primarily reflects an increase in investment income due to higher interest rates. The first-quarter effective tax rate primarily reflects the tax benefit of pretax losses.
Segment results reflect the realignment of Boeing Capital into the Commercial Airplanes segment during the first quarter of 2023. Prior period amounts have also been reclassified to conform to the 2023 presentation.
Fly 91 is a new airline in India
Fly 91 is a new regional airline in India.
The new airline is headed by Chairman Harsha Raghavan, managing partner at Convergent Finance LLP and CEO Manoj Chacko, a formert executive with Kingfisher Airlines.
The new airline will operate ATR aircraft on the short-haul regional routes in India.