Philippine Airlines (PAL) has signed a Memorandum of Understanding (MOU) with Airbus for the purchase of nine A350-1000s.
The A350-1000 will be operated on nonstop services from Manila to North America, including to the East Coast of the US and Canada.
The new aircraft will join two A350-900s already in service at the airline and currently flying to destinations in North America, Asia and Australia. As with the A350-900, the PAL A350-1000s will be configured in a premium layout with separate Business Class, Premium Economy and Economy Class cabins.
Captain Stanley K. Ng, President and Chief Operating Officer of Philippine Airlines, said that the range of the A350-1000 would enable the airline to fly nonstop transpacific and transpolar routes in both directions all year. These will include some of the longest commercial flights in the world, such as those linking the Philippines with New York and Toronto. With an expanded A350 fleet, PAL will have the ability to once again provide a direct link from the Philippines to Europe.
Airbus has celebrated production of Delta Air Lines’ 100th U.S.-made Airbus A320 Family aircraft at the manufacturer’s facility in Mobile, Alabama. On hand for the occasion were executives from Airbus and Delta Air Lines; U.S. Sen. Katie Britt and U.S. Rep. Jerry Carl (R-AL) representing the people of Alabama; Mobile Mayor Sandy Stimpson; other elected officials, and representatives of the more than 1,600 employees at the facility.
The milestone comes nearly seven years after Delta’s first delivery from Mobile, which took place on December 2, 2016. At the time, that aircraft was the 15th aircraft overall to be delivered from the facility. Since then, more than 375 aircraft (A220 and A320 family) have been delivered to 12 U.S.-based customers and operators.
As of the March 31 Airbus Orders & Deliveries report, Delta is operating 60 A220 family, 270 A320 family aircraft, 63 A330s and 28 A350s. The airline has another 212 aircraft on order—including A220, A320 family, A330 and A350 aircraft.
Airbus began producing A320 family aircraft in Mobile in 2015 and delivered its first aircraft from its U.S. facility in 2016. In 2017, Airbus announced it would begin producing A220 aircraft at the same site, and delivered its first aircraft in 2020. In 2022, Airbus announced it would build a second A320 family assembly line in Mobile.
The company currently employs more than 1,900 people in its production, engineering and U.S. Space & Defense MRO facilities in the Port City. In addition, some Airbus suppliers have opened facilities in the region, providing even more employment and a parallel boost to the local economy.
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.
Frontier Airlines (2nd) Airbus A320-251N WL N331FR (msn 8239) (Choo, the Pika) MIA (Jay Selman). Image: 404291.
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.
Air Transat Airbus A330-243 C-GUBT (msn 732) LGW (Richard Vandervord). Image: 960465.
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.
Allegiant Air Airbus A320-214 WL N190NV (msn 6669) BOS (Fred Freketic). Image: 960463.
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.
Air Moldova Airbus A321-211 ER-AXR (msn 808) AYT (Ton Jochems). Image: 947537.
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.
American Airlines Airbus A321-231 WL N902AA (msn 7519) MIA (Bruce Drum). Image: 105926.
American Airlines pilots are in negotiations with the company on a new contract.
Meanwhile the majority of the Allied Pilot Association have given the union permission to call for a strike vote if negotiations breakdown.
The union issued this statement:
The Allied Pilots Association, certified collective bargaining agent for the 15,000 pilots of American Airlines, announced that its membership has voted overwhelmingly in favor of authorizing a strike.
“The summer travel season is almost here, and we’re all wondering whether this will be another summer of uncertainty for American Airlines,” said Capt. Ed Sicher, APA President. “Fortunately, there is an alternative. By embracing the win-win scheduling and work rule improvements APA has presented at the bargaining table, management can take steps to improve the airline’s operational reliability and efficiency.”
Capt. Sicher noted that APA has provided airline management with detailed data illustrating how the union’s proposals will drive improved reliability.
Strike authorization voting began on April 1 and ended at midnight Central on April 30. With more than 96 percent of the APA membership participating, more than 99 percent voted in favor of authorizing a strike.
“The APA membership has spoken. We will strike if necessary to secure the industry-leading contract that our pilots have earned and deserve – a contract that will position American Airlines for success,” Capt. Sicher said. “With more than 99 percent of participating pilots voting in favor of authorizing a strike, our pilots’ resolve is unmistakable. We will not be deterred from our goal of an industry-leading contract.”
In a demonstration of their resolve, APA members will be conducting informational picketing today from 11 a.m. to 1 p.m. local time at all 10 of the airline’s major hubs: Boston (BOS), Charlotte (CLT), Chicago (ORD), Dallas/Fort Worth (DFW), Los Angeles (LAX), Miami (MIA), New York (LGA), Philadelphia (PHL), Phoenix (PHX), and Washington, D.C. (DCA).
“The strike authorization vote is one of several steps APA has taken to prepare for any eventuality and use all legal avenues available to us for contract improvement and resolution,” he said. “The best outcome is for APA and management to agree on an industry-leading contract – achieved through good-faith bargaining – benefiting our pilots, American Airlines, and the passengers we serve.”
Top Copyright Photo: American Airlines Airbus A321-231 WL N902AA (msn 7519) MIA (Bruce Drum). Image: 105926.
American Airlines aircraft photo gallery (Airbus):
Lufthansa Airbus A380-841 D-AIMC (msn 044) LAX (Michael B. Ing). Image: 948759.
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.
Photo: Lufthansa. Airbus A380 landing the the MUC hub.
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.
Condor Flugdienst Airbus A330-941 D-ANRA (msn 1966) (Condor Island) FRA (Bernhard Ross). Image: 959797.
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 weekstarts 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:
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.
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.
Lufthansa Airbus A350-941 D-AIXJ (msn 209) LAX (Michael B. Ing). Image: 957622.
In a globally unique project, the Lufthansa Group and the Karlsruhe Institute of Technology (KIT) are currently converting the Lufthansa Airbus A350-900 “Erfurt” (registration D-AIXJ) into a flying research laboratory. Now, an essential project milestone could be reached: For the first time, experts from the Lufthansa Group have attached the measuring probe system developed especially for the project to the lower fuselage of the A350 and successfully tested it in flight. Lufthansa pilots completed a flight program coordinated with the certification authorities in the airspace over southern Germany. The measuring system now being tested on the aircraft is the most complex of its kind and, in addition to the air inlet function, has sensors for high-frequency and -precision measurement of pressure and temperature. From 2024, the Airbus will collect comprehensive climate data during regular passenger flights for the European research infrastructure IAGOS-CARIBIC.
“We want to make flying more sustainable. That is why we have been supporting climate research for decades. The conversion of our Lufthansa Airbus A350 into a climate research aircraft is a globally unique project in which colleagues from a wide variety of areas at Lufthansa have been working together with partners in science for years. Our aim is to make a valuable contribution to climate research. The data that our aircraft will collect worldwide in the future will help to improve today’s atmospheric and climate models and thus their informative value for the future climate on earth,” says Jens Ritter, CEO Lufthansa Airlines.
Over the next few months, a measurement laboratory weighing around two tons and specially developed for the project will be set up. Some 20 measuring instruments will be installed in the laboratory, which will later be loaded into the cargo hold as a cargo container and connected to the measuring system on the outer fuselage of the aircraft. Next year, this high-tech laboratory will take off for the first time and collect climate data on selected flights in Lufthansa’s worldwide scheduled operations. The laboratory continuously records more than 100 different trace gases, aerosol, and cloud parameters from the ground to the tropopause region at an altitude of nine to thirteen kilometers. What makes it special: Climate-relevant parameters can be recorded at this altitude with significantly higher accuracy and temporal resolution on board the aircraft than would be possible with satellite- or ground-based measurement systems.
“IAGOS-CARIBC helps to close an essential gap in our understanding of the climate system. With the high-precision measurements of many parameters, we can understand which atmospheric processes are changing and how in climate change, in an altitude region where most of the atmospheric radiation budget, i.e., the greenhouse effect, is generated and changed. We can thus identify process-specific errors and their causes in climate models and subsequently improve their predictive capabilities,” says Dr Andreas Zahn of KIT and coordinator of IAGOS-CARIBIC. “We are extremely grateful for Lufthansa’s great commitment and support.”
The conversion of the A350 “Erfurt” into a research laboratory was preceded by a planning and development phase lasting several years. In addition to the Lufthansa Group and KIT, six other companies (Lufthansa Technik, Airbus, Safran, enviscope, Dynatec, and ACC COLUMBIA Jet Service) are involved in the IAGOS-CARIBIC project. The KIT also acts as coordinator of a scientific consortium of currently twelve research institutions in Europe and the USA, whose complex measuring instruments will explore the atmosphere in the flying research laboratory. The abbreviation IAGOS stands for “In-service Aircraft for a Global Observing System” and CARIBIC for “Civil Aircraft for the Regular Investigation of the atmosphere Based on an Instrument Container”.
The Lufthansa Group has been committed to climate and weather research for almost 30 years now and has equipped several aircraft with measuring instruments since then. From December 2004 to 2020, a Lufthansa Airbus A340-600 (registration D-AIHE) has already completed around 500 measurement flights in the service of climate and atmospheric research as part of the CARIBIC project.
Top Copyright Photo: Lufthansa Airbus A350-941 D-AIXJ (msn 209) LAX (Michael B. Ing). Image: 957622.
Hawaiian Airlines Airbus A321-271N WL N204HA (msn 7959) LGB (Michael B. Ing). Image: 942740.
Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc. reported its financial results for the first quarter of 2023.
“A big mahalo to our team who continue to make us a stronger, better airline. The demand for leisure travel remains strong in the domestic markets we serve, and we see similar conditions in most of our international markets,” said Hawaiian Airlines President and CEO Peter Ingram. “In recent days, our team completed a significant technology initiative, one of many projects underway in 2023 that position us for a bright future. We look forward to sustaining momentum on these initiatives and returning Hawaiian to profitability.”
First Quarter 2023- Key Financial Metrics and Results
GAAP
YoY Change
Adjusted (a)
YoY Change
Net Loss
($98.3M)
+$35.0M
($111.8M)
+$18.5M
Diluted EPS
($1.91)
+$0.69
($2.17)
+$0.37
Pre-tax Margin
(20.5) %
+14.3 pts.
(23.0) %
+11.4 pts.
EBITDA
($70.3M)
+$37.2M
($85.4M)
+$20.1M
Operating Cost per ASM
14.85¢
0.19¢
11.04¢
(0.03)¢
Operating Revenue per ASM
12.46¢
1.27¢
N/A
N/A
(a) See Table 4 for a reconciliation of adjusted net loss, adjusted diluted EPS, adjusted pre-tax margin, adjusted EBITDA, and adjusted operating cost per ASM (CASM excluding fuel and non-recurring items) to each of their respective most directly comparable GAAP financial measure.
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
As of March 31, 2023, the Company had:
Unrestricted cash, cash equivalents and short-term investments of $1.4 billion
$1.6 billion in liquidity, including its undrawn $235 million revolving credit facility
Outstanding debt and finance lease obligations of $1.7 billion
Revenue Environment
Hawaiian benefited from continued robust leisure demand from North America to Hawaiʻi and the restoration of its international network excluding Japan. International traffic was buoyed by strong U.S. point of sale activity. Demand remained strong for premium products both domestically and internationally. The Company’s overall operating revenue for the first quarter 2023 was up 28.4% from the first quarter 2022 on 15.4% higher capacity as Hawaiian recovered from the effects of the Omicron variant of COVID-19, which impacted results in the first quarter 2022.
Other revenue was down 12.4% compared to the first quarter of 2022 driven by a decrease in cargo revenue.
Operational Environment
Several challenges continued to negatively affect the environment in which the Company operates. Constraints on the availability of A321 aircraft due to Pratt & Whitney engine delays, ongoing runway construction at Daniel K. Inouye International Airport in Honolulu (HNL), and delays related to air traffic control protocols disrupted Hawaiian’s on-time performance, impaired its scheduling, and adversely affected its financial results.
Limitations on Hawaiian’s A321 fleet availability necessitated the substitution of A330 aircraft, which are less fuel efficient, on some A321 routes. Fuel consumption for the first quarter 2023 was up 21.4% as compared to the first quarter of 2022 due to higher capacity and inefficiencies resulting from these challenges.
First Quarter 2023 Highlights
Technology Advancement
Transitioned its Passenger Service System to Amadeus’ Altea platform marking a significant information technology (“IT”) accomplishment for the Company in April; this new platform will enable the Company to be more commercially and operationally nimble
Routes and Network
Operated at 115% of its 2022 first quarter capacity, comprised of 98%, 119%, and 275% capacity on its North America, Neighbor Island and International routes, respectively
Announced an increase in summer weekly frequencies between Honolulu and Austin, Boston, Las Vegas, and Pago Pago in preparation for strong summer demand to Hawai’i as well as a fourth daily flight between Honoluluand Los Angeles twice per week
Announced resumption of service between Honolulu and Fukuoka beginning April 28 with thrice-weekly service
Guest Experience
Streamlined the Honolulu travel experience with the opening of a new TSA security checkpoint at HNL, which added 1,000 square feet for passenger queuing and 3,000 square feet of screening area; expanded screening capacity alleviates congestion and benefits all guests whether they are flying to a neighbor island or boarding a transpacific flight
People
Received ratification by Hawaiian’s pilots represented by the Air Line Pilots Association of a four-year contract that provides for pay scale increases across all fleet types, improved health benefits, a signing bonus, and cost sharing, and enhancements to the postretirement and disability plans for more than 1,000 employees
Formed a partnership with Embry-Riddle Aeronautical University’s Aviation Maintenance Technology SkillBridge program which provides an opportunity for veterans to bridge the transition into the civilian aviation and aerospace sector
Established a $100,000 scholarship fund in partnership with Arizona State University’s W.P. Carey School of Business to encourage Hawai’i students to pursue careers in IT with the potential to build a career at Hawaiian
Environmental, Social and Corporate Governance
Committed to new milestones on the path to net-zero greenhouse gas emissions by 2050; the Company’s decarbonization roadmap relies on several key drivers, including the use of sustainable aviation fuel (SAF), fleet modernization and new aircraft technologies, operational best practices to improve fuel efficiency, and advocacy for air traffic control system improvements
Announced an agreement with biofuel company Gevo, Inc. to purchase 50 million gallons of SAF over five years with deliveries to Hawaiian’s gateway cities in California anticipated starting in 2029
Published the No Kākou a Pau (“interconnectedness”) economic impact report which underscores the ways Hawaiian is connected to the economy of its home state including stimulating $10.2 billion in economic activity in Hawai’i and providing, directly or indirectly, for 53,500 jobs statewide in 2022
Second Quarter 2023 Outlook
The table below summarizes the Company’s expectations for the quarter ending June 30, 2023 expressed as an expected percentage change compared to the results for the quarter ended June 30, 2022.
Item
Second Quarter 2023 Guidance
GAAP Equivalent
GAAP Second Quarter 2023 Guidance
Available Seat Miles (ASMs)
Up 10.5% to up 13.5%
Operating Revenue per ASM (RASM)
Down 8.5% to down 11.5%
CASM excluding fuel and non-recurring items (a)
Flat to up 3%
Costs per ASM
Down 8.2% to down 10.2%
Gallons of Jet Fuel Consumed
Up 16.5% to up 19.5%
Economic Fuel Price per Gallon (a)(b)
$2.62
Average fuel price per gallon, including taxes and delivery
Effective Tax Rate
21.0 %
Full Year 2023 Outlook
The table below summarizes the Company’s updated expectations for the full year ending December 31, 2023expressed as an expected percentage change compared to the results for the year ended December 31, 2022.
Item
Prior Full Year 2023 Guidance
Full Year 2023 Guidance
Gallons of Jet Fuel Consumed
Up 10.5% to up 13.5%
Up 12.5% to up 15.5%
Economic Fuel Price per Gallon (a)(b)
$2.92
$2.70
(a) See Table 3 and Table 4 for a reconciliation of CASM excluding fuel and non-recurring items and economic fuel price per gallon to each of their respective most directly comparable GAAP financial measures.
(b) Fuel Price per Gallon estimates are based on the April 11, 2023 fuel forward curve.
Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables.
Top Copyright Photo: Hawaiian Airlines Airbus A321-271N WL N204HA (msn 7959) LGB (Michael B. Ing). Image: 942740.
JetBlue Airways Corporation today reported its results for the first quarter of 2023.
“Thanks to our team’s collective hard work, our first quarter financial results came in better than expectations, and we are forecasting strong sequential pre-tax margin improvement into the second quarter. We remain well on track in executing our comprehensive plan to enhance our long-term profitability and restore our historical earnings power,” said Robin Hayes, JetBlue’s Chief Executive Officer.
“For the second quarter, we expect strong revenue growth to continue as demand remains robust and as we see continued momentum from our commercial initiatives. We are forecasting a solidly profitable quarter, and we remain confident in our full-year earnings outlook.”
First Quarter 2023 Financial Results
Net loss for the first quarter of 2023 under Generally Accepted Accounting Principles (GAAP) of $(192) million or $(0.58) per share. Excluding one-time items, adjusted net loss for the first quarter of $(111) million(1) or $(0.34) per share.
First quarter of 2023 capacity increased by 9.0% year-over-year.
Generated highest first quarter revenue in history. Operating revenue of $2.3 billion for the first quarter of 2023, up 34.1% year-over-year.
Operating expenses per available seat mile (CASM) for the first quarter of 2023 increased 12.1% year-over-year.
Operating expense per available seat mile, excluding fuel and related taxes, other non-airline operating expenses, and special items (CASM ex-Fuel)(1) for the first quarter of 2023 increased 1.2%(1) year-over-year.
Average fuel price in the first quarter of 2023 of $3.50 per gallon, including hedges.
Balance Sheet and Liquidity
$1.7 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities at quarter-end (excluding our $600 million undrawn revolving credit facility).
Adjusted debt to capital ratio of 53%(1) as of March 31, 2023.
Paid approximately $109 million in debt and finance lease obligations during the first quarter of 2023.
First Quarter 2023 Key Highlights
Reported adjusted EPS for the first quarter of 2023 which exceeded guidance, with strong operational and financial execution. First quarter revenue was approximately 4% points better than the midpoint of initial outlook, and CASM ex-Fuel was 1.8% points better than the midpoint of initial outlook.
Announced the planned launch of new service later this summer from New York’s John F. Kennedy International Airport and Boston Logan International Airport to Amsterdam Airport Schiphol, JetBlue’s third transatlantic market debut.
Announced our plan to further expand in Florida, following our planned combination with Spirit, to reach more than 250 daily flights at Fort Lauderdale-Hollywood International Airport (FLL) and 200 daily flights at Orlando International Airport, supporting significant job creation in Florida.
Opened Paisly hotel and car rental booking tool to any travelers independent of a JetBlue itinerary.
Announced a leading Shell Aviation agreement for the delivery of 10 million gallons of blended sustainable aviation fuel (SAF) – at Los Angeles International Airport (LAX) over the next two years beginning in the first half of 2023, with an option to purchase more.
Acted as the only airline to help execute the first-ever collective purchase of SAF certificates alongside Bank of America, Boom Supersonic, Boston Consulting Group, JPMorgan Chase & Co., Meta and clean energy nonprofit, RMI.
Rated by leading shareholder advisory firm ISS in its Tier 1 category for high performance against industry peers with respect to our management of “Carbon and Climate,” as a result of our recent Science Based Target to reduce GHG emissions (by 50% per revenue ton kilometer by 2035, as compared to 2019).
Recognized by Newsweek as one of America’s greatest workplaces for women and for diversity, earning 4.5 and 5 stars, respectively.
Brought our signature Fly Like a Girl Campaign to Fort Lauderdale for the first time to support Women’s History Month, which brought ~100 young children together to learn about career opportunities in aviation.
Outlook
“Demand trends remain robust into the second quarter, with strong demand for leisure and visiting-friends-and-relatives (VFR) travel particularly during peak periods. We’re also pleased with the continued improvement in revenue and financial performance at our largest focus city, New York,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.
“Our TrueBlue Loyalty program continues to show encouraging trends with strong growth in co-brand card spend. In addition, the Northeast Alliance (NEA), which is already a significant revenue generator, is driving meaningful margin improvement as our service matures.”
Second Quarter and Full-Year 2023 Outlook
Estimated 2Q 2023
Estimated FY 2023
Available Seat Miles (ASMs) Year-Over-Year
4.5% – 7.5%
5.5% – 8.5%
Revenue Year-Over-Year
4.5% – 8.5%
High Single Digits to Low Double Digits
CASM Ex-Fuel(2) (Non-GAAP) Year-Over-Year
1.5% – 3.5%(3)
1.5% – 4.5%(3)
Estimated Fuel Price per Gallon(4)
$2.75– $2.90(5)
$2.95 – $3.15
Interest Expense
$40 – $50 million
$200 – $210 million
Adjusted Earnings per Share
$0.35 – $0.45
$0.70 – $1.00
Notes
(1)
Non-GAAP financial measure; Note A provides a reconciliation of non-GAAP financial measures used in this release and explains the reasons management believes that presentation of these non-GAAP financial measures provide useful information to investors regarding JetBlue’s financial condition and results of operations.
(2)
With respect to JetBlue’s CASM ex-fuel guidance, JetBlue is unable to provide a reconciliation of the non-GAAP financial measure to GAAP because the excluded items have not yet occurred and cannot be reasonably predicted. The reconciling information that is unavailable would include a forward-looking range of financial performance measures beyond our control, such as fuel costs, which are subject to many economic and political factors. Accordingly, a reconciliation to CASM is not available without unreasonable effort.
(3)
Includes the impact from the new Pilot Union agreement of approximately 3% points for the second quarter and full year 2023.
(4)
Includes fuel taxes and hedges.
(5)
JetBlue utilizes the forward Brent crude curve and the forward Brent crude to jet crack spread to calculate the unhedged portion of its prompt quarter. As of April 14, 2023, the forward Brent crude per barrel price was $86 and the crack spread averaged $16 per barrel for the second quarter of 2023.
Top Copyright Photo Photo: JetBlue Airways Airbus A321-231 WL N905JB (msn 5854) (Prism) JFK (Fred Freketic). Image: 960435.
Malaysia Airlines Airbus A330-223 9M-MTY (msn 968) (Negaraku) DPS (Pascal Simon). Image: 946467.
Record Net Profit After Interest and Tax of RM1.146bil in Q42022
Net operating profit of RM556mil for full year 2022 with 2 consecutive quarters of operating profit
272% improvement in EBITDA at RM+1.61bil compared to +ve RM433mil a year ago
Passenger traffic and capacity increased by 5.7X and 6.9X YoY
Strong load factor of 81% in Q42022 and average load factor of 75% for 2022
Malaysia Aviation Group (Malaysia Airlines) marked one of its best ever quarter performance since the past two decades attributed to robust demand, higher yield across passenger and cargo business segments as well as effective cost management and cashflow optimisation, despite higher fuel prices and labour costs, weaker ringgit (MYR) and lower than pre-pandemic flight capacity levels. MAG achieved record net profit after interest and tax of RM1.146bil in Q422. For full year 2022, the Group recorded net operating profit of RM556mil, while net loss after interest and tax for the year reduced 79% to RM344mil from RM1.65bil a year ago. Cash balance stood at RM4.6bil at end 31 Dec 2022.
The Group also saw improvement across all its business segments during the year. Cargo subsidiary, MABkargo Berhad (MABkargo) recorded marginally weaker performance compared to a year ago amid softening of global freight demand and increased capacity in the market in the 2H22. Main airline, Malaysia Airlines Berhad’s (MAB) total revenue tripled compared to the year before, underpinned by strong demand on the international sector for both passenger travel and cargo freight.
Operational Highlights
Airline Business
MAB achieved breakeven at operating profit level, an exceptional turnaround from operating loss of RM612mil a year ago.
Passengers carried was 6.7X higher than previous year with load at 62% higher while yield declined by 16% with more capacity deployed.
MAB On-time Performance (OTP) is down at 82%, compared to 89% a year ago.
MAB recorded a slight downtrend in Customer Satisfaction Index (CSI), which was 79% Year-to-Date (YTD) compared to 84% in 2021 with the airline’s Net Promoter Score (NPS) reduced to +31 points in 2022 compared to +54 points in 2021. The airline faced challenges with its OTP and customer experience during the year and is committed to improving its performance in these areas with the immediate formation of a Customer Experience Taskforce comprising key business units including Engineering and In-flight Operations.
In 2022, MAB has refurbished eight Boeing 737-800 NG aircraft to include new lighter seats, interior and introduced MH Studio, an innovative wireless in-flight entertainment onboard.
In partnership with Qatar Airways, MAB doubled its capacity between Kuala Lumpur and Doha with a second daily nonstop flight in August 2022, in response to high passenger demand on this route. With this MAB was able to further grow its network and connect to more destinations in North America, Europe and Africa.
Firefly maintained in loss position for 2022, on the back of weak yield and demand for both ATR and jet operations.
Firefly resumed jet operations from the Penang hub on 11 April 2022 with daily return flights from Penang to Kuching and Kota Kinabalu.
Amal recorded its first year of profit from a loss position a year ago with the resumption of Hajj/Umrah travels.
Aviation Services
MABkargo’s performance remains strong amid weakening of cargo demand in Q42022. MABkargo achieved higher CTKM by 17% against target and maintaining its yield year on year.
MAB Engineering continue to gain traction and performed well with third party revenue now contributing to 30% of its revenue.
AeroDarat Services recorded an improvement of 66% on its financial performance year on year. The number of flights it handled doubled during the year compared to a year ago.
Loyalty & Travel Services
Enrich, MAG’s loyalty business segment more than doubled its revenue during the year with higher flight redemptions as the Group resumes flights to more destinations during the year.
Journify, an integrated one-stop lifestyle digital platform representing the e-commerce and travel services business portfolio of MAG saw a good traction recording 10.04 million new customer traffic on its website.
Outlook – Remarks by Group Managing Director, Captain Izham Ismail
MAG has emerged from the COVID19 on a strong financial footing and is charting an upward financial trajectory, however, there are still many areas for improvement especially in OTP and customer experience. The Group is fully committed to addressing these gaps and delivering an unparalleled customer experience.
Travel demand outlook remains strong in the near term, although macroeconomics environment remains very challenging with sustained high fuel prices, volatile forex, higher operating costs due to inflation, labour constraints, recession and geopolitical risks.
With China’s border reopening in January 2023, MAB aims to regain the remaining capacity for its entire network which currently stands at 85%, and fully recovering services to China and North Asia by the end of 1H23. This will spur economic growth between Malaysia and China, boosting the overall business and trade links between the two countries.
In line with its Long-Term Business Plan 2.0 and continuing the growth of Firefly jet operations, MAB will be transferring in phases intra-Borneo services and Kota Kinabalu international services to Firefly, as a result of continued positive demand recoveries across all the markets.
Amal plans to ramp up capacity by at least 10% in 2023 to meet surging in demand where total Umrah traffic today has exceeded pre-Covid-19 level and Hajj quota is back to normal level. Amal will look into inducing demand in Malaysia as well as exploring opportunities outside Malaysia as part of its long-term growth plan.
In terms of fleet, MAG looks forward to taking delivery of four out of 25 Boeing 737-8 from 3Q23 onwards, which will see it deliver operational improvement directly with lower fuel cost and improve total network efficiency.
The Group continues to accelerate its Sustainability Blueprint agenda in all sectors, inspiring positive change through various initiatives. In addition to supporting the United Nations’ 13th SDG (Climate Action), these initiatives target three other SDGs: Goal 5 (Gender Equality), Goal 7 (Affordable and Clean Energy), and Goal 12 (Responsible Consumption and Production).
Top Copyright Photo: Malaysia Airlines Airbus A330-223 9M-MTY (msn 968) (Negaraku) DPS (Pascal Simon). Image: 946467.
Air Mauritius Airbus A330-941 3B-NBU (msn 1884) LHR (SPA). Image: 949242.
Air Mauritius, the flagship carrier of Mauritius will resume its nonstop flights to and from Indira Gandhi International Airport in Delhi from May 3, 2023, with twice-weekly flights using its Airbus A330 aircraft in a Business and Economy class configuration with a capacity of 254 seats.
The duration of the flight is 7 hours and 30 minutes.
Air Mauritius currently operates six weekly direct flights to Chhatrapati Shivaji Maharaj International Airport in Mumbai.
Top Copyright Photo: Air Mauritius Airbus A330-941 3B-NBU (msn 1884) LHR (SPA). Image: 949242.
Marabu Airlines has commenced operations. The first passenger revenue flight was operated on April 15 between Munich and Palma de Mallorca.
Last December investment firm Attestor, which owns 51% of the shares of Condor Airlines, announced it would launch its own leisure airline.
The new operator, based in Tallinn, Estonia, would offer services between Germany, especially Hamburg and Munich, and holiday destinations in southern Europe and North Africa.
It was also revealed that Nordic Aviation Group would provide ACMI (aircraft leasing, crew, maintenance and insurance) services to the new company, using three Airbus A320neo.
Top Copyright Photo: Marabu Airlines Airbus A320-271N WL ES-MBU (msn 6799) PMI (Javier Rodriguez). Image: 960414.
