Boeing and Japan Airlines (JAL) have finalized an order for 21 super-efficient 737-8 jets.
JAL intends to begin introducing the airplanes into its fleet from 2026.
Boeing and Japan Airlines (JAL) have finalized an order for 21 super-efficient 737-8 jets.
JAL intends to begin introducing the airplanes into its fleet from 2026.
Southwest Airlines today will share an overview of the prioritized actions being implemented to strengthen the airline’s operational resiliency. The actions will be previewed by Bob Jordan, Southwest’s President and Chief Executive Officer, at the J.P. Morgan Industrials Conference in New York and are designed for Customers and Employees to continue benefiting from the airline’s 52-year history of providing Safe, reliable, and Customer-friendly Southwest Hospitality.
As a result of the initial assessments conducted by Southwest, and the globally-recognized aviation consultancy Oliver Wyman, the airline has developed a three-part Tactical Action Plan to boost operational resiliency in key areas across the Company. The airline’s existing five-year Operational Modernization Plan, which began in 2022, is also underway and focuses on operational investments and organizational alignment to support Customers and Employees.
“We understand the root causes that led to the holiday disruption, and we’re validating our internal review with the third-party assessment. Now, we expect to mitigate the risk of an event of this magnitude ever happening again,” said Bob Jordan, Southwest’s President and Chief Executive Officer. “Work is well underway implementing action items to prepare for next winter—with some items already completed. I want to thank our Employees and Customers for their patience and grace, and we’re resolved to emerge an even stronger airline.”
In addition to Winter Storm Elliot, which was more severe than expected, a driver of the disruption was determined to be the volume of cascading and close-in flight cancelations during the storm which overwhelmed Station operations and the airline’s Crew Network and hindered established processes and internal tools. While the airline had existing technology and staffing in place to handle many types of irregular operations, the pace and breadth of disruptions during this extreme event strained the ability to create timely operational solutions. The airline will provide additional communication in the coming weeks, including a microsite summarizing key findings and mitigation actions.
Highlights of the Tactical Action Plan
Accelerate Operational Investments: The airline began a five-year Operational Modernization Plan prior to December 2022 with many initiatives already underway to support operational resiliency. Now, ongoing implementation of tools and technology that allow for a greater pace of recovery during extreme events will be prioritized, and the airline is, currently, budgeted to spend more than $1.3 billion on investments, upgrades, and maintenance of information technology systems in 2023. For example, Crew Optimization software has been recently upgraded to address a functional gap that was revealed in December. Crew Scheduling and Customer phone systems also will be upgraded for better surge protection and efficiency during periods of high call volumes.
Winter Operations: Challenges with infrastructure, winter equipment, and winter weather preparedness have been, or will be, addressed through various actions, including purchasing additional deicing trucks; securing additional deicing pads and deicing fluid capacity at key network locations; and purchasing more engine covers and engine heaters for cold weather operations. Southwest was the first U.S. airline to hire back to pre-pandemic total staffing by June 2022, and, going forward, the airline will further augment winter staffing levels—for example, when Ground Operations Employees are limited to the amount of time they can work outside in extreme temperatures. Additionally, the airline plans to implement a new weather application to provide Crews with more real-time and dynamic weather indications to enhance deicing holdover times—which determines the time required before aircraft must be deiced again prior to departure.
Cross-Team Collaboration: Actions have already been taken to align various Network Planning and Network Operations Control Teams under one Senior Leader for better execution of operational plans. Additionally, data on early-indicator dashboards has been enhanced to highlight key operational metrics, and the airline will better integrate aircraft and Crew recovery decision making and optimization.
“I’m very encouraged by the work underway to address the challenges we faced in December. Our operational performance this year has been among the best in the industry, and we’re committed to completing our action items while also running a Safe, reliable operation supported by our Legendary Customer Service that has made us famous throughout our 52-year history,” said Andrew Watterson, Southwest’s Chief Operating Officer. “I’m confident in our path forward and truly believe our best days are ahead.”
On the financial side, the company expects to report a loss for the first quarter but for the year it expects a robust profit.
Top Copyright Photo: Southwest Airlines Boeing 737-8 MAX 8 N1781B (N8814K) (msn 42664) BFI (Brian Worthington). Image: 960261.
Southwest Airlines aircraft photo gallery:
Southwest Airlines is preparing for October travel by extending its flight schedule through November 4, 2023.
Kansas City Travelers Have More International Options
On the heels of Kansas City, Mo., opening its new state-of-the-art terminal last week, Southwest® is boosting its international offering with the addition of two nonstop routes.
Effective Oct. 7, 2023, Southwest will offer seasonal service on Saturdays between:
Kansas City, Mo. and Montego Bay, Jamaica*
Kansas City, Mo. and Cabo San Lucas/Los Cabos*
*Subject to government approval
Both new routes complement the carrier’s existing service between Kansas City and Cancun which seasonally adjusts to daily service beginning Oct. 5, 2023.
Long Beach Sees Southwest Growing to the Northwest
Southwest continues bringing more service to its Long Beach, Calif., Customers. Today, the airline added two new destinations for Southern California travelers linking them to the Pacific Northwest.
Effective Oct. 7, 2023 Southwest will offer the nonstop service on Saturdays and Sundays between:
Long Beach, Calif. and Boise, Idaho
Long Beach, Calif. and Portland, Ore.
The airline is also celebrating today’s start of daily nonstop service between Long Beach and Kansas City, and will soon inaugurate service between previously announced routes including:
Beginning Date | Travel between Long Beach and | Frequency |
July 11, 2023 | Colorado Springs, Colo.El Paso, Texas | Daily Daily |
July 15, 2023 | Orlando, Fla. | Saturdays |
Sept. 5, 2023 | Albuquerque, N.M. | Daily |
Previously announced service |
More Flights Landing in Denver
Southwest is bringing more flights to Denver. Already its busiest airport operation, the carrier will grow even more with seven additional flights in October, offering up to 310 departures a day beginning on Oct. 5, 2023. As Southwest looks ahead to the fall, it’s also preparing to begin nonstop service on Saturdays between Denver and San Jose, Costa Rica, which launches this weekend.
Top Copyright Photo: Retro salute: Southwest Airlines Boeing 737-8 MAX 8 N872CB (msn 67780) (Colleen Barrett) LAX (Michael B. Ing). Image: 960135.
Southwest aircraft photo gallery:
Flair Airlines has announced the release of its winter 2023 schedule. The schedule features added depth across the network to give customers more choice, particularly to sunshine, at low fares.
This announcement includes several new routes, including Toronto to Puerto Vallarta (beginning October 29, 4x weekly), Kitchener-Waterloo to Puerto Vallarta (beginning December 16, 3x weekly), Calgary to Las Vegas (beginning October 30, 7x weekly), and Calgary to Phoenix (beginning October 30, 4x weekly). Flair will also be the only carrier to serve Ottawa to Las Vegas (beginning October 13, 2x weekly).
Existing service from Vancouver and Edmonton to Phoenix will move to Phoenix Sky Harbor International Airport for the season, along with the new service from Calgary to Phoenix.
Top Copyright Photo: Flair Airlines Boeing 737-8 MAX 8 C-FLER (msn 62874) BFI (Brian Worthington). Image: 959384.
Flair Airlines aircraft photo gallery:
WestJet has announced significant increases to its summer schedule bringing more seats and additional flight frequencies to popular routes across its network. With nearly 600 daily departures during peak travel days, WestJet’s summer schedule enhancements will bring more opportunities for Canadians to travel seamlessly across the airline’s domestic, transborder and international network this summer.
Highlights of WestJet’s summer schedule increases over 2022:
Enhanced flight frequencies across popular domestic and transborder routes:
Route | 2023 peak summer frequency | 2022 peak summer frequency |
Edmonton – Las Vegas | 11x weekly | 4x weekly |
Edmonton – Los Angeles | 7x weekly | 4x weekly |
Calgary – Denver | 4x weekly | 2x weekly |
Calgary – Houston | 13x weekly | 7x weekly |
Calgary – New York (JFK) | 7x weekly | 4x weekly |
Vancouver – Saskatoon | 7x weekly | 4x weekly |
Vancouver – Ottawa | 11x weekly | 5x weekly |
Calgary – Yellowknife | 14x weekly | 7x weekly |
Calgary – Windsor | 7x weekly | 3x weekly |
Calgary – London, Ont. | 14x weekly | 7x weekly |
Calgary – Montreal | 20x weekly | 13x weekly |
Edmonton – Kelowna | 35x weekly | 27x weekly |
Edmonton – Winnipeg | 20x weekly | 6x weekly |
Edmonton – Yellowknife | 7x weekly | 3x weekly |
Edmonton – Saskatoon | 14x weekly | 6x weekly |
Edmonton – Regina | 14x weekly | 6x weekly |
Edmonton – Victoria | 20x weekly | 13x weekly |
Edmonton – Halifax | 13x weekly | 7x weekly |
Winnipeg – Thunder Bay | 13x weekly | 7x weekly |
Winnipeg – Saskatoon | 12x weekly | 7x weekly |
Top Copyright Photo: WestJet Airlines Boeing 737-8 MAX 8 C-FQGG (msn 65426) PAE (Nick Dean). Image: 960212.
WestJet aircraft photo gallery:
Luxair and Boeing today announced that the Luxembourgian airline has chosen the fuel-efficient 737-8 MAX 8 to expand its single-aisle fleet with an agreement to acquire four jets.
Luxair will initially lease two 737-8s that are due for delivery for the summer, ensuring the airline provides its customers with increased capacity and connectivity to more destinations for the busy summer travel season. It has additionally placed a direct order for two 737-8s.
The 737-8, seating 162 to 210 passengers depending on configuration and with a range of 3,500 nautical miles, is the market’s most versatile single-aisle airplane, capable of operating profitably on short- and medium-haul routes.
Luxair operates a fleet of 19 airplanes, including eight Next-Generation 737s.
Arajet Airlines is expanding again. The fast-growing airline has applied to the U.S. Department of Transport to fly to Miami, New York and San Juan from Santo Domingo.
Once approved, the Dominican Republic carrier expects to fly the routes starting in the fall.
Top Copyright Photo: AraJet Airlines Boeing 737-8 MAX 8 HI1027 (msn 60194) SJO (Jay Selman). Image: 404266.
Arajet aircraft slide show:
Iraqi Airways took delivery of it first Boeing 737-8 MAX on February 24, 2023 when the pictured YI-ASL was handed over by Boeing at Boeing Field in Seattle.
Top Copyright Photo: Iraqi Airways Boeing 737-8 MAX 8 YI-ASL (msn 65405) BFI (Nick Dean). Image: 960144.
Iraqi Airways aircraft photo gallery:
Bonza made this announcement:
Sheila has touched down in North Queensland for the first time.
We received a very warm Townsville welcome this morning as the first customer flight from the Sunshine Coast landed. Today marks our first route to launch and on Friday, we’ll fly between Townsville and Rockhampton for the very first time.
Later this week when our Melbourne base goes on sale, the people of Townsville can also book flights directly to Toowoomba Wellcamp.
Top Copyright Photo: Bonza Boeing 737-8 MAX 8 VH-UIK (msn 43975) BFI (Brian Worthington). Image: 959306.
Bonza aircraft photo gallery:
WestJet has unveiled 20 new routes and three new destinations to the airline’s summer schedule. Offering a comprehensive network of connectivity between Western Canada and the United States, WestJet’s summer network additions feature new nonstop service to Washington Dulles, Detroit and Minneapolis/St. Paul, with new routes added to Atlanta, Austin, Chicago, Nashville and Seattle/Tacoma.
WestJet will increase its service up to nearly 30 percent in Calgary, 50 percent in Edmonton and 10 percent in Vancouver when compared to 2022.
Expanded U.S. network with more routes and increased access to Delta hubs
This summer WestJet will introduce Minneapolis/St. Paul, Detroit and Washington D.C. (Dulles), to its network, in addition to investing in new routes and restoring service to an expansive list of U.S. destinations.
Through its longstanding partnership with Delta Air Lines, guests connecting through Minneapolis/St. Paul and Detroit will gain access to two more of the U.S. airline’s major hubs. Building on WestJet’s current service to Delta hubs, including Atlanta, Los Angeles, New York, and Seattle/Tacoma, WestJet guests will now have access to over 150 U.S. destinations on a single purchased ticket with check-in for all flights at the first departure, baggage tagged to their final destination and lounge access for select guests. Additionally, frequent flyers of both airlines will continue to enjoy extensive reciprocal benefits any time they fly with either carrier, including earning and redeeming in their preferred program.
Highlights of WestJet’s summer 2023 transborder and international service
Destination | Start Date | Peak Season Frequency | Departure Time | Arrival Time |
Calgary – Austin* | May 18 | 2x weekly | 09:40 | 14:30 |
Calgary – Chicago* | May 18 | 4x weekly | 12:15 | 16:40 |
Calgary – Detroit1 | May 26 | 5x weekly | 12:35 | 18:05 |
Calgary – Washington D.C. (Dulles) | June 2 | 3x weekly | 09:45 | 16:02 |
Edmonton – Minneapolis1 | June 2 | 5x weekly | 08:15 | 11:46 |
Edmonton – Seattle1 | May 19 | 5x weekly | 10:30 | 11:30 |
Vancouver – Atlanta1 | May 17 | 4x weekly | 22:25 | 06:05 |
Vancouver – Nashville | May 19 | 2x weekly | 10:00 | 16:19 |
Vancouver – Orlando* | May 6 | 1x weekly | 11:00 | 19:52 |
Winnipeg – Los Angeles3 | Apr 30 | 3x weekly | 07:00 | 08:38 |
Toronto – Bermuda3 | May 5 | 2x weekly | 07:00 | 10:42 |
*Resumption of service/ 1 Delta hub/ 3 Continuation of winter service |
Enhancing nonstop west to east connectivity
As part of WestJet’s new strategic direction, the airline is taking strides to further provide guests with extensive opportunities to seamlessly and affordably travel across Canada. Substantially strengthening Canadian connectivity, WestJet is adding five new routes between Eastern and Western Canada, further positioning its network to support travel demands across the country.
Destination | Start Date | Peak Season Frequency | Departure Time | Arrival Time |
Calgary – Moncton | June 14 | 3x weekly | 09:15 | 16:49 |
Calgary – Thunder Bay* | June 29 | 3x weekly | 14:00/15:45 | 18:36/20:21 |
Calgary – Quebec City* | May 19 | 4x weekly | 17:55 | 23:55 |
Edmonton – Charlottetown | June 14 | 1x weekly | 10:25 | 17:58 |
Edmonton – London | May 19 | 2x weekly | 10:25 | 15:52 |
Edmonton – Moncton | June 29 | 2x weekly | 10:25 | 17:57 |
Edmonton – Ottawa* | Apr 30 | 6x weekly | 09:00 | 14:43 |
Edmonton – Montreal* | June 30 | 2x weekly | 01:00 | 07:03 |
*Resumption of service |
Bringing Western Canadian communities closer through a strengthened regional network
As Western Canada’s undisputed home-team carrier, WestJet is enhancing its aviation gateway for business and leisure travel opportunities by further strengthening regional connectivity with the resumption of non-stop flights and increased frequencies.
Destination | Start Date | Peak Season Frequency | Departure Time | Arrival Time |
Calgary – Terrace* | May 1 | 4x weekly | 09:40/14:10 | 10:58/15:28 |
Edmonton – Nanaimo* | April 30 | 2x weekly | 10:30 | 11:29 |
Edmonton – Penticton* | July 1 | 2x weekly | 11:00 | 11:27 |
Kelowna – Regina* | May 21 | 2x weekly | 17:30 | 20:34 |
Kelowna – Saskatoon* | June 2 | 2x weekly | 17:35 | 20:29 |
Kelowna – Winnipeg* | June 2 | 3x weekly | 19:15 | 23:33 |
Vancouver – Regina* | Jun 30 | 2x weekly | 20:45 | 23:47 |
Winnipeg – Victoria* | April 30 | 2x weekly | 17:30 | 18:28 |
*Resumption of service |
Top Copyright Photo: WestJet Airlines Boeing 737-8 MAX 8 C-FXWJ (msn 60546) FLL (Tony Storck). Image: 960054.
WestJet aircraft photo gallery:
Flair Airlines has announced new service between Kamloops and Edmonton.
Flights will begin on June 15, 2023, with thrice-weekly flights on Tuesday, Thursday and Saturday. The new route reconnects the two cities, which have not had direct flights in six years, since early 2016.
Top Copyright Photo: Flair Airlines Boeing 737-8 MAX 8 C-FLKI (msn 64944) LAX (Michael B. Ing). Image: 960039.
Flair Airlines aircraft photo gallery:
Comair Limited has filed a lawsuit in federal court against The Boeing Company for fraud and breach of contract concerning the purchase of eight 737 MAX aircraft.
Comair is seeking damages in excess of $83 million, which it suffered as a result of Boeing’s wrongful conduct.
The lawsuit details Boeing’s wrongful conduct and alleges:
Comair Limited is based in South Africa. Comair Limited was an airline that operated scheduled services on domestic routes as a British Airways licensee. It also operated as a low-cost carrier under its own kulula.com brand.
Top Copyright Photo: British Airways-Comair (South Africa) Boeing 737-8 MAX 8 ZS-ZCA (msn 60432) JNB (Jonathan Druion). Image: 946067.
British Airways-Comair aircraft photo gallery:
American Airlines has elected to suspend the Miami – Bermuda route during the summer months.
The airline intends to restore the route in November.
Top Copyright Photo: American Airlines Boeing 737-8 MAX 8 N327SK (msn 44478) BFI (Brian Worthington). Image: 959080.
American Airlines aircraft photo gallery (Boeing):
Bonza Aviation commenced operations today, on January 31, 2023, after receiving approval from the Civil Aviation Safety Authority on January 12, 2023.
The first route connected the Sunshine Coast to the Whitsunday Coast.
Bonza plans to predominantly serve under-utilized domestic and regional routes within Australia.
Today’s route is the first of 27 to be gradually rolled out to a total of 17 destinations.
The new airline issued this statement:
January 31, 2023
The historic flight is said to be a game changer for both tourism markets as well as friends and family who can ditch the 12 hour drive in place of a direct flight.
“Our team of legends couldn’t be more excited to begin connecting Aussies for holidays and time with loved ones. What better place to start than arguably two of the country’s favourite holiday destinations. Whether you are snorkelling the Whitsunday Islands or grabbing a cold one in the craft beer capital of Australia – the Sunshine Coast – we are humbled to take you there,” said Tim Jordan, CEO of Bonza.
“Today’s milestone flight comes at a time where demand is high for Aussies to explore their own backyard,” added Jordan.
He says he is thrilled to deliver on Bonza’s promise of stimulating new tourism markets by serving underserved regional communities. Jordan also revealed that since going on sale days earlier, Aussies had embraced the opportunity to book a seat on the app with over 10,000 seats sold.
“What our first customers will experience onboard is a fresh approach to flying where we keep the bar high on quality, and our costs low,” he said.
The onboard experience includes an all Aussie menu with items ordered on demand from the Fly Bonza app and delivered directly to customers’ seats. Local menu partners were also invited on today’s flight with food and drink suppliers across the country to join future Bonza inaugurals closest to home.
Sunshine Coast Airport Chief Executive Officer, Andrew Brodie said, “As the home base for Bonza this is a momentous day for the Sunshine Coast as Australia’s newest low cost airline takes to the skies on their inaugural flight heading to the Whitsundays, making this and other incredible destinations so much more accessible for everyday Australians.
“Bonza’s commencement of services signals a new era for our airport and wider region and over the next 12 months we will see an additional 772,000 seats into the region, which will generate more than $86 million in visitor expenditure.”
“Our partnership with Bonza is just the beginning as we look forward to a bright future and bringing even more destinations to our airport that will grow employment and tourism and unlock new market opportunities for business to explore”.
Video:
Top Copyright Photo: Bonza Boeing 737-8 MAX 8 VH-UJK (msn 43974) BFI (Nick Dean). Image: 959428.
Swoop operated the last of its seasonal restarts with Saturday’s nonstop flight from Hamilton to Montego Bay. This winter Swoop offers more than 100 sun flight options per week so Canadians can escape the cold and enjoy beach vacations at affordable prices.
Swoop has expanded its winter schedule to include over 100 sun flights per week to destinations across the U.S., Mexicoand the Caribbean. As of today, Swoop offers eight sun-flying routes from Hamilton with 24 flights per week, providing travellers flexibility and convenience at an ultra-low price.
Route | Peak Weekly Frequency | One-way total price (CAD) | Base Fare (CAD) | Taxes & Fees (CAD) |
Hamilton to Fort Lauderdale | 2x weekly | $99.00 | $6.92 | $89.13 |
Hamilton to Montego Bay | 2x weekly | $159.00 | $47.33 | $111.67 |
Hamilton to Cancun | 2x weekly | $139.00 | $38.36 | $97.70 |
Hamilton to Las Vegas | 4x weekly | $129.00 | $35.49 | $90.56 |
Hamilton to Orlando | 7x weekly | $99.00 | $6.92 | $89.13 |
Hamilton to Puerto Vallarta | 2x weekly | $159.00 | $58.35 | $97.70 |
Hamilton to St. Pete-Clearwater | 3x weekly | $109.00 | $16.44 | $89.61 |
Hamilton to Punta Cana | 2x weekly | $199.00 | $90.68 | $108.32 |
†Seasonal start and end dates apply and are indicated in the booking flow. | Fares are valid until January 31, 2023 or while seats last. | Prices displayed are subject to change and are not guaranteed until payment is made and accepted. |
Route Map:
Top Copyright Photo: Swoop (WestJet) Boeing 737-8 MAX 8 C-GYLP (msn 42844) YYZ (TMK Photography). Image: 959276.
Swoop aircraft photo gallery:
Flyr issued this financial statement:
Flyr informed Oslo Børs on Monday morning that the company has not been successful with its new financing plan. The company is thus in a serious financial situation, and the board will assess whether there are alternatives for continued operation.
Monday’s flights to Malaga, Alicante and Las Palmas are operating as normal. The company has no scheduled flights on Tuesday and information about future flights will be shared as soon as possible on www.flyr.com .
Reference is made to the stock exchange announcement by Flyr AS on November 10,2022 regarding (i) the successfully placed private placement of 25,000,000,000 new shares with a subscription price of NOK 0.01 to raise gross proceeds of NOK 250 million (the “Private Placement”), (ii) the subsequent offering of up to NOK 100 million with a subscription price of NOK 0.01, and (iii) the allocation of independent subscription rights with a subscription price of NOK 0.01 to participants in the Private Placement and the subsequent offering to raise up to NOK 350 million (together, the “November Financing Plan”).
In connection with the Private Placement the Company communicated that it was dependent on raising further capital from the November Financing Plan by the end of Q1 2023 to pay the Emission Trading System quotas (EU ETS) in April 2023 and to ramp-up for the coming spring and summer based on the Company’s business plan and market assumptions.
Following completion of the Private Placement the share price of the Company has traded considerably below the subscription price of the November Financing Plan, which meant that succeeding with the November Financing Plan became increasingly unlikely. As such, the Company had to consider alternatives to secure its financial needs.
The Company’s management and board of directors have worked intensively to achieve a viable long-term solution for the Company’s operations, which would strengthen the business plan of the Company and increase the chances to raise the necessary liquidity to sustain operations. In cooperation with its financial advisors, the Company has explored a number of different alternatives, including increased wet lease operations and other strategic alternatives.
Due to the global shortfall in available aircraft, the Company experienced stronger than expected demand for wet lease and charter operations. In mid-December 2022 the Company initiated discussions with a European airline regarding a wet lease arrangement for the production of 6 aircraft for the summer season 2023, with commencement at the end of March 2023. A wet lease agreement for 6 aircrafts with a reputable partner would considerably de-risk the business case and improve the chances of succeeding with a new financing plan.
The commercial terms of a wet lease agreement for 6 aircraft with a European airline was agreed in principle on 23rd December 2022, but due to the uncertainty of the November Financing Plan, signing of the agreement was made conditional on the Company securing further financing.
The evaluation done by the Company and its financial advisors was that this wet lease agreement, which would have secured the income and a profitable operation for 50% of the Company’s fleet for the entire period from the end of March to the end of October 2023, would significantly increase the probability of successfully implementing a new financing plan to replace the November Financing Plan that at this point appeared unlikely to succeed.
In order to be ready to perform its obligations under the wet lease agreement commencing in March 2023, the Company had to reverse some of the liquidity preserving measures it had planned and implemented, as the wet lease agreement was considered instrumental in securing the new financing plan that would address both the short term and long-term funding requirements of the Company.
After discussions with the Company’s financial advisors Arctic Securities AS, Carnegie AS and SpareBank 1 Markets AS (the “Managers”) the Company authorised the Managers to seek to establish an underwriting consortium for a rights issue to raise up to NOK 330 million, to fulfil the conditions for signing of the wet lease agreement and replenish the company’s cash position.
In spite of the de-risking of the investment case, and the support from several key shareholders, the Managers have not yet been able to raise the sufficient market underwriting, even though a rights issue would be expected to take place at a discount to the theoretical ex-rights share price following the capital raise. Market conditions and continued uncertainty with regards to airline travel and earnings through 2023 have deterred investors from committing capital for the required period of time, in spite of the Company’s wet lease opportunities and improving tickets sale. Underwriting, or the support for a private placement, has been sought on a confidential basis, since a non-underwritten share issue would have been insufficiently robust given the Company’s short term financial commitments. Due to the unsuccessful process to underwrite a rights issue or carry out a private placement, the Company is now in a critical short term liquidity situation.
The Company and the Board will continue its efforts to explore solutions for the Company, including exploring whether there are feasible alternatives to secure continued operations, and will revert with further information as and when appropriate. There is, however, no guarantee that a solution that would create a meaningful shareholder value for the current shareholders will be found.
Route Map:
Top Copyright Photo: Flyr Boeing 737-8 MAX 8 LN-FGH (msn 43354) OSL (Tony Storck). Image: 959534.
Flyr aircraft photo gallery:
Lynx Air (Lynx) launched its inaugural flight to the United States on January 27, departing from Toronto Pearson International Airport (YYZ) and arriving at the new Terminal C at Orlando International Airport (MCO).
The airline will operate four nonstop flights per week between Toronto and Orlando, flying brand-new Boeing 737-8 MAX aircraft.
Lynx’s US network will continue to expand over the next few weeks, with the planned launch of services out of Calgaryto Phoenix, Los Angeles, and Las Vegas. In total, Lynx will be operating over 5,000 seats to and from the US, giving Canadians an affordable option to visit some of the most popular sun destinations south of the border.
Lynx’s US schedule:
Flight No. | Effective Date | Frequency | DepartureStation | ArrivalStation |
Y9 605 | 27-JAN-23 | MON-WED-FRI-SUN | YYZ | MCO |
Y9 705 | 27-JAN-23 | MON-WED-FRI-SUN | MCO | YYZ |
Y9 617 | 07-FEB-23 | TUE-THU-SAT | YYC | PHX |
Y9 712 | 07-FEB-23 | TUE-THU-SAT | PHX | YYC |
Y9 615 | 16-FEB-23 | TUE-THU-SAT | YYC | LAX |
Y9 702 | 16-FEB-23 | TUE-THU-SAT | LAX | YYC |
Y9 601 | 24-FEB-23 | MON-WED-FRI-SUN | YYC | LAS |
Y9 702 | 24-FEB-23 | MON-WED-FRI-SUN | LAS | YYC |
Top Copyright Photo: Lynx Air (Canada) Boeing 737-8 MAX 8 C-GJSL (msn 43312) YVR (Brian Worthington). Image: 959990.
Lynx Air aircraft photo gallery:
Southwest Airlines Company today reported its fourth quarter and full year 2022 financial results:
Bob Jordan, President and Chief Executive Officer, stated, “Due to the operational disruptions in late December, which resulted in more than 16,700 flight cancellations, we incurred a fourth quarter pre-tax negative impact of approximately $800 million (or approximately $620 million on an after-tax basis), which resulted in a fourth quarter 2022 net loss. Despite the negative financial impacts in first quarter 2022 due to the Omicron variant and in fourth quarter 2022 due to the operational disruptions, we generated full year 2022 net income, excluding special items, of $723 million.
“With regard to the operational disruptions, I am deeply sorry for the impact to our Employees and Customers. We have swiftly taken steps to bolster our operational resilience and are undergoing a detailed review of the December events. In addition, our Board of Directors has established an Operations Review Committee that is working with the Company’s Management to help oversee the Company’s response. As part of our efforts, we are also conducting a third-party review of the December events and are reexamining the priority of technology and other investments planned in 2023.
“Based on current revenue and cost trends, we currently expect a first quarter 2023 net loss. However, we are encouraged by current booking trends in March 2023. Our 2023 plan continues to support solid profits with year-over-year margin expansion for full year 2023. We remain intent on achieving the long-term financial goals outlined at our December 2022 Investor Day. We also intend to regain our 51-year reputation for operational excellence. As ever, I am grateful for our Employees and their resilience and steadfast focus on Safety, Customer Service, and Teamwork. They remain the heart and soul of Southwest Airlines.”
Capacity, Fleet, and Capital Spending:
The Company’s full year 2022 capacity decreased 5.6 percent, compared with full year 2019, which was roughly one point lower than previous guidance of down 4.5 percent, due to flight cancellations from the December 2022 operational disruptions. Prior to the operational disruptions, the Company expected its 2023 capacity to increase approximately 15 percent, year-over-year. The Company’s 2023 capacity growth plans currently remain unchanged. However, as a result of lower capacity in 2022, the Company’s 2023 capacity is expected to increase in the range of 16 percent to 17 percent, year-over-year. As previously indicated, nearly all planned 2023 capacity additions will go to restoring the network and adding breadth and depth in existing Southwest markets.
The Company received 33 Boeing 737-8 aircraft during fourth quarter 2022, including two additional -8 aircraft deliveries than previously planned, for a total of 68 -8 aircraft deliveries in 2022, compared with previous guidance of 66. The Company ended 2022 with 770 aircraft, which reflects 26 -700 aircraft retirements, including five retirements in fourth quarter. Due to Boeing’s supply chain challenges and the current status of the -7 certification, the Company did not receive all 114 contractually scheduled 737 deliveries in 2022. The Company expects the remaining 46 contractual undelivered aircraft to shift into future years. Based on continued discussions with Boeing regarding the pace of expected deliveries, the Company continues to estimate it will receive approximately 100 737 aircraft deliveries in 2023, which differs from its contractual order book displayed in the table below. During first quarter 2023, the Company expects to receive approximately 30 -8 aircraft deliveries. The Company continues to expect to retire 27 -700 aircraft in 2023, including five -700 retirements in first quarter. As a result of the two additional -8 deliveries in fourth quarter 2022, the Company now expects to end 2023 with 843 aircraft, compared with its previous guidance of 841 aircraft.
The Company’s full year 2022 capital expenditures were $3.9 billion, relatively in line with the Company’s guidance of $4.0 billion. The Company continues to estimate its 2023 capital spending to be in the range of $4.0 billion to $4.5 billion, which assumes approximately 100 737 aircraft deliveries in 2023. The Company’s 2023 capital spending guidance continues to include approximately $1.2 billion in non-aircraft capital spending. Including both capital spending and operating expense budgets, the Company currently expects to spend approximately $1.3 billion in 2023 on technology investments, upgrades, and system maintenance.
Since the Company’s previous Investor Day disclosure on December 7, 2022, the Company converted four 2023 -7 firm orders to -8 firm orders in fourth quarter 2022. Additionally, in January 2023, the Company exercised 10 -7 options for delivery in 2024. The following tables provide further information regarding the Company’s contractual order book and compare its contractual order book as of January 26, 2023, with its previous order book as of December 7, 2022. For purposes of the delivery schedule below, the Company has included the remaining 46 of its 2022 contractual undelivered aircraft (14 -7s and 32 -8s) within its 2023 contractual commitments. Given current supply chain and aircraft delivery delays, the Company will continue working with Boeing to solidify future delivery dates.
Current 737 Contractual Order Book as of January 26, 2023: | |||||||||
The Boeing Company | |||||||||
-7 Firm Orders | -8 Firm Orders | -7 or -8 Options | Total | ||||||
2023 | 31 | 105 | — | 136 | (c) | ||||
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 | (a) | 235 | (b) | 137 | 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) The Company has included the remaining 46 of its 2022 contractual undelivered aircraft (14 -7s and 32 -8s) within its 2023 contractual commitments. Due to Boeing’s supply chain challenges and the current status of the -7 certification, the Company currently estimates approximately 100 737 aircraft deliveries in 2023. The 2023 contractual 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 Contractual Total | 31 | 105 | 136 |
Previous 737 Contractual Order Book as of December 7, 2022 (a): | ||||||||||
The Boeing Company | ||||||||||
-7 Firm Orders | -8 Firm Orders | -7 or -8 Options | Total | |||||||
2022 | 14 | 100 | — | 114 | ||||||
2023 | 21 | 69 | — | 90 | ||||||
2024 | 41 | — | 45 | 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 | — | — | — | — | ||||||
186 | 299 | 147 | 632 |
(a) The ‘Previous 737 Contractual Order Book’ is for reference and comparative purposes only. It should no longer be relied upon. See ‘Current 737 Contractual Order Book’ for the Company’s current aircraft order book. |
Top Copyright Photo: Southwest Airlines Boeing 737-8 MAX 8 N1809U (msn 60188) PAE (Nick Dean). Image: 958199.
Southwest Airlines aircraft photo gallery: