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:
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:
