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:
Swoop Route Map
Top Copyright Photo: Swoop (WestJet) Boeing 737-8 MAX 8 C-GYLP (msn 42844) YYZ (TMK Photography). Image: 959276.
Ryanair Holdings plc today (January 30, 2023) reported a Q3 PAT of €211m, compared to a pre-Covid (FY20) Q3 PAT of €88m. Strong pent-up travel demand over the Oct. mid-term and peak Christmas/New Year holiday season (with no adverse impact from Covid or the war in Ukraine) stimulated strong traffic and fares across all markets.
31 Dec. 2021
31 Dec. 2022
Change
Customers
31.1m
38.4m
+24%
Load Factor
84%
93%
+9pts
Revenue
€1.47bn
€2.31bn
+57%
Op. Costs
€1.59bn
€2.15bn*
+36%
Net (Loss)/ PAT
(€96m)
€211m*
n/m
EPS
(€0.08)
€0.18
n/m
* Non-IFRS financial measure, excl. €9m except. unrealised mark-to-market loss (timing unwind) on jet fuel caps.
During Q3:
Traffic jumped 24% to 38.4m (+7% pre-Covid in FY20).
Q3 fares rise 14% on pre-Covid levels.
Pay cuts restored by agreement in Dec. (28-months early) for over 95% of crews.
YTD unit costs (ex-fuel) of just €30.
84 B737-8200 “Gamechangers” delivered at 31 Dec. Total fleet of 523 aircraft.
230 new routes announced for FY24 (total 2,450 routes).
Strong market share gains in Italy, Poland, Ireland & Spain.
H1 FY24 fuel hedging increased to 60% cover at $90bbl.
Ryanair’s Michael O’Leary, said:
ENVIRONMENT:
“Our investment in new fuel efficient, greener, B737 aircraft continued in Q3 with our Gamechanger fleet (4% more seats with 16% less fuel) increasing by 11 to 84 aircraft. In Q3 we began to retro-fit scimitar winglets on our 409 B737-800NG owned fleet (a $200m+ investment) which will further reduce fuel burn by 1.5%.
Sustainable aviation fuel (SAF) will play a key role in reducing our CO₂ per pax/km by 10% to 60 grams by 2030, when hopefully 12.5% of our flights will be powered with SAF. We continue to invest to accelerate supply of SAF. Building on our successful partnerships with Neste (Schiphol) and OMV (Austria, Germany and CEE), Ryanair signed an MOU in Q3 with Shell to supply 360,000 tonnes of SAF between 2025 – 2030 (saving 900,000 tonnes of CO₂), at Ryanair’s larger bases in London and Dublin. In Dec. we hosted a Sustainability Day with our partner Trinity College Dublin (“TCD”). This event brought together industry leaders, scientists and engineers (incl. Boeing, MAG, Safran, Shell Aviation, Ryanair, TCD academics and PhD students) who presented to an audience of investors, politicians, regulators and financial institutions on Ryanair’s (and the aviation industry) path to net carbon zero by 2050. Through A4E, and the EU, we are campaigning to accelerate reform of European ATC to eliminate needless flight delays, which will substantially reduce fuel consumption and CO₂ emissions.
Passengers who switch to Ryanair (from high-fare EU legacy airlines) can reduce their emissions by up to 50% per flight. In recognition of our progress to date and our industry leading (CDP ‘B’) climate rating, MSCI increased Ryanair’s ESG score to ‘BBB’ (was ‘B’) and Sustainalytics[1] ranked Ryanair the No.1 airline in Europe for ESG performance. Earlier this year, we submitted Ryanair’s commitment letter to SBTi[2] and we will work with them over the next 2 years to verify our ambitious targets to become net carbon zero by 2050.
SOCIAL:
Pay restoration:
At the outset of the Covid-19 pandemic, Ryanair and its union partners negotiated agreements to protect crew jobs via temporary pay cuts which were to be gradually restored from 2022 to 2025. These agreements successfully ensured crew jobs security through the 2 years Covid pandemic, as Ryanair maintained not only the jobs but also the licences of our crews. This investment positioned Ryanair as the most prepared airline for the post-Covid traffic recovery. By keeping our crews current, and recruiting early, Ryanair avoided the crew shortages which caused so many competitor cancellations and disruptions in S.22. In Nov., following a strong H1 performance, Ryanair agreed to fully restore pay (28 months early) for over 95% of crews covered by new long-term pay agreements in the Dec. payroll. We remain available to conclude agreements (on similar terms) with the tiny minority of unions representing less than 5% of our crews who have so far failed to reach agreement on accelerated pay restoration.
Training:
As Ryanair grows traffic to 225m p.a. by FY26 our Group airlines will create thousands of high paid jobs for aviation professionals. S.23 resourcing is well advanced with over 1,000 cadets enrolled in our pilot training schools and new cabin crew courses underway. Ryanair Labs recently launched a campaign to recruit 150 IT professionals to our labs teams in Dublin, Madrid, Porto and Wroclaw. During FY23 we announced new engineering maintenance facilities in Malta, Kaunas (Lith.) and Shannon (Ire.) and expect to add further capacity in the coming months. These new facilities will enable us to create more cadets and apprenticeships for young school leavers, bringing through the next generation of highly skilled aviation professionals.
CSAT:
Building on strong operational resilience and reliability during S.22 (despite numerous ATC delays/strikes and lengthy airport security queues – particularly in Q1), Ryanair continued to deliver industry leading service for our customers over the busy Oct. school mid-term and peak Christmas/New Year travel period. This was reflected in Q3’s CSAT score which rose to 86% (83% for H1), with crew friendliness our top score (rated at 95%).
GROWTH:
Ryanair secured strong market share gains in key EU markets as we operated 112% of our pre-Covid capacity during the first 9 months of FY23. Most notable gains were in Italy (from 26% to 40%), Poland (27% to 38%), Ireland (49% to 58%) and Spain (21% to 23%). Our Routes team continue to negotiate traffic recovery growth deals with airport partners as competitors struggle to recover capacity (down as much as 20% this winter) and grapple with rising costs. Up to the end of Q3, Ryanair has taken delivery of 84 B737 Gamechangers and we’re planning FY24 growth based on 124 new aircraft for peak S.23, although there is a risk (despite recent Boeing production improvements) that some of our Gamechanger deliveries could slip. Over 230 new routes (total 2,450 with 3,200 daily flights) have been announced for FY24. With Asian tourists now returning and a strong US$ encouraging Americans to explore Europe, we’re seeing robust demand for Easter and summer 2023 flights. We therefore encourage customers to book early on www.ryanair.com to secure the lowest fares as we expect these will sell out early.
Over the past 3 years, numerous airlines went bankrupt and many legacy carriers (incl. Alitalia, TAP, SAS and LOT) significantly cut their fleets and passenger capacity, while racking up multi-billion-euro State Aid packages. These structural capacity reductions have created enormous growth opportunities for Ryanair. These opportunities, combined with our reliability, lowest (ex-fuel) unit costs, strong fuel and US$ hedges, fleet ownership and strong balance sheet, ensures that the Group is well placed to grow profitability and traffic to 225m p.a. by FY26.
Q3 FY23 BUSINESS REVIEW:
Revenue & Costs:
Q3 scheduled revenue increased almost 85% to €1.45bn due to strong travel demand at higher fares (+14% over pre-Covid), especially during the Oct. mid-term and the peak Christmas/New Year holiday season. Ancillary revenue delivered another solid performance, generating over €22.50 per passenger. Total Q3 revenue rose 57% to €2.31bn. Operating costs increased 36% to €2.15bn, driven by higher fuel costs (+52% to €0.90bn, offset by improved fuel burn as more Gamechangers enter the fleet), crew pay restoration and 24% traffic growth. Ex-fuel operating costs rose by only 26%, marginally ahead of traffic and year to date unit costs (ex fuel) are just €30 per passenger. Other income/expenses benefitted from a weaker US$ in Q3 reversing H1’s negative currency charge.
Our jet fuel requirements are 88% hedged at approx. $71bbl for the remainder of FY23 and H1 FY24 cover has recently increased to 60% at $90bbl (FY24: 57% at $92bbl). Forex is also well hedged with over 80% of Q4 FY23 €/$ opex hedged at just under 1.15 and approx. 60% of FY24 at 1.08. Our Boeing order book is fully hedged at €/$ 1.24 out to FY26. This strong hedge position helps insulate Ryanair from spikes in fuel prices and gives our Group airlines a significant cost advantage over our EU competitors for the remainder of FY23 and into FY24.
Balance Sheet & Liquidity:
Ryanair’s balance sheet is one of the strongest in the industry with a BBB (positive) credit rating (S&P and Fitch) and €4.07bn gross cash at quarter end. Almost all of the Group’s fleet of B737s are owned and c.96% are unencumbered which widens our cost advantage as interest rates and leasing costs continue to rise for competitors. Net debt at 31 Dec. was €0.96bn (from €1.45bn at 31 Mar.), despite €1.27bn capex. Our focus over the coming year is the repayment of €1.60bn of maturing bonds (€850m in Mar. and €750m in Aug.) and funding peak capex while aiming to return our balance sheet to a broadly zero net debt position by April 2024.
OUTLOOK:
While bookings continue to be closer-in than in spring 2020 (pre-Covid), we have reasonable visibility for the remainder of FY23, with FY traffic guided at 168m. Ryanair expects Q4 to be loss making due to the absence of Easter from March. As announced on 4 Jan., we are guiding FY23 PAT (pre-exceptionals) in a range of €1.325bn – €1.425bn (previously €1.00bn – €1.20bn). This guidance remains heavily dependent upon avoiding adverse events in Q4 (such as Covid and/or the war in Ukraine).”
[1] Sustainalytics – a leading independent ESG & corporate governance research, ratings & analytics firm.
[2] Science Based Targets initiative – a collaboration between CDP, the United Nations Global Compact, World Resources Institute & the Worldwide Fund for Nature. It helps companies to set emission reduction targets in line with climate science & the Paris Agreement goals.
Top Copyright Photo: Ryanair Boeing 737-800 WL EI-GXL (msn 44857) BFI (Brian Worthington). Image: 959711.
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.
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).
Lynx Air CEO, Merren McArthur is joined by Greater Toronto Airports Authority VP of Stakeholder Relations and Communications, Karen Mazurkewich for an official ribbon cutting celebration at Toronto Pearson Airport.
Photo Credit Peyton Stikeleather (CNW Group/Lynx Air)
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.
Southwest Airlines Company today reported its fourth quarter and full year 2022 financial results:
Fourth quarter net loss of $220 million, or $0.37 loss per diluted share
Fourth quarter net loss, excluding special items1, of $226 million, or $0.38 loss per diluted share
Full year net income of $539 million, or $0.87 per diluted share
Full year net income, excluding special items, of $723 million, or $1.16 per diluted share
Record fourth quarter and full year operating revenues of $6.2 billion and $23.8 billion, respectively
Liquidity2 of $13.3 billion, well in excess of debt outstanding of $8.1 billion
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.
Ryanair’s CEO Michael O’Leary has said he was hopeful of receiving 40 to 45 of 51 Boeing MAX aircraft due for delivery by the summer season, up from a previous forecast of 40 according to Reuters.
Top Copyright Photo: Ryanair Boeing 737-8 MAX 8 (200) EI-HGL (msn 65081) STN (Antony J. Best). Image: 959901.
