Monthly Archives: July 2020

Emirates resumes service to Nairobi, Baghdad and Basra

Emirates has made this announcement:

Emirates has announced it will resume flights to Nairobi (from August 2, 2020), Baghdad and Basra (from August 10), expanding its growing network, and offering customers around the world more convenient connections to Dubai, and via Dubai.

This will take the airline’s passenger network to 67 destinations in August, including seven points in Africa and five points in the Middle East.

Flights between Nairobi and Dubai and Basra and Dubai will operate three times a week while flights between Baghdad and Dubai will operate four times a week. The flights will be operated with the Emirates Boeing 777-300ER and can be booked on emirates.com or via travel agents.

Dubai is open: Customers from across Emirates’ network can now to travel to Dubai as the city has re-opened for business and leisure visitors with new air travel protocols that safeguard the health and safety of visitors and communities. For more information on entry requirements for international visitors to Dubai, visit: www.emirates.com/flytoDubai

Free, global cover for COVID-19 related costs: Customers can now travel with confidence, as Emirates has committed to cover all COVID-19 related medical expenses, free of cost, should they be diagnosed with COVID-19 during their travel.

This cover is offered by Emirates free of cost to its customers regardless of class of travel or destination. It is immediately effective for customers flying on Emirates until 31 October 2020 (first flight to be completed on or before 31 October 2020), and is valid for 31 days from the moment they fly the first sector of their journey. This means Emirates customers can continue to benefit from the added assurance of this cover, even if they travel onwards to another city after arriving at their Emirates destination.

Customers do not need to register or fill in any forms before they travel, and they are not obligated to utilise this cover provided by Emirates.

Any impacted customer who has been diagnosed with COVID-19 during their travel simply has to contact a dedicated hotline to avail of assistance and cover.

The hotline number, and details of what COVID-19 related expenses are covered, is available on www.emirates.com/COVID19assistance.

Flexibility and assurance: With the gradual re-opening of borders over the summer, Emirates has revised its booking policies to offer customers more flexibility and confidence to plan their travel. Customers whose travel plans are disrupted by COVID-19 related flight or travel restrictions, can simply hold on to their ticket which will be valid for 24 months and rebook to fly at a later time; request travel vouchers to offset against future Emirates purchases, or request refunds via an online form on Emirates’ website or via their travel booking agent.

Health and safety first: Emirates has implemented a comprehensive set of measures at every step of the customer journey to ensure the safety of its customers and employees on the ground and in the air, including the distribution of complimentary hygiene kits containing masks, gloves, hand sanitiser and antibacterial wipes to all customers. For more information on these measures and the services available on each flight, visit: www.emirates.com/yoursafety

Travel restrictions: Customers are reminded that travel restrictions remain in place, and travellers will only be accepted on flights if they comply with the eligibility and entry criteria requirements of their destination countries. Visit: www.emirates.com/travelrestrictions

New PCR testing procedures for all travellers flying on Etihad Airways flights to Abu Dhabi

Etihad Airways has made this announcement:

Effective August 1, 2020, all travelers flying Etihad Airways from around the world to Abu Dhabi, and those transferring via Abu Dhabi onto other flights, will be required to show a negative COVID-19 PCR test result from a list of approved testing facilities listed on www.etihad.com/destinationguide, alongside their ICA approval if Abu Dhabi is their end destination. The PCR test must be carried out within 96 hours prior to arrival in Abu Dhabi and a negative COVID-19 PCR test result certificate from one of the approved clinics listed must be shown for approval to board. Children under the age of 12 and people with mild to severe disabilities are currently exempt from this PCR test requirement.

Travellers leaving the UAE from Abu Dhabi to any country in the European Union, the United Kingdom, or to any country where it is mandatory by the authorities at the destination, a negative COVID-19 PCR test result will be required within 96 hours prior to departure. To help facilitate this process, Etihad Airways is collaborating with Mediclinic Middle East to offer departing travellers the option of convenient PRC testing, for a fee, at their home, or at Mediclinic facilities in Abu Dhabi, Al Ain, and Dubai prior to their travel.

The gradual return to more international flying to, from, and via Abu Dhabi is being greatly supported by the Etihad Wellness sanitisation and safety programme, which ensures the highest standards of hygiene are maintained at every stage of the customer journey. This includes specially trained Wellness Ambassadors, a first in the industry, who have been introduced by the airline to provide essential travel health information and care on the ground and on every flight, so guests can fly with greater ease and peace of mind. More information on the stringent measures being taken by Etihad Airways to provide a healthy and hygienic travel experience is available at www.etihad.com/wellness.

Etihad continues to follow UAE and international government, regulatory and health authority directives, and is playing its part in helping to limit the spread of COVID-19.

Delta Air Lines teams up with RB, the maker of Lysol®, to advance Delta CareStandard and disinfection protocols

Delta Air Lines has made this announcement:

Delta is partnering with RB, the makers of Lysol®, to drive greater confidence in travel by innovating cleaner more hygienic experiences for customers and employees, alike. The partnership will pair Delta’s strength in safety and operational rigor with Lysol’s 130 years of germ-kill expertise and innovation to continue improving upon Delta CareStandard^SM protocols launched during the COVID-19 pandemic across Delta airport locations and on board our aircraft.

Keeping surfaces clean is one of the areas the Delta CareStandard focuses on, along with giving travelers more space, cleaner air and providing safety and personal care from check-in to baggage claim, and every point in between. Together, Delta’s newly established Global Cleanliness division and Lysol will strengthen current Delta CareStandard cleanliness efforts and create the gold standard across touchpoints through:

Breakthrough Disinfection Innovation: Delta and Lysol will work together to gather insights on consumers’ travel experiences to help inform the development of new, innovative disinfecting solutions for both the airport and onboard experience. We will also work together to identify and address ongoing germ-related travel concerns for customers. One of the first areas of focus will be developing breakthrough airplane lavatory solutions to help kill germs and protect customers and crew.
Disinfecting Protocols and Best Practices: Microbiologists and germ-kill experts from Lysol will coordinate with Delta Global Cleanliness team to develop protocols for disinfection that will help protect customers against illness-causing bacteria and viruses in high-traffic areas where customers are most concerned about germs including departure gates, aircraft lavatories and Delta Sky Clubs. Delta will also deploy Delta Care Carts including EPA-approved disinfection products recommended by Lysol, making it easier to disinfect large seating areas and countertops more frequently.
Lysol Products: Lysol will provide products to Delta, including Lysol Disinfectant Spray and Lysol Disinfecting Wipes, to be used with disinfecting protocols recommended by Lysol on high-touch germ hotspots across Delta areas from check-in to baggage claim.

The US Environmental Protection Agency recently approved both Lysol Disinfectant Spray and Lysol Disinfecting Wipes among the first to test effective against the novel coronavirus when used as directed on hard, non-porous surfaces.

“There’s no finish line for cleanliness – there’s always more we can do to innovate and elevate our already-high standards because that’s what our customers and employees expect and deserve,” said Bill Lentsch, Delta’s Chief Customer Experience Officer. “The experts at Lysol share our drive for innovative, continuous improvement – they’re the best at their craft. That’s why we’re excited to get started on R&D to target germ ‘hot spots’ and cement the Delta CareStandard as the industry gold standard – so customers feel confident in choosing Delta as more people return to travel.”

“Our collaboration with Delta is exciting because they have clearly demonstrated great leadership, care and commitment to cleanliness and innovation across their customer and employee touchpoints. Our shared vision to create breakthrough solutions within our industries, while bolstering current disinfection protocols will support Delta customers in feeling confident when they travel,” said Rahul Kadyan, E.V.P., North America, Hygiene, Lysol. “At Lysol, we’re committed to offering products and providing germ-kill expertise as defined by our purpose, which is to protect, heal and nurture in the relentless pursuit of a cleaner, healthier world.”

Delta also recently announced a collaboration with Mayo Clinic to provide additional COVID-19 infection prevention and control measures for travelers and employees. This includes guidance on an unprecedented employee COVID-19 testing program, ensuring that virtually all

Delta employees will be tested in just a matter of weeks via onsite and at-home testing. Mayo Clinic also recommends best practices for employee and passenger safety as part of Delta’s Global Medical Advisory Panel that reviews and assesses Delta’s health and safety policies and procedures on an ongoing basis.

Learn more about the Delta CareStandard and Delta’s health and safety protocols.

About RB and Lysol

RB* is driven by its purpose to protect, heal and nurture in a relentless pursuit of a cleaner, healthier world. We fight to make access to the highest-quality hygiene, wellness and nourishment a right, not a privilege, for everyone.

RB is proud to have a stable of trusted household brands found in households in more than 190 countries. These include Enfamil, Nutramigen, Nurofen, Strepsils, Gaviscon, Mucinex, Durex, Scholl, Clearasil, Lysol, Dettol, Veet, Harpic, Cillit Bang, Mortein, Finish, Vanish, Calgon, Woolite, Air Wick and more. 20 million RB products a day are bought by consumers globally.

RB’s passion to put consumers and people first, to seek out new opportunities, to strive for excellence in all that we do, and to build shared success with all our partners, while doing the right thing, always is what guides the work of our 40,000+ diverse and talented colleagues worldwide.

For more information, visit www.rb.com

Ryanair reports fiscal first quarter loss of €185 million as traffic falls by 99%

Ryanair Holdings plc on July 27 reported a fiscal first quarter loss of €185 million, compared to a PY Q1 net profit of €243 million. Highlights of Q1 include:

Over 99% of the fleet grounded from mid-March to end June.
Q1 traffic fell from 42m to 0.5m.
Group airlines operated repatriation, rescue & medical emergency flights.
Cash preservation prioritised – closing cash €3.9bn
Cost reduction measures being successfully implemented.
Successful return to flying implemented in late June.

Q1 (IFRS) – Group	30 Jun. 2019	30 Jun. 2020	Change
Customers	41.9m	0.5m	-99%
Load Factor	96%	61%	-35pts
Revenue	€2,312m	€125m	-95%
PAT/(Net Loss)	€243m	(€185m)	n/m

COVID-19:

The past quarter was the most challenging in Ryanair’s 35 year history. Covid-19 grounded the Group’s fleet for almost 4 months (from mid-March to end June) as EU Governments imposed flight or travel bans and widespread population lockdowns. During this time, Group airlines repatriated customers and operated rescue flights for different EU Governments, as well as flying a series of medical emergency/PPE flights across Europe. Our aircraft and crews were kept current by operating skeleton schedules and currency flights which ensured that the Group airlines were ready to efficiently resume flights when lockdown restrictions eased in most EU countries in late June/early July. On July 1, the Group resumed flights across the majority of our route network. We expect to operate approximately 40% of our normal July schedule, rising to around 60% in August and, hopefully, 70% in September. The Group has implemented extensive health measures through the travel journey, especially onboard aircraft, to comply with EU guidelines (published by the ECDC & EASA in May) to ensure that Group airlines maintain the health of our guests and crews while minimising the risk of Covid-19.

Ryanair’s Customer Service teams safely returned to the office in June and, with support from Ryanair Labs, they are working through an unprecedented volume of customer emails and other communications related to flight changes and Covid-19 cancellations, while clearing a record backlog of refunds caused by almost 4 months of EU Government imposed flight cancellations. This process has been delayed by unauthorised screen scrapers providing falsified customer details at the time of booking. It is expected that over 90% of customer cash refund requests will be cleared by the end of July.

At this time, the Group expects FY21 traffic to fall by 60% (from 149m) to just 60m. The Covid-19 crisis has already seen the closure of various EU airlines including Flybe, Germanwings, Level and Sun Express. It has sparked a multi-billion flood of illegal State Aid from EU Governments to their flag carrier airlines including Alitalia, Air France/KLM, Lufthansa, SAS, TAP and others. This illegal State Aid will distort competition and allow unsustainable flag carriers to engage in below cost selling for many years to come. Many other airlines are cutting capacity, with the result that air travel in Europe is likely to be depressed for at least the next 2 or 3 years. This will create opportunities for Ryanair (Europe’s lowest cost airline group) to grow its network, and expand its fleet, to take advantage of lower airport and aircraft cost opportunities that will inevitably arise.

Q1 BUSINESS REVIEW:

Revenue & Costs

Revenue fell by 95% (almost €2.2bn) to just €125m as traffic dropped 99% at just 0.5m. An 85% reduction in costs during Q1 was not sufficient to offset this revenue loss as bookings came to an abrupt standstill in the initial weeks of the Covid-19 crisis. During the past 3 months significant work has been undertaken to improve Ryanair’s cost leadership, which is vital if Group airlines are to compete against hugely subsidised flag carriers who will be able to engage in below cost selling for years to come. The Group have negotiated modest pay cuts with our people and their unions that will, hopefully, help to avoid widespread job losses.

Our Route Development teams are working with airports all over Europe who have suffered substantial traffic declines during the Covid-19 crisis. Discussions are ongoing with aircraft suppliers to reduce aircraft lease rates and purchase prices to reflect the new post Covid-19 reality. The management team at Lauda were forced to implement a deep and painful rescue plan, which involved cutting the Lauda fleet from 38 to 30 aircraft in S.20 and substantially reducing headcount numbers in Vienna and Germany while closing its 3 aircraft Stuttgart base. Lauda worked closely with its people in Vienna to deliver substantial cost savings, enhanced productivity and more efficient rosters as without these savings Lauda’s main Vienna base would have closed on 29 May last.

Boeing MAX update

It is over a year since the Group was due to take delivery of its first Boeing 737-MAX-200 aircraft. Boeing are indicating a late Q3 2020 return to service in the US for the Boeing 737-MAX, allowing Ryanair to, hopefully, accept delivery of its first MAX-200 before the end of 2020 and potentially up to 40 MAXs ahead of Summer 2021. We remain committed supporters of these “gamechanger” aircraft which have 4% more seats, 16% lower fuel burn and 40% lower noise emissions. These new aircraft will enable the Ryanair Group to grow to 200m passengers p.a. over the next 5 or 6 years while reducing the Group’s cost base and significantly lowering its environmental footprint.

Balance Sheet & Liquidity

Ryanair’s balance sheet is one of the strongest in the industry with over €3.9bn cash at 30 June. We own 333 unencumbered B737s (with a book value of approx. €7bn) and hold a BBB investment grade rating from both S&P and Fitch Ratings. Since mid-March, the Group has moved quickly and smartly to preserve cash, cut costs, cancel share buybacks and defer all non-essential capex. This has protected the Group’s very strong liquidity position as it returns to flying in July. Over the winter, Ryanair will (as agreed last year) complete the sale of 7 of its oldest B737s and will continue to focus on cash preservation/generation and the repayment of maturing debt over the next 24 months.

BREXIT:

The challenge of Brexit, and in particular a no-deal Brexit, remains high. We hope, before the end of the Transition Period in Dec., that the UK and Europe will agree a trade deal for air travel which will allow the free movement of people and the deregulated airline market between the UK and Ireland to continue. As an EU airline, the Ryanair Group should be less effected by a no-deal Brexit than UK registered airlines. We still, however, expect adverse trading consequences to arise. Ryanair has put the necessary measures in place to ensure that the Group remains majority EU owned, including restricting voting rights of non-EU shareholders, in the event of a “hard-Brexit”. We therefore expect the Group’s AOCs in Austria, Ireland, Malta and Poland to continue to operate freely. In addition, Ryanair’s UK AOC (Ryanair UK) will be able to benefit from any bilateral agreements negotiated between the UK and non-EU countries while facilitating the operation of domestic UK flights.

OUTLOOK:

FY21 will be a very challenging year for the Ryanair Group of airlines. It is impossible to predict how long the Covid-19 pandemic will persist, and a 2^nd wave of Covid-19 cases across Europe in late autumn (when the annual flu season commences) is our biggest fear right now. Hopefully EU Governments, by implementing effective track and tracing systems, and EU citizens by complying with recommended face masks, rigorous hand hygiene and other measures, will avoid the need for further lockdowns or restrictions on intra-EU flights. It is vital that European economies begin the process of recovery this summer to minimise the damage arising from the Covid-19 pandemic and this recovery can only be led by intra-EU air travel which is the engine of EU growth and economic activity.

Given the current uncertainty, Ryanair cannot provide any FY21 PAT guidance at this time. The Group currently expects to carry approx. 60m passengers in FY21 and expects to record a smaller loss in Q2 (which reflects a gradual return to flying from 1 July) than in Q1. However, the Ryanair Group will emerge from the Covid-19 crisis with a much lower cost base, which will be essential to fund lower fares as the Group competes against unlawfully State aided flag carriers. Further updates will be provided at Ryanair’s AGM in Sept.

Sunclass Airlines resumes operations

Sunclass Airlines (Formerly Thomas Cook Scandinavia) on July 25 resumed operations after more than four months with its fleet completely grounded. It operated five flights from different Scandinavian cities to Palma de Mallorca, Spain.

Sunclass Airlines aircraft photo gallery:

Reuters: Boeing to delay 777X as demand drops for big jets

From Reuters:

“Boeing Company is preparing to delay its all-new 777X jet by several months or up to a year, three people familiar with the matter said, as the COVID-19 crisis exacerbates a drop in demand for the industry’s largest jetliners.”

Read the full report.

Above Copyright Photo: Boeing 777-9 (777X) N779XX (msn 64241) PAE (Nick Dean). Image: 949445.

Allegiant promotes its air quality

Allegiant Air has issued this report on its aircraft air quality:

We are setting a new standard for air purity. The air quality on our planes exceeds HEPA standards thanks to our VOC (volatile organic compound) filters, which remove even smaller contaminants.

On average, cabin air is changed every three minutes through a continuous flow of fresh and VOC-filtered air. Air enters the cabins through vents near the ceiling and flows downward, exiting through vents near the floor. Air doesn’t flow toward the front or the back of the plane. This flow ensures the air is fresh and sanitary.

“Together We Fly” is more than a phrase, it’s our promise to you. That’s why we are taking important steps to protect the health and safety of you, your loved ones and our team members.

We work closely with the Centers for Disease Control and Prevention (CDC), World Health Organization (WHO) and other authorities and experts. Based on their direction, we ensure our actions not only follow current guidance, but exceed the recommended standards so you can fly with confidence.

American Airlines Group loses $2.1 billion in the second quarter

American Airlines Group Inc. reported its second-quarter 2020 financial results, including:

Second-quarter pretax loss of $2.7 billion. Excluding net special items¹, second-quarter pretax loss of $4.3 billion.
Second-quarter net loss of $2.1 billion, or ($4.82) per share. Excluding net special items¹, second-quarter net loss of $3.4 billion, or ($7.82) per share.
Boosted available liquidity by a net $3.6 billion in the quarter through offerings of common stock, convertible bonds and secured bonds.
Ended second quarter with approximately $10.2 billion of available liquidity. Additionally, signed term sheet with the U.S. Department of the Treasury for $4.75 billion secured loan, which is expected to close in the third quarter, and announced two senior secured note transactions totaling $1.2 billion. The company’s second-quarter pro forma liquidity balance including these transactions would be approximately $16.2 billion.

“This was one of the most challenging quarters in American’s history,” said American Airlines Chairman and CEO Doug Parker. “COVID-19 and the resulting shutdown of the U.S. economy have caused severe disruptions to global demand for air travel. In spite of these challenges, the American Airlines team has done a phenomenal job taking care of our customers and our fellow team members.

“We have moved swiftly to improve our liquidity, conserve cash and ensure customers are safe when they travel,” Parker continued. “There is much uncertainty ahead, but we remain confident we will emerge from this crisis more agile and more efficient than ever before.”

Supporting team members, customers and communities

Caring for team members, customers and the communities it serves remains the top priority for American as it navigates the current environment.

To ensure the safety and well-being of team members and customers, American:

Updated its policies to make face coverings mandatory throughout the customer journey and for team members while at work.
Instituted temperature checks for team members across the system and began asking customers to certify they are symptom-free before traveling.
Created a Travel Health Advisory Panel, comprising internal leaders and outside experts in the field of infectious disease prevention, to advise on health and cleaning matters.
Started working with the Global Biorisk Advisory Council on GBAC STAR^TM Accreditation for cleaning and disinfection practices for its aircraft and lounges.
Further enhanced its cleaning and disinfection procedures throughout the operation, including the use of an electrostatic spray inside each aircraft every seven days, which kills 99.9999% of viruses and bacteria within 10 minutes.

To provide customers additional flexibility, American:

Waived change fees for customers who book new tickets for future travel by July 31, 2020.
Extended its change fee waiver for customers who have existing tickets for travel through Sept. 30, 2020.
Began notifying customers whose flights may be full, allowing them to move to more open flights when available at no cost.
Expanded flexible travel waivers and name changes for corporate customers.
Eliminated the reinstatement fee for AAdvantage^® award ticket changes made more than 60 days prior to travel.
Provided eligible AAdvantage elite members with a credit of up to $400 to use toward an American Airlines Vacations package.

To support the communities it serves, American:

Expanded its cargo service to transport critical goods between the United States and Europe, Asia and Latin America. American currently operates more than 310 weekly widebody and cargo-only flights and transported more than 100 million pounds of mail, goods and supplies critical to the global economy in the second quarter.
Announced a program to provide up to 1 million Business Extra^® points to small businesses and nonprofit organizations in need of travel support.
Worked with Deloitte to deliver more than 40,000 medical gowns to first responders at Mount Sinai Hospital in New York.
Partnered with Hyatt Hotels Corporation to give free vacations to thousands of employees at NYC Health + Hospitals/Elmhurst Hospital.
Donated more than 600,000 pounds of food to food banks, nonprofit organizations, schools and other groups fighting food insecurity.

Conserving cash

American continues to take steps to reduce costs and preserve cash. The airline estimates that it will reduce its 2020 total operating and capital expenditures by more than $15 billion, achieved primarily through cost savings resulting from less flying. In addition, the company implemented the following cost actions:

Retired four aircraft types, consisting of 20 Embraer 190s, 34 Boeing 757s, 17 Boeing 767s and nine Airbus A330-300s, along with a number of older regional aircraft. In addition, the company placed its Airbus A330-200s and certain older Boeing 737s into a temporary storage program. In aggregate, these changes remove more than 150 aircraft from the fleet and bring forward the cost savings and efficiencies associated with operating fewer aircraft types.
Introduced additional voluntary leave of absence and early-out programs to help right-size its frontline team. American anticipates having over 20,000 more team members on payroll than needed to operate its fall schedule. In total, more than 41,000 team members have opted for an early retirement, a reduced work schedule or a partially paid leave.
Consistent with the CARES Act, reduced its management and support staff team, including officers, by approximately 5,100 positions, or 30%.
Announced changes to its international schedule for 2021. American expects its summer 2021 long-haul international capacity to be down 25% versus 2019 and also plans to exit 19 international routes from six hubs. These changes will allow the airline to reset its international network for future growth as demand returns.
Reduced non-aircraft capital expense by $700 million in 2020 and another $300 million in 2021 through reductions in fleet modification work, the elimination of all new ground service equipment purchases, and pausing all noncritical facility investments and IT projects.

Bolstering liquidity

In addition to reducing its operating and capital expenditures, American has taken a number of steps to strengthen its liquidity position. The company:

Ended the second quarter with $10.2 billion of available liquidity, including a net $3.6 billion raised in the quarter through offerings of common stock, convertible bonds and secured bonds. The company also raised $360 million through municipal facility bonds, the net proceeds from which are included in its restricted cash and short-term investments.
Refinanced the delayed draw term loan credit facility the company entered into in March 2020, which was set to mature in March 2021. By refinancing this loan, American does not have any large non-aircraft debt maturities until its $750 million unsecured bonds mature in June 2022.
Signed a term sheet with the U.S. Department of the Treasury for a $4.75 billion secured loan under the CARES Act. The company expects the loan to be finalized in the third quarter.
Announced $1.2 billion of committed financing subject to final documentation and other closing conditions in the form of two senior secured note transactions to be collateralized by intellectual property and other assets with Goldman Sachs Merchant Bank. The company expects these notes to be issued in the third quarter.
Reduced its daily cash burn rate from nearly $100 million in April to approximately $30 million in June. This improvement was driven by higher than forecast revenue and larger savings resulting from the company’s cost-reduction initiatives. The company’s second-quarter cash burn rate² was approximately $55 million per day vs. its previous forecast of $70 million per day.

Demand and capacity outlook

Passenger demand and load factors have improved since bottoming out in April, but continue to be significantly below 2019 levels. While May and June revenue trends were encouraging, demand has weakened somewhat during July as COVID-19 cases have increased and new travel restrictions have been put into place. The company will continue to match its forward capacity with observed bookings trends and presently expects its third quarter system capacity to be down approximately 60% year over year.

Notes

See the accompanying notes in the Financial Tables section of this press release for further explanation, including a reconciliation of all GAAP to non-GAAP financial information.

¹The 2020 second quarter mainline operating special items, net principally included $1.8 billion of Payroll Support Program (PSP) financial assistance, offset in part by $332 million of salary and medical costs associated with certain team members who opted in to voluntary early retirement programs. Second quarter 2020 regional special items, net primarily included $216 million of PSP financial assistance, offset in part by $24 million of fleet impairment charges and $14 million of salary and medical costs associated with certain team members who opted in to voluntary early retirement programs.

Second quarter 2020 nonoperating special items, net principally included charges associated with debt refinancings and extinguishments.

²The company defines cash burn as the sum of all net cash receipts less all cash disbursements, but excluding the effect of new financings and new aircraft purchases.

KLM network: recovery of destination offer, capacity lags far behind

KLM has made this announcement:

KLM’s European network will grow in the coming months from 72 destinations in July to 91 destinations in August, September and October. The number of intercontinental destinations will increase from 51 in July, to 59 in August and 61 in September and October. As a result, KLM offers its customers the widest possible choice of destinations. Capacity in flights and seats, however, is still far below the level before COVID-19.

Compared to 2019, the European network is virtually at its pre-COVID-19 level in terms of number of destinations. Between August and October 2019, KLM offered 92 European destinations. However, the number of flights still lags far behind the level of 2019. In August, there were about 10,000 flights, in September 13,500 and in October more than 11,000. In 2019, there were more than 19,000, 18,800 and 14,700 flights respectively.

The intercontinental network is still slightly behind compared to last year, when 69 destinations were offered between August and October. Currently, one third of intercontinental flights only carry cargo. As soon as local travel rules allow, KLM will start carrying passengers on these flights again. The number of flights is also lagging behind: around 2,000 in August and September and just over 1,800 in October. Last year there were about 3,300, 3,200 and almost 2,600 flights respectively.

KLM has opted to expand the number of destinations first, so that customers have the widest possible choice. The next step is to increase frequencies or increase capacity by deploying larger aircraft on certain routes.

Safety remains paramount

Naturally, KLM has taken measures to ensure that flights are safe for both passengers and staff. For example, face masks are mandatory when boarding and during the flight, there are extra hygiene equipment on board, and KLM’s aircraft are cleaned extra thoroughly. The air on board is quickly refreshed using HEPA filters. For more information about the hygiene measures on board, please watch this video: https://youtu.be/frPO6b58kcU.

In addition, KLM naturally adapts to changing circumstances, with governments in various countries taking new measures.

New destinations

New destinations have also been added: Cork (Ireland), Southampton (United Kingdom) and Riyadh (Saudi Arabia). The corona crisis has impacted the airline industry heavily. Supply and demand are now subject to greater, more rapid change than before. This means that KLM must maintain an especially resilient network. Less demand on some routes is compensated for by opening up new routes. Additionally, KLM is strengthening its position in the market – in this case, Ireland, the United Kingdom and the Middle East.

Using Embraer 175 equipment, Cork and Southampton will be served daily with effect from 3 and 31 August respectively. Riyadh will be served four times a week using Airbus A330 equipment with effect from 28 September.

Ryanair sees a surge in bookings to Malta

Ryanair has announced that it’s seen a surge in its Maltese Summer 20 bookings, with tens of thousands of passengers booking to the island since it was announced that travel restrictions were progressively lifted on July 1^st and 15^th.

Over the last two weeks, Malta has been one of Ryanair’s strongest destinations proving to be a clear favourite thanks to its 300 days of guaranteed sunshine. Ryanair currently operates over 45 routes to/from Malta and its UK routes to the beautiful Mediterranean island rank among the most booked for the months of July and Aug 2020.

Malta Air’s CEO Diarmuid O’Conghaile said:

“Malta has progressively lifted its restrictions on EU arrivals since 1st July. Since then tens of thousands of European passengers have booked flights to Malta departing from 45 destinations such as Birmingham, Brussels, Edinburgh and Madrid, but with UK routes as clear winners for Jul & Aug bookings.

This surge in Malta flight bookings is a really encouraging trend and Ryanair is proud to re-boot the tourism sector of countries like Malta, which strongly rely on the health of this industry.