Yearly Archives: 2020

Norwegian’s passenger traffic was down 95% in November

Norwegian Air Shuttle has issued this traffic report:

Norwegian’s traffic figures for November are strongly affected by lower demand due to travel restrictions in Europe. The bookings for Christmas look positive.

In November, 124,481 customers flew with Norwegian, 95 percent fewer than the same month last year. Total capacity (ASK) decreased by 96 percent while passenger traffic (RPK) decreased by 98 percent. The cabin factor was 44.4 percent, a decrease of 39 percentage points.

The pandemic continues to have a negative impact on our business. With travel restrictions throughout Europe, demand will be very low. The fact that vaccines are coming soon is good news for the aviation industry and we will compete for customers when it becomes possible to travel again. Our goal is now to create a financially strong and competitive airline with a new financial structure, an adapted size of the aircraft fleet and an improved range for our customers, says CEO Jacob Schram.

62 extra departures in Norway – Tickets for next summer are now available and it looks positive with the bookings. It is clear that people have started thinking about the summer holidays. It is also worth noting that the bookings for Christmas are good and we have set up 62 extra departures in Norway. We look forward to flying our customers home for Christmas, Schram continues. In total, Norwegian completed 72.7 percent of the planned flights in November, of which 94.8 percent went according to schedule.

Above Copyright Photo: Norwegian.com (Norwegian Air UK) Boeing 787-9 Dreamliner G-CKOF (msn 38786) (Joan Miro, Spanish Artist) JFK (Fred Freketic). Image: 952173.

Delta brings proven COVID-19 vaccine transport capabilities to shipments across the globe

Delta Air Lines has made this announcement:

Delta has proven capabilities for transporting COVID-19 vaccines after successful shipments earlier this year. With large warehouses and cooler facilities in Atlanta, Detroit, Los Angeles, New York-JFK and Seattle, and a network of 49 certified Pharma airports across the globe, Delta has capabilities in place to support vaccine shipments at home and around the world.

In addition to robust domestic shipment capabilities to support rapid distribution with the U.S., Delta has a broad and nimble global distribution function in coordination with Air France KLM Martinair Cargo and Virgin Atlantic Cargo that enables end-to-end compliance and assurance for customers across our broad network.

Delta has introduced enhancements to our existing pharmaceutical delivery protocols to support safe, swift distribution, including:

The highest level of access and boarding priority
A Vaccine Control Tower with 24/7 centralized monitoring and customer reporting
Pharma-ready Cargo-only charter options for operations within and outside our existing network

Delta has extensive experience in shipping vaccines and was the first U.S. passenger airline to receive IATA’s Center of Excellence for Independent Validators Pharma Logistics Certification at our headquarters and Atlanta warehouse. We already offer four tailored pharmaceutical shipping options which meet specific temperature requirements for vaccines ensuring integrity through the entire journey.

Ryanair orders 75 additional Boeing 737 MAX jets

Ryanair and Boeing announced today that Europe’s largest airline is placing a firm order for 75 additional 737 MAX airplanes, increasing its order book to 210 jets. Ryanair again selected the 737 8-200, a higher-capacity version of the 737-8, citing the airplane’s additional seats and improved fuel efficiency and environmental performance.

“As soon as the COVID-19 virus recedes – and it likely will in 2021 with the rollout of multiple effective vaccines – Ryanair and our partner airports across Europe will – with these environmentally efficient aircraft – rapidly restore flights and schedules, recover lost traffic and help the nations of Europe recover their tourism industries, and get young people back to work across the cities, beaches and ski resorts of the European Union,” O’Leary said.

Ryanair is the launch customer for the high-capacity 737-8 variant, having placed its first order for 100 airplanes and 100 options in late 2014, followed by firm orders of 10 airplanes in 2017 and 25 in 2018. The 737 8-200 will enable Ryanair to configure its aircraft with 197 seats, increasing revenue potential, and reduce fuel consumption by 16 percent compared to the airline’s previous airplanes.

Delta launches industry’s first contact tracing for travelers returning to U.S.

Delta Air Lines has made this announcement:

By sharing five simple pieces of information, customers can help U.S. government and health officials reduce instances of potential exposure and provide travelers with important public health information
Delta leads industry effort to track global pandemic, protect customers
The submission of contact information will be a required element of Delta’s COVID-19 testing program enabling quarantine-free entry to Italy beginning Dec. 19

Delta is partnering with the Centers for Disease Control and Prevention to keep international customers informed of potential COVID-19 exposure through contact tracing. Along with our nine global airline partners, we are working with government agencies, health officials and aviation authorities to offer safer travel at every point in your journey.

Beginning Dec. 15, Delta will become the first U.S. airline to ask customers traveling to the U.S. from an international location to voluntarily provide five pieces of data to aid contact tracing and public health follow-up efforts, including:

Full name
Email address
Address in the U.S.
Primary phone
Secondary phone

“Independent studies have shown that the many layers of protection Delta has already put in place are effectively minimizing the risk of COVID-19 transmission, and contact tracing adds one more important layer to our efforts to ensure safety throughout travel,” said Bill Lentsch, Delta’s Chief Customer Experience Officer. “We want customers to feel safe when they return to travel, and this voluntary program is another way we can provide additional reassurance to customers and employees alike.”

Customers and those in their itinerary can voluntarily participate in our contact-tracing program if they are:

Flying on any Delta-operated flight
A foreign national and/or a U.S. passport holder traveling to the United States as your final destination

Under the new process, we are working with the CDC to streamline contact-tracing efforts by directly and securely transmitting the five requested customer data points to the CDC via U.S. Customs and Border Protection. This will give the CDC access to the data in moments, dramatically decreasing the time it takes to notify affected customers via local health departments.

By connecting with customers more quickly and providing public health follow-up, health authorities can help reduce instances of potential exposure and slow the spread of the virus.

Currently, in the event of confirmed COVID-19 case with travel while infectious, the CDC requests a passenger manifest from Delta to identify all customers seated two seats around the confirmed case. This information is then transmitted to the appropriate local health departments for follow-up, with each department taking responsibility for passengers in their own jurisdiction.

Data is central to our vision for the future of travel, and we understand our vision is only as good as the trust customers place in us to protect their identity and information. All data submitted by customers through this voluntary collection process is sent to the CDC using established channels between airlines and U.S. Customs and Border Protection for the Advance Passenger Information System. We will retain this information for no longer than is necessary to achieve the contact tracing and public health follow-up objectives, or as required by Customs and Border Protection.

Protecting our customers’ security and privacy are top priorities for all Delta employees, and customers can be confident their information will be treated with the same level of care we take for your safety throughout your travel journey.

Contact tracing required for our Atlanta-Rome testing program

Last week we announced our partnership with the Aeroporti de Roma and Hartsfield-Jackson Atlanta International Airport to launch a first-of-its-kind trans-Atlantic COVID-19 testing program that will enable quarantine-free entry into Italy. Participating customers who are eligible to travel will be granted an exemption from quarantine restrictions on arrival into Italy.

As part of this pilot program, contact-tracing information collection will be mandatory for all customers flying to the U.S. This pilot and our ongoing contact-tracing efforts are crucial steps to resuming international travel safely.

Contact tracing bolsters the Delta CareStandard

Contacting tracing is one of the latest ways we are ensuring the safety of our employees, customers and their communities. From blocking middle seats through March 30, 2021, requiring masks throughout the travel experience and rolling out more than 100 actions for your safety – our Delta CareStandard – we are continuing to adapt as the pandemic evolves.

Wizz Air’s traffic was down 84% in November

Wizz Air’s traffic in November 2020 took a sharp decline due to growing travel restrictions in Europe:

Lufthansa reports strong bookings for the holidays

Lufthansa is recording a sharp rise in intercontinental and intra-European bookings for the upcoming Christmas and New Year travel season. Last week, up to 400 percent more people booked destinations overseas as well as Southern and Northern Europe than in the previous week. Particularly in demand were flight destinations in South Africa (Cape Town, Johannesburg), Namibia (Windhoek), the Canary Islands, Madeira and sunny destinations in the Mediterranean, but also snow-assured areas in Northern Finland.

Lufthansa is responding to the increased demand with new flights to and from destinations in Europe, but also by increasing the frequency of existing connections at favorable conditions.

For example, Lufthansa now flies from Frankfurt and Munich to almost every island in the Canary Islands and will offer nonstop flights from Frankfurt to the islands of La Palma and Fuerteventura from December 19, 2020 for the first time. Seville and Palermo will also be back in the flight schedule from Frankfurt and Munich. From Frankfurt, Heraklion on the Greek island of Crete, which can also boast significantly warmer temperatures in winter, is also on the program.

In addition to the classic sunny destinations, the snow-assured and spectacular ski resorts in Northern Finland are back in the flight schedule. Thus one reaches over the holidays from Frankfurt Ivalo and Kuusamo as well as from Munich Kittilä.

For flights from Frankfurt to Majorca, Tenerife, Gran Canaria, Madeira, Malta, Larnaca/Cyprus and Faro/Algarve and from Munich to Majorca, Faro/Algarve, Fuerteventura, Gran Canaria and Tenerife, capacities have been significantly expanded and these sunny destinations are now offered several times a week in some cases.

In addition, Lufthansa’s classic routes will also be reintroduced into the flight schedule. From Frankfurt, for example, Dublin, Gdansk, Salzburg, Turin and Naples are among the destinations being offered. Flights from Munich now also include Paris, Madrid, Helsinki, Athens, Rome, Oslo, Warsaw and Lisbon.

Lufthansa sells LSG Europe to Gategroup

Lufthansa made this announcement:

In December 2019, Lufthansa Group and gategroup concluded a purchase agreement for the European operations of LSG Group. This accounts for about one third of LSG Group’s total business. gategroup now meets all requirements of the European Commission. Thus, the purchase agreement could now be executed, the so-called “Closing” has taken place. Both parties have agreed not to disclose the financial details of the transaction.

In addition to the European catering businesses, the purchase agreement also covers the lounge and train business and the retail convenience food brand Evertaste and its European facilities, the equipment business SPIRIANT and the retail stores of the “Ringeltaube” brand.

gategroup is a long-term partner for catering and services in Frankfurt, Munich and Zurich. Lufthansa will retain a minority stake in the Frankfurt and Munich catering facilities, which provide in-flight service for Lufthansa flights. This ensures a seamless transition of the catering business and a successful start of the cooperation. gategroup will introduce a new Lufthansa-dedicated Studio 50/8TM*, a culinary think tank and exclusive house of inspiration and co-creation which will set a new airline catering industry standard.

Carsten Spohr, CEO of Deutsche Lufthansa AG, said: “With the sale of LSG’s European business to gategroup, we are setting another milestone in the restructuring of the Lufthansa Group. We are focusing more strongly on our core airline business, we are becoming leaner, more efficient and reducing the Group’s internal complexity. My sincere thanks go to the 7,500 employees who are now joining gategroup. They have led our catering business in Europe to success in recent years and will continue to indulge Lufthansa guests with premium catering under the leadership of gategroup.”

Lufthansa Group continues to aim to sell the remaining international part of LSG Group as soon as the general conditions allow.

Ryanair’s November traffic is down 82% to 2.0 million guests

Ryanair Holdings plc on December 2 released its November traffic statistics as follows:

	2019	2020	Growth
Ryanair Group	10.9m	2.0m	-82%
Rolling Annual	151.6m	61.4m	-60%

SAS loses $235 million in the third quarter, will early retire 21 aircraft

Scandinavian Airlines-SAS reported a significant loss in the third quarter due to surging COVID-19 pandemic:

FULL-YEAR FINANCIALS SIGNIFICANTLY IMPACTED BY THE ONGOING PANDEMIC

AUGUST 2020–OCTOBER 2020

Revenue: MSEK 3,035 (13,435)
Income before tax (EBT): MSEK -3,271 (1,096)
Income before tax and items affecting comparability: MSEK -3,043 (1,226)
Net income for the period: MSEK -2,579 (861)
Earnings per common share: SEK -4.46 (2.19)

SIGNIFICANT EVENTS DURING THE QUARTER

SAS completed a successful recapitalization adding SEK 12 billion in liquidity and SEK 14.25 billion in strengthened equity
SAS repays a SEK 3.3 billion revolving credit facility agreement in accordance with its terms

NOVEMBER 2019–OCTOBER 2020

Revenue: MSEK 20,513 (46,112)
Income before tax (EBT): MSEK -10,151 (794)
Income before tax and items affecting comparability: MSEK -8,619 (786)
Net income for the period: MSEK -9,275 (621)
Earnings per common share: SEK -21.55 (1.54)

COMMENTS BY THE CEO

Since the beginning of 2020, the coronavirus has changed the fundamentals for the aviation industry through globally imposed travel restrictions and general travel concerns among the broader population. Naturally, SAS is no exception, and our quarterly and fiscal year earnings were severely impacted by the ongoing pandemic. After seeing demand slowly improve during the summer, an accelerated number of COVID-19 cases in September and October unfortunately led to reinforced restrictions across Europe with reduced demand as a direct consequence.

SEVERE NEGATIVE IMPACT FROM THE PANDEMIC

The ongoing COVID-19 pandemic has led to a decrease in total revenue of over 77% compared to same quarter last year. To mitigate the revenue shortfall, we continued to deliver on our cost reduction initiatives and total operating expenses were reduced by 53% year-on-year to SEK 5.8 billion. However, the current limited demand for travel precludes positive earnings, which ended at negative SEK 3 billion, down SEK 4.3 billion on last year.

Following a successful recapitalization process, our cash position remains strong at SEK 10.2 billion at the end of the quarter. Cash flow from operating activities ended at negative SEK 2.9 billion. This was within the previously communicated range taking the increased pace of refunds to our customers into account.

The full fiscal year 2020 was of course also heavily impacted by the pandemic. Since March, most of our traffic has been temporarily paused, and demand hasn’t yet returned to anywhere near the previous year’s levels. This led to a decline in revenue of 55% to SEK 20.5 billion, in part mitigated by a 37% reduction in costs due to a lower variable cost and an exhaustive cost reduction program. Still, full-year earnings declined SEK 9.4 billion to negative SEK 8.6 billion.

RENEWED RESTRICTIONS SLOWED DEMAND RECOVERY

There were signs of a demand recovery during the summer season, but as the number of observed COVID-19 cases in Europe and North America accelerated in September and October, renewed travel restrictions reversed a positive trajectory. At the beginning of the fourth quarter, some 40% of SAS’ pre-COVID markets were under travel restrictions, growing to over 65% by the end of the quarter.

To adapt to the recent developments, SAS had to gradually reduce offered seat capacity to well below 40% by the end of October. However, SAS is maintaining the backbone of the aviation infrastructure in Scandinavia, with a significantly broader offering to, from and within Scandinavia than any other carrier.

ACCELERATED PACE OF CUSTOMER REFUNDS

At the end of the quarter, we launched a set of initiatives to improve the refund lead time, including automated self-service options for travel agents and consumers, robots to tackle the backlog and hiring additional resources to handle more complex cases. We’re pleased to see that our efforts have significantly improved an otherwise unsatisfactory situation. During the quarter, SEK 1 billion was repaid for canceled flights, which is an increase of more than 50% compared to the previous quarter. However, we will not rest until all rightful claims have been settled, amounting to approximately SEK 0.9 billion as of 1 December. I would like to take this opportunity to apologize to all customers who have experienced unsatisfactory lead times, caused by an unprecedented situation for the whole airline industry.

SECURING COST-EFFECTIVE OPERATIONS

Capability and flexibility to scale capacity up or down to mirror the current volatile demand is of utmost importance to preserve liquidity and avoid unnecessary cost. Available furlough (temporary layoff) schemes across Scandinavia are therefore of significant importance as they provide a foundation for more disciplined capacity management to offset volatility in demand. We welcome the fact that the existing schemes have been extended in all three Scandinavian countries, as it enables us to maintain flexibility in capacity planning and in our operating procedures.

Even though we constantly monitor demand and adapt our capacity accordingly, travel restrictions are imposed instantly while capacity adjustments require some operational lead time. Consequently, we noted a ten-percentage-point reduction in the cabin factor and somewhat higher operational costs in the fourth quarter compared to the previous quarter.

However, we negotiated new and more flexible terms with our regional production partners during the quarter, shifting more costs from fixed to variable, and thereby allowing for better alignment between offered capacity and available demand.

Furthermore, we have initiated the process to phase out 21 of our older and less fuel-efficient aircraft at an earlier stage than originally planned, including 15 Boeing 737NG, five Airbus A340 and one Airbus A330 aircraft. The accelerated phase-out will support liquidity through the sales of aircraft and engines, as well as reduce spend on maintenance and leasing. Together with the agreement with Airbus on deferred deliveries of new aircraft, it will also better align our fleet with current and expected demand. The accelerated phase-out will also contribute to lower emissions. Over the last 12 months, our total CO₂ emissions have decreased 57.2%, where the majority is related to reduced capacity as a consequence of the pandemic, but usage of more efficient aircraft connected to our ongoing fleet renewal has also contributed with 2.3 percentage points, in line with our ambitious target to reduce total CO₂ emissions 25% by 2025.

Above Copyright Photo: Scandinavian Airlines-SAS Boeing 737-783 WL LN-RRB (msn 32276) ZRH (Rolf Wallner). Image: 952158.

In addition, the initiatives implemented since the second quarter, including renegotiated contracts with our major suppliers and halting all non-necessary spend on e.g., marketing, product and IT development, have also further reduced cash burn and overall spend.

We have also remained resilient in our endeavor to secure long-term efficiency gains. The 5,000 redundancies, which were announced in the second quarter, have now been finalized, and as of November 1, 2020, a new organization reflecting the reduced number of positions was fully operational.

We have also advanced the dialogue with our unions to secure additional long-term productivity improvements. In the fourth quarter, a number of changes to local agreements have been implemented and two new agreements securing the required productivity uplift were reached, one with our SAS Ireland crew and one with employees at the technical department in Copenhagen.

SUCCESSFUL RECAPITALIZATION FINALIZED

By the end of the quarter, our recapitalization initiative was finalized, raising SEK 12 billion in new liquidity and 14.25 billion in equity.

According to the terms of the utilized SEK 3.3 billion state guaranteed revolving credit facility, it was repaid in full by the end of the quarter. Following the completed rights issue, we aim to apply for the Norwegian state guaranteed term loan and to explore additional options to preserve a strong liquidity, such as aircraft financing.

To illustrate the value of Scandinavia’s largest loyalty program, EuroBonus, we transferred it to a separate entity in which we will continue to further strengthen the relationship with our customers.

The finalized recapitalization, followed by additional initiatives to manage liquidity, makes SAS prepared for a tough winter season and a challenging fiscal year 2021, that most likely will be loss making. I am grateful for the support that our largest owners, the governments of Denmark and Sweden, and the Knut and Alice Wallenberg Foundation, have demonstrated throughout this recapitalization process. I am also thankful for the support and trust demonstrated by individual and institutional investors by participating in the rights issue, despite the challenging times that the aviation industry is currently undergoing.

LOOKING AHEAD

Until demand returns and the world recovers from the COVID-19 pandemic, we will continue to persistently execute on our business plan and thereby return to a sustainable position both financially and environmentally.

Even though we’re encouraged by the recent progress related to the development and distribution of COVID-19 vaccines, demand remains uncertain and makes it impossible to provide any guidance on the financial performance for the coming fiscal year. However, we expect weak operating cashflow in the first quarter of 2021 due to low demand during the winter season combined with accelerated refunds. Our view continues to be that the ramp-up phase for the airline industry will last until 2022 before demand can reach more normalized levels, with a return to pre COVID-19 levels a few years thereafter.

I would like to express my sincere appreciation to all colleagues at SAS for their fighting spirit and dedication during this turbulent year and I know that all of us are looking forward to once again welcoming our travelers onboard!

Rickard Gustafson,

President and CEO

Stockholm, December 3, 2020

SAS aircraft photo gallery:

easyJet announces new cabin bag policy on flights from February 10, 2021

easyJet (UK) made this announcement:

For flights from February 10, 2021, the seat a customer books will determine what they can bring onboard:

For flights from February 10, 2021, the seat a customer books will determine what they can bring onboard
All customers will be able to bring onboard an under seat cabin bag for free and customers booking an Up front or Extra legroom seat can bring an additional large overhead cabin bag
Customers with an existing booking for travel after 10 February will be offered Hands Free for free so they can still bring their large cabin bag
New policy will improve boarding and punctuality and give customers certainty of what they will have with them onboard.

easyJet, Europe’s leading airline, has announced that its cabin bag policy will change onboard flights from February 10, 2021. The new policy means that all customers can take a small under seat cabin bag (max 45x36x20cm) onboard free of charge which must fit under the seat in front. This will enable them to bring all the essentials for their journey or enough for a short trip.

Customers who have booked an Up front or Extra legroom seat will be able to bring onboard an additional large cabin bag (max 56x45x25cm), which will travel in the overhead locker. easyJet Plus cardholders and FLEXI fare customers will also continue to have an additional large cabin bag included in their booking, subject to space onboard.

The size of easyJet’s small under seat cabin bag and large overhead cabin bag remain among the most generous for air travel and there continues to be no weight limit for any cabin baggage.

The limited overhead locker space on aircraft has meant that customers can’t always be certain they will have their cabin bag onboard with them and so for those who want certainty, booking an Up front or Extra legroom seat will provide this. The new policy will also reduce queue times during boarding and other associated delays which occur due to putting excess cabin bags in the hold and so the move will lead to improved punctuality for all customers.

There are between 42 and 63 Up front and Extra legroom seats available to book onboard each flight depending on the aircraft type. These range in price starting from £7.99 and purchasing this seat type will allow customers to bring onboard a large overhead cabin bag in addition to a small under seat cabin bag; this is in addition to other travel benefits included in booking these seat types, which include Speedy boarding and dedicated easyJet Plus Bag Drop for any hold luggage.

The new policy will be applied on all flights on and after February 10, 2021.

• Customers who are traveling from February 10 and have already booked an Up front or Extra legroom seat do not need to make any changes to their booking and can bring a large cabin bag.

• Customers who have already made bookings for travel from 10 February and have not booked an Up front or Extra legroom seat will be able to bring on board a small under seat cabin bag. In addition to this we will be offering them easyJet’s Hands Free product free of charge should they wish to still bring a large overhead cabin bag in addition to their small under seat cabin bag. Hands Free enables customers to check their large overhead cabin bag into the hold at bag drop. They can also amend their booking to purchase an Up front or Extra legroom seat should they wish to bring a large cabin bag into the cabin.

• For all bookings made from today onwards for travel from February 10, 2021 the new policy will apply.

The airline will continue to allow customers to bring some additional items with them into the cabin free of charge such as medical equipment and continues to provide options to ensure it is as easy as possible for families to travel. It’s still free to bring a baby changing bag onboard in addition to cabin bag allowance. Infants with booked seats and children over two years old continue to have the same cabin bag and hold luggage allowance as adults. Customers travelling with a child who requires them can still bring two items for free in addition to cabin bag allowance including a travel cot, pushchair, double pushchair, buggy, car seat, collapsible or non-collapsible pram, booster seat and/or baby back carrier. If you need to use any of these to get to the boarding gate they’ll be collected before boarding the plane and put in the hold for free to collect at the baggage carousel on arrival. If these items are within the dimensions of the large overhead cabin bag they can go on board if there is room, or checked into the hold for free at the gate.

Customers can also go ‘Hands Free’, which is a great value option to bring a bit extra for your trip. With Hands Free, customers can bring a large cabin bag to easyJet Plus Bag Drop and have it delivered at the baggage carousel on arrival, for just £7 per bag per flight or if you’re travelling in a group its just £16 for between three and six bags. Hands Free can be purchased in advance of your flight or at the easyJet Plus Bag Drop when you arrive at the airport.

easyJet also has a range of hold bag options which enable customers to purchase up to three hold bags for each traveller on the booking, including children and infants. A standard hold bag is 23kg and customers can buy extra weight in 3kgs units on easyJet.com up to a maximum of 32kg per bag. If customers are travelling with family or friends on the same flight and booking, they can pool their total weight allowance. A 15kg bag option is also available.

The new cabin bag policy will also apply to easyJet holidays customers, however all easyJet holidays continue to include 23kg of hold luggage per person as standard.

easyJet continues to offer flexibility for its customers, providing the option to change their flights without paying a change fee up to 14 days before departure. If government restrictions change we’ll also remove the change fee, even within 14 days of departure, so customers can easily change their plans last minute.