Monthly Archives: May 2021

SAS reports on the COVID-19 impacted results of the second quarter

Scandinavian Airlines-SAS issued this financial report on the second quarter:

Q2 2021 – A QUARTER DOMINATED BY THE ONGOING PANDEMIC

FEBRUARY 2021–APRIL 2021

Revenue: MSEK 1,932 (5,264)
Income before tax (EBT): MSEK -2,361 (-3,722)
Income before tax and items affecting comparability: MSEK -2,361 (-3,714)
Net income for the period: MSEK -2,433 (-3,470)
Earnings per common share: SEK -0.35 (-9.15)

SIGNIFICANT EVENTS DURING THE QUARTER

The Board of SAS appointed Anko van der Werff as President and CEO. The Board concurrently appointed Karl Sandlund, Chief Commercial Officer at SAS, as acting President and CEO.
SAS secured financing for the majority of its aircraft deliveries until the second quarter of 2022.

SIGNIFICANT EVENTS AFTER THE QUARTER

SAS has ensured that there is support from the main owners, the Governments of Denmark and Sweden, to gain access to a credit facility amounting to SEK 3.0 billion.

NOVEMBER 2020–APRIL 2021

Revenue: MSEK 4,214 (14,971)
Income before tax (EBT): MSEK-4,297 (-4,809)
Income before tax and items affecting comparability: MSEK -4,309 (-4,792)
Net income for the period: MSEK -4,483 (-4,331)
Earnings per common share: SEK -0.64 (-11.49)

COMMENTS BY THE CEO

New coronavirus cases remained high during the quarter, resulting in strict travel restrictions and low demand for flights. Focus for the quarter has been on lowering SAS’ costs, preserving liquidity and further strengthening SAS’ future competitiveness. The increase in vaccination rates provides some hope for the relaxation of restrictions, and an increase in demand ahead of the important summer season.

CONTINUED NEGATIVE IMPACT FROM THE PANDEMIC

Even if the number of people vaccinated is growing globally, high numbers of new cases and strict travel restrictions continue to impact society and slow recovery for the airline industry. Demand remained low during the second quarter and the number of passengers fell 2.4 million year-on-year, and was down 140,000 on the previous quarter.

SAS is continuing to successfully adapt production to the prevailing circumstances, which is reflected with an unchanged load factor compared with the previous quarter. As a direct consequence of fewer passengers, revenue fell SEK 3.3 billion (-63%) year-on-year and SEK 350 million (-15%) compared with our first quarter.

Weak demand makes it necessary to continue to adapt operations and reduce costs to offset the substantial loss of revenue. This has resulted in costs being SEK 4.6 billion (down: -54%) lower year-on-year and almost SEK 0.5 billion (down: -11%) lower than in the previous quarter. Despite the loss for the quarter amounting to SEK 2.4 billion, SAS posted an improved EBIT for the first time since the pandemic’s outbreak, both year-on-year and compared with the previous quarter.

Another prioritized area is to secure liquidity for when demand once again normalizes. Through active efforts to improve operational cash flow in parallel with SAS securing a number of major financing transactions, cash at the end of the quarter amounted to SEK 4.4 billion. Down only SEK 300 million compared with the end of the first quarter. Moreover, SAS has secured financing for the majority of its aircraft deliveries until the second quarter of 2022.

PENT-UP DEMAND AHEAD OF THE IMPORTANT SUMMER SEASON

Infection, delayed vaccinations and continued stringent travel restrictions have led to a slower than hoped for recovery. However, SAS is ready to welcome our customers back on board as travel restrictions ease ahead of the important summer season. For the summer, SAS is opening 180 direct routes and also increasing capacity on domestic routes within the Scandinavian countries. After the quarter ended, we also announced an extended partnership with Airtours over the next four years, starting in the summer of 2021 and corresponding to a value of approximately SEK 800 million.

To reduce uncertainty when booking flights, SAS is offering more flexible ticket rules and generous rebooking alternatives. We are also now launching SAS Travel Ready Center, a digital tool, to make it easier for passengers to access information about current travel restrictions concerning their destinations and to upload necessary travel documents.

Together with an increased belief in relaxed restrictions and a number of positively received campaigns, these activities have increased forward bookings for the summer and autumn, albeit from lower levels compared with what is typical for this time of the year.

Customers’ booking patterns have also changed during the pandemic. Many customers are now increasingly choosing to book their tickets much closer to their travel dates, which makes it difficult to predict demand during the summer. The most crucial factor for an airline industry recovery is the relaxation of travel restrictions. Since the rates of infection and vaccinations are decisive in this regard, SAS is carefully following vaccination trends across the world.

The prevailing uncertainty means that access to liquidity is essential for all airlines. SAS has therefore ensured that there is support from the major shareholders, the Governments of Denmark and Sweden, to gain access to a credit line facility amounting to SEK 3.0 billion. The aim of credit line facility is to create a liquidity buffer as a complement to other ongoing activities at SAS to reduce costs and strengthen liquidity.

ADAPTATION TO CHANGED MARKET CONDITIONS

SAS expects significantly changed market conditions following the pandemic, with a greater number of leisure travelers and even more intense competition.

Retaining our position as market leader in Scandinavia following the pandemic will require SAS to continue to adapt operations to future market conditions. During the pandemic, SAS has streamlined all aspects of its operations, reduced the number of employees, entered into new collective agreements to increase productivity and reached agreements concerning frozen salary levels. These necessary measures have had a substantial impact and reduced personnel expenses almost 35% year-on-year. Moreover, we have negotiated agreements with suppliers, which has resulted in deferred payments, lower costs and a higher variable component in relation to fixed costs.

However, there will be even greater requirements for efficiency and seasonally adapting operations moving forward. Access to flexible and suitable production is required to be able to offer a complete network and a timetable adapted to Scandinavian requirements for business, leisure and regional destinations. Accordingly, SAS is continuing to develop its operational model that has proved successful in the past few years.

SAS has signed a new collective bargaining agreement for pilots and cabin crew with the Danish union FPU which is a part of FH (The Danish Confederation of Trade Unions). The new agreement means that SAS can establish a complementary base in Copenhagen. With the agreement, SAS improves the flexibility and seasonal adaptations required to maintain its leading position in Scandinavia. As a first step, SAS intends to create new workplaces in Denmark instead of reopening the base in Malaga that closed earlier as a direct result of the pandemic. The new Danish operation will be established using our European operating license, which guarantees a quick and cost-efficient start of operations.

SAS remains committed to its ambitious sustainability target of reducing carbon emissions 25% already by 2025 compared with the base year 2005. In the short term, an accelerated phase-out of older aircrafts means that the share of new, fuel-efficient aircraft in the fleet is rapidly increasing. This is also having a direct impact on our emissions reporting, where carbon emissions per available seat kilometer decreased more than 10% year-on-year. During the quarter, we also secured a minimum of 20% of our planned need of sustainable aviation fuel until 2025.

To conclude, on behalf of the Board of Directors and all the employees at SAS, myself included, I would like to thank Rickard Gustafson, who held the position as President and CEO of SAS with a great level of commitment for a decade. Rickard applied a good leadership culture in his leadership of the company through the necessary change process applicable for SAS and the airline industry as a whole. We wish him every success with his new assignment. At the same time, I would like to wish Anko van der Werff a warm welcome as SAS’ new CEO in July.

I would also like to thank all of my colleagues at SAS for their commitment and endeavors as well as our customers for all their support. As Scandinavia’s leading airline, we look forward to being able to welcome our passengers back on board.

Karl Sandlund

Acting President and CEO, Stockholm, May 27, 2021

Top Copyright Photo: Scandinavian Airlines-SAS Airbus A350-941 SE-RSB (msn 378) IAD (Brian McDonough). Image: 949631.

SAS aircraft slide show:

Air France to offer a new year-round service to Helsinki from Paris-Charles de Gaulle Airport

Air France made this announcement:

A new year-round route from Paris-Charles de Gaulle
Up to 1 daily flight by Airbus A319 in summer 2021

Air France is strengthening its presence in Northern Europe. From July 6, 2021, the airline will offer a new year-round service to Helsinki (Finland) from Paris-Charles de Gaulle Airport.

Initially operated four times a week (on Tuesdays, Thursdays, Fridays and Saturdays), it will become a daily service from July 19, 2021. Flights will be operated by Airbus A319 with 143 seats.

Flight schedules (in local time):
– Leaves Paris-Charles de Gaulle at 13:00, arrives in Helsinki at 17:00
– Leaves Helsinki at 17:45, arrives at Paris-Charles de Gaulle at 19:50

These flights will be in addition to those operated by Finnair on this route and operated by Air France on a codeshare basis.

This new route completes Air France’s offer in the Nordics, where the airline already serves Copenhagen and Billund in Denmark, Oslo and Bergen in Norway, as well as Stockholm and Gothenburg in Sweden.

This flight schedule is subject to change depending on travel restrictions. Since the beginning of the COVID-19 crisis, Air France has been adjusting its offer in real time, taking into account the evolution of the health situation. Before traveling, Air France invites its customers to check the travel restrictions and the documents required on arrival at their destination.

Top Copyright Photo: Air France Airbus A319-111 F-GRHS (msn 1444) ZRH (Rolf Wallner). Image: 943717.

Air France aircraft slide show:

Alitalia to focus on holiday destinations this summer

Alitalia will focus on short haul flights to Greece, Spain, Croatia and more flights to European cities this summer.

In the summer of 2021, Alitalia will resume flying to the Italians’ favorite tourist destinations with new international flights to Greece, Spain and Croatia and more frequencies to Sicily, Puglia and Calabria. From today it is possible to book Alitalia flights from Rome Fiumicino to Santorini, Skiathos, Preveza, Kefalonia, Crete, Corfu, Mykonos, Zakynthos, Dubrovnik and Split and those from Rome Fiumicino and Milan Linate to Rhodes, Ibiza, Menorca and Palma de Mallorca.

Staring in June Alitalia will return to operate the connections with Malaga and Marseille and from July with Tel Aviv and Algiers.

From July, frequencies to the main European cities will also be increased: London, Madrid, Barcelona, Athens, Paris, Nice, Brussels, Amsterdam, Geneva, Zurich, Frankfurt, Munich, Malta, Tirana. More connections also for Tunis and Cairo.

More flights will be available on national connections from Rome Fiumicino to Cagliari, Olbia, Alghero, Catania, Comiso, Lampedusa, Palermo, Pantelleria, Bari, Lamezia Terme, while from Milan Linate direct connections to Rome, Cagliari, Olbia, Alghero, Palermo will grow. Catania, Comiso, Lampedusa, Bari, Brindisi and Lamezia Terme, and from Milan Malpensa to Cagliari. Sardinia will also be reached from Pisa and Bologna with flights to Olbia, and from Verona with flights to Cagliari.

Marco Finelli reporting from Italy.

Alitalia and Rome announce new COVID-19 tested flights from Rome Fiumicino to Tokyo Haneda

Alitalia and Aeroporti di Roma are still at the forefront of protocols for traveling in extreme safety during the pandemic. After the success of Covid tested flights to and from New York, the same travel method will also be introduced for flights to Tokyo, thanks to the resumption of Alitalia’s direct flights from Rome Fiumicino to the capital of Japan, operated by three times a week.

The nonstop Alitalia service between Rome and Tokyo will start at same time with the expected Olympic Games. All passengers traveling on the three weekly flights to and from Tokyo, including the Italian athletes, must present a certificate proving negativity to Covid 19 at boarding. Upon arrival at the airport in Rome, a further antigen test will be performed. The negativity found in this second test will exempt passengers arriving in Rome from Japan from having to observe the fiduciary quarantine period in Italy. A method that has reassured the market, in parallel with the progress of the vaccination campaign in our country. The resumption of Alitalia flights to Japan will also be characterized by the inauguration of services at the most convenient city airport of Tokyo Haneda, only 20 kilometers from the city.

Marco Finelli reporting from Italy,

American’s AAdvantage® members and JetBlue’s TrueBlue members can earn miles or points, traveling on either carrier

American Airlines has made this announcement:

American Airlines Group Inc. and JetBlue continue to roll out benefits for customers to create a seamless, easy customer experience — this time, in the form of mileage accrual. Starting on May 26, American’s AAdvantage® members and JetBlue’s TrueBlue members can earn miles or points, traveling on either carrier. AAdvantage is now the only loyalty program that allows elite status earning opportunities when flying across three U.S. carriers — American, Alaska Airlines and JetBlue.

AAdvantage members were already able to earn miles on codeshare flights with JetBlue. However, today, they can also earn miles when traveling on any JetBlue marketed and operated flight in the Americas. When booking flights on aa.com or jetblue.com, customers can choose where to accrue their points. And for ease of doing business, members will earn miles the same way they do today on American, based on ticket price*.

Members from both programs will also be able to earn elite qualifying currency on these trips. There are more than 1,000 ways to earn miles with American’s partners — from car rentals and hotel stays to dining out and using credit cards.

AAdvantage member	Miles per dollar spent
AAdvantage	5 miles/dollar spent
AAdvantage Gold	7 miles/dollar spent
AAdvantage Platinum	8 miles/dollar spent
AAdvantage Platinum Pro	9 miles/dollar spent
AAdvantage Executive Platinum	11 miles/dollar spent

^*Based on ticket price (includes base fare plus carrier-imposed fees; excludes government-imposed taxes and fees).

Since the announcement of the Northeast Alliance last year, customers have already benefited from better options as American and JetBlue introduced 57 new routes from the northeast, as well as more than 100 codeshare flights. The carriers have worked on enhanced schedules in several northeast markets, so customers can choose to fly when it’s most convenient. The alliance has also elevated the premium experience when traveling between the northeast — New York and Boston — and Los Angeles and San Francisco with lie-flat seats readily available.

WestJet and Indigenous Tourism Association of Canada (ITAC) roll out support for Indigenous tourism businesses

WestJet and the Indigenous Tourism Association of Canada (ITAC) are providing nine, $10,000 grants to Indigenous tourism businesses across Canada that have been devastated by the shutdown of the tourism industry due to the COVID-19 pandemic. The grants were originally earmarked through the WestJet/ITAC strategic national partnership, signed in November 2019.

The recipients of these grants were given the news in March 2021 and their reactions were captured in a new WestJet/ITAC video, WestJet & ITAC: supporting Indigenous tourism in Canada. The Indigenous tourism businesses that received the grants will be spotlighted on WestJet’s social channels and its newsroom over the next year.

The WestJet/ITAC strategic national partnership is a three-year commitment that outlines how the airline will foster opportunities for Indigenous tourism by showcasing Indigenous People’s culture and history while bringing global audiences to take part in Indigenous tourism experiences.

This summer, WestJet and ITAC are encouraging Canadians to support local tourism organizations, including local Indigenous tourism businesses from coast to coast to coast, while following all public health and safety guidelines. Destination Canada has stated that if Canadians shift two-thirds of their planned spend on international leisure travel towards domestic tourism, it will make up for the estimated $19 billion shortfall currently facing our visitor economy and will help sustain 150,000 jobs while accelerating recovery by one year.

“The situation facing the travel and tourism industry overall has been devastating,” continued Avery. “We encourage Canadians to support Indigenous businesses in their communities and across the country when it is safe to do so.”

Recipients of the 2020/2021 WestJet/ITAC grants:

Feast Café Bistro: Winnipeg, Manitoba
Moonstone Creation: Calgary, Alberta
Talaysay Tours: Vancouver, British Columbia
Moccasin Trails: Kamloops, British Columbia
Indigenous World Winery: Kelowna, British Columbia
North Star Adventures: Yellowknife, Northwest Territories
Aurora Village: Yellowknife, Northwest Territories
Indigenous Experiences: Gatineau, Quebec
Miqmak Catering Indigenous Kitchen: Roxboro, Quebec

QANTAS adds seven new routes and puts its Dreamliners on domestic routes

QANTAS Airways has made this announcement:

Qantas customers can now book seven new domestic routes and travel on more widebody aircraft between major capital cities to help meet strong demand for domestic travel across Australia.

The new routes – Townsville to Adelaide/Melbourne/Sydney, Adelaide to Cairns/Hobart, Sydney-Uluru and Perth-Gold Coast – provide direct connections and reduce travel time for customers. They bring the total number of routes Qantas and Jetstar have added since the start of the pandemic to 45.

Five of the routes will be operated by Embraer E190 regional jets as part of QantasLink’s partnership with Alliance Airlines. The first Qantas flights operated by the 94-seat E190s took off on May 25 between Adelaide, Darwin and Alice Springs.

Customers will also see more widebody aircraft with Business Suites on flights between the East Coast capital cities into Perth and Darwin.

Usually used for long haul international flights including Perth-London, the 236-seat Boeing 787-9 Dreamliner will begin operating up to nine Sydney to Perth flights per week.

Widebody Qantas Airbus A330-200 aircraft, which serviced international routes into Asia, will operate on more flights into Darwin from Sydney and Brisbane, and also into Perth from Sydney and Melbourne. These will be added to the A330s already flying on east-west routes.

The additional flying will see Qantas’ capacity exceed 100 per cent of pre-COVID levels in the coming months and the Group’s market share around 70 per cent.

NEW ROUTES

Route	Start Date	Return flights per week	Aircraft
Adelaide – Townsville	August 2021	3 per week	E190
Adelaide – Cairns	August 2021	4 per week	E190
Adelaide – Hobart	September 2021	Up to 7 per week	E190
Sydney – Townsville	September 2021	7 per week	E190
Melbourne – Townsville	September 2021	7 per week	E190
Perth – Gold Coast	September 2021	3 per week	B737
Sydney – Uluru	March 2022	5 per week	B737

The new flights add to Jetstar’s existing services across six of the routes, providing a range of travel options for Qantas Group customers.

ADDITIONAL WIDEBODY FLYING

Route	Added or upgauged flights	Aircraft	Total weekly flights (all aircraft)
Sydney-Perth	Up to 9 per week	787 Dreamliner	34
Sydney-Perth	Up to 4 per week	A330	34
Melbourne-Perth	Up to 24 per week	A330	37
Sydney-Darwin	Up to 7 per week	A330	12
Brisbane-Darwin	Up to 3 per week	A330	9

QANTAS GROUP ROUTES ANNOUNCED OR COMMENCED FLYING FROM JULY 2020

Route	Airline
Sydney-Byron Bay	Qantas
Brisbane-Tamworth	Qantas
Sydney-Orange	Qantas
Canberra-Gold Coast	Qantas
Brisbane-Port Macquarie	Qantas
Perth-Hobart	Qantas
Canberra-Sunshine Coast	Qantas
Canberra-Cairns	Qantas
Hobart-Gold Coast	Jetstar
Sydney-Merimbula	Qantas
Brisbane-Hobart	Qantas
Sydney-Launceston	Qantas
Sydney-Mildura	Qantas
Canberra-Hobart	Qantas
Melbourne-Sunshine Coast	Qantas
Melbourne-Newcastle	Qantas
Melbourne-Merimbula	Qantas
Sydney-Griffith	Qantas
Melbourne-Mount Gambier	Qantas
Adelaide-Mount Gambier	Qantas
Melbourne-Wagga Wagga	Qantas
Melbourne-Albury	Qantas
Melbourne-Hamilton Island	Jetstar
Perth-Onslow	Qantas
Melbourne-Coffs Harbour	Qantas
Brisbane-Coffs Harbour	Qantas
Canberra-Ballina (Byron Bay)	Qantas
Gold Coast-Auckland	Qantas
Sydney-Hervey Bay	Jetstar
Brisbane-Albury	Qantas
Brisbane-Cooma (Snowy Mountains)	Qantas
Sydney-Cooma (Snowy Mountains)	Qantas
Melbourne-Burnie	Qantas
Canberra-Darwin	Qantas
Adelaide-Gold Coast	Qantas
Cairns-Newcastle	Jetstar
Melbourne-Busselton	Jetstar
Auckland-Cairns	Qantas

Top Copyright Photo: QANTAS Airways Boeing 787-9 Dreamliner VH-ZNI (msn 66073) PAE (Nick Dean). Image: 947836.

QANTAS aircraft slide show:

Air Serbia is recommencing flights to its popular destinations

Air Serbia has made this announcement:

Starting from May 28, 2021, Air Serbia will recommence flights to its destinations on the Croatian coast – Dubrovnik and Split. The flights to popular vacation destinations in Dalmatia will be operated two times a week, on Mondays and Fridays, and from 13 June, the third weekly flight to Split will be added on Sundays.

In addition to seasonal routes, Air Serbia will recommence its scheduled services to Bucharest on June 4, 2021. The Serbian national airline will be operating flights to the capital of Romania three times a week – on Mondays, Fridays and Saturdays. By the end of June, it is planned to increase the number of weekly flights to Bucharest to five, by adding one flight on Sundays and Mondays each.

In addition, the company will also recommence flights to Thessaloniki, and will be resuming flights to Prague and Sofia from June 4, 2021.

During the summer season, the Serbian national airline will be operating flights to Thessaloniki seven times a week – twice daily on Mondays and Fridays and once daily on Tuesdays, Saturdays and Sundays. A direct flight on this route lasts one hour and 15 minutes on average.

For the majority of the summer season, Air Serbia will be operating flights to Prague two times a week – on Mondays and Fridays. A direct flight between the Serbian and Czech capitals lasts one hour and 40 minutes on average.

It is planned to operate Air Serbia flights to Sofia three times a week – twice daily on Mondays and once daily on Fridays. Direct flight between the capitals of Serbia and Bulgaria lasts one hour and five minutes on average.

“We are glad that the summer season is approaching and, judging by the apparent changes in demand, the situation is developing in a positive direction. We are pleased that we have the opportunity to enable passengers to plan their summer vacation in popular coastal destinations such as Dubrovnik and Split, for which there is traditionally a lot of interest because of their beauty and proximity. The air connection to the capital of Romania is also very important to us, primarily for economic reasons,” said Jiri Marek, General Manager, Commercial and Strategy, Air Serbia.

Top Copyright Photo: Air Serbia Airbus A330-243 YU-ARB (msn 973) (Nikola Tesla) JFK (Fred Freketic). Image: 953667.

Air Serbia aircraft slide show:

Air Astana to launch flights to Montenegro

Air Astana will inaugurate new services between Kazakhstan and Montenegro on June 9, 2021, with flights to Podgorica, Montenegro’s capital, operating from Nur-Sultan on Wednesdays and Saturdays and from Almaty on Thursdays and Sundays. All flights will be operated by new Airbus A321LR aircraft.

Flights from Nur-Sultan are scheduled to depart at 09:00 and arrive in Podgorica at 10:55, with return from Podgorica at 12:00 and arrival in Nur-Sultan at 21:20. Flights from Almaty will depart at 07:30 and arrive in Podgorica at 10:25, with return from Podgorica at 11:30 and arrival in Almaty at 21:25. All times local.

Passengers are required to have a negative PCR certificate issued not later than 72 hours before departure in order to enter Montenegro. A certificate is not required for children under 5 years of age, passengers with a positive result of IgG antibody test issued not later than 30 days, and passengers who have completed a full course of coronavirus vaccination, approved in Montenegro.

Top Copyright Photo: Air Astana Airbus A321-271N WL P4-KDE (msn 8090) AMS (Ton Jochems). Image: 949475.

Air Astana aircraft slide show:

Frontier Airlines opens a Tampa crew base

Frontier Airlines has made this announcement:

Frontier Airlines on May 25 officially marked the opening of its new crew base at Tampa International Airport (TPA). Approximately 250 flight attendants and 140 pilots will be based at TPA in 2021 with that number expected to increase in the future.

Frontier currently offers 21 nonstop routes from Tampa International Airport with a wide range of additional flight connection opportunities within Frontier’s domestic and international network. The airline serves more than 100 destinations in total and has 149 new aircraft on order and scheduled to enter its fleet between now and 2028.

Routes from TPA: