Monthly Archives: October 2021

JetBlue arrives in San Antonio

JetBlue Airways today announced it has officially launched service at San Antonio International Airport (SAT) from both New York’s John F. Kennedy International Airport (JFK) and Boston Logan International Airport (BOS), with the first flights landing in the Texas city this afternoon.

San Antonio service will operate with a mix of both the Airbus A320 and A220 aircraft.

Swoop takes off for San Diego

Swoop celebrated its first flight from Edmonton International Airport (YEG) to San Diego International Airport (SAN) today.

The ultra-low cost airline’s new service between Edmonton and San Diego will operate three times weekly during peak season on Sundays, Tuesdays and Thursdays.

ANA posts a loss for last six month

ANA Holdings issued this financial report for the last six months:

  • Recovery in travel demand was slow due to continued entry restrictions in many countries as well as the State of Emergency and corresponding measures in effect in Tokyo for more than 90% of the period. Conversely, ANA achieved record cargo revenue due to strong international demand.
  • • As an outcome of fixed cost reduction efforts, operating expenses have been reduced despite an increase in operations, leading to significant improvement in operating income.
  • • While an upturn in domestic passenger demand is visible and strong cargo demand continues, and together with company-wide cost reduction efforts will combined contribute to improved operating income, ANA Holdings Inc. has revised its full-year financial forecast. The revised forecast reflects the findings that projected second-half revenue will not be sufficient to cover lack of revenue during the first half of the fiscal year.
  • • Fixed costs have decreased by 30% compared to pre-COVID levels, leading to a significantly lower break-even point. ANA Holdings Inc. expects to return to profitability in the fourth quarter of fiscal year 2021 by leveraging the new cost structure to create profitability by harnessing recovering travel demand.

ANA Holdings reported its financial results for the six months ended Sept. 30, 2021.

Overview

In the first six months of fiscal year 2021 (April 1, 2021 – September 30, 2021; hereinafter the “six months ended September 30, 2021”), the Japanese economy is slowly recovering despite effects of the COVID-19 pandemic. The airline industry has seen signs of recovery in demand for domestic flights in the United States and other countries. However, challenges still exist due to restrictions on entry and travel in many countries.

Under these economic conditions, operating revenue for the first half of FY 2021 increased from the same time period for the previous year, reaching 431.1 billion yen. The continued impact of COVID-19 resulted in an operating loss of 116.0 billion yen, an ordinary loss of 115.5 billion yen, and a net loss attributable to owners of the parent of 98.8 billion yen, while overall losses are decreasing year-on-year.

“In the face of prolonged adversity and continuously changing market demands, ANA HD has leveraged its assets and expertise to adjust fundamental aspects of our business model to reflect the shifts in demand that have been caused by the pandemic,” said Ichiro Fukuzawa, Executive Vice President and Chief Financial Officer of ANA HOLDINGS INC. “I am proud of how the entire ANA team has responded to the pandemic, and their hard work and dedication has helped place the ANA Group on an upward trajectory that will return our entire business to profitability in the near future. We will continue seeking opportunities to drive growth that will persist after the pandemic and accompanying travel regulations subside.”

Air Transportation

Despite still being significantly impacted by the COVID-19 pandemic, passenger demand increased from the previous year, and by proactively working to capture the strong cargo demand which achieved record high revenue on a half-year basis, operating revenue exceeded the amount recorded during the same period of the previous year. While ANA HD still recorded an operating loss, reductions in fixed costs such as personnel costs as well as depreciation, amortization and maintenance costs which were achieved through the early retirement of aircraft in the previous year have helped improve profits and curtailed losses compared to the same period the previous year.

The Group provided transportation as an official airline partner of the Tokyo Olympic and Paralympic Games. In addition, ANA was selected as the best airline in four categories – including cabin cleanliness – in the SKYTRAX World Airline Awards 2021.

  • 1. International Passenger Service (ANA)

    • ・For international passenger services, travel demand continued to be reduced across all regions due to the resurgence of COVID-19 cases, the spread of new variants and continued government travel restrictions. However, revenue and the number of passengers increased year-on-year due to a gradual recovery in business demand, primarily for expatriates traveling between Japan and overseas, as well as connecting demand for flights from Asia to North America and demand for the Tokyo Olympic and Paralympic Games.
    • ・ANA reinstated North America flights to/from Tokyo Narita in July to accommodate recovering demand for flights from Asia to North America. The resumption of flights was part of a proactive effort to determine which routes meet emerging demand, as well as to offer temporary routes to destinations with seasonal demand and urgent travel needs.
  • 2. Domestic Passenger Service (ANA)

    • ・While State of Emergency and quasi-emergency measures were in effect in Tokyo for more than 90% of the period due to a resurgence in COVID-19 cases, the number of passengers served and revenue both increased compared to the same period in the previous year, when the impact of COVID-19 was felt more acutely.
    • ・Detailed adjustments to the route network capacity were made in response to fluctuations in demand. In addition, ANA started code-sharing on select flights operated by Peach Aviation Ltd. to further improve convenience for customers.
  • 3. Cargo Service (ANA)

    • ・For international cargo services, ANA actively responded to strong demand by deploying passenger aircraft to fly cargo-dedicated flights and fully utilizing the freighter aircraft, while introducing the Boeing 767F freighter on the Tokyo Narita – Beijing route in July. By capturing demand for the transportation of goods such as automotive parts and semiconductors from Asia as well as electronic equipment and vaccines from North America and Europe, cargo volume greatly exceeded the amount transported during the same period in the previous year and quarterly revenue hit a record high.
  • 4. LCC (Peach Aviation)

    • ・While demand continues to be impacted by COVID-19, both passenger numbers and revenue increased compared to the same period in the previous year, when demand was more significantly impacted.
    • ・Peach introduced a new route, Osaka Kansai – Memanbetsu in July. We will continue to closely monitor signs of recovery in demand to further expand the network. All international routes are currently suspended due to continued immigration restrictions in a number of countries.
  • 5. Others

    • ・Other revenue from the Air Transportation business was 60.7 billion yen (down 10.8% year-on-year). This includes revenue from the mileage program, in-flight sales revenue, revenue from maintenance contracts and other sources.
    • ・As a new initiative during the COVID-19 pandemic, ANA began offering tours in July at the ANA Blue Base Group training facility, providing guests with a chance to experience the work of a pilot, an engineer or a flight attendant.

Airline Related, Travel Services, Trade and Retail, and Others

  • 1. Airline Related

    • ・Operating revenue: 97.6 billion yen, down 18.5% year-on-year
    • ・Operating income: 1.6 billion yen, down 80.6% year-on-year
    • ・In addition to a decrease in contracts for ground handling services such as passenger check-in and baggage handling due to the suspension and reduction of flights by various airlines, decreased handling volumes for systems development and other factors due to reduced investment owing to COVID-19, there was a decrease in operating revenue year-on-year.
  • 2. Travel Services

    • ・Operating revenue: 19.6 billion yen, up 42.0% year-on-year
    • ・Operating loss: 0.1 billion yen (operating loss 4.0 billion yen same period a year ago)
    • ・For travel services, all overseas tours operated by the ANA Group remain suspended due to the effects of COVID-19, and domestic travel volume decreased compared to the previous year when the “Go To Travel” promotion was in effect. ANA X Inc.’s contracting revenue increased as a result of the transferred digital marketing business and other functions within the ANA Group, and contributed to the increase in operating revenue and a reduced operating loss.
  • 3. Trade and Retail

    • ・Operating revenue: 38.3 billion yen, up 0.2% year-on-year
    • ・Operating income: 0 billion yen (operating loss 2.8 billion yen same period a year ago)
    • ・As aviation demand gradually recovered, sales increased at ANA FESTA shops in airports and the handling volume of semiconductors for electronics businesses increased. However, due to the change in accounting standards, the increase in operating revenue was minimal compared to the same period during the previous year.
  • 4. Others

    • ・Operating revenue: 17.4 billion yen, down 5.6% year-on-year
    • ・Operating income: 0.6 billion yen, down 22.5% year-on-year
    • ・Operating revenue decreased year-on-year due to a decrease in demand for buildings and facilities maintenance caused by the impact of COVID-19.

Outlook for FY2021 (April 2021 – March 2022)

  • ・While international cargo demand was strong, reduced passenger demand continued globally during the first half of the fiscal year due to a resurgence of COVID-19 cases and the spread of new variants. While domestic passenger demand has now started to show signs of recovery in correlation with the decline in reported COVID-19 cases, full-fledged recovery of demand is delayed compared to initial expectations.
  • ・In addition to curbing variable costs related to flight operations, ANA HD will initiate further cuts in fixed costs – such as maintenance and outsourcing costs – to reduce operating expenses. However, due to the significant impact of the decrease in operating revenue, operating income, ordinary income and net income attributable to owners of parent are expected to decrease as well.

As a result, we have revised the consolidated financial forecast for the fiscal year ending March 31, 2022, as shown in the table below.

  • *ANA HD has started to apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),” and other accounting standards beginning this fiscal year. Values for the six months ended September 30, 2021 reflect these new accounting standards.

Bamboo Airways arrives in London Heathrow

Bamboo Airways made this announcement:

Bamboo Airways’ Boeing 787-9 Dreamliner named “Sam Son Beach” finally landed in pride at Heathrow Airport, London.

The flight with nearly 13 flight hours and nearly 12.000 km has marked a new milestone about efforts and success of Bamboo Airways in world aviation.

American Airlines cancels hundreds of flights during Halloween weekend

From CNN:

“American Airlines canceled hundreds of flights during the weekend, citing bad weather and staffing shortages, the company announced in a statement.”

https://www.msn.com/en-US/news/news/american-airlines-cancels-hundreds-of-flights-during-halloween-weekend/ar-AAQ8H4E?ocid=BingNewsSearch

Photo: LAS Cargo (Lineas Aereas Suramericanas) Boeing 737-48E (F) F-GZTT (HK-5385) (msn 27632) SEN (Keith Burton). Image: 955712.

Will become HK-5385, first 737-400F

Copyright Photo: LAS Cargo (Lineas Aereas Suramericanas) Boeing 737-48E (F) F-GZTT (HK-5385) (msn 27632) SEN (Keith Burton). Image: 955712.

LAS Cargo aircraft photo gallery:

 

QANTAS welcomes back international flyers with new amenities

QANTAS Airways has made this announcement:

  • User-friendly digital experience to guide customers step-by-step through international flying
  • Qantas customer favorites return, including pajamas and amenity kits
  • Inflight and lounge menus featuring new plant-based options and signature cocktail

Qantas has unveiled a range of new experiences to join the return of much-loved customer favorites as the airline prepares to resume scheduled international flights next week for the first time in 20 months.

While the international travel experience will largely be the same as pre-COVID, some things will look and feel a little different, particularly in the short-term.

New initiatives including a customized digital travel guide for customers are designed to help passengers navigate travel requirements before they leave home.

DIGITAL SOLUTION

Qantas has developed technology across its website and app and will roll out a revamped digital booking and pre-departure experience that will be tailored to each customer’s journey.

The new digital experience will guide customers through what they need to do their international travel based on government requirements at their time of travel. This will include:

  • Pre-booking: Destination specific travel requirements available on qantas.com.
  • Booking: Travel requirements emailed to customers upon booking and link to upcoming interactive Travel Ready section on qantas.com.
  • Pre-departure: Emails/SMSs to customers seven days, four days and one day ahead of departure with customized checklists, reminders and links to relevant information.

Over the coming weeks, the digital experience will include a seamless integration with the IATA Travel Pass to help customers travel stress free, by enabling them to upload their vaccine and testing documents and be cleared to fly before they get to the airport. Airport check-in for international flights will also open an hour earlier than pre-COVID to allow extra time.

NEW MENU

From November onwards, Qantas will roll out a new menu across its international flights and in the lounges including a number of new plant-based options.

In response to the growing popularity, plant-based meals such as potato and celeriac gratin with roast fennel, peas, mushrooms and onion sauce and Ratatouille Pasta Bake with Herb Crumb, Cauliflower & Green Beans will be available across all cabins on international flights from mid-November.  Iconic Australian ice-creams will also be added to the inflight menu including Paddle Pops and Splices.

The new offering will also include a signature cocktail – the Qantas Sky Spritz – developed by SOFI to celebrate the return to international skies featuring Australian botanicals including Davidson Plum and Finger Lime.

The airline is restocking fridges ahead of the reopening of the Sydney International First Lounge from Monday including 125 punnets of strawberries and 25 kilograms of passionfruit a day for the signature Neil Perry pavlovas.

Qantas has announced it will use Darwin International Airport’s Catalina Lounge as a pop-up International Transit lounge for eligible customers transiting through Darwin on their way to and from London.  Other international lounges will reopen to align with the return of further international routes.

Fly Well kits will continue to be available onboard and other changes to inflight services include using fully compostable paper wrappings on amenity kits, sustainably sourced bamboo combined swizzles and stirrers and new compostable cups rolled out on all international flights.

It is an Australian Government requirement that face masks be worn in airports and on-board flights.

Qantas encourages all travelers to consider taking out travel insurance before an international flight and in a post COVID world, one that incorporates some COVID cover. There are a number of products available to travelers, so customers can choose a policy that will best suit their needs.

Emirates to bring the Airbus A380 back to Australia

Emirates has made this announcement:

With Australia’s borders set to re-open to international travelers from November, Emirates is welcoming the move by enhancing its operations to the country to meet pent up demand for travel into and out of Australia. With vaccination rates in New South Wales having reached their target, and Victoria being not far behind, the two states will allow vaccinated travelers to return to Australia without quarantine.

In response to the easing of travel restrictions, from November 2, 2021 Emirates is stepping up the frequency on flights EK414/415 between Dubai and Sydney to daily operated by a Boeing 777-300ER. Flights to Melbourne will operate as a four-weekly service as EK408/409, with the potential to increase in line with demand.

In another positive sign that the recovery is well underway for Australia, capacity on flights to Sydney and Melbourne will return to 100%, allowing 354 passengers across all cabins to travel on its flights. Australian citizens, permanent residents and their immediate family members will be able to enjoy unrestricted travel once again to and from the two points for the first time since the pandemic began, whether traveling abroad to global destinations for leisure or finally traveling home to visit family or friends, as long as they are vaccinated against COVID-19 with a TGA-approved vaccine.

From December 1, 2021 Emirates’ flagship A380 aircraft, will also return to the Australian skies once again, serving the Dubai-Sydney route, on a daily basis. The much-loved aircraft will offer 516 seats in a three-class configuration, with 426 seats in Economy Class, in addition to its premium cabins, with 76 and 14 seats in Business Class and First Class, respectively.

Emirates and flydubai celebrate four years of strategic partnership

Emirates and flydubai mark four years of strategic partnership. The Dubai-based airlines joined hands in 2017 and since then, more than 8.3 million passengers have enjoyed seamless connectivity across the joint network. Emirates Skywards – the loyalty program for Emirates and flydubai – continues to grow its global membership base, offering more than 27 million members exclusive rewards and benefits.

Airbus operates the first A319neo flight with 100% sustainable aviation fuel

Airbus, Dassault Aviation, ONERA, the French Ministry of Transports and Safran have launched the first in-flight study of a single-aisle aircraft running on unblended sustainable aviation fuel (SAF).

During the flight test over the Toulouse region on October 28, 2021, one CFM LEAP-1A engine of an Airbus A319neo test aircraft operated on 100% SAF. Initial results from the ground and flight tests are expected in 2022.

The unblended SAF is provided by Total Energies. It is made from Hydroprocessed Esters and Fatty Acids (HEFA), which primarily consists of used cooking oil, as well as other waste fats. HEFA is made of paraffinic hydrocarbons and is free of aromatics and sulfur. Approximately 57 tonnes of SAF will be used for the entire test campaign. It is produced in Normandy close to Le Havre, France. The 100% SAF will also be utilized for compatibility and engine operability studies on the Safran Helicopters Arrano engine used on the Airbus Helicopters H160, which are expected to start in 2022.

Airbus, in collaboration with DLR, is responsible for characterizing and analyzing the impact of 100% SAF on ground and in-flight emissions. Safran focuses on compatibility studies related to the fuel system and engine adaptation for commercial and helicopter aircraft and their optimization for various types of 100% SAF fuels. Safran will perform LEAP engine ground tests with 100% SAF at its Villaroche facilities later this year to complete analysis. ONERA is supporting Airbus and Safran in analyzing the compatibility of the fuel with aircraft systems and will be in charge of preparing, analyzing and interpreting test results for the impact of 100% SAF on emissions and contrail formation. Dassault Aviation is contributing to the material and equipment compatibility studies and verifying 100% SAF biocontamination susceptibility.

The study – known as VOLCAN (VOL avec Carburants Alternatifs Nouveaux) – contributes to global decarbonization efforts currently underway across the entire aeronautical industry, and is benefiting from a financing of the France Relance recovery plan, the part thereof dedicated to the decarbonization of aviation, which is implemented by DGAC under the supervision of Jean-Baptiste Djebbari, French Minister of Transports. The study’s ultimate goal is to promote the large-scale deployment and use of SAF, and certification of 100% SAF for use in single-aisle commercial aircraft and the new generation of business jets.