Category Archives: Vueling Airlines

IAG orders 37 additional Airbus A320neo aircraft, reports a profit in the third quarter

International Airlines Group (IAG) has confirmed an order for 37 additional Airbus A320neo aircraft, following shareholder approval.

The latest order follows earlier agreements for 22 A320neo Family (17 A320neos, 5 A321neos) announced in March and June 2022, taking the total for the year to 59 single aisle aircraft.

On the financial side, IAG issued this financial report for the third quarter:

International Consolidated Airlines Group (IAG) on October 28, 2022 presents Group consolidated results for the nine months to September 30, 2022.

IAG achieves a significant step up in profitability for all its airlines in quarter three

IAG financial results highlights for the period:

  • Operating profit for the third quarter €1,208 million (2021: operating loss €452 million), and operating profit before exceptional items €1,206 million (2021: operating loss before exceptional items €485 million)
  • Operating profit for the nine months €770 million (2021: operating loss €2,487 million), and operating profit before exceptional items €739 million (2021: operating loss before exceptional items €2,665 million)
  • Profit after tax and exceptional items for the third quarter €853 million (2021: loss €574 million) and profit after tax before exceptional items €853 million (2021: loss €606 million)
  • Profit after tax and exceptional items for the nine months €199 million (2021: loss €2,622 million) and profit after tax before exceptional items €170 million (2021: loss €2,775 million)
  • Strong liquidity at September 30, 2022:
    • Total liquidity increased to €13,488 million (December 31, 2021: €11,986 million)
    • Cash1 of €9,260 million, up €1,317 million on December 31, 2021
    • Committed and undrawn general and aircraft financing facilities of €4,228 million (December 31, 2021: €4,043

      million); availability of $1,755 million revolving credit facility extended by one year to March 2025

  • Net debt at September 30, 2022 was down €609 million since December 31, 2021 to €11,058 million

    Total revenue fully recovered despite lower capacity than in 2019

  • Total revenue for quarter 3 of €7,329 million, 0.9 per cent higher than in 2019, despite the restrictions imposed at London Heathrow airport and the Asia Pacific network remaining substantially closed
    • Passenger unit revenue increased in quarter 3 by 21.9% vs 2019 (quarter 2 up 6.4%)
    • Passenger capacity in quarter 3 was 81.1% of 2019 up from 78.0% in quarter 2, driven primarily by IAG’s key

      regions of European shorthaul (91% of 2019), North America (92%) and Latin America & Caribbean (75%)

    • Passenger yield for quarter 3 was 22.9% higher than in 2019 and load factor of 87.0% was only 0.7pts lower
  • By the end of quarter 3, premium leisure revenue had fully recovered to 2019’s level, despite capacity being significantly lower. Business channel revenue had recovered to c.75% of 2019’s level
  • Non-fuel unit costs were 25.5% higher than 2019 in quarter 3, driven by the lower capacity operated, adverse foreign exchange and inflation
  • British Airways’ capacity for the quarter was in line with previous guidance and operational performance significantly improved during the quarter, with further improvements planned in order to achieve the levels we expect
  • IAG’s overall passenger capacity plans are for c.87% of 2019 capacity for quarter 4 and c.78% for the full year 2022
  • British Airways’ main pension scheme (NAPS) – heads of terms for 2021 valuation agreed with Trustees, with no deficit reduction contributions expected under the existing overfunding protection mechanism

Luis Gallego, IAG Chief Executive Officer, said:

“We achieved another strong performance in the third quarter, with an operating profit of €1.2 billion and liquidity of over €13 billion. All our airlines were significantly profitable and we are continuing to see strong passenger demand, while capacity and load factors recover.

“Leisure demand is particularly healthy and leisure revenue has recovered to pre-pandemic levels. Business travel continues to recover steadily.

“I would like to thank our employees across the Group for their hard work which has been key to our recovery. This strong trading performance allows us to continue to invest in our customers, our people and our industry-leading sustainability agenda.

“We’re pleased that our shareholders have recently approved the acquisition of 87 new shorthaul aircraft that will bring us long-term cost savings, lower carbon emissions as well as an improved customer experience.

“While demand remains strong, we are conscious of the uncertainties in the economic outlook and the ongoing pressures on households. Against this backdrop, we are focused on adapting our operations to meet demand, strengthening our balance sheet by re-building our profitability and cashflows and capitalising on our high level of liquidity. This will allow us to allocate capital while investing in a disciplined way in our service and our people, to build capacity and enable future growth.

“As we build back our operational resilience, we are confident in our strengths as a Group: first, a portfolio of leading airline brands; second, leading positions in our key markets and hubs; and third, the flexibility afforded by IAG to drive operational efficiency and innovation. These will enable us to return to pre-COVID levels of profit and generate long-term value for all our stakeholders.”

Trading outlook

At current fuel prices and exchange rates, IAG expects its 2022 pre-exceptional operating profit to be approximately €1.1 billion. Net cash flow from operating activities is expected to be significantly positive for the year. This assumes no further setbacks related to COVID-19 and material impacts from geopolitical developments. Net debt is expected to increase by year end, linked to seasonal booking patterns and capital expenditure associated with aircraft deliveries in quarter 4.

Quarter 4 2022 capacity, measured in ASKs, is expected to be approximately 87% of 2019, resulting in full year 2022 capacity of c.78% of the 2019 level. Capacity in the first quarter of 2023 is expected to be approximately 95% of 2019.

Top Copyright Photo: Iberia Airbus A320-251N WL EC-NCM (msn 8781) ZRH (Rolf Wallner). Image: 946309.

Iberias aircraft photo gallery:

Vueling is facing three months of cabin crew strikes

Vueling Airlines is facing three months of selective strikes by the Stavia union representing its cabin crews.

The union has announced its member will go on strike every Friday, Sunday and Monday between November 1 and January 31, 2023.

In addition, the union will also target other key dates in these three months.

The union is citing a lack of progress in the company negotiations for the targeted strikes.

Top Copyright Photo: Vueling Airlines (Vueling.com) Airbus A320-214 EC-LOC (msn 4855) MAN (Brian Worthington). Image: 959184.

Vueling Airlines aircraft photo gallery:

 

IAG returns to profitable for the first six months of 2022

International Consolidated Airlines Group (IAG) presented its Group consolidated results for the six months to June 30, 2022.

IAG returns to profit in the second quarter following strong recovery in demand across all airlines

IAG financial results highlights for the period:

  • Operating profit for the second quarter €293 million (2021: operating loss €967 million), and operating profit before exceptional items €287 million (2021: operating loss before exceptional items €1,045 million)
  • Operating loss for the half year €438 million (2021: operating loss €2,035 million), and operating loss before exceptional items €467 million (2021: operating loss before exceptional items €2,180 million)
  • Profit after tax and exceptional items for the second quarter €133 million (2021: loss €981 million) and profit after tax before exceptional items €127 million (2021: loss €1,045 million)
  • Loss after tax and exceptional items for the half year €654 million (2021: loss €2,048 million) and loss after tax before exceptional items €683 million (2021: loss €2,169 million)
  • Strong liquidity at June 30, 2022:
    • Total liquidity increased to €13,489 million (December 31, 2021: €11,986 million)
    • Cash1 of €9,190 million, up €1,247 million on December 31, 2021, with significantly positive working capital, driven

      principally by bookings for travel in the second half of the year

    • Committed and undrawn general and aircraft financing facilities of €4,299 million (December 31, 2021: €4,043

      million), including an additional €200 million loan facility for Aer Lingus from the Ireland Strategic Investment Fund

  • Net debt at June 30, 2022 was down €688 million since December 31, 2021 to €10,979 million, reflecting the seasonal

    benefit on cash of bookings for travel in the second half of the year

    Customer demand continues to recover strongly

  • Passenger capacity in quarter 2 was 78% of 2019 (Q1 guidance: c80%), up from 65% in quarter 1, driven primarily by IAG’s key regions of European shorthaul (capacity 89% of 2019), North America (84%) and Latin America & Caribbean (81%)
  • Passenger unit revenue in quarter 2 increased by 6.4% compared to 2019, helping to offset lower capacity and higher fuel costs, driven by passenger revenue yield 10.6% higher than in 2019
  • Load factor of 81.8% (3.2 points lower than in 2019, but higher than 72.2% in quarter 1)
  • By the end of quarter 2, premium leisure revenue had almost fully recovered to 2019’s level, despite capacity being

    significantly lower. Business channel revenue had recovered to c.60% of 2019’s level

  • In response to the challenging operational environment at Heathrow, British Airways’ capacity was limited to 69.1% in quarter 2 (compared to 57.4% in quarter 1) and plans to increase to c.75% in quarter 3
  • IAG’s overall passenger capacity plans for the remainder of 2022 are c.80% in quarter 3 and c.85% in quarter 4, a reduction

    of 5% for the second half of the year compared to previous guidance, mainly due to the challenges at Heathrow; full-year capacity is expected to be c.78% of 2019 (compared to c.80% previously), with North America close to 2019 capacity by the end of the year

  • SAF (Sustainable Aviation Fuel) purchase commitments increased to $865 million (from $400 million previously) for the next 20 years, including a quarter of IAG’s SAF target for 2030 (10% of total fuel needs)

Luis Gallego, IAG Chief Executive Officer, said:

“In the second quarter we returned to profit for the first time since the start of the pandemic following a strong recovery in demand across all our airlines. This result supports our outlook for a full year operating profit.

“Our performance reflected a significant increase in capacity, load factor and yield compared to the first quarter. “Premium leisure remains strong while business travel continues a steady recovery in all airlines.

“Iberia and Vueling were the best performing carriers within the Group. The Spanish domestic market and routes to Latin America continued to lead the recovery with demand exceeding 2019 levels last month.

“Forward bookings show sustained strength and North Atlantic demand continues to grow following the lifting of the US COVID testing requirements in June.

“Although bookings into the fourth quarter are seasonally low at this time of year, we are seeing no signs of any weakness in demand.

“Our industry continues to face historic challenges due to the unprecedented scaling up in operations, especially in the UK where the operational challenges of Heathrow airport have been acute. Our airline teams remain focused on enhancing operational resilience and improving customer experience. I would like to thank those customers affected for their loyalty and patience and our colleagues for their hard work and commitment. We will continue working with the industry to address these issues as aviation emerges from its biggest crisis ever.

“In line with our net zero commitment by 2050, we have announced the addition of 50 new Boeing 737s and 59 Airbus A320 Neo family aircraft subject to shareholder approval. These modern, fuel-efficient planes will see us over 60 per cent through our shorthaul fleet replacement by 2028.

“As we build back operational resilience, our strong portfolio of brands, ability to deliver efficiencies through our Group scale, strong capital discipline and our leadership position in sustainability will generate long term shareholder value.”

Trading outlook

IAG expects pre-exceptional operating profit to be significantly improved for quarter 3 2022 compared to quarter 2 and to be positive for full year 2022. Net cash flow from operating activities is expected to be significantly positive for the year. This assumes no further setbacks related to COVID-19 and government-imposed restrictions or material impacts from geopolitical developments. Net debt is expected to increase by year end compared with the end of 2021.

Aircraft:

Vueling to add five new routes from London Gatwick

Vueling Airlines (Vueling.com) Airbus A320-271N WL EC-MZT (msn 8181) ZRH (Rolf Wallner). Image: 954764.

Vueling Airlines has announced it will add vive new routes from London (Gatwick) in April.

The carrier will fly from LGW to Seville, Granada, Malaga, La Coruña, and Menorca this summer season.

Vueling will have 12 routes from LGW this summer.

Top Copyright Photo: Vueling Airlines (Vueling.com) Airbus A320-271N WL EC-MZT (msn 8181) ZRH (Rolf Wallner). Image: 954764.

Vueling Airlines aircraft slide show:

Vueling Airlines aircraft photo gallery:

 

Vueling expands in a big way at Paris Orly

Vueling Airlines (Vueling.com) Airbus A319-111 EC-NGB (msn 2751) FLR (Marco Finelli). Image: 955352.

Vueling  Airlines has announced 28 routes from Paris Orly starting in early November. The new routes will start from November 2 thru November 5.

The airline will operate 52 routes from ORY this winter.

Vueling is taking advantage of slots given up by Air France at Orly Airport.

Routes that will be flown:

Top Copyright Photo: Vueling Airlines (Vueling.com) Airbus A319-111 EC-NGB (msn 2751) FLR (Marco Finelli). Image: 955352.

Vueling aircraft slide show:

Vueling adds three ex-Level Europe Airbus A321s

Vueling Airlines (Vueling.com) Airbus A321-211 WL EC-NLV (msn 6454) (Level colors) PMI (Javier Rodriguez). Image: 954843.

Vueling Airlines is adding more aircraft.

Besides two Airbus A320s, Vueling has taken delivery of three A321s previously operated by IAG’s Austrian brand Anisec Lufthart (operated as Level Europe) which ceased operations in March 2020.

The airliner displays a hybrid scheme as seen on EC-NLV (formerly OE-LCN, msn 6454).

Photo and report by Javier Rodriguez from Spain.

Copyright Photo: Vueling Airlines (Vueling.com) Airbus A321-211 WL EC-NLV (msn 6454) (Level colors) PMI (Javier Rodriguez). Image: 954843.

Vueling aircraft slide show:

Vueling returns to Göteborg Landvetter this summer with nonstop service to Barcelona

Vueling Airlines has made this announcement:

Vueling Airlines, part of International Airlines Group (IAG), is returning to Gothenburg and Göteborg Landvetter after a suspension of service autumn 2019. Vueling will resume service to the capital of Catalonia starting on June 11 with two weekly flights on Fridays and Sundays.

Spain is a popular tourist destination from Sweden, and a large number of Swedes who live abroad reside there.

Vueling is currently the only carrier to offer this route, and at present there is no service to Spain from Göteborg Landvetter Airport (GOT). Connecting flights from Vueling’s hub, Barcelona International Airport – El Prat (BCN), enable Swedish travelers to reach more than 15 destinations in Spain.

The airline started operations in Sweden 2012. In addition to the route from Göteborg Landvetter Airport to be launched in June, Vueling offers daily non-stop service from Stockholm Arlanda Airport to Barcelona.

Vueling Airline’s main priority will continue to be the application of the highest safety and hygiene standards on all flights, following the recommendations established by the European Aviation Safety Agency (EASA) and the European Centre for Disease Prevention and Control (ECDC).

Vueling aircraft photo gallery:

Vueling aircraft slide show:

Iberia Group unveils summer flight program with stringent new health and hygiene measures

Iberia Group has made this announcement:

  • For safe travel, disinfectant spraying of cabins, checking hand luggage without charge, boarding by rows.
  • Iberia and Iberia Express were early adopters of the recommendations made by the European Air Safety Agency (EASA) and the European Centre for Disease Control (ECDC).
  • This summer, they will offer regular flights over 50 destinations in Spain and the rest of Europe

Centring on Spain and the rest of Europe, the Iberia Group’s summer flight programme to over 50 Spanish and European destinations, features new health and hygiene measures to ensure passenger safety and a pleasant travel experience, in keeping with the recommendations of the European Air Safety Agency (EASA) and the European Centre for Disease Control (ECDC), intended to facilitate the recovery of air travel in a safe environment.

Here follows a summary of these measures, which are given in detail on the Iberia web site:   https://www.iberia.com/es/es/covid-19/medidas-adoptadas/  and the Iberia Express site https://i2news.iberiaexpress.com/medidas-covid/

Pre-flight: 
•    During check in passengers must sign a Declaration of Health, attesting that they have no symptoms, have not been diagnosed with Covid-19, and have not been in contact with a known carrier.
•    On flights abroad passengers must also complete a “Health Tracking Form” and a “Health Questionnaire”.
•    Only passengers holding tickets to fly will be admitted to Spanish or other European airports.
•    Passengers are strongly advised to obtain their boarding passes before reaching the airport, downloading them to their telephones in order to avoid contacts.

At the airport: 
•   All surfaces that may be touched by passengers are disinfected frequently and barriers have been placed in strategic positions at check in and customer service counters.
•   Queues for check in and other services have been redesigned to ensure distancing.
•   Passengers are strongly advised to check in their hand luggage (at no charge), in order to avoid unnecessary movements aboard the aircraft.
•   No hand luggage may be taken aboard that exceeds 56 x 40 x 25cm or 10 kg in Economy. On long-haul flights Business passengers may take two pieces of hand luggage not exceeding 14 kg.
•   For additional speed, safety, and convenience, passengers will board by rows, starting from the rear.

Other measures:
•   During flights all passengers above the age of six must wear face masks covering nose and mouth, preferably surgical ones.
•   Passengers must change their masks with the frequency indicated by the manufacturer. Bags will be provided for the storage or disposal of used masks.
•    Aircraft cabins will be thoroughly cleaned and disinfected before each flight..
•    Air in cabins is replaced every 2-3 minutes, and HEPA filters eliminate 99.99% of all virus and bacteria from recirculated air.

On-board services:
•   On each flight passengers will hear messages from health authorities about detecting, avoiding, and reporting symptoms of Covid-19.
•   Disinfectant wipes will be issued to all passengers, and extra supplies of hand-washing soaps will be available in toilets.
•    Single-use disposable utensils will be used in food service, which has been simplified..
•    Blankets and pillows issued on long haul flights are disinfected and sealed before use.
•   Duty-free sales and the distribution of newspapers and magazines during flights have been eliminated, but passengers can access more than 7,000 on-line publications, along with other entertainment options.
•   Outfitted in personal protection gear, Iberia cabin crews have also undergone specific training in the implementation of good health practices and special protocols, enabling them to detect and isolate any passenger showing suspicious symptoms.