Alaska Airlines to explore fossil-free jet fuel made from CO2

Alaska Airlines made this announcement:

Carbon transformation company Twelve, Alaska Air Group Inc., and Microsoft Corp. (Nasdaq: MSFT) have signed a Memorandum of Understanding (MOU) to collaborate on advancing the market for sustainable aviation fuels (SAF) to include fuels derived from recaptured CO₂ and renewable energy, and working toward the first commercial demonstration flight in the United States powered by Twelve’s E-Jet^®.

Through the first-of-its-kind agreement, Twelve, Alaska, and Microsoft will work to advance production and use of Twelve’s E-Jet^®, a low carbon jet fuel produced by a power-to-liquids process leveraging the company’s carbon transformation technology, which uses only renewable energy, water, and CO₂ as inputs to transform CO₂ into a variety of critical chemicals and materials conventionally made from fossil fuels. As part of the work outlined to advance the scalability and use of the technology, the companies will work toward a demonstration flight using E-Jet^®, and to supply the fuel to address some of Microsoft’s business travel on Alaska.

“By producing our drop-in E-Jet^® fuel from captured CO₂, we can rapidly and efficiently close the carbon cycle and allow businesses to sustainably use emissions to power their own business travel,”. said Nicholas Flanders, Co-Founder and CEO of Twelve. “Partnering with progress-minded brands like Alaska Airlines and Microsoft adds thrust as we work towards delivering industrial-scale volumes of E-Jet^®.”

“Alaska is on a path to net zero by 2040, which will require sustainable aviation fuels like Twelve’s E-Jet^®,” said Diana Birkett Rakow, senior vice president of public affairs and sustainability at Alaska Airlines. “We are committed to making SAF more widely available, at an affordable price, helping bring new alternatives to market, and using these fuels in our operation – a path that requires public policy action and private partnerships like this one. We’re excited to work with Twelve and Microsoft to advance Twelve’s E-Jet^® fuel, turning captured CO₂ and renewable energy into fuel for our airplanes.”

“Addressing emissions from the economy’s hardest-to-abate sectors, such as aviation, will take commitment from all stakeholders,” said Elizabeth Willmott, Carbon Program Director at Microsoft. “Building on our Climate Innovation Fund investment in Twelve and relationship with Alaska Airlines, this collaboration provides an opportunity to accelerate decarbonization in the aviation industry by exploring how to use low carbon fuels produced by renewable electricity, like Twelve’s E-Jet^®.”

Produced using Twelve’s carbon transformation technology and in partnership with Emerging Fuels Technology, E-Jet^® is a fuel with over 80 percent lower lifecycle emissions. Transitioning to E-Jet will not only reduce reliance on fossil fuels but will release fewer particulates and reduce impacts on neighboring communities. In March, Shopify, one of the largest corporate purchasers of long-term carbon removal, announced the first purchase of E-Jet^® through the company’s Sustainability Fund.

SAF is a core part of Alaska’s five-part pathway to net zero by 2040. Since 2010, Alaska has worked with various public and private partners to advance public policies needed to jumpstart the nascent SAF market, create new offtake agreements and cultivate partnerships to accelerate market development. Alaska was also a founding member of the Aviators Group of the Sustainable Aviation Fuel Buyers Alliance, announced at COP26, bringing an operator’s perspective to collaborations driving demand and supply.

Alaska Airlijnes aircraft photo gallery:

Lufthansa recommends arriving at the airport in good time and using digital services

Lufthansa, like other European airlines, is dealing with challenging times as traffic returns to near-normal levels. The airlinje issued this recommendation:

The entire aviation industry is currently suffering from bottlenecks and staff shortages. This affects in particular airports, ground handling services, air traffic control and airlines. Lufthansa has implemented numerous measures to ensure the greatest possible stability of the flight schedule. Nevertheless, there are currently longer waiting times. For the upcoming summer holidays in Hesse, Lufthansa therefore asks its passengers to arrive at the airports in good time and to follow the instructions of the airport operators.

Online services & checking of entry documents

In the interest of the fastest and smoothest possible processes, Lufthansa asks passengers to use the digital online services. Digital check-in is possible from 23 hours before departure. Travelers are also requested to inform themselves in good time about the current entry requirements of their destination country. For some countries, it is still necessary to have proof of Corona-related documents checked before departure and to present an entry declaration upon entry. For this purpose, the free digital document check service can be used between 72 hours and 8 hours before departure. In this way, travelers will find out at an early stage whether their documents are valid or whether urgent action is required.

Baggage

There are numerous baggage machines available to passengers at Frankfurt Airport. First, travelers can print out their baggage labels at separate machines and attach them to their luggage. Then they check in their suitcases or bags at the baggage drop-off. There they will also receive all the receipts for the checked baggage, which should be kept carefully until arrival. Hand luggage should be reduced to the bare minimum to avoid long waiting times at the security checkpoints.

Further services

Lufthansa offers special services for families: Parents with small children can use the family check-in areas in Frankfurt. Lufthansa employees accept baggage and prams at special counters in Hall A. However, it is always advisable to reserve seats and to use the online check-in from 23 hours before departure. Further information is available at: Travelling with Children | Lufthansa.

Passengers will be informed immediately in the event of cancellations and, if possible, rebooked on alternative flights. Alternatively, they can travel to the airports within Germany by train. Passengers whose journey is affected by a rebooking or cancellation before departure can also cancel their booking and have it refunded on Lufthansa.com. Travelers can find current information and general flight information at any time on Lufthansa.com.

Travelers can find up-to-date information and general flight information at any time on the special page Current flight information | Lufthansa.

Lufthansa aircraft photo gallery:

Boeing is encouraged with an uptick in deliveries

The Boeing Company has announced major program deliveries across its commercial and defense operations for the second quarter of 2022.

The company will provide detailed second quarter financial results on July 27. Major program deliveries during the second quarter were as follows:

Major Programs		2nd Quarter 2022	Year-to- Date 2022

Commercial Airplanes Programs
	737	103	189
	747	2	3
	767	7	12
	777	9	12
	787	—	—
Total		121	216

Defense, Space & Security Programs
	AH-64 Apache (New)	6	13
	AH-64 Apache (Remanufactured)	13	28
	CH-47 Chinook (New)	5	9
	CH-47 Chinook (Renewed)	1	4
	F-15 Models	4	5
	F/A-18 Models	4	8
	KC-46 Tanker	4	8
	P-8 Models	3	6

Note: Delivery information is not considered final until quarterly financial results are issued.

Brussels Airlines once again flies passengers to Tomorrowland in Boom

Brussels Airlines made this announcement:

After a two-year hiatus, Brussels Airlines is finally back to bringing nearly 25,000 festivalgoers of more than 130 nationalities to Tomorrowland in Boom. As of July 13, 2022, more than 175 flights will depart from 69 different airports to Brussels Airport, where passengers will already feel the rhythm of the festival thanks to DJ sets amongst others.

For the 16^th edition of the world’s best music festival, 600,000 festivalgoers from more than 200 different countries will unite in Boom for three weekends of Tomorrowland, this year in the theme “The Reflection of Love.” More than 700 artists are programmed across 14 stages.

Brussels Airlines brings the world to Belgium and Boom

Brussels Airlines sold nearly 13,000 flight packages to music fans flying out of 69 different airports to Belgium for the festival, accounting for nearly 25,000 Tomorrowland passengers travelling to and from Brussels on more than 350 Brussels Airlines flights. Ten flights will be transformed into exclusive #TMLpartyflights with a live DJ set at an altitude of ten kilometres. The very first party flight brought the first festivalgoers from Oslo to Brussels yesterday evening, 13 July, in the company of the British DJ duo Goodboys. To immediately get into the mood, festivalgoers in Oslo were treated to the first of eight gate parties.

For the fourth time, Amare is bringing music lovers from around the world to Tomorrowland. Amare is one of Brussels Airlines’ five Belgian Icons, an Airbus A320 dedicated to Tomorrowland. The aircraft is painted on the outside with a gigantic eagle, and also brings the Tomorrowland atmosphere inside thanks to mood lighting and a Bose music system.

In total, 46,000 Global Journey packages were sold to festivalgoers of 133 nationalities. The five most common nationalities are American (almost 12%), German (10.5%), Spanish (over 7%), French and British (both just over 6%). Noteworthy is that 2% of the travellers are of Belgian nationality.

Brussels Airport to the rhythm of Tomorrowland

The unique Tomorrowland atmosphere continues upon arrival at and departure from Brussels Airport. Since mid-June a beautiful Tomorrowland globe was set up on the curb (the area between the departure hall and the car park), which lights up and spins at night.

On July 18 and 25 and August 1, DJs will be performing in the airport between 6 a.m. and 8 p.m. (at Beers & Cheers, Pier A). In addition to the live music, passengers can find the clothing line by Dimitri Vegas & Like Mike in the Fashion Boutique while cosmetics by Anouk Matton will be for sale in the Aelia Duty Free shop (Pier A).

Nearly three hundred Brussels Airlines’ volunteers ensure the ultimate Tomorrowland experience

As every year, Brussels Airlines is inviting everyone to take a free ride on the Ferris wheel on the festival grounds, with a stunning view of the fairy-tale landscape of Tomorrowland and beyond.

The airline’s employees will also be present at the service desk at the festival site, so that passengers can make adjustments to their flight or get the right information about their trip right away and at the festival.

In order to offer its passengers a carefree return journey after a fantastic Tomorrowland experience, Brussels Airlines has once again set up a mobile bag drop-off at the DreamVille campsite. Partygoers travelling back by plane can already check in their luggage at the campsite and therefore do not have to carry their suitcases and tents to the airport themselves.

More details are available in the infographic below.

Brussels Airlines aircraft photo gallery:

Bristow and Elroy Air sign Letter of Intent for 100 Chaparral VTOL aircraft

Bristow Group Inc. has signed a Letter of Intent (LOI) with Elroy Air to pre-order 100 Chaparral hybrid-electric cargo VTOL aircraft.

The Chaparral will be the first of its kind vertical take-off and landing (VTOL) aircraft dedicated to cargo movement to be introduced into Bristow’s aircraft fleet. Bristow plans to use the Chaparral to serve logistics, healthcare, and energy applications. Additionally, the Chaparral provides a solution to challenges helicopter operators are facing across the world, including reducing emissions by introducing hybrid-electric powertrain and helping offset the pilot shortage by introducing autonomous aircraft for cargo operations.

The Chaparral will carry 300–500 pounds (136 to 226kg) of cargo over a 300-mile (482 km) range with its hybrid-electric powertrain and simple, redundant vertical and forward-flight propulsors
Bristow will leverage its 70+ years of aviation expertise to move time-sensitive cargo for logistics, healthcare and energy applications
Elroy Air expects to deliver 100 autonomous-flight Chaparral VTOL aircraft to Bristow

The first production version of the Chaparral will carry 300–500 pounds (136 to 226kg) of cargo over a 300-mile (482 km) range with its hybrid-electric powertrain and simple, redundant vertical and forward-flight propulsors. Goods are loaded into an underslung pod that latches to the fuselage and can autonomously be picked up and dropped off in a 50-foot landing square.

The Chaparral is the flying part of an integrated, high-throughput autonomous aerial logistics system. The vehicle can land, deposit cargo, pick up another load, and take-off again, all in just a few minutes and without operator interaction. Although operated autonomously, the Chaparral can also be remotely piloted to comply with civil aviation authorities and airspace integration policy.

To date, Elroy Air has secured agreements to supply 900 aircraft to commercial, defence and humanitarian customers. The LOI is expected to be replaced with a separate purchase agreement.

The Chaparral features distributed electric propulsion, with eight vertical lift rotors, four forward propellers for cruise flight, a high-wing airframe configuration, as well as automated ground autonomy and cargo-handling systems. Its airframe is fabricated using carbon composite materials.

SAS at the brink, seeks DIP financial backers

Scandinavian Airlines-SAS issued this statement:

The strikes undertaken by the SAS Scandinavia pilots’ unions, which began on July 4, 2022, already have severely impacted the liquidity and overall financial position of SAS AB and threatens the Company’s ability to ultimately successfully raise critically needed near-term and long-term capital to fund the Company’s successful reorganization.

As of today, the strike has so far caused over 2,550 flight cancellations which has affected over 270,000 passengers. The estimated effect of the strike is approximately SEK 100-130 million per day or roughly SEK 1.0-1.3 billion in costs so far.

As stated in SAS’ press release on July 5, 2022, the Company has had sufficient liquidity to meet its business obligations in the near term without accessing new forms of capital. However, a prolonged strike means that the Company’s limited cash reserves, which naturally decline given that summer sales have already largely occurred, will erode very quickly in the face of a continuing pilot strike.

As further announced on July 5, 2022, SAS is in well advanced discussions with a number of potential lenders with respect to obtaining additional debtor-in-possession (DIP) financing, a specialized type of bridge financing for businesses that are restructuring through a chapter 11 process, for up to USD $700 million (the equivalent of approximately SEK 7.0 billion) to ensure the Company has sufficient funds to complete its restructuring.

The prospective DIP lenders have made it clear to the Company such financing is predicated on successfully demonstrating a road map to achieving the full SEK 7.5 billion in annual cost savings that is a cornerstone of the SAS FORWARD Plan.

Continuance of the pilot strike may jeopardize the Company’s access to such DIP financing. In such an event, the Company will need to consider selling valuable strategic assets under duress while also radically downsizing SAS’s operations and fleet absent a breakthrough in negotiations with its pilot groups. Once those actions are taken, it will be difficult for SAS to rebuild back the size and breadth of its current network and services.

Other key elements of the SAS FORWARD Plan include converting approximately SEK 20 billion of debt and hybrid notes into common equity and also that SAS will seek to raise not less than SEK 9.5 billion in new equity capital which would be used in substantial part to pay off the DIP Financing upon successful emergence from the US chapter 11 court process.

“We deeply regret that our customers are affected by the strike, leading to delays and canceled flights. The strike also has a severe impact on our possibilities to succeed with SAS FORWARD. We must reach an agreement and end the strike as soon as possible. That will require us to find us a solution that is acceptable to all stakeholders that have expressed their intention to support SAS, conditioned on the Company succeeding with SAS FORWARD. The strike is putting the success of the chapter 11 process and, ultimately, the survival of the Company at stake,” says Anko van der Werff, President & CEO.

Erno Hildén, Executive Vice President and CFO, adds: “Since February 1, 2020 (the quarter when the pandemic started) through April 30, 2022, losses amounted to a total of SEK 19.7 billion (earnings before tax). The current pilot strike, with the consequential liquidity drain, amplifies the already dire situation. Progressing SAS FORWARD is essential in order for SAS to survive and to make the Company strong and investable again”.

SAS aircraft photo gallery:

Spirit completes Wi-Fi installation on its Airbus A320 and A321 fleets, A319s to come later, adds San Antonio

Spirit Airlines has completed yet another groundbreaking investment in the Guest experience. Guests can now binge their favorite shows via Spirit Wi-Fi on flights operated by its Airbus A320 and A321 aircraft. The major milestone marks the first time a U.S.-based ultra-low fare airline has offered high-speed Wi-Fi.

Spirit partnered with Thales to install the high-speed connectivity solution FlytLIVE to cover Spirit’s network across the U.S., Latin America and the Caribbean. This state-of-the-art system offers access to internet services. Guests can enjoy an at-home level of experience in the air while viewing video from their streaming services, playing games and connecting on social media with their personal devices. As another major milestone, Spirit expects to provide the fastest Wi-Fi service of any U.S.-based airline when all FlytLIVE-enabled planes are connected to the new, very high-throughput SES-17 satellite by September 2022.

Spirit Wi-Fi

Spirit is the leader in providing customizable travel options that allow Guests to pay only for the options they choose like bags, seat assignments, refreshments, and now, Wi-Fi service will be part of this À La Smarte approach to travel. In addition to purchasing Wi-Fi on the flight, Guests can pre-purchase Wi-Fi at the time of booking on spirit.com effective July 13, 2022, and on the mobile app effective August 10, 2022, for flights on or after August 24, 2022. The voucher codes received from the pre-purchase option are for entry in the online Wi-Fi portal on the plane.

Wi-Fi Your Way

Browsing: browse the web and stay in touch via email, chat, and social media starting at $2.99
Streaming: stream, browse, and chat on board with high-speed internet that’s 20x faster than our browsing option starting at $5.99

How To Connect

Turn on your device’s Wi-Fi and choose “Spirit_WiFi”
Open your web browser and visit SpiritWiFi.com
Choose the plan, enter your payment or voucher code information, and enjoy Spirit Wi-Fi

Features:

The most advanced Ka-band high-throughput connectivity
FlytLIVE uses SES & Hughes next-generation aviation satellite network and technology
SES-17 satellite built to serve routes across the Americas and Atlantic with Ka-band coverage
SES-17 is SES’s first satellite to have a totally digital payload, powered by a Thales advanced digital transparent processor (DTP), enabling greater flexibility and efficiency than previously available. Using Thales’ FlytLIVE and SES-17, Spirit expects to offer the best availability in the Americas and will be faster than other airlines based on published data.

Additional program details:

In total, more than 80 percent of Spirit’s fleet has Wi-Fi capability with system installations completed on Spirit’s existing A320 and A321 sub-fleets. The expansion of Wi-Fi functionality to Spirit’s existing A319 sub-fleet will be determined at a later date. Spirit plans to gain 24 brand new A320neo planes in 2022 for a projected fleet-wide total of 197 by the end of the year, and 33 more new planes projected for delivery in 2023.

The price of the Wi-Fi options is based on the duration of the flight. While inflight, Guests can enjoy complimentary access to Spirit.com—check your flight status on connecting flights, access your mobile boarding pass, and join Free Spirit to earn points from your flight.

In other news, Spirit is coming to San Antonio on November 17 with service to Las Vegas and Orlando

Spirit Airlines aircraft photo gallery:

Virgin Atlantic elevates customer experience revealing state of the art Airbus A330neo

Virgin Atlantic Airways has made this announcement:

The Airbus A330-900neo will feature the latest generation Upper Class cabin, including its iconic social space and new innovation, The Retreat Suite

Increased connectivity with in-seat wireless charging, Bluetooth connectivity in all cabins and its fastest ever Wi-Fi

The new aircraft is crucial to the airline’s fleet transformation into the cleanest in the sky

Boston will be the A330neo’s first route.

Virgin Atlantic has revealed its hotly anticipated Airbus A330neo for the first time, designed to provide a premium, personalised experience for every single customer. The airline’s Upper Class cabin boasts a brand new seat, evolution of its iconic social space and the unveiling of The Retreat Suite, the most spacious suite in Virgin Atlantic’s history.

Throughout the aircraft, there will be more ways for customers to stay connected than ever before. Those travelling in Premium and Upper Class can take advantage of game changing in-seat wireless charging, whilst customers in every cabin can enjoy a greater number of USB connections, Bluetooth enabled entertainment systems and the airline’s fastest ever Wi-Fi.

In 2019, Virgin Atlantic became the first UK airline to announce a firm order for up to 16 Airbus A330neos, reaffirming its commitment to flying the cleanest, greenest fleet in the sky. Following a multi-billion-dollar investment in fleet transformation over the last decade, the airline operates a fleet with the average aircraft age of just under seven years and 68% next generation aircraft. This increases to 100% next generation by the beginning of 2027. This means Virgin Atlantic’s aircraft are equipped with the most efficient engines and state-of-the-art technology designed to save fuel and reduce emissions. This has so far delivered a 20 per cent reduction in fleet carbon emissions. Over the next decade, we’ll save another 10 per cent in carbon emissions. The A330-900 neos are designed to be 11 per cent more fuel and carbon efficient than the A330-300 they’re directly replacing and will deliver a 50 per cent reduction in airport noise contour.

Virgin Atlantic’s A330neo is expected to take off to Boston on its first customer flight in early October. Tickets will go on sale later this month. From September 2022, the airline will take delivery of three aircraft, with the remaining deliveries following between 2023 and 2026.

Upper Class

The Retreat Suite is a brand new innovation in Virgin Atlantic’s Upper Class offering and consists of two exclusive suites at the front of the cabin. The airline’s most spacious suite yet, comprising a 6ft7” direct seat to fully flat bed and a 27” touchscreen with Bluetooth connectivity and wireless charging. With each suite boasting an ottoman that doubles up as an extra seat, up to four people can comfortably dine, chat or play games in their own private social space. Customers can enjoy an intimate dinner or settle in comfort to watch a film.

In addition to The Retreat Suite, the A330neo will offer 30 brand new Upper Class suites. The fully forward-facing suite offers more space and storage alongside a fully closing privacy door. With a ‘do not disturb’ feature. It has passenger-controlled mood lighting, 17.3” touchscreen TV and even a mirror so customers can check they’re looking runway ready.

The airline’s award-winning social space, The Loft, remains a focal point of the cabin design as customers board the aircraft and is a core part of the Upper Class experience. In an evolution of design from the Airbus A350, it consists of space for eight people, with four comfortable seats, allowing guests to sit and chat or enjoy refreshments from the new self-service fridge and drinks dispenser. Customers can also connect Bluetooth headphones to the dual panoramic 27” touchscreens or utilise the wireless charging facilities for their devices.

Premium

Stylish touches make big differences in Premium, in a cabin consisting of 46 seats on the A330neo. Virgin Atlantic’s trademark burgundy Premium seats, with a 38” pitch remain, but they’re accompanied by calf rests in every seat and a 13.3” touchscreen with Bluetooth audio. The airline is also offering its Premium customers an in-seat wireless charging pad.

Economy

Comfort and connection are order of the day in the new Economy cabin, as customers are set to experience the largest ever economy screen at 13.3”, with an intuitive touchscreen and Bluetooth audio to connect headphones, with customers able to use their phone as a controller. There’s also plenty of storage, plus AC power and USB ports to keep gadgets energised. Customers have the choice between 28 Economy Delight seats, which offer an increased 34” seat pitch, or 156 Economy Classic seats, providing a 31” pitch.

Corneel Koster, Chief Customer and Operating Officer at Virgin Atlantic, commented;

“When it comes to innovating for our customers, we never stand still. Our desire to create memorable experiences means we’ll continue to imagine with fresh ideas. We care about every detail of the cabin design and every step of our customer’s journey. We’re proud to unveil our state of the art A330neo and show the evolution of our customer experience, with each of our customers receiving a premium experience regardless of the cabin they travel in. They’ll be better connected with their fellow travellers and our amazing crew in the air, and with their friends and family on the ground.

“The A330neo plays a significant role in our multi billion dollar fleet transformation, demonstrating our commitment to the planet. We know the most impactful thing we can do as an airline is to fly the cleanest, greenest, youngest fleet possible and the A330neo is integral to achieving this goal. It’s truly a plane for the future.”

Virgin Atlantic in-house Design team worked in collaboration with Factorydesign to develop the Retreat Suite, Upper Class Suite and The Loft.

Virgin Atlantic aircarft photo gallery:

Delta reports 2Q operating income of $1.5 billion

Delta Air Lines today reported financial results for the second quarter 2022 and provided its outlook for the third quarter 2022. Highlights of the June quarter 2022 results, including both GAAP and adjusted metrics, are on page five and are incorporated here.

“I would like to thank our entire team for their outstanding work during a challenging operating environment for the industry as we work to restore our best-in-class reliability. Their performance coupled with strong demand drove nearly $2 billion of free cash flow as well as profitability in the first half of the year, and we are accruing profit sharing, marking a great milestone for our people,” said Ed Bastian, Delta’s chief executive officer. “For the September quarter, we expect an adjusted operating margin of 11 to 13 percent, supporting our outlook for meaningful full year profitability.”

June Quarter 2022 GAAP Financial Results

Operating revenue of $13.8 billion
Operating income of $1.5 billion with operating margin of 11.0 percent
Earnings per share of $1.15
Operating cash flow of $2.5 billion
Total debt and finance lease obligations of $24.8 billion

June Quarter 2022 Adjusted Financial Results

Operating revenue of $12.3 billion, 99 percent recovered versus June quarter 2019 on 82 percent capacity restoration
Operating income of $1.4 billion with operating margin of 11.7 percent, the first quarter of double-digit margin since 2019
Earnings per share of $1.44
Free cash flow of $1.6 billion after investing $864 million into the business
Payments on debt and finance lease obligations of $1.0 billion
$13.6 billion in liquidity* and adjusted net debt of $19.6 billion

*Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities

September Quarter Outlook¹

	3Q22 Forecast
Capacity²	Down 15% – 17%
Total Revenue²	Up 1% – 5%
CASM-Ex²	Up ~22%
Fuel Price ($/gal)	$3.45 – $3.60
Operating Margin	11% – 13%
Gross Capital Expenditures	~$1.8 billion
Adjusted Net Debt	~$20 billion


¹	Non-GAAP measures, except for Capacity; Refer to Non-GAAP reconciliations for 3Q19 comparison figures
²	Compared to September quarter 2019

Fuel price guidance is based on prices as of July 8th, including Brent at $107 per barrel, cracks at $41 per barrel and $0.27 per gallon refinery contribution.

June Quarter Revenue Environment and Outlook

“With growing demand across our network in the June quarter, we recaptured higher fuel prices and delivered adjusted revenue recovery of 99 percent with unit revenues up 20.5 percent versus 2019. We also delivered another record quarter of American Express co-brand remuneration, up 35 percent from the June quarter 2019, reflecting growing brand preference and further diversification of our revenue base,” said Glen Hauenstein, Delta’s president. “With sustained strength in bookings, we expect September quarter revenue to be up 1 to 5 percent compared to 2019 with total unit revenue growth improving sequentially.”

Domestic continues to lead recovery with international accelerating: Domestic passenger revenue was 3 percent higher and international passenger revenue was 81 percent recovered compared to the June quarter 2019. Revenue in Latin America and Transatlantic both exceeded 2019 levels in the month of June and the pace of recovery in the Pacific saw meaningful improvement, driven by Korea and Australia re-openings and the easing of restrictions in Japan.
Business recovery progressing: Domestic corporate sales* for the quarter were ~80 percent recovered versus 2019, up 25 points compared to the March quarter. International corporate sales* for the quarter were ~65 percent recovered versus 2019, up 30 points compared to the March quarter, driven by outsized improvement in Transatlantic. Recent corporate survey results show positive expectations for business travel in the September quarter, including optimism around international travel given the elimination in June of the pre-departure test requirement for flights to the U.S.
Premium products outperforming Main Cabin: Premium product revenue recovery outpaced Main Cabin across all markets. Premium and other diversified revenue streams, including Loyalty, Cargo and MRO, comprised 54 percent of total revenues.
Strong American Express remuneration: Received $1.4 billion in the quarter, up 35 percent compared to the June quarter 2019 and on track to surpass $5 billion for the full year. Co-brand spend was up 43 percent and co-brand card acquisitions were up 15 percent compared to the June quarter 2019.
Cargo records best ever June quarter performance; MRO approaches 2019 levels: Cargo revenue was $272 million, a 46 percent increase compared to the same period in 2019. MRO revenue in the June quarter was $178 million, restored to 85 percent of 2019 levels.

*Corporate sales include tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period

June Quarter Cost Performance and Outlook

“Our June quarter non-fuel unit cost performance of up 22 percent compared to 2019 was impacted by lower capacity, higher selling-related expenses and investments in operational reliability,” said Dan Janki, Delta’s chief financial officer. “We remain confident in our ability to meaningfully improve our unit costs as we fully scale the network and return our operations to Delta’s high standards. In the near-term, as we prioritize restoring reliability, our full year non-fuel unit cost will remain higher than our previous plan by approximately 8 points on 5 points less capacity.”

Operating expense of $12.3 billion and total adjusted operating expense of $10.9 billion in the June quarter, both increased 21 percent sequentially
Adjusted non-fuel costs of $7.5 billion were up 10 percent sequentially, primarily driven by higher capacity
Compared to the June quarter 2019, adjusted non-fuel CASM was 22 percent higher on 18 percent less capacity
Adjusted fuel price of $3.82 per gallon was up 37 percent sequentially. Compared to the June quarter 2019, market prices were up 94 percent
Refinery operating income of $269 million resulted in a 31¢ per gallon benefit to our adjusted fuel price per gallon
Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.6, a 4.2 percent improvement versus 2019

June Quarter Balance Sheet, Cash and Liquidity

“In the June quarter, we repaid $1 billion of gross debt after delivering strong profitability and generating free cash flow ahead of our expectations,” Janki said. “We remain committed to achieving investment-grade metrics and a return on invested capital in the mid-teens over the next 3 years.”

Adjusted net debt of $19.6 billion; Weighted average interest rate of 4.3 percent with 84 percent fixed rate debt and 16 percent variable rate debt
Payments on debt and finance lease obligations of $1.0 billion, bringing the first half total to $2.4 billion
Free cash flow of $1.6 billion with operating cash flow of $2.5 billion and gross capital expenditures of $864 million
Air Traffic Liability ended June at $9.9 billion, up $805 million compared to March
Liquidity of $13.6 billion, including $2.8 billion in undrawn revolver capacity

Other June Quarter Highlights

Operational Reliability

Took decisive action to improve resilience and restore operational reliability for our customers and employees, including schedule adjustments for the remainder of the year, implementation of earlier boarding procedures and addition of operational buffers
July performance is off to a good start, with an average month-to-date completion factor of 99.2 percent and 84 percent of flights arriving within 14 minutes of scheduled arrival time
Updated airport procedures, including earlier domestic boarding and schedule modifications at the company’s largest hubs to help drive more on-time departures and successful connections
Reactivated Peach Corps, providing employees from the corporate offices the opportunity to step away from daily work routines to assist frontline colleagues while supporting Delta’s operation and customers

Culture and People

To reward Delta people for their dedication and excellence, implemented a 4 percent base pay increase for eligible scale and merit employees globally on May 1
Recorded a profit-sharing accrual, which is expected to pay out to Delta employees in February 2023 to recognize their commitment to serving our people, customers and communities
Introduced industry-only boarding premium pay for flight attendants, marking continued investment in our operational performance
Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the fifth consecutive year
Resumed The Delta Air Lines Foundation Matching Gifts to Education program, matching Delta employee and retiree donations to accredited, eligible educational institutions

Customer Experience and Loyalty

Welcomed record number of new SkyMiles and American Express co-brand cardholders to our programs
Celebrated the openings of Delta’s Terminal 3 at LAX in April followed by Terminal C at LGA in June, featuring the company’s two largest Delta Sky Clubs in the system, part of Delta’s $12 billion investment in multi-year transformation projects at airport hubs across the country
In partnership with American Express, launched a first-of-its-kind, limited-edition Reserve credit card made with airplane metal of a retired Boeing 747
Welcomed the first A321neo into service while taking delivery of two additional A321neos, one A220-300, one A330-900 and five gently used 737-900ERs
Enhanced premium offering with new domestic First Class seat on the A321neo, with larger, improved privacy space, more stowage for personal items and enhanced memory-foam seat cushions in all cabins
In partnership with Misapplied Sciences, launched PARALLEL REALITY™ beta experience at DTW, a groundbreaking technology allowing customers to simultaneously see personalized content tailored to their unique journey on a single digital screen
As part of Delta’s commitment to create a values-led experience, added onboard snack and beverage options from small businesses, global suppliers, and woman- and LGBTQ+-led brands
Introduced new in-flight entertainment from MasterClass, a streaming platform offering exclusive access to select classes, alongside hit movies, bingeable TV shows and curated audio playlists

Environmental, Social and Governance

Published our 2021 Environmental, Social and Governance (ESG) Report, sharing the latest data and insight into the company’s efforts to advance its purpose of connecting people with opportunity while expanding the understanding of the planet and the people within it
Leveraged existing infrastructure to accept a batch of sustainable aviation fuel for a Delta flight from New York’s LGA and support the scaling of lower carbon intensity fuels
Participated in the SkyTeam Alliance’s Sustainable Flight Challenge, an initiative where partner airlines share learnings and innovations with the common goal of reducing the industry’s carbon footprint
Launched new skills-first career development program establishing a long-term goal of filling 25 percent of corporate management roles with talent in frontline roles and removing career barriers of four-year degrees, supporting economic equity through access to higher-earning jobs across the company
Joined forces with the Responsible Business Initiative for Justice (RBIJ) to launch Unlock Potential, a program that helps drive economic and social mobility for young people disconnected from education or employment, to create meaningful career opportunities for at-risk young adults

June Quarter Results

June quarter results have been adjusted primarily for the unrealized losses on investments, loss on extinguishment of debt and third-party refinery sales as described in the reconciliations in Note A.

	GAAP		$ Change	% Change
($ in millions except per share and unit costs)	2Q22	2Q19	$ Change	% Change
Operating income	1,519	2,128	(609)	(29) %
Pre-tax income	1,033	1,907	(874)	(46) %
Net income	735	1,443	(708)	(49) %
Diluted earnings per share	1.15	2.21	(1.06)	(48) %
Operating margin	11.0 %	17.0 %	(6.0) pts	(35) %
Operating revenue	13,824	12,536	1,288	10 %
Total revenue per available seat mile (TRASM) (cents)	23.47	17.47	6.00	34 %
Operating expense	12,305	10,408	1,897	18 %
Operating cash flow	2,535	3,268	(733)	(22) %
Capital expenditures	958	1,559	(601)	(39) %
Cost per available seat mile (CASM) (cents)	20.89	14.51	6.38	44 %
Fuel expense	3,223	2,291	932	41 %
Average fuel price per gallon	3.74	2.08	1.66	80 %
Total debt and finance lease obligations	24,839	9,990	14,849	NM

	Adjusted		$ Change	% Change
($ in millions except per share and unit costs)	2Q22	2Q19	$ Change	% Change
Operating income	1,445	2,140	(695)	(32) %
Pre-tax income	1,222	1,998	(776)	(39) %
Net income	921	1,533	(612)	(40) %
Diluted earnings per share	1.44	2.35	(0.91)	(39) %
Operating margin	11.7 %	17.2 %	(5.5) pts	(32) %
Operating revenue	12,311	12,448	(137)	(1) %
TRASM (cents)	20.90	17.35	3.55	20 %
Operating expense	10,866	10,308	558	5 %
Free cash flow	1,608	2,175	(567)	(26) %
Gross capital expenditures	864	1,618	(754)	(47) %
Non-fuel cost	7,516	7,516	—	— %
Non-fuel unit cost (CASM-Ex) (cents)	12.76	10.47	2.29	22 %
Fuel expense	3,296	2,274	1,022	45 %
Average fuel price per gallon	3.82	2.07	1.75	85 %
Adjusted net debt	19,578	9,347	10,231	NM

We're taking a look back at the Queen of the Skies in honor of our new Delta SkyMiles Reserve Card design, made with 25% metal from a retired Delta Boeing 747 ✈️

— Delta (@Delta) July 11, 2022

Delta Air Lines aircraft slide show (Airbus):

ITA Airways to be title sponsor of the Centenary of the Autodromo Nazionale di Monza with a new logo

ITA Airways will be title sponsor of the Centenary of the Autodromo Nazionale di Monza. The meaning of this important partnership was illustrated this morning, at the ITA Airways lounge, Piazza di Spagna, at Terminal E of the Leonardo da Vinci airport in Fiumicino, in a press conference attended by the President of ACI, Angelo Sticchi Damiani, the President of CONI, Giovanni Malagò and the Executive President of ITA Airways, Alfredo Altavilla.

Foto Alfredo Falcone / LaPresse

The meeting with the media was preceded by the unveiling of the first ITA Airways aircraft with the logo for the 100th anniversary of Monza, an Airbus A330s with a new blue livery dedicated to Tazio Nuvolari, the “Flying Mantuan”, universally considered one of the most great drivers of all times.

Known throughout the world as “The Temple of Speed”, the Monza racetrack is the second oldest facility in the world still in operation – the only one where Formula 1 races are still held – and is considered the fastest track, as well as one of the most spectacular and challenging in the entire World Championship loop.

To celebrate this incredible century of great sport, three aircraft with the new blue livery of the ITA Airways fleet will wear the Autodrome Celebrations Logo: in addition to the Airbus A330 dedicated to Tazio Nuvolari, two other Airbus A319s bearing the name of Alberto Ascari , two-time Formula 1 World Champion (1952 and ’53, both in a Ferrari), Michele Alboreto (F1 vice-world champion in 1985, with a Ferrari).

The great news of ITA Airways will also be to dedicate the flagship of its fleet, the new Airbus A350s, blue livery to the legendary Enzo Ferrari – “the Drake” – legendary founder and of the homonymous team, the most titled in the history of Formula 1, with 31 world titles (16 Manufacturers, 15 Drivers).

Marco Finelli reporting from Italy.

ITA Airways aircraft photo gallery: