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:

LATAM projects operation of 80% for July

LATAM Airlines (Chile) issued this statement:

With the resumption of 14 routes, the LATAM group projects a passenger operation of 80% for July (measured in available seat kilometers – ASK) compared to the same period in 2019 (in a pre-pandemic scenario). Among the flights to be resumed are international flights between Lima and San José (Costa Rica), Santiago (Chile) and Cusco (Peru), and São Paulo/Guarulhos and Rome/Fiumicino.

LATAM plans to operate approximately 1,261 daily domestic and international flights during July, connecting 139 destinations in 22 countries.

The group’s cargo business has scheduled more than 1,280 flights on cargo freighters. These projections are subject to the evolution of the pandemic in the countries where the group operates.

In June 2022, passenger traffic (measured in revenue passenger-kilometers – RPK) was 70.7% in relation to the same period in 2019, based on an operation of 73.5% compared to June 2019 (measured in ASK – available seat kilometers). As a result, the load factor decreased 3.1 percentage points, reaching 80.0%.

The load factor of cargo operations was 56.8%, which corresponds to an increase of 1.7 percentage points compared to June 2019.

LATAM Group Operational Estimate – July 2022

(Passenger operations measured in ASK / Cargo operations measured in ATK)

page1image43886336 page1image43886528

Brazil

● 88% projected operation (versus July 2019). June 2022 projection reference: 80%

● 106% domestic and 68% international
● Total July destinations: 54 domestic (equivalent to 627 daily flights on

average) and 20 international

● Updates:
● Domestic: New São Paulo/Guarulhos-Juiz de Fora (7 flights/week),

São Paulo/Guarulhos-Caxias do Sul (7 flights/week), São Paulo/Guarulhos-Montes Claros (7 flights/week) y São Paulo/Guarulhos-Cascavel (7 flights/week) routes.

	● International: Restart Lima-Porto Alegre (3 flights/week), São Paulo/Guarulhos-Rome/Fiumicino (3 flights/week) and Fortaleza-Miami (1 flight/week) routes.
Chile	● 67% projected operation (versus July 2019). June 2022 projection reference: 59% ● 73% domestic and 64% international ● Total July destinations: 15 domestic (equivalent to 130 daily flights on average) and 25 international. ● Updates: ● International: Restart Santiago de Chile – Cusco (3 flights/week) and Punta Arenas – Mount Pleasant (1 flight/week) routes.
Colombia	● 107% projected operation (versus July 2019). June 2022 projection reference: 104% ● 122% domestic and 89% international ● Total July destinations: 17 domestic (equivalent to 179 daily flights on average) and 5 international ● Updates: ● International: Restart Lima-Medellín (3 flights/week) y Lima-Cali (3 flights/week) routes.
Ecuador	● 50% projected operation (versus July 2019). June 2022 projection reference: 44% ● 133% domestic and 28% international ● Total July destinations: 8 domestic (equivalent to 43 daily flights on average) and 3 international ● Updates: ● Domestic: Restart Guayaquil-Cuenca (3 flights/week) route.
Peru	● 76% projected operation (versus July 2019). June 2022 projection reference: 70% ● 92% domestic and 70% international ● Total July destinations: 18 domestic (equivalent to 171 daily flights on average) and 26 international ● Updates: ● Domestic: Restart Juliaca-Cusco (4 flights/week) route ● International: Restart Lima-San José, Costa Rica (3 flights/week), Lima-Porto Alegre (3 flights/week), Lima-Medellín (3 flights/week s), Lima-Cali (3 flights/week) and Cusco-Santiago, Chile (3 flights/week) routes
Cargo	● 96% projected operation (versus July 2019). June 2022 projection reference: 94% ● 70% domestic belly and 78% international belly* ● 158% dedicated freighter

*Belly: merchandise transported in the cargo hold (lower deck) of the aircraft.

Operational Estimate by Segment vs. 2019 – July 2022

(Measured in ASK)

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Domestic Spanish-speaking countries	76%
Domestic Brazil	106%
Internacional	64%
Consolidated Total	80%

Note: While Argentina’s domestic operations are considered in the 2019 operational statistics above, LATAM announced the indefinite cessation of its domestic passenger and cargo operations in Argentina on June 17, 2020.

LATAM Airlines )Chile) aircraft photo gallery:

SkyAlps to expand to central Europe

Skyalps (Bolzano, South Tyrol, Italy) is planning to add new routes from Bolzano to Antwerp, Billund, Frankfurt and Stuttgart according to Chairman Josef Gostner.

The current Italian destinations are doing very well: Olbia, Cagliari, Catania, Lamezia and Brindisi.

All have very high load factors with many flights already fully sold. The load factor of these routes are on average exceeds 80%.

The airline currently serves Hamburg, Berlin and Dusseldorf in Germany.

Skyalps currently flies a fleet of four 76-seat Bombardier DHC-8-402s (Q400s) leased from Chorus Aviation Capital.

Marco Finelli reporting from Italy.

Air Canada and Emirates form a strategic partnership

Air Canada and Emirates today announced the signing of a strategic partnership agreement that will create more options for customers when travelling on the carriers’ networks while also enhancing the customer experience throughout the journey.

Air Canada and Emirates intend to establish a codeshare relationship later in 2022 that will offer enhanced consumer travel choices for Air Canada customers to travel to the United Arab Emirates and to destinations beyond Dubai. Emirates customers will also enjoy an enhanced travel experience when travelling to Toronto or to key destinations across the Air Canada network. Customers will have the ability to book connecting travel between both airlines’ networks with the ease of a single ticket, seamless connectivity at the carriers’ respective global hubs and baggage transfers to their final destinations.

“As we continue pursuing our strategy of expanding our global reach in response to growing opportunities in VFR markets (Visiting Friends and Relatives) that serve Canada’s large multicultural communities, we are very pleased to form a strategic partnership with Emirates, a highly respected flag carrier of the United Arab Emirates with a hub in the vibrant city of Dubai. This strategic agreement will create network synergies, and Air Canada customers will have additional, convenient options when travelling between Canada and the United Arab Emirates as well as destinations beyond Dubai” said Michael Rousseau, President and Chief Executive Officer at Air Canada. “We look forward to introducing Air Canada codeshare service on key Emirates flights, as well as adding the EK code on select Air Canada flights, and welcoming Emirates customers on our services later this year.”

Sir Tim Clark, President Emirates Airline said: “This is a significant partnership that will enable our customers access to even more destinations in Canada and the Americas, via our Toronto and US gateways. It also opens up many new route combinations for travelers across Emirates’ and Air Canada’s extensive networks in the Americas, the Middle East, Africa and Asia. We are pleased to partner with Air Canada, one of North America’s most established airlines and Canada’s flag carrier and we look forward to jointly progressing on various areas to provide even better customer flight choices and experiences.”

To further enhance the customer experience, the carriers will also establish reciprocal frequent flyer benefits and reciprocal lounge access for qualifying customers. Further details of the partnership and specific codeshare routes will be announced when finalized and will be subject to regulatory approvals and final documentation.

Alaska Airlines surprises employees with 90,000 miles to travel the globe

Alaska Airlines is celebrating its 90th anniversary by giving all employees the gift of travel:

While many of us were instructed to stay home during the pandemic, airline employees were part of the essential workforce who remained on the front lines. Each day brought new challenges, regulations and precautions that our people had to carefully navigate while continuing to care for our guests, communities and each other.

As we inch our way to a new normal—happily seeing travelers’ pent-up desire to hop on a plane—Alaska is taking a moment to thank each employee for their relentless commitment to caring for our guests for 90 years & counting by giving them 90,000 miles to fly anywhere in the world.

“As we celebrate 90 years of flying, we wouldn’t be where we are today without our incredible people who work nonstop to keep things moving, even throughout a global pandemic,” said CEO Ben Minicucci. “When you think about how many airlines have come and gone since 1932, it’s an amazing achievement that we’re still here and stronger than ever—it’s because of the genuine care and hard work our people bring to our operation every day.”

The great thing about miles is they never expire and offer flexibility to travel not just on Alaska, but also on our oneworld partners like British Airways, Qantas, Qatar Airways, Finnair and our other airline partners. Travel awards begin at just 5,000 miles, and can be used to book First Class tickets, a relaxing stay at a hotel or tickets to an anticipated event—there are so many ways to use airline miles!

With 90,000 miles, you can plan a trip to almost anywhere in the world:

For instance, a roundtrip flight from Seattle up and down the West Coast starts at just 10,000 roundtrip, which means you can get you up to nine roundtrip flights!
Roundtrips from Seattle to New York start at 25,000 miles, or even visit Hawaii from San Francisco starting at 30,000 miles roundtrip.
Want to travel internationally? A roundtrip flight to Europe from the West Coast starts at 60,000 miles through our oneworld partners. Mileage prices do vary so search for your travel dates to see the prices for the dates and cabins you want to travel in.

Alaska Airlines aircraft photo gallery (Boeing):