Allegiant reports a profit in the second quarter

Allegiant Travel Company (Allegiant Air) today reported the following financial results for the second quarter 2021, as well as comparisons to the prior years:

Consolidated Three Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 472.4 $ 133.3 $ 491.8 254.3 (3.9)
Total operating expense 333.6 246.6 383.7 35.3 (13.1)
Operating income (loss) 138.9 (113.3) 108.1 222.6 28.4
Income (loss) before income taxes 122.6 (146.4) 91.8 183.7 33.5
Net income (loss) 95.0 (93.1) 70.5 202.1 34.7
Diluted earnings (loss) per share $ 5.49 $ (5.85) $ 4.33 193.8 26.8
Six Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 751.6 $ 542.5 $ 943.4 38.5 (20.3)
Total operating expense 588.1 766.8 744.2 (23.3) (21.0)
Operating income (loss) 163.5 (224.3) 199.2 172.9 (17.9)
Income (loss) before income taxes 131.2 (277.1) 165.7 147.4 (20.8)
Net income (loss) 101.9 (126.1) 127.7 180.8 (20.2)
Diluted earnings (loss) per share $ 6.04 $ (7.93) $ 7.84 176.2 (23.0)
Consolidated – adjusted Three Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 378.6 $ 239.9 $ 383.7 57.8 (1.3)
Adjusted operating income (loss) (1) (2) 93.9 (106.6) 108.1 188.1 (13.1)
Adjusted income (loss) before income taxes (1) (2) 77.6 (119.9) 91.8 164.7 (15.5)
Adjusted net income (loss) (1) (2) 60.0 (94.7) 70.5 163.4 (14.9)
Adjusted diluted earnings (loss) per share (1) (2) $ 3.46 $ (5.96) $ 4.33 158.1 (20.1)
Six Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 716.7 $ 594.0 $ 744.2 20.7 (3.7)
Adjusted operating income (loss) (1) (2) 34.9 (51.5) 199.2 167.8 (82.5)
Adjusted income (loss) before income taxes (1) (2) 2.6 (77.7) 165.7 103.3 (98.4)
Adjusted net income (loss) (1) (2) 2.0 (61.4) 127.7 103.3 (98.4)
Adjusted diluted earnings (loss) per share (1) (2) $ 0.12 $ (3.87) $ 7.84 103.1 (98.5)
(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs (PSPs), and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

“The second quarter marked the return of leisure demand to pre-pandemic levels,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “Earnings per share came in at $5.49 on a year over two-year revenue decline of just 3.9 percent, with total revenue in June exceeding 2019 levels. We made significant progress towards achieving pre-pandemic unit revenues with TRASM of 10.36 cents (on a load factor of 70.8 percent), up 50 percent from the first quarter. The revenue team did an outstanding job optimizing loads and unit revenues during the quarter. This strong revenue performance, coupled with continued cost discipline as evidenced by our adjusted CASM, excluding fuel (3), of 5.86 cents, led to our adjusted operating margin(1) of 20 percent for the quarter.

“These results suggest we are close if not back to ‘normal’, where we were in the early days of 2020.  We were the first domestic carrier to grow capacity from 2019 levels. Given the reduced operations of the past year, this ramp up came with challenges – delays in infrastructure preparedness at some of our airports, labor constraints, and severe weather. Our operations team has done a great job reacting and adapting to these headwinds. During the third quarter we will continue our growth – capacity will increase nearly 20 percent, year over two-year.

“Last year at this time I stressed the importance of strengthening our liquidity to both weather the storm and position us favorably for growth post-pandemic. The team has done just that. We currently have $1.2 billion of cash on hand, up 79 percent from a year ago. Our total net debt continues to improve at under $400 million, a 52 percent reduction from a year ago. This strong liquidity leaves us well positioned for future growth. The fleet team has executed agreements to acquire 21 additional aircraft since the beginning of the year. These airplanes will all be placed into service by the end of 2022, thus supporting the remainder of this year as well as most of next year’s growth plan.

“The next year will be an exciting one for the company. We are preparing the launch of our new loyalty program in the coming months, Allways Rewards. This program will enable us to further enhance the customer experience. We also recently announced a new partnership with Live Nation venues, Ticketmaster and music festivals – kicking off a multi-year, strategic relationship with the world’s premier live entertainment company. This partnership will ultimately unlock another layer of leisure offerings, further enhancing a one-stop shop for our customer. Finally, we will continue to grow and expand our network, connecting more customers to world-class vacation destinations.

“I cannot thank our 4,000 team members enough for their continued efforts in supporting growth while prioritizing customer safety. Ramping up the operation the past few months has been a challenge, but our team members continue to work hard to support the operation. I could not be more proud of their efforts.”

Second Quarter 2021 Results

  • GAAP earnings per share of $5.49
    • Adjusted earnings per share(1) (2) (3) of $3.46
  • Consolidated EBITDA(2) (3) of $183.3 million yielding an EBITDA margin of 38.8 percent
    • Adjusted EBITDA(1) (2) (3) of $138.3 million yielding an adjusted EBITDA margin of 29.3 percent
  • Total June revenue exceeded June of 2019
  • Total operating revenue was $472.4 million, up 69.3 percent from the first quarter and down 3.9 percent when compared to the second quarter of 2019
    • Sustained yield strength throughout the quarter with yield up 7.8 percent year over two-year on scheduled service capacity increases of 4.5 percent
  • Total average fare of $126.82, up 10.8 percent year over two-year
    • Total ancillary average fare $64.25, up 14.6 percent from 2019 driven primarily by bundled air ancillary offerings, rental car rate strength, and increased cobrand activity
  • TRASM of 10.36 cents, down 5.6 percent year over two-year, and up 50.3 percent from the first quarter 2021
  • Load factor of 70.8%, up nearly 16 percentage points from the first quarter
  • Record-breaking quarter for co-brand activity with June new cardholder acquisitions becoming the highest month in the program’s history and the highest month for cardholder spend, beating the prior monthly spend record by more than 40 percent
    • May marked the third highest acquisition of new cardholders in program history
  • Adjusted operating expense(1) (2) (3) of $378.6 million, down 1.3 percent from second quarter 2019 on total system capacity increase of 3.3 percent
    • Adjusted Operating CASM, excluding fuel (3) of 5.86 cents, flat when compared to the second quarter of 2019
  • Adjusted operating margin(1) of 19.9 percent
  • Expanded the network by adding 29 new routes with four new cities and complementary service in Phoenix with the addition of Phoenix Sky Harbor International Airport, bringing total routes served to 596 and 134 cities
  • Ranked number two among US airlines within the 2021 Airline Quality Ranking

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs
(2) Denotes a non-GAAP financial measure
(3) Refer to the Non-GAAP Presentation section within this document for further information

Balance Sheet, Cash and Liquidity

  • Total cash and investments at June 30, 2021 were $1.2 billion, up from $728 million at March 31, 2021
    • Cash from operations of $237 million, including the benefit from the payroll support program and federal income tax refund of $12 million related to prior period tax net operating losses
      • Adjusted cash from operations of $176 million, which excludes the $49.2 million net benefit from the PSPs, and $12 million federal tax refund
    • Debt principal payments of $48 million during the quarter
      • Includes prepayment of debt secured by five aircraft
    • $65 million used for cash capital expenditures
    • Raised $335 million from issuance of 1.6 million shares at a price of $219 per share during the second quarter
  • Second quarter interest expense of $17 million, down 20 percent year over two-year
  • Expect to receive $136 million in federal tax refunds during the second half of the year related to 2020 net operating losses
  • Air traffic liability at June 30, 2021 was $437 million
    • Balance related to future scheduled flights is $305 million
    • Balance related to travel vouchers issued for future use is $132 million, a 26 percent reduction from March 31, 2021

Capital Expenditures

  • Second quarter capital expenditures related to aircraft, engines and induction costs were $46 million and $19 million in other airline capital expenditures
  • Second quarter capital expenditures related to deferred heavy maintenance were $23 million
  • Executed agreements to acquire 21 incremental aircraft year-to-date
Guidance, subject to revision Previous Current
Third Quarter 2021 guidance
System ASMs – year over two-year change(1) 16.0 to 20.0%
Scheduled Service  ASMs – year over two-year change(1) 16.0 to 20.0%
Total operating revenue – year over two-year change (1) Up 3.5% to 7.5%
Fuel cost per gallon $ 2.11
Full year 2021 guidance
CAPEX
Aircraft, engines and induction costs (millions) $115 to $125 $115 to $125
Capitalized Airbus deferred heavy maintenance (millions) $50 to $60 $50 to $60
Other capital expenditures (millions) $40 to $50 $40 to $50
Interest expense $65 to $70 $65 to $70
Recurring principal payments(2) $170 to $180 $170 to $180
(1) Year over two-year percentage changes compare 2021 to 2019
(2) Excludes $111 million of principal repayments related to the maturity of our revolving credit facility and the refinancing of three A320 aircraft during the first quarter 2021

Aircraft Fleet Plan by End of Period

Aircraft – (seats per AC) 2Q21 3Q21 YE21
A319 (156 seats) 35 35 35
A320 (177 seats) 23 23 22
A320 (186 seats) 45 49 51
Total 103 107 108
The table above is provided based on the company’s current plans and is subject to change

United becomes the first U.S. airline to offer economy customers an option to pre-order snacks and beverages

United Airlines made this announcement:

Starting today on select flights, all United customers – no matter what cabin of service they’re flying in – can use the airline’s award-winning mobile app and website to pre-order meals, snacks and beverages up to five days before they’re scheduled to travel. United is the first and only U.S. airline to offer economy customers the option to pre-order snacks and beverages, a reflection of the customer experience transformation underway at the airline.

United’s pre-order technology is an extension of the airline’s contactless payment platform that allows customers to store payment information in a digital wallet. United’s pre-order option is now available on select flights departing from Chicago to HonoluluOrange County, CA Sacramento, CA and San Diego, and will expand to all flights over 1,500 miles by early fall.

How It Works

  • Five days prior to departure, customers will see an option in the Reservation Details section of the United app or on United.com to pre-order food and beverage items available for their specific flight. Customers will also receive an email notifying them when pre-order is available.
  • In economy cabins, customers can pre-order snacks and beverages from United’s buy-on-board menu. They will be asked to enter their credit card information but will not be charged until the items are served to them onboard.
  • In premium cabins, customers can select their meal option directly from the United app or website. Once they make their selection, they will get a receipt emailed to them.

 

 

 

About United’s Contactless Payment Technology

For customers looking to purchase drinks and snack items while onboard, United’s contactless payment platform allows them to store their payment information in a digital wallet on the United app and on United.com prior to departure.

  • Once in flight, customers can access a menu to view available items either on the United app or in Hemispheres® magazine.
  • Rather than handing the flight attendant a credit card, the flight attendant will ask for the customer’s name and seat to confirm the card on file.
  • Once confirmed, customers will receive their products and the card on file will be charged.

About United’s Newly Enhanced Buy-On-Board Menu

United recently unveiled its refreshed buy-on-board menu, which includes a wide variety of food and beverage offerings including:

  • Adult Beverage Options: Mango White Claw®; red, white and sparkling wine, and new beer options such as Breckenridge Brewery Juice Drop Hazy IPA and Michelob ULTRA®.
  • Three New Snack Boxes: A Tapas snack box with European-inspired offerings; a Takeoff snack box with high-protein options; a Recline snack box with movie theater themed treats.
  • A la Carte Snack Options: Including chips, dips, trail mix and chocolate-covered dried fruit.

New Domestic Premium Cabin Menu Items

United also introduced brand-new meal offerings to customers seated in domestic premium cabins on flights over 1,500 miles and hub-to-hub flights over 800 miles.

  • The enhanced meal service includes a choice of entrees – including fresher options like egg scramble with plant-based chorizo and grilled chicken breast with orzo and lemon basil pesto – sides and dessert.
  • United has also teamed with Eli’s Cheesecake to create a uniquely United chocolate pie flavor called “Pie in the Sky.”
  • The meals will be served on one tray, with items individually wrapped, to limit person-to-person contact and further the safety of our employees and customers.

United’s pre-order technology is available beginning July 28 for flights departing on or after August 2. The technology will initially be available on flights from Chicago O’Hare International Airport to San Diego International Airport, Sacramento International Airport, Orange County’s John Wayne Airport and Honolulu’s Daniel K. Inouye International Airport.

United Airlines to operate more than 40 weekly flights as England re-opens to U.S. travelers

United Airlines made this announcement:

With today’s announcement of England reopening to fully vaccinated travelers from the U.S. beginning Aug 2, United Airlines is making it easier for business and leisure customers to jet across the pond with the addition of flights to London.

In August, United will have six daily flights between the U.S. and London, including a second daily flight from Washington, D.C. and increasing service from Houston to daily. United looks forward to resuming additional London service in the coming months as well as launching new nonstop service between Boston and London. Customers traveling to England must be fully vaccinated in the U.S. with vaccines that have been approved by the FDA and must take a test before departure as well as a PCR test within the first two days of arrival. Passengers vaccinated in the U.S. will also need to complete a passenger locator form prior to traveling to England and provide proof of U.S. residency.

United in England

United has provided service to London Heathrow for nearly 30 years and over the course of the pandemic has maintained continuous service between the U.S. and London. In August, United is increasing its service from Houston to London from five times weekly to daily and adding a second daily flight from Washington, D.C. United will continue operating daily flights to London from ChicagoNew York/NewarkSan Francisco. The airline plans to continue offering these six daily flights in September.

 

Boeing reports its second quarter results

Boeing issued this second quarter financial report:

  • Continued progress on global safe return to service of 737 MAX
  • Revenue of $17.0 billion, GAAP earnings per share of $1.00 and core (non-GAAP)* earnings per share of $0.40
  • Operating cash flow of ($0.5) billion; cash and marketable securities of $21.3 billion
  • Commercial Airplanes backlog grew to $285 billion and added 180 net orders

 

Table 1. Summary Financial Results

Second Quarter

First Half

(Dollars in Millions, except per share data)

2021

2020

Change

2021

2020

Change

Revenues

$16,998

$11,807

44%

$32,215

$28,715

12%

GAAP

Earnings/(Loss) From Operations

$1,023

($2,964)

NM

$940

($4,317)

NM

Operating Margin

6.0%

(25.1)%

NM

2.9%

(15.0)%

NM

Net Earnings/(Loss)

$567

($2,395)

NM

$6

($3,036)

NM

Earnings/(Loss) Per Share

$1.00

($4.20)

NM

$0.09

($5.31)

NM

Operating Cash Flow

($483)

($5,280)

NM

($3,870)

($9,582)

NM

Non-GAAP*

Core Operating Earnings/(Loss)

$755

($3,319)

NM

$402

($5,019)

NM

Core Operating Margin

4.4%

(28.1)%

NM

1.2%

(17.5)%

NM

Core Earnings/(Loss) Per Share

$0.40

($4.79)

NM

($1.12)

($6.49)

NM

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”  

The Boeing Company reported second-quarter revenue of $17.0 billion, driven by higher commercial airplanes and services volume. GAAP earnings per share of $1.00 and core earnings per share (non-GAAP)* of $0.40 primarily reflects higher commercial volume and lower period costs (Table 1). Boeing recorded operating cash flow of ($0.5) billion.

“We continued to make important progress in the second quarter as we focus on driving stability across our operations and transforming our business for the future,” said Boeing President and Chief Executive Officer David Calhoun. “While our commercial market environment is improving, we’re closely monitoring COVID-19 case rates, vaccine distribution and global trade as key indicators for our industry’s stability. As we continue to position for a robust recovery, we remain committed to safety and quality, while investing in our people, products and technology. I am proud of our team’s resilience and commitment as we work to rebuild trust, improve our performance and deliver for our commercial, defense, space and services customers.”

As part of Boeing’s ongoing focus on global sustainability, the company published its first integrated Sustainability Report in July. “This was an important step in our continued efforts to reinforce our Environmental, Social, and Governance principles,” Calhoun said.

Table 2. Cash Flow

Second Quarter

First Half

(Millions)

2021

2020

2021

2020

Operating Cash Flow

($483)

($5,280)

($3,870)

($9,582)

Less Additions to Property, Plant & Equipment

($222)

($348)

($513)

($776)

Free Cash Flow*

($705)

($5,628)

($4,383)

($10,358)

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”    

Operating cash flow improved to ($0.5) billion in the quarter, driven by higher commercial deliveries, higher order receipts, and lower expenditures (Table 2).

Table 3. Cash, Marketable Securities and Debt Balances

Quarter-End

(Billions)

Q2 21

Q1 21

Cash

$8.2

$7.0

Marketable Securities1

$13.1

$14.9

Total

$21.3

$21.9

Debt Balances:

The Boeing Company, net of intercompany loans to BCC

$62.1

$62.0

Boeing Capital, including intercompany loans

$1.5

$1.6

Total Consolidated Debt

$63.6

$63.6

1 Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.”

Cash and investments in marketable securities decreased to $21.3 billion, compared to $21.9 billion at the beginning of the quarter, primarily driven by operating cash outflows (Table 3). The company has access to credit facilities of $14.8 billion which remain undrawn.

Total company backlog at quarter-end was $363 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes

Second Quarter

First Half

(Dollars in Millions)

2021

2020

Change

2021

2020

Change

Commercial Airplanes Deliveries

79

20

295%

156

70

123%

Revenues

$6,015

$1,633

268%

$10,284

$7,838

31%

Loss from Operations

($472)

($2,762)

NM

($1,328)

($4,830)

NM

Operating Margin

(7.8)%

(169.1)%

NM

(12.9)%

(61.6)%

NM

Commercial Airplanes second-quarter revenue increased to $6.0 billion primarily driven by higher commercial airplane deliveries. Second-quarter operating margin improved to (7.8) percent, primarily due to lower period costs as well as higher delivery volume (Table 4).

Boeing is continuing to make progress on the global safe return to service of the 737 MAX. Since the FAA’s approval to return the 737 MAX to operations in November 2020, Boeing has delivered more than 130 737 MAX aircraft and airlines have returned more than 190 previously grounded airplanes to service. 30 airlines are now operating the 737 MAX, safely flying nearly 95,000 revenue flights totaling more than 218,000 flight hours (as of July 25, 2021). The 737 program is currently producing at a rate of approximately 16 per month and continues to expect to gradually increase production to 31 per month in early 2022 with further gradual increases to correspond with market demand. The company will continue to assess the production rate plan as it monitors the market environment and engages in customer discussions.

As Boeing has previously shared, the company is conducting inspections and rework and continues to engage in detailed discussions with the FAA on verification methodology for 787. In connection with these efforts, the company announced earlier this month that it has identified additional rework that will be required on undelivered 787s. Based on our assessment of the time required to complete this work, Boeing is reprioritizing production resources for a few weeks to support the inspection and rework. As that work is performed, the 787 production rate will temporarily be lower than five per month and will gradually return to that rate. Boeing expects to deliver fewer than half of the 787s currently in inventory this year.

Commercial Airplanes secured orders for 200 737 aircraft for United Airlines, 34 737 aircraft for Southwest Airlines, and a total of 31 freighter aircraft. Commercial Airplanes delivered 79 airplanes during the quarter and backlog included over 4,100 airplanes valued at $285 billion.

Defense, Space & Security

Table 5. Defense, Space & Security

Second Quarter

First Half

(Dollars in Millions)

2021

2020

Change

2021

2020

Change

Revenues

$6,876

$6,588

4%

$14,061

$12,630

11%

Earnings from Operations

$958

$600

60%

$1,363

$409

233%

Operating Margin

13.9%

9.1%

53%

9.7%

3.2%

203%

Defense, Space & Security second-quarter revenue increased to $6.9 billion driven by higher KC-46A Tanker and P-8A Poseidon volume. Second-quarter operating margin increased to 13.9 percent, primarily reflecting the absence of a charge on the KC-46A Tanker program as compared to second quarter 2020, as well as a favorable non-US contract adjustment.

During the quarter, Defense, Space & Security secured an award for 14 H-47 extended-range Chinook helicopters for the U.K. Royal Air Force and signed an agreement with the German Ministry of Defense for five P-8A Poseidon aircraft. Defense, Space & Security conducted the first MQ-25 unmanned aerial refueling of a F/A-18 Super Hornet and successfully joined T-7A Red Hawk front and aft sections in under 30 minutes enabled by digital design. Also, the first Core Stage for NASA’s Space Launch System began stacking with other Artemis I elements.

Backlog at Defense, Space & Security was $59 billion, of which 32 percent represents orders from customers outside the U.S.

Global Services

Table 6. Global Services

Second Quarter

First Half

(Dollars in Millions)

2021

2020

Change

2021

2020

Change

Revenues

$4,067

$3,488

17%

$7,816

$8,116

(4)%

Earnings/(Loss) from Operations

$531

($672)

NM

$972

$36

NM

Operating Margin

13.1%

(19.3)%

NM

12.4%

0.4%

NM

Global Services second-quarter revenue increased to $4.1 billion and second-quarter operating margin increased to 13.1 percent primarily driven by higher commercial services volume. Operating margin was also favorably impacted by lower asset impairments, lower severance costs, and mix of products and services.

During the quarter, Global Services signed an expanded parts agreement with Turkish Technic and announced a partnership to expand capacity for 737-800 Boeing Converted Freighters. Global Services was also selected to provide P-8A training and sustainment as well as C-17 training to the U.K. Royal Air Force, and was awarded a modification for KC-46A interim contract support for the U.S. Air Force.

Additional Financial Information

Table 7. Additional Financial Information

Second Quarter

First Half

(Dollars in Millions)

2021

2020

2021

2020

Revenues

Boeing Capital

$78

$69

$138

$134

Unallocated items, eliminations and other

($38)

$29

($84)

($3)

Earnings/(Loss) from Operations

Boeing Capital

$36

($7)

$57

$17

FAS/CAS service cost adjustment

$268

$355

$538

$702

Other unallocated items and eliminations

($298)

($478)

($662)

($651)

Other income, net

$199

$94

$389

$206

Interest and debt expense

($673)

($553)

($1,352)

($815)

Effective tax rate

(3.3)%

30.0%

126.1%

38.4%

At quarter-end, Boeing Capital’s net portfolio balance was $1.9 billion. The change in revenue from other unallocated items and eliminations was primarily due to the timing of allocations. The loss from other unallocated items and eliminations was impacted by lower deferred compensation expense as compared to the second quarter of 2020. Interest and debt expense increased due to higher debt balances. The second quarter 2021 effective tax rate primarily reflects benefits from a lower valuation allowance.

Top Copyright Photo: Joe G. Walker. The Boeing test fleet at Boeing Field in Seattle.

United Aviate Academy will train new pilots using Boeing’s comprehensive suite of training solutions

Photo: Boeing. Representatives of Boeing and United Airlines sign a training solutions agreement supporting United Aviate Academy at EAA AirVenture in Oshkosh, Wisconsin on July 26, 2021. Pictured left to right: Curt Brunjes, managing director, Aviate and Pilot Strategy, United Airlines; Bryan Quigley, senior vice president, Flight Operations, United Airlines; Brendan Curran, vice president, Commercial Services, Boeing; Chris Broom, vice president, Training Solutions, Boeing. (Boeing photo)

United Aviate Academy has selected Boeing to provide a comprehensive suite of training tools, materials and digital solutions to develop and provide early career training to United Airlines’ next generation of pilots. The companies commemorated the five-year training agreement with a ceremonial signing event at EAA AirVenture.

The comprehensive training package of courseware and multimedia materials spans Boeing’s portfolio of service offerings, including its Jeppesen and ForeFlight solutions, and provides United Aviate Academy with the tools to help cadets master key concepts and information needed to confidently and safely pilot aircraft.

The agreement includes:

  • Initial cadet assessment materials with accompanying online courses and e-books, supporting higher program completion rates through analytics of data-driven assessments
  • Jeppesen Academy courseware, textbooks and digital learning materials for private, instrument, commercial, multiengine and instructor training
  • The ForeFlight Mobile integrated flight app for pilots equipped with Jeppesen NavData®, electronic charts and Airway Manuals, a one-stop shop for flight tasks like routing flights, planning and filing flight plans, managing electronic charts and maps, and gathering destination and weather information
  • Pilot supplies including Bose headsets, computers, student flight bags, logbooks and more
  • GPS NavData for the United Aviate Academy fleet

European Commission approves state aid to Condor, Condor to resume flights to Canada

Condor Flugdienst Boeing 757-330 WL D-ABOJ (msn 29019) JVR (Javier Rodriguez). Image: 950836.

The European Commission has issued this statement:

The European Commission has found an aid package by Germany in favor of the airline Condor to be in line with EU State aid rules. The approval of the aid package, based on three separate Commission’s decisions, relates to two measures to compensate Condor for damages suffered as a result of the coronavirus outbreak, worth in total €204.1 million, and €321.2 million of restructuring support to enable Condor’s return to viability.

The German aid measures

Condor is a German charter airline, which provides air transport services to individual clients and tour operators from its hubs in Germany, with a focus on the leisure travel market. It serves 126 destinations all over the world. The restrictions put in place in Germany, as well as in other EU Member States and third countries, in order to limit the spread of the coronavirus have heavily affected Condor’s operations, in particular regarding international and intercontinental flights. As a result, Condor has been incurring significant losses since 17 March 2020.

Following the annulment by the General Court of a Commission decision of 26 April 2020, which had approved damage compensation in favor of Condor for the period 17 March to 31 December 2020 (in the form of two loans, with a nominal amount of €550 million and an aid amount of total €267.1 million, based on ex ante estimates of damages), the Commission has today adopted a new decision based on an ex post analysis of the actual damages incurred (”Condor I”) and taking into account the judgment by the General Court.

Between 17 March to 31 December 2020, Condor suffered an actual damage because of the coronavirus outbreak and the related travel restrictions below the initial estimated amount. In line with the claw-back commitment by Germany included in the Commission’s April 2020 decision, Condor will repay the advantage received in excess of the actual amount of damages calculated ex post, plus interest. In a first decision (Condor I), the Commission is therefore approving today €144.1 million of loans as damage compensation for the period between 17 March and 31 December 2020.

In a second decision, the Commission has furthermore approved additional damage compensation in an amount of €60 million for the period from 1 January to 31 May 2021 (“Condor II). This aid measure takes the form of a write off on part of the existing loans, which were initially approved under the annulled decision of April 2020 (the initial damage compensation measure covering the period from 17 March 2020 to 31 December 2020, described above).

Third, Germany also notified the Commission of its plans to grant restructuring aid to Condor. The aid would be granted by writing off additional €90 million of the existing loans and by restructuring the remaining amount of loans, as well as to write-off €20.2 million of interest. This interest relates to the temporary access to excess funds that Condor had on the basis of the amount of damages calculated ex ante. These measures support the restructuring plan of Condor, which started in October 2019 and is envisaged to end in September 2023, for a total of €321.2 million.

The Commission’s assessment

The Commission assessed the damage compensation measures under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or sectors for damage directly caused by exceptional occurrences.

The Commission considers that the coronavirus outbreak qualifies as such an exceptional occurrence, as it is an extraordinary, unforeseeable event having significant economic impact. As a result, exceptional interventions by the Member State to compensate for the damages linked to the outbreak are justified.

  • In the first compensation period, from 17 March to 30 June 2020, the notified measure will compensate Condor for the overall loss of income caused by the travel restrictions imposed in Germany, EU and non-EU countries to limit the spread of the virus.
  • In the second compensation period from 1 July 2020 to 31 May 2021, the notified measure will compensate Condor for the losses caused by remaining or new travel restrictions affecting specific routes.

Therefore, the Commission found that the measures will compensate damages suffered by Condor that are directly linked to the coronavirus outbreak and the related travel restrictions.

The Commission also found that the measures are proportionate. In particular, the route-by-route quantitative analysis submitted by Germany for the compensation relating to the period from 1 July 2020 to 31 May 2021 appropriately identifies the damage attributable to the travel restrictions still applicable to specific routes, and therefore the compensation does not exceed what is necessary to make good the damage on those routes. The risk of the State aid exceeding the damage is therefore excluded.

For what concerns the restructuring aid notified by Germany, the Commission assessed the measures under its Guidelines on State aid for the rescue and restructuring of companies in difficulty

The Commission found that, in line with the Guidelines, Condor is implementing a comprehensive package of restructuring measures that will ensure its return to long-term viability. Moreover, Condor and its new private investor Attestor are making a significant own contribution to the cost of restructuring, as they will fund over 70% of that cost. In particular, creditors have agreed to write-off over €630 million of claims. Moreover, Attestor has committed to inject €200 million of equity and provide further €250 million for Condor’s fleet renewal. The latter will also contribute to the Commission’s objectives specified in the Green Deal as it will replace Condor’s aging fleet with new, efficient aircraft, which will lead to reductions of fossil fuel consumption and CO2 emissions. Finally, Condor has committed to a capacity cap of its fleet during the restructuring period (until September 2023) in order to limit the distortions of competition possibly created by the restructuring aid.

The Commission has therefore approved the restructuring plan presented by Germany and has concluded that the restructuring aid is in line with EU rules as it will bring Condor back on the path of long-term viability without unduly affecting completion and trade in the German leisure air travel market.

Background

Financial support from EU or national funds granted to health services or other public services to tackle the coronavirus situation falls outside the scope of State aid control. The same applies to any public financial support given directly to citizens. Similarly, public support measures that are available to all companies such as for example wage subsidies and suspension of payments of corporate and value added taxes or social contributions do not fall under State aid control and do not require the Commission’s approval under EU State aid rules. In all these cases, Member States can act immediately. When State aid rules are applicable, Member States can design ample aid measures to support specific companies or sectors suffering from the consequences of the coronavirus outbreak in line with the existing EU State aid framework.

On 13 March 2020, the Commission adopted a Communication on a coordinated economic response to the COVID-19 outbreak setting out these possibilities.

In this respect, for example:

  • Member States can compensate specific companies or specific sectors (in the form of schemes) for the damage suffered due and directly caused by exceptional occurrences, such as those caused by the coronavirus outbreak. This is foreseen by Article 107(2)(b)TFEU.
  • State aid rules based on Article 107(3)(c) TFEU enable Member States to help companies cope with liquidity shortages and needing urgent rescue aid.
  • This can be complemented by a variety of additional measures, such as under the de minimis Regulation and the General Block Exemption Regulation, which can also be put in place by Member States immediately, without involvement of the Commission.

In case of particularly severe economic situations, such as the one currently faced by all Member States due the coronavirus outbreak, EU State aid rules allow Member States to grant support to remedy a serious disturbance to their economy. This is foreseen by Article 107(3)(b) TFEU of the Treaty on the Functioning of the European Union.

On 19 March 2020, the Commission adopted a State aid Temporary Framework based on Article 107(3)(b) TFEU to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the coronavirus outbreak. The Temporary Framework, as amended on 3 April, 8 May, 29 June, 13 October 2020 and 28 January 2021, provides for the following types of aid, which can be granted by Member States: (i) Direct grants, equity injections, selective tax advantages and advance payments; (ii) State guarantees for loans taken by companies; (iii) Subsidized public loans to companies, including subordinated loans; (iv) Safeguards for banks that channel State aid to the real economy; (v) Public short-term export credit insurance;(vi) Support for coronavirus related research and development (R&D); (vii) Support for the construction and upscaling of testing facilities; (viii) Support for the production of products relevant to tackle the coronavirus outbreak; (ix) Targeted support in the form of deferral of tax payments and/or suspensions of social security contributions; (x) Targeted support in the form of wage subsidies for employees; (xi) Targeted support in the form of equity and/or hybrid capital instruments; (xii) Support for uncovered fixed costs for companies facing a decline in turnover in the context of the coronavirus outbreak.

The Temporary Framework will be in place until the end of December 2021. With a view to ensuring legal certainty, the Commission will assess before this date if it needs to be extended. The Commission’s Guidelines on rescue and restructuring aid allow Member States to support the restructuring of companies in difficulties, provided, in particular, that the public support measures contribute to addressing the company’s problems and enable it to become viable without continued State support, while limiting the distortions of competition triggered by the aid.

In October 2019, the Commission approved €380 million rescue aid to Condor, as the company got into financial difficulties due to the liquidation of its parent company.

The non-confidential version of the decision will be made available under the case numbers SA.63203, SA. 63617 and SA. 56867 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News. More information on the Temporary Framework and other action the Commission has taken to address the economic impact of the coronavirus pandemic can be found here.

In other news, Condor will once again be taking travelers to Toronto in Ontario and Halifax in Nova Scotia from September 7, 2021. From Frankfurt, Condor will fly to Toronto on Mondays, Thursdays and Saturdays, and to Halifax on Mondays and Thursdays. From there, guests can conveniently reach ten other destinations in Canada with Condor partner WestJet. Travel with Condor can be booked with all German tour operators and at travel agencies, and flight tickets can be booked as usual at http://www.condor.com and by phone.

Top Copyright Photo: Condor Flugdienst Boeing 757-330 WL D-ABOJ (msn 29019) JVR (Javier Rodriguez). Image: 950836.

Condor aircraft slide show:

Eurowings to offer more flights from Stuttgart to more than 60 destinations with 15 based aircraft

Eurowings has made this announcement:

The summer holidays will soon begin in Baden-Württemberg. Over the past weeks and months, Eurowings and its employees on board and on the ground have been working intensively with their partners at Stuttgart Airport to prepare for the start of the most wonderful time of the year. After the long lockdown, the desire to travel is greater this summer than it has been for a long time.

Greatest variety in the Southwest: Eurowings takes off from Stuttgart to more than 60 Destinations

With a rising vaccination rate, the demand for flights has increased significantly. Tourist destinations are demand – above all Mallorca, Greece, the Canary Islands and Croatia.  Eurowings has reacted to this by successively expanding its flight program – and has increased its offer in Stuttgart, the largest Eurowings location in southwest Germany, by another 40 per cent during the holidays.

From Stuttgart, Eurowings offers travelers the largest range of flights at the location during the summer holidays: Over 60 destinations in 18 countries are on the program. On the first holiday weekend, Eurowings expects around 25,000 passengers at the airport in the state capital. In total, the Lufthansa holiday carrier will take off from Stuttgart around 1,800 times during the summer holidays in Baden-Württemberg. Even if Eurowings offers a large part of its original route portfolio again over the summer, the program in 2021 will only comprise around two-thirds of the pre-Corona capacity overall.

With the expansion of the summer offer, the active aircraft fleet is also growing: While Eurowings was still operating 12 aircraft from Stuttgart at the beginning of the summer, the airline will be using 15 Airbus aircraft in Stuttgart from August. This makes Stuttgart the second largest Eurowings base in terms of the number of aircraft stationed there. Across Europe, more than 80 aircraft will be flying for Eurowings in midsummer.

With Eurowings over 40 times a week from Stuttgart to Mallorca

With its wide range of holiday offers, Eurowings is positioning itself as Germany’s leading holiday airline on short and medium-haul routes for the start of summer 2021: Majorca continues to be very popular with travelers and tops the hit list of Eurowings’ most popular destinations again this summer. From Stuttgart alone, Eurowings flies to the Balearic island up to six times a day during the holidays. In total, Eurowings connects 24 airports in Germany and Austria with the popular holiday destination and is the undisputed No. 1 Mallorca shuttle with more than 300 weekly flights.

Greek Heraklion and Thessaloniki, Ibiza and Malaga also enjoy strong demand and are served daily. Other destinations include Sardinia, Croatia, Sicily and the smaller Greek islands. City travelers don’t miss out either: Eurowings flies several times a week to Athens, Barcelona, or Budapest, for example.

Frontier announces 20 new nonstop routes and four new destinations

"Rio, the Jaguarundi"

Frontier Airlines has announced 20 new nonstop routes, including 17 new Orlando routes and an expansion into four popular international vacation destinations: Antigua & Barbuda, Belize City, Liberia, Costa Rica and Turks & Caicos. Plus, the airline is adding its 7th airport in New York state with the announcement of service from New York Stewart International Airport (SWF) in New Windsor.

New Route from Denver International Airport (DEN):

Belize City, Belize (BZE)** Dec. 11, 2021 1x Weekly To BZE: $99* Saturday

New Route from Miami International Airport (MIA):

New Windsor, N.Y. (SWF) Nov. 2, 2021 3x Weekly $39* Tuesday, Thursday

New Routes from Orlando International Airport (MCO):

New Windsor, N.Y. (SWF) Oct. 25, 2021 4x Weekly $39* Monday, Wednesday, Saturday
Bentonville, Ark. (XNA) Nov. 1, 2021 2x Weekly $49* Monday, Friday
Fort Myers, Fla. (RSW) Nov. 1, 2021 Daily $25* Monday, Tuesday, Wednesday, Thursday, Saturday
Harlingen, Texas (HRL) Nov. 1, 2021 2x Weekly $59* Monday, Friday
Pensacola, Fla. (PNS) Nov. 1, 2021 3x Weekly $29* Monday, Wednesday
Sioux Falls, S.D. (FSD) Nov. 1, 2021 2x Weekly $59* Monday, Friday
Montego Bay, Jamaica (MBJ)** Nov. 2, 2021 3x Weekly To MBJ: $99* Tuesday, Thursday
Nassau, The Bahamas (NAS)** Nov. 2, 2021 4x Weekly To NAS: $69* Tuesday, Thursday, Saturday
El Paso, Texas (ELP) Nov. 3, 2021 2x Weekly $69* Wednesday, Saturday
Antigua & Barbuda (ANU)** Dec. 4, 2021 1x Weekly To ANU: $99* Saturday
Cedar Rapids, Iowa (CID) Nov. 4, 2021 2x Weekly $59* Thursday, Sunday
Fargo, N.D. (FAR) Nov. 4, 2021 2x Weekly $69* Thursday, Sunday
San Salvador, El Salvador (SAL)** Nov. 4, 2021 2x Weekly To SAL: $99* Thursday, Sunday
Cozumel, Mexico (CZM)** Nov. 6, 2021 1x Weekly To CZM: $99* Saturday
Liberia, Costa Rica (LIR)** Nov. 11, 2021 2x Weekly To LIR: $99* Thursday, Sunday
Belize City, Belize (BZE)** Dec. 11, 2021 1x Weekly To BZE: $79* Saturday
Turks & Caicos (PLS)** Dec. 17, 2021 1x Weekly To PLS: $99* Friday

New Route from Tampa International Airport (TPA):

New Windsor, N.Y. (SWF) Nov. 2, 2021 3x Weekly $39* Tuesday, Thursday

**Route subject to government approval.

Top Copyright Photo: Frontier Airlines (2nd) Airbus A320-251N WL N352FR (msn 8976) (Rio, the Jaguarundi) SNA (Michael B. Ing). Image: 953996.

Frontier Airlines aircraft slide show:

Hawaiian Holdings reports a 2Q net loss of $6.2 million

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the second quarter of 2021.

Hawaiian Airlines logo. (PRNewsFoto)

Second Quarter 2021 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Loss

$(6.2)M

$100.7M

$(73.8)M

$100.9M

Diluted EPS

$(0.12)

$2.21

$(1.44)

$2.37

Pre-tax Margin

(2.0)%

+252.2 pts.

(22.9)%

+361.0 pts.

“We made meaningful strides toward recovery during the second quarter, propelled by continued strong demand on our U.S. mainland routes,” said Peter Ingram , Hawaiian Airlines president and CEO. “It is encouraging to see how far we’ve come and I am optimistic about our continued recovery. My immense appreciation goes out to our team, who continues to embrace our purpose, in spite of the challenges facing them.”

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.

Second Quarter 2021

Financial Results

For the second quarter of 2021, the Company reported a net loss of $6.2 million , and an adjusted net loss of $73.8 million .

The Company reported total revenue of $410.8 million , down 42% compared to the second quarter of 2019, on 30% lower capacity.

The Company reported total operating expenses of $392.3 million , and operating expenses excluding non-recurring items of $478.4 million , down 23% compared to the second quarter of 2019.

Routes and Network

The State of Hawai’i made several positive changes to its Safe Travels program in the second quarter of 2021, including:

  • Beginning May 11, 2021 , travelers who were fully vaccinated in Hawaiʻi and had proof of vaccination were permitted to bypass COVID-19 testing and quarantine restrictions when traveling within the Hawaiian islands.
  • Beginning June 15, 2021 , all travel restrictions were removed for travel within the Hawaiian islands, and travelers who were fully vaccinated in Hawaiʻi were permitted to bypass COVID-19 testing and quarantine restrictions with proof of vaccination when traveling into the state.
  • Beginning July 8, 2021 , all domestic travelers who were fully vaccinated in the U.S. were permitted to bypass COVID-19 testing and quarantine restrictions with proof of vaccination when traveling into the state.
  • The State of Hawaiʻi announced that the Safe Travelp Program will end when 70% of the state’s residents are fully vaccinated.

In the second quarter of 2021, the Company continued to rebuild and expand its network, primarily in North America . In June 2021 , Hawaiian’s North America traffic exceeded June 2019 levels. During the second quarter of 2021, the Company operated at an average of 70% of its 2019 second quarter system capacity, comprised of 97%, 57% and 11% capacity on its North America , Neighbor Island and International routes, respectively.

In April 2021 , the Company launched twice weekly service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Austin-Bergstrom International Airport (AUS), and expanded this service to three-times-weekly for the summer of 2021.

In May 2021 , the Company launched four-times-weekly seasonal service through August 15, 2021 between Kahului Maui (OGG) and Phoenix Sky Harbor International Airport (PHX).

In June 2021 , the Company announced the resumption of its Tahiti service following the launch of a pre-travel testing program between Hawaiʻi and French Polynesia that allows for quarantine-free travel between the two archipelagos.  As part of the program, travelers inbound to Hawai’i will need to provide proof of a negative test result from a State-approved testing partner, while travelers outbound to Tahiti will need to provide proof of vaccination and have fulfilled the government of Tahiti’s COVID-19 entry requirements prior to travel.  Beginning August 7, 2021 , the Company will reinstate its nonstop once-weekly service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Tahiti’s Fa’a’ā International Airport (PPT).

Liquidity and Capital Resources

As of June 30, 2021, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $2.2 billion , up $304 million from March 31, 2021
  • Outstanding debt and finance lease obligations of $2.2 billion , up $22 million from March 31, 2021
  • Air traffic liability of $823 million , up $136 million from March 31, 2021

The Company further enhanced its liquidity position during the second quarter of 2021 with $173.4 million in grants and $31.4 million in loans pursuant to the Payroll Support Program Extension Agreement (the “PSP Extension Agreement”) and Payroll Support Program 3 Agreement with the U.S. Department of the Treasury.

As of June 30, 2021 , the Company had $2.4 billion in liquidity, including the undrawn portion of its $235 million revolving credit facility.

Guest Experience

In June 2021 , the Company announced a partnership with Boyd Gaming Corporation that will allow members to earn greater benefits and rewards with Boyd Gaming’s award-winning B Connected player loyalty program and the HawaiianMiles program. Boyd Gaming and Hawaiian Airlines loyalty members will enjoy reciprocal earning and redemption benefits, providing the Company’s guests with greater access to B Connected’s selection of rewards tiers, exclusive player benefits and entertainment experiences, as well as more ways to earn and use HawaiianMiles.

As of July 15, 2021 , the Company restored its full cabin meal and beverage service, while maintaining safety standards for its guests and guest-facing team members.

The Company continues its enhanced cleaning procedures and guest-facing protocols to minimize the risk of transmission of COVID-19. Understanding that health and safety are still critical concerns for our guests, the Company will continue to focus on protective measures such as:

  • Frequent cleaning and disinfecting of counters and self-service check-in kiosks in airports.
  • Ensuring hand sanitizers are readily available for guests at airports it serves.
  • Requiring guests and guest-facing employees to wear face masks or coverings, with guests required to wear masks throughout their travel, including at our airport spaces, during boarding, in-flight (except when eating or drinking) and when deplaning.
  • Performing enhanced aircraft cleaning between flights and during overnight parking.

Environmental, Social and Corporate Governance

In July 2021 , the Company published its 2021 Corporate Kuleana Report reinforcing its commitment to sustainability and outlining its progress advancing various environmental, social and governance (ESG) initiatives. A link to the report can be found through the Investor Relations, Corporate Responsibility section of Hawaiian’s website.

Addressing climate change remains one of the Company’s key ESG priorities. The Company has committed to achieving net-zero carbon emissions by 2050 through ongoing fleet investments, more efficient flying, carbon offsets, industry advocacy for air traffic control reform and development of sustainable aviation fuel supply. Starting this year, the Company has pledged to offset emissions from international flights above 2019 levels, in accordance with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

In 2020, the Company decreased Available Seat Miles (ASMs) by 63.3 percent and Revenue Passenger Miles (RPMs) by 74.3 percent compared to 2019. The Company’s CO2 greenhouse gas emissions (GHG) dropped commensurately by 60.7 percent.  After adjusting its fuel consumption figures to remove cargo-only flying, the Company reduced CO2 emissions intensity per ASM year-over-year by 2.1%.

The Company also defined steps it is taking to foster diversity and inclusion. Evidence-based processes to minimize bias in hiring and promotional practices across the Company have contributed to team diversity, with approximately 78% of Hawaiian’s active workforce identifying as diverse based on ethnicity and 44% based on gender.

Third Quarter 2021 Outlook

The Company expects to continue to rebuild its network in the third quarter, driven primarily by North America and Neighbor Island flying, as the timing of International demand recovery remains uncertain. The Company expects improvement in total revenue, with continued strength in North America demand, and steady improvement in Neighbor Island routes. The Company expects an increase in operating expenses, excluding non-recurring items, primarily driven by the increase in capacity as compared to the second quarter, higher fuel price, higher airport rates, and costs related to preparing for the resumption of more significant international flying.

The table below summarizes the Company’s expectations for the third quarter ending September 30, 2021 , expressed as an expected percentage change compared to the results for the quarter ended September 30, 2019 , as applicable.

Item

Third Quarter 2021
Guidance

GAAP Equivalent

GAAP Third Quarter
2021 Guidance

ASMs

Down 20 to 23%

Total Revenue

Down 28 to 33%

Operating Expenses, excluding non-recurring items (a)

Down 10 to 14%

Operating Expenses (a)

Down 22 to 26%

Interest Expense

$30 million

Adjusted EBITDA (b)

$(20) million to $20 million

Effective Tax Rate

~21%

Fuel Price per Gallon (c)

$2.04

(a)

See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding non-recurring items.

(b)

The Company is not providing a reconciliation of adjusted EBITDA to GAAP net income, the most directly comparable GAAP measure, as it is unable, without unreasonable efforts, to calculate certain special and non-recurring charges, which could have a significant impact on the GAAP measure.

(c)

Fuel Price per Gallon estimates are based on the July 23, 2021 fuel forward curve.

 

Air France prepares for the arrival of the first Airbus A220

Air France issued this statement:

  • The company’s first Airbus A220 has left the paint shop sporting the Air France livery,
  • This aircraft embodies the airline’s sustainability commitments with 20% less fuel used compared with the aircraft it is replacing and a 34% reduced noise footprint,
  • All the Air France crews are preparing to welcome this aircraft in September at Paris-Charles de Gaulle.

Air France is continuing to renew its fleet. At the end of September, the airline will take delivery of the first of the 60 Airbus A220-300s it has ordered to replace its Airbus A318s and A319s on the short and medium-haul network.

The first Airbus A220 designed for Air France recently left the Airbus paint shop in Mirabel, near Montreal. It sports the new Air France colors and notably features the winged seahorse, the airline’s historical symbol embodying its rich history, at the front of the fuselage.

As it is made with lighter composite materials, the Airbus A220 uses 20% less fuel than previous generation aircraft, and has a 34% reduced noise footprint. It will play a decisive role in achieving Air France’s sustainable development objectives, including a 50% reduction in CO2 emissions in absolute terms on the domestic network from Paris-Orly and on inter-regional routes by 2024 (1), and a 50% reduction in CO2 emissions per passenger/km by 2030(2).

Tests and crew training – flight safety of key importance in the preparation for the A220’s arrival

Before joining Paris to carry Air France customers, the aircraft will undergo a series of ground and in-flight tests. On its arrival, it will be used for more than a month to train the airline’s flight crews, some of whom began the so-called “type rating” process last summer.

As with every new type of aircraft entering the fleet, the company has set up two core groups, one made up of pilots and the other of flight attendants. These already qualified crew members will then be responsible for training their colleagues within the framework of in-house programs validated by the authorities.

Last September, eight instructor pilots attended an 8-week theoretical and practical training course at the Airbus training centre in Montreal. They are currently training their colleagues – including another 28 instructors who complete the pilot launch team – notably using a Full Flight Simulator (FFS) mounted on jacks, and assembled at Air France’s flight simulation centre at Paris-Charles de Gaulle. Once Air France takes delivery of the first aircraft, this simulator training will be supplemented by approximately 20 flights in real conditions, with a view to obtaining the A220-300 type rating. Close to 700 Air France pilots will eventually be qualified on this aircraft.

The same core group system is being used for cabin crews, with 14 flight attendants trained in Zurich between September and December 2020. They are currently finalizing the training manuals and content that they themselves will be responsible for providing as from September 2021. The core group has selected and trained a group of 37 flight attendants to complete the practical flight training of cabin crews as soon as the A220 enters service. Two A220 door models have been installed at the Air France Crew Academy at Paray Vieille-Poste, near Paris-Orly, to train some 2,500 flight attendants.

In addition to the pilots and flight attendants, the entire company is preparing to welcome the Airbus A220. From maintenance to station staff, all operational sectors are getting ready for the arrival of this latest-generation aircraft.

The Air France Airbus A220 will be able to welcome 148 passengers in a 3-2 cabin configuration. Each seat will be equipped with type A and type C USB ports and all passengers will enjoy Wi-Fi access from their personal devices.

Video: