Norwegian to reopen its Stockholm Arlanda base

Norwegian Air Shuttle (Oslo) is planning to reopen and expand its Stockholm (Arlanda) base for the summer season.

The airline is planning to reopen a crew base at ARN and is planning to operate 54 European routes this summer according to OAG.

Currently Norwegian is operating from ARN to 15 destinations, including three domestic destinations: Umeรฅ, Luleรฅ and Kiruna.

Smartwings becomes the first to land a Boeing 737 MAX in Antarctica

Smartwings landed its Boeing 737 MAX 8 in Antarctica.ย  The landing at Troll Airfield at the northern tip of Antarctica took place on January 26, 2022, and 737 MAX is the first aircraft of its type here.

The flight was chartered by Aircontact to carry the members of the Norwegian Polar Institute to their base. The Troll Research Station is located 235 kilometers from the coast in the eastern part of Princess Martha Coast, in Queen Maud Land, Antarctica. Run by the Norwegian Polar Institute, the station is dedicated to environmental and climate monitoring, scientific research, and mapping. The runway is built on a glacier at an altitude of 1232 meters.

The flight beyond the Southern Arctic Circle went smoothly. Smartwingsโ€™ Boeing 737 MAX (registration OK-SWB) took off from Oslo, Norway, heading for Cape Town, South Africa (with a stopover in Nโ€™Djamena, Chad). From Cape Town, the aircraft continued to Antarctica. The flight lasted 6 hours and the plane stayed in Antarctica for 2 hours, before setting off for Oslo via Cape Town again.

The crew of the Smartwings aircraft received continuous weather reports and updates on the airport operability during the flight via datalink and satellite phone communication. The 3,000m long runway covered with ice is used for landing and takeoff. The thick of the ice was measured and analyzed to withhold the operation. The surface was specifically prepared, and braking action measured by Norwegian Polar Institute prior to operation to allow takeoff and landing according to regulations and aircraft manufacturer standards keeping all the safety margins.

Landing on a glacier requires a specially trained crew which consisted of 3 experienced captains – Tomรกลก Nevole, Jan ล ลฅastnรฝ and Lubomรญr Malรญk.ย โ€œIt is necessary to prepare thoroughly for such a flight. The preparations took many months, and the flight and landing went smoothly,โ€ย says Smartwings captain and flight director Tomรกลก Nevole.

The captains had to undergo special training to become familiar with the area and the airstrip. All crew members undertook Arctic Survival training. The aircraft was equipped with Polar survival kits including polar clothes for the crew and in addition some critical spare parts were carried on board.

The weather was closely monitored 5 days prior the operation using the forecast of German meteorological institutes DWD and AWI with resources on Antarctica. For this type of operation, the companyโ€™s air traffic control will assign at least one dispatcher who will constantly monitor and evaluate the condition of the airstrip and the weather, and will remain in touch with the crew in case of any changes. During the flight, the technical condition of the aircraft is being evaluated by the Smartwings technical department in Prague through an automated data link.

It is not possible to plan any alternate airport instead of Troll Airfield, which has all the necessary equipment, including but not limited to: adequate firefighting services, tailor- made approach charts and experienced staff responsible for Troll Airfield lead by Sven Lidstrรถm from the Norwegian Polar Institute. Due to the fact that it is a so-called isolated airport, where there are no other landing options within reach, it was necessary to obtain assessment and approval from the Czech Aviation Authority for Troll as Isolated Aerodrome.

Smartwings Group aircraft fly to more than 400 airports around the world per year. Until now Antarctica has been the only continent where Smartwings plane has not landed yet.

Video:

Smartwings aircraft slide show:

Smartwings aircraft photo gallery:

Air Leap ceases operations, will reorganize

Airline Color Scheme - Introduced 2020

Air Leap (Stockholm-Arlanda) ceased all operations on January 24, 2022.

The airline issued this statement:

The board of Air Leap Aviation AB has decided to go into reconstruction and at the same time cancel all scheduled flights from and including January 24, 2022, it is stated in a press release from the company.

The main reason why we have made this decision is that it is not financially justifiable to continue with the material and the conditions we have today. The company has kept the operation going for the last two years during covid-19 with limited support from the public sector in Sweden. Air Leap has provided and maintained important infrastructure during the pandemic, which we believe should have been given more support when considering the extensive restrictions that our industry has experienced.

We apologize for the inconvenience this will cause for customers who have purchased tickets with the company after 24 January. All customers are asked to follow the company’s website for further information in the coming days.

History from Wikipedia:

Air Leap was founded by the same owners as the airlineย FlyViking. After FlyViking ceased operations in January 2018, the virtual airline Next Move was founded in March 2018 to continue operating theย ร˜rlandย –ย Oslo Gardermoenย route. Next Move was renamed Air Leap after the company bought parts of the bankrupt Swedish airlineย Nextjet.

The parts of Nextjet became the Swedish Air Leap, but lacked an Air operator’s certificate (AOC) to operate the Swedish routes, which is why all flights in the beginning were operated by Denmark’s Danish Air Transport (DAT), the Estonian NyxAir and the Dutch AIS Airlines, among others. On June 11, 2018 flights were resumed in Sweden. On October 19, 2018, the Swedish Transport Agency awarded Air Leap Air Operator Certificate (AOC) and registered the company as the official operator of three SAAB 340Bs. The first flight under new AOC took place onย  October 21, 2018 from Stockholm-Arlanda to Mariehamn.

On January 24, 2022, the company suspended operations and filed for reorganization, citing financial issues as a result of a lack of government aid from the COVID-19 pandemic.

Route Map:

Top Copyright Photo: Air Leap ATR 72-212A (ATR 72-500) SE-MDA (msn 778) ARN (Stefan Sjogren). Image: 951877.

Air Canada flies Team Canada to Beijing

Air Canada’s flight AC2201 on January 26 from Vancouverย toย Beijingย marks the first of three special charter flights transporting Team Canada to theย Beijingย 2022 Olympic and Paralympic Winter Games. The airline also named its Team Air Canada athlete ambassadors and outlined its comprehensive program in support of Team Canada’s journey to excellence at the 2022 Winter Games.

Air Canadaโ€™s flight AC2201 today from Vancouver to Beijing marks the first of three special charter flights transporting Team Canada to the Beijing 2022 Olympic and Paralympic Winter Games. (CNW Group/Air Canada)

“At Air Canada, we are proud to literally ‘Fly the Flag’ as we transport Team Canada to the 2022 Winter Games and honour their journey to the podium. We’re also delighted to endorse Olympians as Team Air Canada athlete ambassadors. Their resilience and relentless drive to be the very best in their sport, while embodyingย Canada’sย collective values of diversity, inclusivity, openness, and kindness inspire all of us. We look forward to sharing our athletes’ individual journeys and cheering on all members of Team Canada in their pursuit of excellence,” saidย Andy Shibata, Vice President, Brand at Air Canada.

“The pandemic has resulted in many unique logistical challenges in the lead up to theย Beijingย 2022 Olympic Winter Games and planning flights for approximately 230 Team Canada athletes has been one of them,” said Canadian Olympic Committee Chief Brand and Commercial Officerย Jacquie Ryan. “However, our amazing partner at Air Canada has provided incredible support behind the scenes to ensure a safe path for athletes including air charter services to and fromย Beijing. We have never been more proud to Fly The Flag on the official airline of Team Canada.”

“Flying to the host city is an important step of the journey for all athletes, coaches, and support staff as they prepare to representย Canadaย and be at their best for the Paralympic Games. A big thank you to Air Canada for all of their support in ensuring Team Canada is able to get to the Games safely and comfortably,” saidย Karen O’Neill, CEO, Canadian Paralympic Committee.

Airย Canada’sย charter flights operate with a 787 Dreamliner in a special livery. Flights fromย Vancouverย toย Beijingย take place today,ย Jan. 29, andย Feb. 25, and return toย Canadaย fromย Beijingย toย Vancouverย andย Torontoย onย Feb. 21ย and toย Vancouverย onย Mar. 14.

Team Air Canada Athlete Ambassadors

  • Cassie Sharpeย โ€“ Freestyle Skiing โ€“ Halfpipe
  • Cynthia Appiahย โ€“ Bobsleigh
  • Gilmore Junioย โ€“ Speed Skating โ€“ Long Track
  • Marie-Philip Poulinย โ€“ Ice Hockey
  • Mikaรซlย Kingsburyย โ€“ Freestyle Skiing โ€“ Moguls
  • Paralympians to be announced prior to Paralympic Games

In addition to the employees and crews dedicated to transporting Team Canada safely to and from theย Beijingย 2022 Olympic and Paralympic Winter Games, Air Canada is:

  • Recognizing Team Canada’s drive and determination through the airline’s “Rise Higher” brand spot online via Air Canada’s social media channels and in broadcast throughout the Games,
  • Presenting all Team Canada athletes with unique, personal care kits including Canadian-made travel essentials to help make their flight even more comfortable, together with a complimentary Wi-Fi streaming pass, courtesy of our partner Intelsat,
  • Providing all Team Canada athletes with Aeroplan points, complimentaryย 35Kย status which includes complimentary checked bags through the Aeroplan Elite Podium Program to help make their journey to the podium more travel friendly,
  • Encouraging fans to virtually connect with Team Canada in unique and innovative ways to enable them to experience the 2022 Winter Games as if they were there. Learn more about these exciting opportunitiesย here.

Airย Canadaย has been a proud sponsor of the Canadian Olympic Team since 1988 and of the Canadian Paralympic Team since 2007.

JetBlue Airways loses money in the fourth quarter

JetBlue Airways Corporation today reported its results for the fourth quarter of 2021:

  • Reported GAAP loss per share of ($0.40) in the fourth quarter of 2021 compared to diluted earnings per share ofย $0.56ย in the fourth quarter of 2019. Adjusted loss per share was ($0.36)(1)ย in the fourth quarter of 2021 versus adjusted diluted earnings per share ofย $0.56(1)ย in the fourth quarter of 2019.
  • GAAP pre-tax loss ofย ($163) millionย in the fourth quarter of 2021, compared to a pre-tax income ofย $220 millionย in the fourth quarter of 2019. Excluding one-time items, adjusted pre-tax loss ofย ($145) million(1)ย in the fourth quarter of 2021 versus adjusted pre-tax income ofย $221 million(1)ย in the fourth quarter of 2019.

Operational and Financial Highlights from the Fourth Quarter

  • Capacity declined by 5.4% year over two, in-line with our planning assumption of a 4% to 7% decline, year over two.
  • Revenue declined 9.7% year over two, compared to our planning assumption of an 8% to 13% decline year over two. This was within the range of our initial assumptions despite a late quarter impact from the Omicron wave, driven by strong holiday peaks.
  • Operating expenses per available seat mile increased 14.4% year over two. Operating expenses per available seat mile, excluding fuel and special items (CASM ex-fuel)ย (1)ย increased 16.3%(1)ย year over two. Consistent with the industry, our cost performance was impacted by incremental incentives and premium pay tied to the Omicron surge in case counts and the resulting operational impact, worth approximately two points of CASM ex-fuel in the quarter.
  • Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Special Items (Adjusted EBITDA) in the fourth quarter of 2021 wasย $31 million(1), towards the better end of our planning assumption range of ($50) toย $50 million.

Balance Sheet and Liquidity

  • As of December 31, 2021, JetBlueโ€™s adjusted debt to capital ratio was 53%(1).
  • JetBlue ended the fourth quarter of 2021 with approximatelyย $2.8 billionย in unrestricted cash, cash equivalents, and short-term investments, or 35% of 2019 revenue. This excludes ourย $550 millionย undrawn revolving credit facility.
  • JetBlue paid down approximatelyย $100 millionย in regularly scheduled debt and finance lease obligations, and prepaid approximatelyย $20 millionย in bank loans.

Fuel Expense and Hedging

  • The realized fuel price in the fourth quarter 2021 wasย $2.37ย per gallon, a 14.2% increase versus fourth quarter 2019 realized fuel price ofย $2.07.
  • As of January 27, 2022, JetBlue has not entered into forward fuel derivative contracts to hedge its fuel consumption for the first quarter of 2022. Based on the forward curve as of January 14, 2022, JetBlue expects an average all-in price per gallon of fuel ofย $2.59ย in the first quarter of 2022.

Northeast Alliance Expected to Deliver Competition and Customer Choice

  • Since the Northeast Alliance with American (NEA) was implemented in February 2021, JetBlue and American have collectively grown more quickly than the two largest competitors acrossย New Yorkย andย Boston. The airlines have launched the first phase of reciprocal loyalty benefits, are investing in a seamless travel experience and are now codesharing on 185 routes. Additionally, JetBlue will be fully operating out of LaGuardiaโ€™s (LGA) Terminal B when completed in summer 2022, providing easy connections for customers traveling on the Northeast Alliance.
  • JetBlue plans to launch two new BlueCities this summer โ€“ Asheville (AVL) andย Vancouverย (YVR). As part of our 2022 growth plans, JetBlue and American plan to offer up to 300 daily departures at JFK Airport, 195 of those operated by JetBlue โ€“ more flights than ever before. At LGA, JetBlue plans to operate approximately 50 of nearly 200 daily departures with American, more than tripling our 2019 flight count.

Paving a Path Towards Value Creation

โ€œWhile Omicron has temporarily weighed on demand in the very near-term, we expect sequential month-on-month improvement through the quarter, ultimately returning to sustained profitability in the spring and beyond. Furthermore, were it not for Omicron, we believe we would have generated higher revenue this quarter than in the first quarter of 2019,โ€ said Robin Hayes, JetBlueโ€™s Chief Executive Officer.

โ€œI firmly believe that 2022 will prove to be a transformational year for JetBlue’s structural profitability, as we look to restore our earnings power and create value for our stakeholders. And we plan to achieve this by pulling meaningful commercial levers, keeping our relentless focus on costs, and maintaining our measured approach to capital allocation.โ€

Revenue and Capacity

โ€œThe surge in case counts disproportionately impacted the Northeast, hittingย New Yorkย particularly hard, driving increased Customer cancellations and bookings softness during the most significant revenue weeks of the quarter, and also led to some Crew-related cancellations. Despite all of these challenges, our underlying revenue performance was very strong, which keeps us optimistic about the future as we continue to ramp up hiring efforts towards a fully staffed operation,โ€ said Joanna Geraghty, JetBlueโ€™s President and Chief Operating Officer.

โ€œFor the first quarter of 2022, we expect revenue to decrease between 11% and 16% year over three. This sequential slowdown reflects the large negative impact from Omicron on Q1 demand. However, trends have largely stabilized and are improving across all geographies. As quickly as the Omicron variant swept through the Northeast, we are seeing cases rapidly decline and we expect sequential month-on-month improvement leading to a profitable Q2 and a very strong summer peak.

For the first quarter of 2022, we expect capacity to range between (1%) and 2% year over three. For the full-year 2022, we are planning to grow capacity between 11% and 15% versus 2019 as we bring aircraft utilization back towards pre-pandemic levels, while retaining flexibility. We expect the demand recovery to regain steam following the temporary setback tied to the Omicron variant. Weโ€™ll continue to be nimble and react to the environment.โ€

Financial Performance and Outlook

โ€œWeโ€™re confident that weโ€™re on a path to sequential pre-tax margin improvement with sustained profitability in the spring and beyond. We expect to achieve greater operating leverage as we grow revenue while continuing to improve our unit cost performance,โ€ said Ursula Hurley, JetBlueโ€™s Chief Financial Officer.

โ€œFor the first quarter of 2022, we estimate CASM ex-fuel(2)ย will increase between 13% to 15% year over three. For the full-year 2022, we expect CASM ex-fuel(2)ย to increase in the range of 1% to 5% versus 2019. We expect elevated unit costs in the first half, followed by a meaningful improvement in the second half of the year as we plan for our network, operation, and aircraft utilization to settle into a โ€˜new normalโ€™ with optimal staffing levels, along with the ramp of our planned cost initiatives.

For the full-year, we have repaid a total of approximatelyย $1.9 billionย of debt. Our balance sheet continues to be among the strongest in the industry, and weโ€™ll continue our balanced approach to capital allocation to drive shareholder value.โ€

Earnings Call Details

JetBlue will conduct a conference call to discuss its quarterly earnings today, January 27, 2022 at 10:00 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet atย http://investor.jetblue.com. The webcast replay and presentation materials will be archived on the companyโ€™s website.

For further details see the Fourth Quarter 2021 Earnings Presentation available via the internet atย http://investor.jetblue.com.

About JetBlue

JetBlue isย New York’sย Hometown Airlineยฎ, and a leading carrier inย Boston,ย Fort Lauderdale-Hollywood,ย Los Angeles,ย Orlandoย and San Juan. JetBlue carries customers across theย U.S.,ย Caribbeanย andย Latin America, and betweenย New Yorkย andย London. For more information, visitย jetblue.com.

Notes

(1)

Non-GAAP financial measure; Note A provides a reconciliation of non-GAAP financial measures used in this release and explains the reasons management believes that presentation of these non-GAAP financial measure provides useful information to investors regarding JetBlue’s financial condition and results of operations.

(2)

With respect to JetBlueโ€™s CASM ex-fuel guidance, JetBlue is unable to provide a reconciliation of the non-GAAP financial measure to GAAP because the excluded items have not yet occurred and cannot be reasonably predicted. The reconciling information that is unavailable would include a forward-looking range of financial performance measures beyond our control, such as fuel costs, which are subject to many economic and political factors. Accordingly, a reconciliation to CASM is not available without unreasonable effort.

Wheels Up to acquire Air Partner

Wheels Up Experience Inc., the leading brand in private aviation, today announced it has reached an agreement to acquire Air Partner PLC, a U.K.-based global aviation services group with operations in 18 locations and across four continents. Under the terms of the transaction, Wheels Up will acquire the entire issued and to be issued ordinary share capital of Air Partner for 125 penceย per share, equivalent to an enterprise value of approximatelyย $107 million. The acquisition is expected to close later in the first quarter subject to shareholder and regulatory approvals.

Founded in 1961, Air Partner is a global aviation services company providing private jet, group and freight charter and aviation safety & security solutions to industry, commerce, governments and private individuals, across civil and military organizations.

Air Partner will provide Wheels Up the ability to expand its service offerings internationally, and Wheels Up expects Air Partner to leverage Wheels Up’s investments in operations, service and technology on a global basis with an active and engaged customer base. The proposed acquisition will enhance Wheels Up’s brand equity and will also add an experienced global team from a company with more than 60 years of continuous operations in private aviation.

Southwest Airlines has profitable fourth quarter and 2021

Southwest Airlines today reported its fourth quarter and full year 2021 financial results:

  • Fourth quarter net income ofย $68 million, orย $0.11ย per diluted share
  • Excluding special items1, fourth quarter net income ofย $85 million, orย $0.14ย per diluted share
  • Full year net income ofย $977 million, orย $1.61ย per diluted share, driven by aย $2.7 billionย offset of salaries, wages, and benefits expenses related to the receipt of Payroll Support Program (PSP) proceeds under the Consolidated Appropriations Act, 2021 and the American Rescue Plan Act of 2021
  • Excluding special items, full year net loss ofย $1.3 billion, orย $2.15ย loss per diluted share
  • Ended 2021 with liquidity2ย ofย $16.5 billion, well in excess of debt outstanding ofย $10.7 billion

Gary C. Kelly, Chairman of the Board and Chief Executive Officer, stated, “We ended 2021 on a high note with our first quarterly profit, excluding special items, since fourth quarter 2019 before the COVID-19 pandemic began. Leisure travel demand was strong, particularly during the holidays, and business revenues continued to recover compared with 2019 levels. We also generated incremental revenue from our new co-brand credit card agreement secured in December 2021 with Chase Bankย USA, N.A. Our fourth quarter 2021 cost performance was in line with expectations, which included hiring thousands of new Employees. While we continue to manage through an incredibly challenging operating environment, we made much progress in our recovery in 2021 and are well-positioned for future growth with our industry-leading balance sheet.

“We celebrated our 50th anniversary in 2021, opened 14 new airports, returned the Boeing 737 MAX (MAX) back into service, completed our launch of industry-standard corporate bookings through multiple Global Distribution System (GDS) platforms, and implemented a new maintenance record-keeping systemโ€”to name just a few major accomplishments despite the pandemic. Our Employees’ resilience, teamwork, and care for Customers and one another has been a marvel to watch. Southwest was, once again, named to FORTUNE’s 2021 list of the World’s Most Admired Companiesโ€”a testament to our Peopleโ€”and I am pleased we were able to accrue $230 million of profit sharing in 2021 for their benefit.

“On February 1st, Bob Jordan will become the 6th CEO of Southwest. Since our announcement last June, Bob has been hard at work on the transition and is well-prepared to take on this important role. I have the utmost confidence in Bob, our Leadership Team, and the People of Southwest to lead the Company forward and execute a solid strategy. I am supremely honored and privileged to have served Southwest as CEO for 18 years, and I look forward to continuing to be a part of the Team as Executive Chairman.”

Bobย Jordan, Executive Vice President and Incoming Chief Executive Officer, stated, “Despite our fourth quarter profit, we had a challenging start to 2022 as we continue to recover from the pandemic. While we made significant progress in 2021, the Omicron variant has delayed the demand improvement we were previously expecting in early 2022. With COVID-19 cases trending downward, the worst appears to be behind us, and we are optimistic about current bookings and revenue trends for March 2022.

“We are experiencing higher unit cost inflation in 2022 as we continue to navigate the pandemic. The Omicron variant significantly impacted our available staffing beginning in early January 2022, and we temporarily extended incentive pay for Operations Employees through early February 2022, as we strive to maintain sufficient available staffing and minimize flight cancellations. Over the last two weeks we have returned to solid operational performance like we experienced over the holidays in fourth quarter 2021. We met our 2021 hiring goals, and we are planning to add at least 8,000 Employees this year. We are making additional investments to attract and retain talent, including our recent decision to further raise our starting hourly pay rates from $15 per hour to $17 per hour. We are currently in discussions with our workgroups to enact this increase in pay rates. Additionally, we are further moderating our first half 2022 capacity plans to provide additional buffer to the operation. Based on current plans, first quarter 2022 operating expenses per available seat mile (CASM, or unit costs), excluding fuel and oil expense, special items, and profit sharing, is expected to represent a peak, and our plans call for unit costs to ease from there into 2023.

“With the Omicron variant and weather impacting our results, we expect losses in January and February and a return to profitability in March 2022. Based on our current plan, while we no longer expect to be profitable in first quarter, we expect to be profitable for the remaining three quarters of this year, and for full year 2022. As demand for air travel recovers, we intend to substantially grow available seat miles (ASMs, or capacity) to restore the majority of our route network by the end of 2023. We remain laser focused on addressing staffing and cost challenges, and we are working urgently to return to historic productivity levels by the end of 2023, which, combined with planned ASM growth, we believe should enable a decrease in full year 2023 CASM, excluding fuel and oil expense, special items, and profit sharing, compared with full year 2022.

“Looking ahead, I am optimistic about our future. We have a solid strategy and intend to reinforce and build upon the core strengths of Southwest with several initiatives that we expect to create value and deliver significant financial benefits. In addition, we have made great progress in the areas of diversity, equity, and inclusion, as well as environmental sustainability, and we remain steadfast in our focus on these important areas with tangible goals. We have the best Employees and Leadership Team in the industry. I add my thanks and appreciation to our People for persevering when times are difficult and for never giving up on each other or Southwest. I am honored to serve them, our Customers, and our Shareholders, and I appreciate the support ofย Garyย and the Board of Directors as I begin my new role as CEO.”

Notable 2021 announcements and accomplishments include:

  • Launched service to 14 airports: Chicago O’Hare International Airport; Sarasota Bradenton International Airport; Colorado Springs Municipal Airport; Savannah/Hilton Headย International Airport;ย Houston’sย George Bush Intercontinental Airport; Santa Barbara Airport; Fresno Yosemite International Airport; Destin-Fort Walton Beach Airport;ย Myrtle Beachย International Airport; Bozeman Yellowstone International Airport; Jackson-Medgar Wiley Evers International Airport inย Mississippi; Eugene Airport inย Oregon; Bellingham International Airport inย Washington; and Syracuse Hancock International Airport
  • Launched full-participation in Sabre’s GDS platform on July 26, 2021, achieving the Company’s goal of enabling industry-standard corporate bookings through multiple GDS platforms, also including Amadeus and Travelport’s multiple platforms (Apollo, Worldspan, and Galileo)
  • Received numerous awards and recognitions, including:
    • Named to FORTUNE’s list of World’s Most Admired Companies for 2021; ranked #14
    • Named among the highest ranking carriers for customer satisfaction in the J.D. Power 2021 North American Satisfaction StudySM; ranked #2
    • Named the top domestic airline for customer service by the 2021 Elliot Readers’ Choice Customer Service Awards
    • Named a Top 100 Company by BetterInvesting Magazine
    • Named to Glassdoor’s Best Places to Work list for the 12th consecutive year
    • Named a Best Employer for Women 2021 by Forbes
    • Named as one of MilitaryTimes Best for Vets: Employers 2021
    • Named a Best Place to Work for Disability Inclusion after achieving a top score on Disability:IN’s 2021 Disability Equality Index
    • Named as A Best Place to Work for LGBTQ Equality in 2021 from the Human Rights Campaign Foundation
    • Named one of America’s Most Trusted Travel & Hospitality Brands by Morning Consult; ranked #3
    • Named Domestic Carrier of the Year by the Airforwarders Association for the 12th consecutive year
    • Ranked #1 for Most Reliable Airline and #4 for Best Airline by WalletHub
  • Environmental, Social, and Governance (ESG):
    • Announced long-term goal to beย carbon neutral by 2050
    • Established aย plan of actionย to reduce Southwest’s carbon emissions intensity by at least 20 percent by 2030 and maintain carbon neutral growth every year through the end of the decade
    • Announced multiple offtake agreements and memoranda of understanding withย sustainable aviation fuelย producers
    • Partnered with Choooseโ„ขย and Customers toย offset Southwest’s carbon emissionsย by providing the firstย U.S.-based airline carbon offset offer with loyalty points and for every dollar contributed toward offsetting Southwest’s carbon emissions, Southwest will match the contribution3
    • Committedย $10 millionย to Yale University’s Center for Natural Carbon Capture toย research technological advancementsย and find new solutions to reduce net greenhouse gas emissions
    • Joined theย Aviation Climate Taskforce, a new nonprofit founded with a goal to tackle the challenges of reducing carbon emissions in aviation
    • Published aย Human Rights Policyย which formalizes Southwest’s longstanding support of human rights principles
    • Outlined the next steps in Southwest’sย Continued Commitmentย to increase racial and gender diversity in Southwest Leadership
    • Assisted withย humanitarian efforts to relocateย Afghanistanย refugees, operating 93 domestic charter flights carrying more than 11,000 People acrossย the United States
    • Awardedย $110,000ย to students through theย Southwest Airlinesยฎ Scholarship Program, continuing Southwest’s focus on providing more equitable education opportunities to college-bound students while promoting diverse academic pathways, and ultimately inspiring future generations to pursue careers within the airline industry
    • Expanded citizenship reporting in theย Southwest Airlines One Reportย by aligning with the Sustainability Accounting Standards Board (SASB) and United Nations Sustainable Development Goals (UNSDG) reporting frameworks, in addition to the Global Reporting Initiatives (GRI) Standards

Fleet and Capacity

The Company ended 2021 with 728 Boeing 737 aircraft, including 69 Boeing 737-8 (-8) aircraft. During 2021, the Company retired eight owned -700 aircraft, which were accelerated from 2022 into fourth quarter 2021, and returned 10 leased -700 aircraft, of which one occurred during fourth quarter 2021. In addition, the Company took delivery of 28 -8 aircraft during 2021. As of December 31, 2021, six -700 aircraft remained in temporary storage due to fourth quarter 2021 and first quarter 2022 capacity remaining below respective 2019 levels.

During fourth quarter 2021, the Company exercised 22 -7 options for delivery in 2023, and on January 1, 2022, the Company exercised another 12 Boeing optionsโ€”five -8 options for delivery in 2022 and seven -7 options for delivery in 2023. Including the options exercised on January 1, 2022, the Company’s order book with Boeing contains 406 MAX firm orders (271 -7 and 135 -8) and 226 MAX options (-7 or -8) for years 2022 through 2031. The Company continues to expect that more than half of the MAX aircraft in its firm order book will replace a significant amount of its 452 -700 aircraft over the next 10 to 15 years to support the modernization of its fleet, a key cost initiative and component of its environmental sustainability efforts. Additional information regarding the Company’s aircraft delivery schedule is included in the accompanying tables.

The Company’s fourth quarter 2021 capacity increased 54.4 percent, year-over-year, but decreased 8.3 percent compared with fourth quarter 2019. Full year 2021 capacity increased 27.6 percent, year-over-year, but decreased 16.1 percent compared with full year 2019. While the Company’s flight schedule is published for sale through September 5, 2022, the Company is in the process of adjusting its published flight schedules for March through May 2022 in light of recent staffing challenges due to the Omicron variant. The Company will continue to monitor staffing trends, along with booking and cancellation trends, and adjust capacity, as needed. As such, the Company’s actual flown capacity may differ from currently published flight schedules or current guidance.

Southwest Airlines aircraft photo gallery:

Alaska Air Group delivers strong fourth quarter 2021 and full-year results

Alaska Air Group Inc. today announced another quarter of improvement in its financial results for the fourth quarter and full year ended December 31, 2021, and provided an outlook for the first quarter ending March 31, 2022.

“While recovery in our industry is never linear, our caring and dedicated people and the strength of our competitive advantages position us for success no matter what challenges we face,” said CEOย Ben Minicucci. “Despite operational disruption from omicron and severe winter weather in December, our fourth quarter adjusted pre-tax margin was 2.4%, marking one of the industry’s most profitable performances in Q4 and the second half of the year. We have laid a solid foundation for our return to 100% of our pre-COVID flying by summer 2022 and we’re poised to grow from there.”

Alaska’sย fourth quarter and full year 2021 results reflect a disciplined focus on cost management and a measured approach to bringing back capacity in recovery. In addition to delivering profitability in the second half of the year,ย Alaska’sย financial performance enabled the company to restore its debt-to-capitalization ratio to pre-pandemic levels in the fourth quarter, priming the airlines for profitable growth in 2022.

Financial Results for the Fourth Quarter and Full Year:

  • Reported net income for the fourth quarter and full year 2021 under Generally Accepted Accounting Principles (GAAP) ofย $18 million, orย $0.14ย per diluted share, andย $478 million, orย $3.77ย per diluted share. These results compare to a net loss for the fourth quarter and full year 2020 ofย $447 million, orย $3.60ย per share, andย $1.3 billion, orย $10.72ย per share.
  • Reported net income for the fourth quarter and net loss for the full year 2021, excluding special items and mark-to-market fuel hedge accounting adjustments, ofย $31 million, orย $0.24ย per diluted share, andย $256 million, orย $2.03ย per share. These results compare to a net loss for the fourth quarter and full year 2020, excluding special items and mark-to-market fuel hedge accounting adjustments, ofย $316 million, orย $2.54ย per share, andย $1.3 billion, orย $10.17ย per share.
  • Reported adjusted pre-tax margin for the fourth quarter of 2021 of 2.4%, marking the second profitable quarter on an adjusted basis since the onset of the pandemic.
  • Recordedย $42 millionย andย $151 millionย of incentive pay in the fourth quarter and full year 2021 earned by employees for meeting or exceeding cash flow, cost management, and safety goals, representing approximately three weeks pay for most employees.

Balance Sheet and Liquidity at Year End:

  • Reported a debt-to-capitalization ratio of 49%, a reduction of 12 points from Decemberย 31, 2020, and the lowest level since the first quarter of 2020.
  • For the full year, generatedย $138 millionย in operating cash flows, net of Payroll Support Program grant funds received.
  • Repaidย $112 millionย in debt in the fourth quarter, bringing total debt payments toย $1.3 billionย for the year.
  • Heldย $3.1 billionย in unrestricted cash and marketable securities as ofย December 31, 2021.

Operational Updates and Milestones for the Fourth Quarter:

  • Announced nonstop service between Seattle-Tacoma International Airport andย Miami, marking the 100th nonstop destination fromย Alaska’sย Seattleย hub.
  • Expandedย oneworld partnership with new West Coast international flights betweenย Portlandย and London Heathrow on British Airways and betweenย Seattleย andย Helsinkiย on Finnair. Expanded service will provideย Alaska’sย guests more than 100 nonstop flights onย oneworld partners from the West Coast toย Europeย by summer 2022.
  • Launched new MVP Goldย 100kย tier for Mileage Plan members, providing enhanced benefits for those traveling 100,000 miles or more in one year.
  • Named the safest U.S. airline by AirlineRatings.com in their annual Top 20 Safest Airline Report.
  • Received four 737-9 aircraft during the quarter, bringing total additions in 2021 to 11.
  • Began nonstop service toย Belizeย fromย Seattleย andย Los Angelesย in November, marking the fourth countryย Alaskaย flies to from its West Coast hubs.

Fourth Quarter Environmental, Social, and Governance Updates:

  • Announced the appointment ofย Diana Birkett Rakowย as senior vice president of public affairs and sustainability, emphasizingย Alaska’sย commitment to protect the places it flies and support the communities it serves.
  • Announced collaboration with ZeroAvia to begin development on a hydrogen-electric powertrain engine capable of flying regional aircraft in excess of 500 nautical miles.
  • Expanded inflight sustainability efforts by trading plastic water bottles and cups for Boxed Water Is Betterยฎ plant-based cartons and recyclable paper cups. This change will eliminate an estimated 1.8 million pounds of single-use plastics over the next year.
  • Launched partnership with travel2change, aย Hawaii-based social and environmental impact organization that connects travelers with sustainable volunteer projects while visitingย Hawaii.

The following table reconciles the company’s reported GAAP net income (loss) per share (EPS) for the three and twelve months endedย December 31, 2021ย and 2020 to adjusted amounts.

Three Months Ended December 31,
2021 2020
(in millions, except per share amounts) Dollars Diluted EPS Dollars EPS
Reported GAAP net income (loss) and diluted EPS $ ย  ย  ย  ย  ย  ย  ย  ย  18 $ ย  ย  ย  ย  ย  ย  0.14 $ ย  ย  ย  ย  ย  ย  (447) $ ย  ย  ย  ย  ย  ย (3.60)
Payroll support program wage offset โ€” โ€” (22) (0.18)
Mark-to-market fuel hedge adjustments 21 0.16 (8) (0.06)
Special items – impairment charges and other (6) (0.05) 277 2.23
Special items – restructuring charges 2 0.02 (102) (0.82)
Special items – merger-related costs โ€” โ€” 1 0.01
Special items – net non-operating โ€” โ€” 26 0.21
Income tax effect on special items and fuel hedge adjustments (4) (0.03) (41) (0.33)
Non-GAAP adjusted net income (loss) and diluted EPS $ ย  ย  ย  ย  ย  ย  ย  ย  31 $ ย  ย  ย  ย  ย  ย  0.24 $ ย  ย  ย  ย  ย  ย  (316) $ ย  ย  ย  ย  ย  ย (2.54)
Twelve Months Ended December 31,
2021 2020
(in millions, except per share amounts) Dollars Diluted EPS Dollars EPS
Reported GAAP net income (loss) and diluted EPS $ ย  ย  ย  ย  ย  ย  ย 478 $ ย  ย  ย  ย  ย  ย  3.77 $ ย  ย  ย  ย  ย (1,324) $ ย  ย  ย  ย  ย (10.72)
Payroll support program wage offset (914) (7.21) (782) (6.33)
Mark-to-market fuel hedge adjustments (47) (0.37) (8) (0.06)
Special items – impairment charges and other (1) (0.01) 627 5.08
Special items – restructuring charges (10) (0.08) 220 1.78
Special items – merger-related costs โ€” โ€” 6 0.05
Special items – net non-operating โ€” โ€” 26 0.21
Income tax effect on special items and fuel hedge adjustments 238 1.87 (21) (0.18)
Non-GAAP adjusted net loss and diluted EPS $ ย  ย  ย  ย  ย  ย  (256) $ ย  ย  ย  ย  ย  ย (2.03) $ ย  ย  ย  ย  ย (1,256) $ ย  ย  ย  ย  ย (10.17)

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables. A glossary of financial terms can be found on the last page of this release.

Icelandair and JetBlue further expand their codeshare partnership

Icelandair has announced a further expansion of its codeshare with JetBlue Airways to offer customers more ways to book and connect their travel between the two airline’s networks across Europe and North America.

JetBlue’s current codes on Icelandair offer customers direct flights between New York, Newark and Boston and Iceland. In November 2021, the codeshare was expanded onwards to Amsterdam, Stockholm, Copenhagen, Helsinki, Oslo, Glasgow and Manchester. Now, the two companies have added the following destinations:

  • Frankfurt
  • Munich
  • Berlin
  • Hamburg
  • Paris
  • London Heathrow
  • London Gatwick
  • Dublin
  • Bergen

This expanded codeshare agreement builds upon JetBlue and Icelandair’s partnership that first began in 2011. Icelandair passengers already benefit from access to JetBlue’s network that spans 100+ destinations in more than two dozen countries. The further strengthening of the partnership will allow JetBlue customers to enjoy additional travel options via Iceland to a number of Icelandair’s destinations in Europe.

Customers traveling on connecting flights between Icelandair and JetBlue will enjoy both combined ticketing and baggage transfers. Additionally, when customers fly Icelandair across the Atlantic, they can stop over in Iceland at no additional cost, selecting a stopover duration of one to seven days to pack more experiences into their travel.

JetBlue and Icelandair customers enjoy benefits across loyalty programs. Since 2017, customers have had the opportunity to accrue loyalty points from both JetBlue’s TrueBlue program and Icelandair’s Saga Club, and soon will have the ability to redeem points on either carriers’ flights.

IATA calls for the accelerated easing of travel restrictions

The International Air Transport Association (IATA) urged governments to accelerate relaxation of travel restrictions as COVID-19 continues to evolve from the pandemic to endemic stage. IATA called for removing all travel barriers (including quarantine and testing) for those fully vaccinated with a WHO-approved vaccine, enabling quarantine-free travel for non-vaccinated travelers with a negative pre-departure antigen test result, removing travel bans, and accelerating the easing of travel restrictions in recognition that travelers pose no greater risk for COVID-19 spread than already exists in the general population.

โ€œWith the experience of the Omicron variant, there is mounting scientific evidence and opinion opposing the targeting of travelers with restrictions and country bans to control the spread of COVID-19. The measures have not worked. Today Omicron is present in all parts of the world. Thatโ€™s why travel, with very few exceptions, does not increase the risk to general populations. The billions spent testing travelers would be far more effective if allocated to vaccine distribution or strengthening health care systems,โ€ said Willie Walsh, IATAโ€™s Director General.

Evidence

A recently published study by Oxera and Edge Healthย (1)ย demonstrated the extremely limited impact of travel restrictions on controlling the spread of Omicron. The study found that:

  • If the UKโ€™s extra measuresย (2)ย with respect to Omicron had been in place from the beginning of November (prior to the identification of the variant), the peak of the Omicron wave would have been delayed by just five days with 3% fewer cases.
  • The absence of any testing measures for travelers would have seen the Omicron wave peak seven days earlier with an overall 8% increase in cases.
  • Now that Omicron is highly prevalent in the UK, if all travel testing requirements were removed there would be no impact on Omicron case numbers or hospitalizations in the UK.

โ€œWhile the study is specific to the UK, it is clear that travel restrictions in any part of the world have had little impact on the spread of COVID-19, including the Omicron variant. The UK, France and Switzerland have recognized this and are among the first to begin removing travel measures. More governments need to follow their lead. Accelerating the removal of travel restrictions will be a major step towards living with the virus,โ€ said Walsh.

With respect to travel bans, last week, the WHO Emergency Committee confirmed theirย recommendationย to โ€œLift or ease international traffic bans as they do not provide added value and continue to contribute to the economic and social stress experienced by States. The failure of travel restrictions introduced after the detection and reporting of Omicron variant to limit international spread of Omicron demonstrates the ineffectiveness of such measures over time.โ€

What happens when COVID-19 is confirmed as endemic?

All indications point to COVID-19 becoming an endemic conditionโ€”one that humankind now has the tools (including vaccination and therapeutics) to live and travel with, bolstered by growing population immunity.

This aligns with the advice from public health experts to shift the policy focus from an individualโ€™s health status towards policies focusing on population-wide protection. It is important that governments and the travel industry are well-prepared for the transition and ready to remove the burden of measures that disrupt travel.

โ€œThe current situation of travel restrictions is a mess. There is one problemโ€”COVID-19. But there seem to be more unique solutions to managing travel and COVID-19 than there are countries to travel to. Indeed research from theย Migration Policy Instituteย has counted more than 100,000 travel measures around the world that create complexity for passengers, airlines and governments to manage. We have two years of experience to guide us on a simplified and coordinated path to normal travel when COVID-19 is endemic. That normality must recognize that travelers, with very few exceptions, will present no greater risk than exists in the general population. And thatโ€™s why travelers should not be subject to any greater restrictions than are applied to the general community,โ€ said Walsh.

Vaccination Priorities

Mutually recognized policies on vaccination will be critical as we approach the endemic phase. Barrier-free travel is a potent incentive for vaccination. The sustainability of this incentive must not be compromised by vaccine policies that complicate travel or divert vaccine resources from where they can do the most good. Issues to address include:

  • Accepted vaccines:ย There is no universal recognition for all vaccines on the WHO Emergency Use list. This raises a barrier to travel as people have little choice on the range of vaccines available in their country.
  • Validity:ย There is no alignment on the length of vaccine validity. This will become a barrier to travel as eligibility for boosters is controlled by national policies. Unduly short validity periods that effectively require air passengers to get regular booster jabs to travel internationally will consume resources that could support primary vaccination in the developing world and booster doses for the most vulnerable. It isย reportedย that the WHOโ€™s Chief Scientist called for booster doses to be used โ€œto protect the most vulnerable, to protect those at highest risk of severe disease and dying. Those are [โ€ฆ] elderly populations, immuno-compromised people with underlying conditions, but also healthcare workers.โ€
  • Distribution priorities:ย The calls of WHO and health experts for vaccine equity are not universally prioritized. Only half the states in Africa have been able to vaccinate more than 10% of their populations while many developed countries are reducing vaccination validity and considering second rounds of boosters. This creates a barrier to travel and strains testing resources in parts of the world where vaccine distribution is less advanced.

โ€œUrgent consideration is needed for several critical concerns regarding vaccines. While Europe is aligning around a nine-month validity period for primary vaccinations, this is not universal. And booster shot validity has not been addressed. As the first quarter of the year is key to bookings for the peak-northern summer travel season, it is important to provide certainty to potential travelers as early as possible. Governments have declared intentions to support a travel recovery. Addressing questions on vaccination validity is a key element,โ€ said Walsh.

Industry and Governments Finding Solutions Together

In October, theย Ministerial Declarationย of the ICAO High-level Conference on COVID-19 called for โ€œone vision for aviation recovery.โ€ IATA followed-up by publishingย From Restart to Recoveryย in November. It is a blueprint for reconnecting the world following key principles of simplicity, predictability and practicality.

โ€œThe over-reaction of many governments to Omicron proved the blueprintโ€™s key pointโ€”the need for simple, predictable and practical means of living with the virus that donโ€™t constantly default to de-connecting the world. We have seen that targeting disproportionate measures at travelers has economic and social costs but very limited public health benefits. We must aim at a future where international travel faces no greater restriction than visiting a shop, attending a public gathering or riding the bus,โ€ said Walsh.

IATA Travel Pass

The successful rollout of theย IATA Travel Passย continues with a growing number of airlines already using it in daily operations to support the validation of health credentials for travel.

โ€œWhatever the rules are for vaccination requirements, the industry will be able to manage them with digital solutions, the leader of which is the IATA Travel Pass. Itโ€™s a matured solution being implemented across a growing number of global networks,โ€ said Walsh.