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.

“With 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. That’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,” said Willie Walsh, IATA’s Director General.

Evidence

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

If the UK’s extra measures (2) 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.

“While 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,” said Walsh.

With respect to travel bans, last week, the WHO Emergency Committee confirmed their recommendation to “Lift 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.”

What happens when COVID-19 is confirmed as endemic?

All indications point to COVID-19 becoming an endemic condition—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 individual’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.

“The current situation of travel restrictions is a mess. There is one problem—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 the Migration Policy Institute 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 that’s why travelers should not be subject to any greater restrictions than are applied to the general community,” 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: 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: 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 is reported that the WHO’s Chief Scientist called for booster doses to be used “to protect the most vulnerable, to protect those at highest risk of severe disease and dying. Those are […] elderly populations, immuno-compromised people with underlying conditions, but also healthcare workers.”
Distribution priorities: 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.

“Urgent 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,” said Walsh.

Industry and Governments Finding Solutions Together

In October, the Ministerial Declaration of the ICAO High-level Conference on COVID-19 called for “one vision for aviation recovery.” IATA followed-up by publishing From Restart to Recovery in November. It is a blueprint for reconnecting the world following key principles of simplicity, predictability and practicality.

“The over-reaction of many governments to Omicron proved the blueprint’s key point—the need for simple, predictable and practical means of living with the virus that don’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,” said Walsh.

IATA Travel Pass

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

“Whatever 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. It’s a matured solution being implemented across a growing number of global networks,” said Walsh.

IATA: Strong December performance contributes to stellar year for air cargo in 2021, Year-on-year demand up 18.7%

The International Air Transport Association (IATA) released data for global air freight markets showing that full-year demand for air cargo increased by 6.9% in 2021, compared to 2019 (pre-covid levels) and 18.7% compared to 2020 following a strong performance in December 2021. This was the second biggest improvement in year-on-year demand since IATA started to monitor cargo performance in 1990 (behind 2010’s 20.6% gain), outpacing the 9.8% rise in global goods trade by 8.9 percentage points.

As comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of COVID-19, unless otherwise noted, all comparisons below are to 2019 which followed a normal demand pattern.

Global demand in 2021, measured in cargo tonne-kilometers (CTKs*), was up 6.9 % compared to 2019 (7.4% for international operations).
Capacity in 2021, measured in available cargo tonne-kilometers (ACTKs), was 10.9% below 2019 (-12.8% for international operations). Capacity remains constrained with bottlenecks at key hubs.
Improvements were demonstrated in December; global demand was 8.9% above 2019 levels (9.4% for international operations). This was a significant improvement from the 3.9% increase in November and the best performance since April 2021 (11.4%). Global capacity was 4.7% below 2019 levels (‑6.5% for international operations).
The lack of available capacity contributed to increased yields and revenues, providing support to airlines and some long-haul passenger services in the face of collapsed passenger revenues. In December 2021, rates were almost 150% above 2019 levels[1].
Economic conditions continue to support air cargo growth.
- Global goods trade rose 7.7% in November (latest month of data), compared to pre-crisis levels. Global industrial production was up 4.0% over the same period.
- The inventory-to-sales ratio remains low. This is positive for air cargo as manufacturers turn to air cargo to rapidly meet demand.
- The cost-competitiveness of air cargo relative to that of sea-container shipping remains favorable.
- The recent surge in COVID-19 cases in many advanced economies has created strong demand for PPE shipments, which are usually carried by air.
Supply chain issues that slowed the pace of growth in November remain as headwinds:
- Labor shortages, partly due to employees being in quarantine, insufficient storage space at some airports and processing backlogs continue to put pressure on supply chains.
- The December global Supplier Delivery Time Purchasing Managers Index (PMI) was at 38. While values below 50 are normally favorable for air cargo, in current conditions it points to delivery times lengthening because of supply bottlenecks.

“Air cargo had a stellar year in 2021. For many airlines, it provided a vital source of revenue as passenger demand remained in the doldrums due to COVID-19 travel restrictions. Growth opportunities however were lost due to the pressures of labor shortages and constraints across the logistics system. Overall, economic conditions do point towards a strong 2022,” said Willie Walsh, IATA’s Director General.

AIR CARGO YEAR TO DATE DEVELOPMENTS (JAN-DEC 2021)	CTK	ACTK	CLF(%-PT)²	CLF(LEVEL)³
Total Market	6.9%	-10.9%	9.3%	56.1%
Africa	10.2%	-16.1%	11.4%	47.6%
Asia Pacific	0.2%	-18.0%	11.7%	64.0%
Europe	3.7%	-16.5%	12.5%	64.4%
Latin America	-15.4%	-32.6%	9.0%	44.1%
Middle East	10.5%	-10.1%	10.7%	57.4%
North America	19.8%	4.0%	6.0%	45.5%

December saw a relief in supply chain issues that enabled an acceleration of cargo growth. “Some relief on supply chain constraints occurred naturally in December as volumes decreased after peak shipping activity ended in advance of the Christmas holiday. This freed capacity to accommodate front-loading of some Lunar New Year shipments to avoid potential disruptions to flight schedules during the Winter Olympic games. And overall December cargo performance was assisted by additional belly-hold capacity as airlines accommodated an expected year-end boost to travel. As shortages of labor and storage capacity remain, governments must keep a sharp focus on supply chain constraints to protect the economic recovery,” said Walsh.

Regional Performance

2021 Regional Performance

Strong variations were evident in the regional performance of air cargo in 2021 compared to 2019. North American carriers were the strongest performers, reporting an annual increase in international demand of 20.2%. Middle East and African carriers also reported double digit growth in international demand in 2021 (10.6% and 11.3%, respectively) compared to 2019. Asia-Pacific and European carriers saw international demand rise 3.6% in 2021 compared to 2019. And Latin American carriers were the only ones to record a contraction in international demand of 15.2% compared to 2019.

Asia-Pacific airlines reported a rise in international demand of 3.6% in 2021 compared to 2019 and a fall in international capacity of 17.1%. In December airlines in the region posted an 8.8% increase in international demand compared to 2019. Demand for goods manufactured in the region remains strong, including PPE. International capacity remained constrained in December down 10% compared to the same month in 2019.

North American carriers posted a 20.2% increase in international demand in 2021 compared to 2019 and a growth in international capacity of 0.2%. The region was the only one to record a growth in capacity in 2021 compared to 2019. In December carriers in the region posted an increase of 20.5% in international demand. The region’s carriers continue to benefit from strong consumer demand for goods. International capacity grew 6.2% compared to December 2019.

European carriers reported a 3.6% increase in international demand in 2021 compared to 2019 and a fall in capacity of 17.4%. In December airlines posted an increase in international demand of 6% compared to 2019. International capacity was down 5.9% in December 2021 compared to pre-crisis. European carriers have been significantly affected by supply chain and airport congestion and localized capacity constraints.

Middle Eastern carriers reported an increase in international demand of 10.6% in 2021 compared to 2019 and a fall in international capacity of 10.1%. Growth decelerated towards the year-end, partly driven by a downward trend in volumes on the large Middle East-Asia route. In December airlines in the region recorded a 5.7% increase in international demand compared to December 2019. International capacity decreased by 9.2% in December compared to the same month in 2019.

Latin American carriers reported a decline in international demand of 15.2% in 2021 compared to 2019 and a fall in capacity of 30.2%. Airlines registered in Latin America had a challenging year, as several were engaged in lengthy restructuring processes. That said, the restructuring processes are coming to an end, and December’s performance was the best of the year, with carriers in the region reporting a 2.9% decline in international demand compared to December 2019. This was a significant improvement on the 13.4% decline the previous month. Capacity remained heavily constrained in December, down 26.1% on pre-crisis levels.

African airlines saw international demand grow 11.3% in 2021 compared to 2019 and a fall in international capacity of 14.6%. Growth in the region has been dynamic for most of the year, driven by the strength of the Africa-Asia route. In December, international demand grew by 7.6% with international capacity falling 19.4% as compared to the same month in 2019.

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Boeing reports fourth-quarter and full-year 2021 results, message to employees

Boeing issued this financial report:

Fourth Quarter 2021

Continued global return to service of 737 MAX, including progress in China
Revenue of $14.8 billion; operating cash flow of $0.7 billion
787 program recorded $3.5 billion pre-tax non-cash charge; focused on actions required to resume deliveries
GAAP loss per share of ($7.02) and core (non-GAAP)* loss per share of ($7.69)

Full-Year 2021

Revenue of $62.3 billion; operating cash flow of ($3.4) billion; cash and marketable securities of $16.2 billion
GAAP loss per share of ($7.15) and core (non-GAAP)* loss per share of ($9.44)
Total backlog of $377 billion and added 535 net commercial orders
Focused on safety, quality and operational stability

Table 1. Summary Financial Results

Fourth Quarter

Full Year

(Dollars in Millions, except per share data)

2021

2020

Change

2021

2020

Change

Revenues

$14,793

$15,304

(3)%

$62,286

$58,158

GAAP

Loss From Operations

($4,171)

($8,049)

($2,902)

($12,767)

Operating Margin

(28.2)%

(52.6)%

(4.7)%

(22.0)%

Net Loss

($4,164)

($8,439)

($4,290)

($11,941)

Loss Per Share

($7.02)

($14.65)

($7.15)

($20.88)

Operating Cash Flow

$716

($4,009)

($3,416)

($18,410)

Non-GAAP*

Core Operating Loss

($4,536)

($8,377)

($4,075)

($14,150)

Core Operating Margin

(30.7)%

(54.7)%

(6.5)%

(24.3)%

Core Loss Per Share

($7.69)

($15.25)

($9.44)

($23.25)

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

The Boeing Company reported fourth-quarter revenue of $14.8 billion, reflecting higher commercial volume and lower defense revenue. GAAP loss per share of ($7.02) and core loss per share (non-GAAP)* of ($7.69) reflect lower charges and higher commercial volume (Table 1). Boeing recorded operating cash flow of $0.7 billion.

“2021 was a rebuilding year for us as we overcame hurdles and reached key milestones across our commercial, defense and services portfolios. We increased 737 MAX production and deliveries, and safely returned the 737 MAX to service in nearly all global markets. As the commercial market recovery gained traction, we also generated robust commercial orders, including record freighter sales. Demonstrating progress in our overall recovery, we also returned to generating positive cash flow in the fourth quarter,” said David Calhoun, Boeing President and Chief Executive Officer. “On the 787 program, we’re progressing through a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications. While this continues to impact our near-term results, it is the right approach to building stability and predictability as demand returns for the long term. Across the enterprise, we remain focused on safety and quality as we deliver for our customers and invest in our people and in our sustainable future.”

Table 2. Cash Flow	Fourth Quarter		Full Year
(Millions)	2021	2020	2021	2020
Operating Cash Flow	$716	($4,009)	($3,416)	($18,410)
Less Additions to Property, Plant & Equipment	($222)	($265)	($980)	($1,303)
Free Cash Flow*	$494	($4,274)	($4,396)	($19,713)

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

Operating cash flow improved to $0.7 billion in the quarter, reflecting higher commercial volume, higher advance payments, and lower expenditures (Table 2).

Table 3. Cash, Marketable Securities and Debt Balances	Quarter-End
(Billions)	Q4 21	Q3 21
Cash	$8.0	$9.8
Marketable Securities¹	$8.2	$10.2
Total	$16.2	$20.0
Debt Balances:
The Boeing Company, net of intercompany loans to BCC	$56.6	$60.9
Boeing Capital, including intercompany loans	$1.5	$1.5
Total Consolidated Debt	$58.1	$62.4

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

Cash and investments in marketable securities decreased to $16.2 billion, compared to $20.0 billion at the beginning of the quarter, primarily driven by debt repayment partially offset by operating cash flow. Debt was $58.1 billion, down from $62.4 billion at the beginning of the quarter due to the prepayment of a term loan and repayment of maturing debt.

Total company backlog at quarter-end was $377 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes

Fourth Quarter

Full Year

(Dollars in Millions)

2021

2020

Change

2021

2020

Change

Commercial Airplanes Deliveries

68%

340

157

117%

Revenues

$4,750

$4,728

$19,493

$16,162

21%

Loss from Operations

($4,454)

($7,648)

($6,475)

($13,847)

Operating Margin

(93.8)%

(161.8)%

(33.2)%

(85.7)%

Commercial Airplanes fourth-quarter revenue increased slightly to $4.8 billion primarily driven by higher 737 deliveries, partially offset by lower widebody deliveries and less favorable mix. Fourth-quarter operating margin was primarily driven by a charge on the 787 program.

Boeing is continuing to make progress on the global safe return to service of the 737 MAX. In December, the Civil Aviation Administration of China issued an airworthiness directive outlining changes required for Chinese airlines to prepare their fleets to resume service. Since the FAA’s approval to return the 737 MAX to operations in November 2020, over 300,000 revenue flights have been completed, and the reliability of the 737 MAX fleet remains above 99 percent (as of January 24, 2022). The 737 program is currently producing at a rate of 26 per month and continues to progress towards a production rate of 31 per month in early 2022. The company is evaluating the timing of further rate increases.

The company continues to perform rework on 787 airplanes in inventory and is engaged in detailed discussions with the FAA regarding required actions to resume deliveries. In the fourth quarter, the company determined that these activities will take longer than previously expected, resulting in further delays in customer delivery dates and associated customer considerations. Accordingly, Commercial Airplanes recorded a $3.5 billion pre-tax non-cash charge on the 787 program. The program is producing at a very low rate and will continue to do so until deliveries resume, with an expected gradual return to five per month over time. The company now anticipates 787 abnormal costs will increase to approximately $2 billion, with most being incurred by the end of 2023, including $285 million recorded in the quarter.

Commercial Airplanes secured orders for 164 737 MAX and 24 freighter aircraft. Commercial Airplanes delivered 99 airplanes during the quarter and backlog included over 4,200 airplanes valued at $297 billion.

Boeing President and CEO Dave Calhoun shared the following message with employees today addressing the company’s fourth-quarter results:

As we share our fourth-quarter results, I want to thank you for your hard work and resilience. 2021 was a key rebuilding year for us, and together, we overcame significant hurdles. While we have more work to do, I am confident that we are well positioned to accelerate our progress in 2022 and beyond.

The industry’s mounting recovery has spurred solid commercial airplane demand. Order activity picked up significantly, particularly for the 737 MAX. In total, we booked over 900 gross commercial airplane orders including approximately 750 orders for the 737 family.

The 737 MAX is now safely flying in nearly every jurisdiction around the globe and the fleet is performing very well. With about 1,600 flights daily and more than 300,000 revenue flights completed since late 2020, the fleet is delivering reliability equal to or better than any fleet flying. And with over 800,000 total flight hours since late 2020, the fleet has now flown more flight hours than it had prior to the initial grounding. We also delivered 245 737 MAX airplanes in 2021, and we’ve steadily increased production with a focus on safety and quality. We began 2021 at very low production rates, and today, are producing at 26 airplanes per month on our way to 31 per month early this year. Looking back at where we started, 2021 was a pivotal year for the 737 team.

We’re now applying that same disciplined and detailed focus to the 787 program. As you know, we are progressing through a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications. This effort continues to impact our deliveries and our financial results – but we are fully confident it is the right thing to do. I view the financial impacts of this work as a long-term investment in a program that has significant runway ahead. We are taking the time now to ensure we’re positioned well as widebody demand recovers. We’ll continue to keep you updated as we progress toward returning to 787 deliveries.

As cargo demand expands, we also booked record orders for new and converted Boeing freighters, including 84 orders for our 767, 777 and 747 freighters. Our Global Services team also announced 10 new converted freighter lines to meet the growing demand. Overall, our Global Services business showed great resilience, in part due to our well-balanced portfolio of both government and commercial offerings. This quarter, the team delivered our 50^th 767-300 converted freighter and captured new commercial and government business valued at $6 billion. As the commercial market recovers, BGS is well positioned for growth in 2022.

In our defense and space business, we secured key orders and delivered on critical customer milestones. We completed the first carrier tests with the U.S. Navy for the MQ-25, started flight testing on the second uncrewed Loyal Wingman aircraft, and delivered 47 total aircraft including the first KC-46 for Japan and Norway’s first P-8A Poseidon. We also generated $7 billion in orders in the quarter, extending our BDS backlog to $60 billion.

We took another key step in our overall recovery, notably in our financial performance, by generating positive cash flow in the fourth quarter, which represents our first positive cash quarter since early 2019. At the same time, the ongoing 787 activities resulted in financial charges that significantly impacted our earnings. While we never want to disappoint our customers or miss expectations, the work we’re putting in now will build stability and predictability going forward.

And looking to our future, we’re sustaining and expanding key investments, including in our people, in sustainability, advanced manufacturing, digital engineering, supply chain capability, technology development and partnerships.

We’ll stay squarely focused on safety, quality and transparency as we strengthen our culture and rebuild trust each day. While challenges remain, I am confident in our future. Our market is resilient, our team is world-class and we are taking the right, tough actions today to position ourselves for success. Thank you for all you continue to do to support our customers, our communities and each other.

Dave

The first Boeing 737-8 is painted for Lynx Air

Lynx Air’s first painted Boeing 737-8 MAX 8 (C-GJSL) has come out of the paint shop at Boeing pending delivery.

Lynx Air was launched on November 16, 2021, with plans to begin flying low-fare flights in the first quarter of 2022.

The airline has commitments for up to 46 Boeing 737-8 MAX 8s, with deliveries starting in February 2022.

Top Copyright Photo: Lynx Air (Canada) Boeing 737-8 MAX 8 C-GJSL (msn 43312) BFI (Joe G. Walker). Image: 956583.

SKS Airways is getting ready to start regional operations in Malaysia

SKS Airways is a new airline in Malaysia, based in Subang. The upstart received its AOC from Malaysia on October 1, 2021.

The new airline is planning to commence regional operations in the first quarter of 2022.

SKS Airways was incorporated on November 13, 2017 as a wholly Malaysian owned airline. A member of the International Air Transport Association (IATA) and International Civil Aviation Organization (ICAO), SKS Airways is part of the SKS Group of companies. SKS Group was founded in 1983 and presently a multi-disciplined organization with core businesses that spans across property development, investment holding, hospitality and credit finance in Malaysia and Australia (www.sksgroup.com.my).

Malaysian Aviation Commission (MAVCOM) awarded full Air Service License (ASL) to SKS Airways effective 1 January 2022.
SKS Airways was also awarded Air Operator’s Certificate (AOC) by the Civil Aviation Authority of Malaysia (CAAM) effective 1 October 2021.

SKS Airways is a commercial airline offering passenger, cargo and charter services. With its hubs in Subang and Senai, the airline plans to connect Malaysia and beyond to destinations in ASEAN and southern China.

SKS Airways will begin operations with Twin Otter aircrafts, well-known all over the world for toughness and reliability with excellent Short Take Off and Landing (STOL) capabilities which enables it to land comfortably on short airstrips. The 19-passenger turboprop Twin Otter aircraft is highly versatile and one of the most flexible planes ever built. These aircraft are deemed reliable in providing alternative air transportation especially to the remote island resorts which are only accessible via surface or boats. SKS Airways will be collaborating with major tourism industry players in developing attractive and affordable holiday packages to suit your holiday requirement.

Route Map:

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Airbus creates its own airline to lease out its Belugas

Airbus has launched a new air-cargo service using its unique BelugaST fleet to offer freight companies and other potential customers a solution to their outsized freight transportation needs.

The new service – Airbus Beluga Transport – will provide commercially-contracted customers in a variety of sectors, including space, energy, military, aeronautic, maritime and humanitarian sectors, with a solution to their large cargo transport needs.

The first mission took place at the end of 2021 with a delivery from Airbus Helicopters’ manufacturing site in Marignane, France, to Kobe in Japan for an undisclosed customer. Beluga #3 stopped to refuel at Warsaw (Poland), Novosibirsk (Russia) and Seoul (Korea).

Based on the A300-600 design, the five-strong BelugaST fleet, which has until now been the backbone of Airbus’ inter-site transportation of large aircraft sections, are being replaced by six new-generation BelugaXLs to support Airbus’ ramp-up of its airliner production.

The new Airbus Beluga Transport service can cater for a multitude of possible market applications since the planes possess the world’s largest interior cross-section of any transport aircraft, accommodating outsized cargo of up to 7.1m in width and 6.7m in height.

In the near future, once Airbus has commissioned all six new BelugaXLs, the fully-released BelugaST fleet will be handed over to a newly-created, subsidiary airline with its own Air Operator Certificate (AOC) and staff. Philippe Sabo added: “The new airline will be flexible and agile to address the needs of external worldwide markets.”

To maximize the BelugaST’s turnaround capability for its targeted international customer base, new loading techniques and equipment are being developed for the operation. These solutions include an automated On-Board Cargo Loader (OBCL) for missions where a loading/unloading platform is not available at the origin or destination airport.

Hawaiian Holdings reports its 2021 fourth quarter and full-year financial results

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc. reported its financial results for the fourth quarter and full year 2021.

Fourth Quarter 2021 – Key Financial Metrics
	GAAP	YoY Change	Adjusted	YoY Change
Net Income (Loss)	($92.6M)	+$70.0M	($70.3M)	+$102.5M
Diluted EPS	($1.81)	+$1.69	($1.37)	+$2.34
Pre-tax Margin	(24.1)%	+128.7 pts.	(18.4)%	+126.8 pts.

Full Year 2021 – Key Financial Metrics
	GAAP	YoY Change	Adjusted	YoY Change
Net Income (Loss)	($144.8M)	+$366.2M	($383.4M)	+$167.5M
Diluted EPS	($2.85)	+$8.23	($7.55)	+$4.41
Pre-tax Margin	(11.6)%	+71.3 pts.	(30.5)%	+56.7 pts.

“Throughout 2021 the Hawaiian Airlines team has executed a remarkable recovery from the depths of the pandemic. Demand for leisure travel remains resilient as evidenced by strong domestic travel volumes to Hawaiʻi, and the building blocks continue to fall into place for a recovery of international demand in 2022,” said Peter Ingram, Hawaiian Airlines president and CEO. “I am energized every day by the outstanding contributions of my colleagues throughout Hawaiian who have positioned us for a bright future.”

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

Financial Results

Fourth Quarter 2021

The Company reported total revenue of $494.7 million, down 30% compared to the fourth quarter of 2019, on 19% lower capacity.

The Company reported total operating expenses of $566.1 million, and adjusted operating expenses of $443.4 million.

The Company reported EBITDA of ($58.9) million and adjusted EBITDA of ($30.7) million.

Full Year 2021

For the full year of 2021, the Company reported total revenue of $1.6 billion, down 44% compared to the full year of 2019, on 29% lower capacity.

The Company reported total operating expenses of $1.7 billion, and adjusted operating expenses of $1.6 billion.

The Company reported EBITDA of $63.4 million and adjusted EBITDA of ($238.7) million.

Liquidity and Capital Resources

As of December 31, 2021 the Company had:

Unrestricted cash, cash equivalents and short-term investments of $1.7 billion

Outstanding debt and finance lease obligations of $1.9 billion

Air traffic liability of $631.2 million

As of December 31, 2021, the Company had $2.0 billion in liquidity, including its undrawn $235 million revolving credit facility.

2021 Highlights

Routes and scheduled services

Launched four new routes with nonstop flights from Honolulu to Austin, Orlando, and Ontario and from Maui to Long Beach

Resumed certain international flights, between Hawaiʻi and French Polynesia, American Samoa, and Sydney, Australia

Participated in the Civil Reserve Air Fleet and deployed two wide-body aircraft to transport over 3,000 Afghan refugees between U.S. military bases

Guest experience

Eliminated change fees and announced no expiration of HawaiianMiles rewards

Opened new airside concourse in Honolulu (HNL) and moved to a new terminal in Los Angeles (LAX) offering improved experiences for our guests and employees

Announced intent to implement the Amadeus Altea software suite

Participated in the State of Hawaiʻi’s preclearance program to expedite guests through the State’s COVID-19 arrival protocols

Fleet and financing

Extended leases for two A330-200 aircraft and amended leases for two other A330-200 aircraft, reducing monthly rent payments

Raised a total of $1.6 billion in capital through a loyalty program financing, an at-the-market equity offering of common stock and participation in federal Payroll Support Programs

Repaid approximately $440.9 million in future debt obligations

Environmental, Social and Corporate Governance

Participated in the International Air Transport Association Annual General Meeting, and furthered the Company’s commitment to achieve net-zero carbon emissions by 2050

Published second annual Corporate Kuleana Report outlining progress in advancing various environmental, social and governance (ESG) initiatives

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)

First Quarter 2022 Outlook

The table below summarizes the Company’s expectations for the quarter ending March 31, 2022 expressed as an expected percentage change compared to the results for the quarter ended March 31, 2019.

Item	First Quarter 2022 Guidance	GAAP Equivalent	GAAP First Quarter 2022 Guidance
ASMs	Down 10% to 13%
Total Revenue	Down 31% to 35%
Costs per ASM, excluding fuel and non-recurring items (a)	Up 10% to 13%	Costs per ASM (a)	Up 11.7% to 14.2%
Gallons of Jet Fuel Consumed	Down 18% to 21%
Fuel Price per Gallon (b)	$2.53
Adjusted EBITDA (c)	$(150) million to $(90) million	Net Income (c)
Effective Tax Rate	~21%

Full Year 2022 Outlook

The Company is providing an update to its outlook for the full year 2022 based on changes since its prior outlook filed on Form 8-K with the Securities and Exchange Commission on December 13, 2021. The table below summarizes the Company’s expectations for the full year ending December 31, 2022 expressed as an expected percentage change compared to the results for the year ended December 31, 2019. Costs per ASM excludes any adjustments for labor agreements that are currently amendable or become amendable in 2022.

Item	Updated Guidance	Prior Guidance	GAAP Equivalent, Updated Guidance	GAAP Equivalent, Prior Guidance
ASMs	Down 3% to up 1%	Flat to up 4%
Costs per ASM excluding fuel and non-recurring items (a)	Up 3.5% to 7.5%	Up 2% to 6%	Cost per ASM (a) Up 5.8% to 9.0%	Cost per ASM (a) Up 1.5% to 5.5%
Gallons of Jet Fuel Consumed	Down 4.5% to 8.5%	Up 0.5% to down 3.5%
Fuel Price per Gallon (b)	$2.42	$2.09
Capital Expenditures	$105M To $125M	$365M to $385M

The Company’s estimates for its costs per ASM excluding fuel and non-recurring items for the quarter ending March 31, 2022 and full year ending December 31, 2022, exclude any cost assumptions for the tentative agreements reached with the International Association of Machinists and Aerospace Workers (IAM). When the agreement with the IAM is ratified, the Company expects a 1 to 1.5 point increase in its costs per ASM excluding fuel and non-recurring for the full year ending December 31, 2022 as compared to the year ended December 31, 2019.

(a) See Table under “Non-GAAP Reconciliation” for a reconciliation of GAAP costs per ASM to costs per ASM excluding fuel and non-recurring items.

(b) Fuel Price per Gallon estimates are based on the January 20, 2022 fuel forward curve.

(c) 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.

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

Top Copyright Photo: Hawaiian Airlines Airbus A321-271N WL N213HA (msn 8237) LAS (Keith Sommer). Image: 956582.

Hawaiian Airlines aircraft slide show:

Hawaiian Airlines aircraft photo gallery:

Avelo Airlines announces a partnership with University of Connecticut Athletics, will add 120 pilots in 2022

Avelo Airlines today announced a new partnership with University of Connecticut Athletics. Avelo serves six popular Florida destinations from its East Coast base at Southern Connecticut’s most convenient airport – Tweed-New Haven Airport (HVN).

As part of the partnership, Avelo will have premium asset placement at UConn men and women’s basketball, hockey and baseball games which include digital graphics, promotional contests, signage, PA announcements and more. UConn and Avelo will also partner on local events with Jonathan and other promotional events through the 2021-2022 athletic season.

In other news, Avelo Airlines has announced it is bolstering pilot compensation to attract and retain world class aviators — elevating first-year pay by nearly 50% for Captains and by nearly 30% for First Officers. The enhanced pay scale offers the highest first-year Captain and First Officer pay rates in the Ultra-Low-Cost Carrier (ULCC) and regional carrier sectors of the U.S. airline industry.

Avelo expects to add an additional 120 pilots in 2022. In addition to hiring First Officers, for a limited time qualified pilots may be immediately hired as Captains.

The first-year Captain hourly pay rate increases from $135 to $200. Under the new scale, at five years of service Avelo Captains will earn $220 per hour. The first-year hourly pay rate for First Officers increases from $70 to $90 with an hourly rate of $140 at five years of service.

The new pay scale is effective February 1, 2022, for current and future Avelo pilots.

In addition to increasing the pilot pay scale, the airline is offering a $20,000 sign-on bonus to new pilots hired before June 1, 2022. An initial $5,000 is paid after the pilot completes their orientation trips and the remaining $15,000 is paid at the completion of their first year with the company. The bonus is available to Captains and First Officers.

Additional benefits include:

• $1,800 virtual base stipend (paid monthly upon completion of orientation trips) to offset commuting costs — paid to all pilots whether they commute or live in base
• For pilots who prefer to sleep at home every night – all scheduled Avelo flights start and return to their base each day
• Training pay of $6,300 per month (min guarantee at year-one First Officer rate)
• Training hotel is provided by Avelo
• Initial uniform and ongoing uniform allowance
• Full Cockpit Access Security System (CASS), Known Crewmember (KCM) program and jump seat agreements
• Premium pay of 125% of base hourly rate paid to pilots working over 75 block hours per month
• Day off flying is paid at 125% of base hourly rate on top of guarantee
• Guarantee 70 hours per month
• $2.25 per diem
• High seniority from day one
• Quick upgrade to Captain for pilots meeting the qualification of 14 CFR 121.436
• 401K retirement program
• Company-subsidized health, vision and dental coverage
• Meaningful profit-sharing when Avelo meets initial profitability threshold

At basic guarantee, new pilots in their first year will earn $209,600 for a Captain and $117,200 for a First Officer (includes sign-on bonus and virtual base stipend). Avelo is accepting applications for Captains and First Officers at aveloair.com/careers.

NAC delivers one ATR 72-600 to Loganair on lease, its 9th ATR

Nordic Aviation Capital (NAC) has announced it has delivered one ATR 72-600, msn 1257, to Loganair on a long-term operating lease.

The 72-seat ATR, which will be registered G-LMTC and named “Clan Cairns” in service with Loganair, will become the airline’s ninth ATR and form part of its continuing fleet renewal program.

Loganair aircraft slide show:

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OAG: US domestic airline capacity now 6% below pre-pandemic levels

From OAG:

US domestic airline capacity continues to see growth this month and is now just 6% below January 2019.

What are the busiest domestic routes in the US this month?

New York to Chicago (LGA-ORD) is the busiest with a total of 262,256 scheduled seats (a 21% increase from last month).
In second place is New York JFK to Los Angeles (JFK-LAX) with 261, 813 scheduled seats.
Atlanta to Orlando (ATL-MCO) has 251,029 seats making it the third busiest route.