Pieter Elbers to step down as the CEO of KLM

The Supervisory Board (SB) of KLM has announced that, after close consultation with CEO Pieter Elbers, it has established that Elbers will not enter into a third term as CEO & President of KLM as of May 1, 2023. This enables the Supervisory Board to start a thorough process for a successor in a timely manner.

In view of the expiration of his second term, which provides the Supervisory Board a natural moment for consideration, we have, after consultation with Pieter, concluded not to enter into a third term. The continuity of KLM’s leadership greatly benefits from being able to establish this at an early stage. It enables us to initiate a thorough succession process and also to offer a new CEO a sufficient induction period. It is also a time when the restructuring plan has largely been implemented, which positions KLM well for recovery and further development. With thirty years at KLM, eleven years on the Board of Management including two terms as CEO, Pieter has an enormous track record and significance for KLM. Partly for this reason, it is important that we are able to achieve a smooth leadership transition.

Cees ‘t Hart, chairman of the KLM Supervisory Board

After two terms, more than eight years, of leadership as CEO of KLM, I am handing over the baton with full confidence. It goes without saying that I am committed to supporting KLM in this transition to new leadership. I am extremely proud of this company and its fantastic employees. Especially in these hectic and difficult times, they remain the strength of KLM. My thirty-year career with the blue KLM family has been an unimaginably beautiful journey that I will always cherish. I very much enjoy the cooperation with my colleagues and look forward to this in the coming period.

KLM President & CEO Pieter Elbers

Iberia Group passengers doubled this Christmas

Iberia Group made this announcement:

From December 22, 2021 through January 9, 2022, Iberia, Iberia Express, and Iberia Regional Air Nostrum operated nearly 5,700 flights, almost 75% more that in the same period a year ago.

Iberia Express scheduled 180,000 seats to and from the Canary Islands, improving on pre-pandemic performance.

During the entire holiday season Iberia achieve regularity of 99.4% and punctuality of 93,5%, besting all other European network airlines

The Group’s handing unit, Iberia Airport Services, served triple the number of passengers at 19 Spanish airports, hiring nearly 1,000 additional employees.

Iberia Group staff again rose to the occasion during a holiday season greatly complicated by the appearance of the Omicron variant, prolonging the pandemic.

The Iberia Group ended the holiday period on a high note, with 75% more flights and nearly triple the number of passengers compared to a year ago.

Iberia, Iberia Express, and Iberia Regional Air Nostrum together operated nearly 5,700 flights in the December 22- January 9 period, almost 75% more than those of the same period a year ago.

The three airlines also carried some 1.2 million passengers during the holidays, almost triple the 478,000 figure of the year before.

Canary Islands capacity was raised by 4% in the period, to 180,000 seats. This was larger than the number offered in 2019, before the outbreak of the pandemic.

Top Punctuality and Regularity

Iberia Group airlines posted regularity of 99.44% (no flights were cancelled due to Covid-19) and punctuality of 93.5%, which was tops amongst European network airlines during the period, and third in the world, according to Flightstats.

The group made use of the flexibility of the special lay-off arrangements in order to field the employees required at each moment. Idled flight deck and cabin crews amounted to 17% of total flight staff at the beginning of December, but this has since dwindled to 4%.

In both December and January Iberia deployed additional personnel to deal with incidents, and throughout the pandemic it has helped laid off flight deck and cabin staff to maintain or upgrade their professional qualifications in order to facilitate their reincorporation at a moment’s notice.

Servicio a bordo 02

3.1 Million Passengers Served by Iberia’s Ground Handling Unit

During the holiday period Iberia Airport Services provided ground services to some 11,200 flights, and 3.1 million passengers –nearly triple the number registered a year ago– at 19 Spanish airports where it serves Iberia and third-party airlines.

The handling unit, which will compete to renew its airport contracts this year, has reincorporated all laid-off employees and added nearly a thousand more during the holiday season, deploying them chiefly in Barcelona, Madrid, and Tenerife.

Delta announces its fourth quarter and full-year 2021 results

Delta Air Lines today reported financial results for the fourth quarter and full year 2021 and provided its outlook for the March quarter 2022. Highlights of the December quarter and full year 2021 results, including both GAAP and adjusted metrics, are on page five and are incorporated here.

“2021 was a year like no other for Delta, with significant progress in our recovery supported by growing brand preference, enabling us to be the only major U.S. airline to deliver profitability across the second half of the year,” said Ed Bastian, Delta’s chief executive officer. “As always, our people drove this success, which is why we were happy to announce this morning a special profit-sharing payment for all eligible employees.”

“While the rapidly spreading omicron variant has significantly impacted staffing levels and disrupted travel across the industry, Delta’s operation has stabilized over the last week and returned to pre-holiday performance,” Bastian said. “Omicron is expected to temporarily delay the demand recovery 60 days, but as we look past the peak, we are confident in a strong spring and summer travel season with significant pent-up demand for consumer and business travel.”

Fourth Quarter 2021 Financial Results

Adjusted pre-tax income of $170 million excludes a net impact of $564 million primarily in equity method losses, mark-to-market adjustments on investments and special profit-sharing payment
Adjusted operating revenue of $8.4 billion, which excludes third-party refinery sales, was 74 percent recovered versus December quarter 2019 on capacity that was 79 percent restored
Total operating expense decreased $833 million compared to the December quarter 2019. Adjusted for costs from third-party refinery sales, total operating expense decreased $1.9 billion or 19% percent in the December quarter 2021 versus the comparable 2019 period
Remuneration from American Express in the quarter was $1.2 billion, up 11 percent compared to the December quarter 2019
At the end of the December quarter, the company had $14.2 billion in liquidity, including cash and cash equivalents, short-term investments and undrawn revolving credit facilities

Full Year 2021 Financial Results

Adjusted pre-tax loss of $3.4 billion excludes a net benefit of $3.8 billion from items primarily related to the Payroll Support Programs (PSP), partially offset by equity method losses, debt extinguishment charges and special profit-sharing payment
Generated a pre-tax profit of $1.1 billion in the second half of 2021. Excluding PSP, mark-to-market adjustments, equity method losses and debt extinguishment charges reported an adjusted pre-tax profit of $386 million in the second half of 2021
Adjusted operating revenue of $26.7 billion, which excludes third-party refinery sales, was 57 percent recovered versus full year 2019 on capacity that was 71 percent restored
Total operating expense, which includes $4.5 billion of benefit related to PSP, decreased $12.4 billion compared to 2019. Adjusted for the benefits related to PSP and costs from third-party refinery sales, total operating expense, adjusted decreased $10.9 billion or 27 percent versus 2019
Remuneration from American Express for full year 2021 was $4.0 billion, 98 percent restored compared to full year 2019
Invested $2.9 billion back in the business and reduced financial obligations by $7 billion, including fully funding the pension plans on a Pension Protection Act (PPA) basis
The company had total debt and finance lease obligations of $26.9 billion with adjusted net debt of $20.6 billion at the end of December 2021

March Quarter 2022 Outlook

		1Q22 Forecast
	Capacity ¹	83% – 85%
	Total Revenue ^{1, 2}	72% – 76%
	Fuel Price ($/gal) ^{2, 3}	$2.35 – $2.50
	CASM-Ex ^{1, 2, 4}	Up ~15%
	Gross Capital Expenditures ²	~$1.6 billion
	Adjusted Net Debt ²	~$22 billion

¹ Compared to March quarter 2019

² Non-GAAP measure

³ Fuel guidance based on prices as of January 11 (Brent at $81, cracks at $17, Monroe profit with RINS at $1.31)

⁴ Includes an ~3 point impact of operational disruption related cost

Revenue Environment

“The commercial strengths we spoke about last month at Capital Markets Day are evident in our December quarter results. We ended December with revenues nearly 80 percent recovered to 2019 levels on strong demand and pricing during the holiday period, our premium products continued to perform well, we saw encouraging trends in business and international travel and our diverse revenue streams remained resilient,” said Glen Hauenstein, Delta’s president.

“The recent rise in COVID cases associated with the omicron variant is expected to impact the pace of demand recovery early in the quarter, with recovery momentum resuming from President’s Day weekend forward. Factoring this in to our outlook, we expect total March quarter revenue to recover to 72 to 76% of 2019 levels, compared to 74% in the December quarter.”

Operating revenue, adjusted of $8.4 billion for the December quarter 2021 improved 2 percent, or $149 million from September quarter 2021. Compared to the same period in 2019, operating revenue, adjusted was 74 percent restored, in line with the company’s mid-December guidance update on system capacity that was 79 percent restored compared to December quarter 2019 levels.

Compared to the September quarter 2021, system yields improved 7 percent on a system load factor decline of 2 points to 78 percent. As a result, total unit revenue, adjusted improved 6 percent sequentially.

Revenue-related Highlights:

Domestic revenue recovery progresses on strong holiday demand: Domestic passenger revenue was 78 percent restored compared to December quarter 2019, a 6 point sequential improvement in the rate of recovery versus the September quarter 2021 driven by robust leisure demand, improving corporate travel and strong holiday bookings. International passenger revenue recovered to 50 percent of December quarter 2019 levels, an 8 point improvement sequentially.
Premium cabins continue to outperform main cabin: Domestic and short-haul Latin premium product revenue recovery outpaced main cabin by approximately 10 points, flat sequentially, with Domestic premium revenues 84 percent recovered compared to December quarter 2019.
Business demand continues to improve: Business travel continues to progress with domestic passenger volumes approaching 60 percent restored during the December quarter 2021. This includes both managed corporate and Small and Medium Enterprises.
American Express remuneration exceeded 2019 levels: American Express remuneration of $1.2 billion in the quarter was up 11 percent compared to December quarter 2019 and up 8 points sequentially. Co-brand spend was 121 percent of December quarter 2019, driven by strong holiday retail spend and T&E spend that exceeded December quarter 2019. Co-brand card acquisitions were 86 percent recovered compared to December quarter 2019.
Cargo revenue achieves five consecutive quarters of positive growth: Cargo revenue increased to $304 million, a 63 percent improvement compared to the December quarter 2019 and up 24 points sequentially on strong holiday demand and yields.

Cost Performance

“The Delta team executed incredibly well in 2021, delivering another profitable quarter in an environment that remains dynamic,” said Dan Janki, Delta’s chief financial officer. “With omicron impacting our near-term outlook, we expect losses in January and February months with a return to profitability in the month of March. Despite expectations for a loss in the March quarter, we remain positioned to generate a healthy profit in the June, September and December quarters, resulting in a meaningful profit in 2022.”

For 2021, total operating expense, adjusted of $29.2 billion decreased 27 percent compared to full year 2019, driven by lower salaries and related benefits, fuel and volume and selling-related expense. Non-fuel CASM for 2021 increased 11.4 percent versus 2019, on 29 percent lower capacity over the same period.

Total operating expense, adjusted of $8.1 billion in the December quarter 2021 increased 3 percent sequentially, driven by both higher fuel and non-fuel costs from the continued restoration of the airline.

Fuel expense, adjusted of $1.6 billion in the December quarter 2021 increased 4 percent, or $55 million compared to the September quarter 2021. Adjusted fuel price of $2.10 per gallon was up 8 percent compared to the September quarter 2021 driven by higher market prices and partially offset by continued refinery contribution and an improvement in RINs pricing and volume obligations. During the December quarter 2021, fuel efficiency, defined as gallons per 1,000 ASMs, improved 4.3 percent versus the same period in 2019 as a result of our fleet renewal efforts. In addition, carbon offsets expensed during the quarter drove a 3¢ impact on fuel prices as Delta supports its commitment to carbon neutrality by pursuing high quality, verified offsets.

Non-fuel cost, adjusted of $6.5 billion was up 3 percent sequentially on a 4 percent decrease in capacity. This was driven primarily by people-related and seasonal costs. Compared to the December quarter of 2019, non-fuel unit costs (CASM-Ex) were 8.3 percent higher, including a 1.2 point impact primarily due to omicron disruptions the last two weeks of the December quarter.

Non-operating expense for the December quarter 2021 was $658 million including equity method losses, mark-to-market losses on certain investments and losses on the extinguishment of debt. Non-operating expense, adjusted was $175 million.

Balance Sheet, Cash and Liquidity

“During 2021, we made significant progress restoring our balance sheet, reducing gross debt by $6 billion and fully funding our pension plans on a PPA basis,” Janki said. “Reducing debt remains a top financial priority as operating cash flow improves to support the return of our balance sheet back to investment grade metrics by 2024.”

At the end of the December quarter 2021, the company had total debt and finance lease obligations of $26.9 billion with adjusted net debt of $20.6 billion and a weighted average interest rate of 4.2 percent.

Operating cash flow during the December quarter 2021 was $555 million. Free cash flow was negative $441 million for the quarter with gross capital expenditures reinvested in the business of $948 million.

The company’s Air Traffic Liability was $6.4 billion at December quarter-end, approximately flat compared to the end of the September quarter.

Delta ended the December quarter with $14.2 billion in liquidity, including $2.9 billion in undrawn revolver capacity.

Other Highlights from the December Quarter 2021

Culture and People

Increased vaccination rates to more than 95 percent of employees as Delta continues to prioritize the health and safety of the Delta people
Provided free, convenient COVID-19 testing options to Delta people
Celebrated 75 years of Delta Cargo, which has played a pivotal role throughout the pandemic transporting vaccines and personal protective equipment as well as life-saving organs for transplant
Committed to an eight-year partnership with LA28, making Delta the inaugural founding partner of the Olympic and Paralympic Games Los Angeles 2028 and a sponsor of the United States Olympic and Paralympic teams through 2028. As Team USA’s official airline, Delta will manage travel for U.S. Olympians and Paralympians to Beijing 2022, Paris 2024, Milano Cortina 2026 and Los Angeles 2028
Celebrated 200 Chairman’s Club inductees through a historic 25^th annual gala; this special one-time class of 200 honorees were recognized for embodying the spirit of Delta

Customer Experience and Loyalty

Named No. 1 in the annual Business Travel News Airline Survey for the 11th consecutive year, sweeping all categories for the 8th straight year
Opened the first-ever Delta-TSA PreCheck express lobby and bag drop at Hartsfield-Jackson Atlanta International Airport, with expanded facial recognition capabilities for touch-free, seamless entry
Installed high-speed Viasat-powered Wi-Fi on 300 aircraft in 2021, enabling customers on Delta’s most popular routes to stream and browse their favorite sites at fast speeds for a simple, flat rate of $5 per flight
Launched in-flight entertainment partnership with leading interactive fitness platform Peloton to offer exclusive well-being focused content, giving customers more ways to stretch and unwind at their seats
Enhanced Delta FlyReady, a digital solution that takes the guesswork out of international travel in the pandemic era, enabling customers to understand and manage entry requirements at their destination
Extended Medallion Status for current Medallion members and rolled over all Medallion Qualification Miles for the second year in a row
Launched updates to Global Upgrade Certificates, allowing customers more access to premium seats in Delta Premium Select

Environmental, Social and Governance

Announced strengthening of executive leadership team with the hiring of Pam Fletcher as the industry’s only C-suite Chief Sustainability Officer
Recognized as the No. 1 transportation company on The Just 100: Companies Doing Right By America and an overall ranking of No. 38 on the comprehensive global list
Promoted health equity and responded to employee feedback with a new 2022 healthcare option designed to increase predictability and lower unplanned, out-of-pocket expenses for plan participants
Engaged senior leaders in Racial Equity Leadership Workshops, led by the Groundwater Institute
Built upon Delta’s commitment to supplier diversity by launching vodka from Du Nord Social Spirits, America’s first Black-owned distillery, on all domestic flights and Une Femme’s 100 percent women-made wine on select flights
Concluded 2021 with a robust set of climate-related goals including committing to set a medium-term science-based target for our global airline as well as a net zero emissions target for 2050, both aligned with the SBTi framework and the UN Race to Zero
Signed 27 SAF agreements with corporate and agency customers in 2021. Beginning in 2025, Delta expects to receive 81 million gallons of SAF annually from producers Aemetis, Gevo, Neste and NWABF

December Quarter and Full Year 2021 Results

December quarter and full year results have been adjusted primarily for the government grant recognition, impairments and equity method losses, losses on extinguishment of debt, unrealized losses on investments, special profit-sharing payment and third-party refinery sales as described in the reconciliations in Note A.

	GAAP		Adjusted		GAAP		Adjusted
($ in millions except per share and unit costs)	4Q21	4Q19	4Q21	4Q19	FY21	FY19	FY21	FY19
Pre-tax (loss)/income	(395)	1,397	170	1,417	398	6,198	(3,415)	6,214
Net (loss)/income	(408)	1,099	143	1,098	280	4,767	(2,598)	4,776
(Loss)/diluted earnings per share	(0.64)	1.71	0.22	1.70	0.44	7.30	(4.08)	7.32
Pre-tax margin	(4.2)%	12.2 %	2.0 %	12.4 %	1.3 %	13.2 %	(12.8)%	13.3 %
Operating revenue	9,470	11,439	8,430	11,384	29,899	47,007	26,670	46,718
Total revenue per available seat mile (TRASM) (cents)	18.30	17.47	16.29	17.39	15.37	17.07	13.71	16.97
Operating expense	9,207	10,040	8,086	9,961	28,013	40,389	29,197	40,082
Capital expenditures	1,217	1,072	948	954	3,247	4,936	2,876	5,306
Total debt and finance lease obligations	26,920	11,160			26,920	11,160
Adjusted net debt			20,581	10,489			20,581	10,489
Cost per available seat mile (CASM) (cents)	17.79	15.34	12.56	11.59	14.40	14.67	12.12	10.88
Fuel expense	1,577	2,012	1,588	1,983	5,633	8,519	5,625	8,477
Average fuel price per gallon	2.09	2.01	2.10	1.99	2.02	2.02	2.02	2.01
Non-operating expense	658	2	175	6	1,488	420	888	422
Operating cash flow / free cash flow	555	969	(441)	141	3,264	8,425	1,255	4,164

QANTAS and Jetstar adjust their schedules due to surging COVID-19 cases

QANTAS Airways issued this statement:

Qantas and Jetstar are adjusting flying levels to better match travel demand in light of the sudden growth in COVID-19 cases.

The Qantas Group now expects domestic capacity for the third quarter of FY22 to be at around 70 per cent of pre-COVID levels, down from the 102 per cent that had been planned.

The schedule changes are focused on reducing frequency of services and size of aircraft to minimize inconvenience for passengers as much as possible.

The Group’s total international capacity for the same period will fall from 30 per cent to around 20 per cent of pre-COVID levels. This reduction is driven by increased travel restrictions in countries like Japan, Thailand and Indonesia and is mostly impacting Jetstar’s leisure routes. Other markets – such as London, Los Angeles, Vancouver, Johannesburg and India – continue to perform well.

Customers will be contacted directly from late January if their booking is impacted by cancellations and offered alternative flights that in most cases are likely to be a difference of a few hours if travelling domestically.

Qantas and Jetstar continue to have 100 per cent of their available Australian-based crew stood up, which has helped to minimise the resourcing impacts of some needing to self-isolate during the summer peak. This 100 per cent crewing level will be maintained despite the capacity reductions announced today, giving both airlines a significant buffer to manage ongoing isolation requirements and resulting in a more reliable schedule for passengers.

An assessment on the financial impact of these changes will be given at the Group’s half year results in late February, by which time a clearer picture will have emerged on swing factors such as actual demand levels; potential loosening or tightening of travel restrictions in countries overseas; and consumer response to the reopening of Western Australia next month. No material adjustments have been made to capacity expectations for Q4 FY22.

Qantas Group CEO Alan Joyce said: “The sudden uptick in COVID cases is having an obvious impact on consumer behaviour across various sectors, including travel, but we know it’s temporary.

“Thankfully, Australia has one of the world’s highest vaccination rates and the Omicron variant is milder than its predecessors. So, as challenging as this current phase is, we’re optimistic that it is likely to fast track a return to normal.

“People are already looking beyond what’s happening now with early bookings for the Easter holidays in April looking promising for both domestic and international.

“We have the flexibility to add capacity back if demand improves earlier than expected, but 70 per cent still represents a lot of domestic flying and it’s a quantum improvement on the levels we faced only a few months ago.

“Our focus on cash positive flying remains, notwithstanding some of the costs that we’ll have to absorb from this sudden drop in demand.

“Can I thank our people who have done an outstanding job of helping over a million Australians travel over the summer holidays, and to our customers for their ongoing understanding as we make our way through these latest challenges. This is a difficult time right across the community, but something we’ll get through,” added Mr Joyce.

ITA Airways paints its first Airbus A319

ITA Airways issued this statement:

The second aircraft with the new livery has entered the ITA Airways fleet.

The second aircraft sporting the new blue livery has joined the ITA Airways fleet. It is an Airbus A319 (EI-IMN) dedicated to the Olympic champion Pietro Mennea, who was known with the nickname of “The Arrow of the South” and was the man of records in terms of speed.

A gold medalist in Moscow, Pietro is the only 200-meter runner to have qualified for five consecutive Olympic Games (from 1972 to 1988) and, he is the holder of two important records set back in 1979: the world record for the 200 meters run achieved in 19″72, which was beaten in 1996 but is still a record at European level after more than 40 years; and the European record for the 100 meters run with 10″01 which was improved at national level only in 2018.

The Airbus A319 dedicated to Pietro Mennea joins the ITA Airways fleet just a few weeks after the debut of the Airbus A320 named after Paolo Rossi. The new aircraft will be operational from January 14, 2022.

ITA Airways continues its strategy of naming new aircrafts after the greatest Italian sportsmen, who were ambassadors in the world of professionalism, determination, strength and passion – all values that have raised the Italian flag high.

One of the fundamental pillars in ITA Airways’ business plan is to put the customer at the center of its business. Precisely for this reason, the Company invited fans on its social networks to choose the names of the champions for the upcoming aircrafts with new livery that will soon join its fleet.

The new livery of ITA Airways is characterized by the blue color, chosen as a symbol of unity, cohesion and pride of the country and representative of sports and the Italian national team. On the rudder the tricolor, on the blue background the white and red gold logo of ITA Airways and stylized icons inspired by the national artistic heritage.

IATA: Passenger traffic improved in November; Omicron restrictions likely to affect period ahead

The International Air Transport Association (IATA) announced that the recovery in air travel continued in November 2021, prior to the emergence of Omicron. International demand sustained its steady upward trend as more markets reopened. Domestic traffic, however, weakened, largely owing to strengthened travel restrictions in China.

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

Total demand for air travel in November 2021 (measured in revenue passenger-kilometers or RPKs) was down 47.0% compared to November 2019. This marked an uptick compared to October’s 48.9% contraction from October 2019.
Domestic air travel deteriorated slightly in November after two consecutive monthly improvements. Domestic RPKs fell by 24.9% versus 2019 compared with a 21.3% decline in October. Primarily this was driven by China, where traffic fell 50.9% compared to 2019, after several cities introduced stricter travel restrictions to contain (pre-Omicron) COVID outbreaks.
International passenger demand in November was 60.5% below November 2019, bettering the 64.8% decline recorded in October.

“The recovery in air traffic continued in November. Unfortunately, governments over-reacted to the emergence of the Omicron variant at the close of the month and resorted to the tried-and-failed methods of border closures, excessive testing of travelers and quarantine to slow the spread. Not surprisingly, international ticket sales made in December and early January fell sharply compared to 2019, suggesting a more difficult first quarter than had been expected. If the experience of the last 22 months has shown anything, it is that there is little to no correlation between the introduction of travel restrictions and preventing transmission of the virus across borders. And these measures place a heavy burden on lives and livelihoods. If experience is the best teacher, let us hope that governments pay more attention as we begin the New Year, ” said Willie Walsh, IATA’s Director General.

International Passenger Markets

NOV 2021 (% VS NOV 2019)	WORLD SHARE¹	RPK	ASK	PLF (%-PT)²	PLF (LEVEL)³
Total Market	100%	-47.0%	-39.7%	-9.7%	71.3%
Africa	2.0%	-55.1%	-48.4%	-9.2%	61.6%
Asia Pacific	38.5%	-69.8%	-58.9%	-21.7%	59.7%
Europe	23.8%	-39.4%	-32.7%	-8.3%	75.2%
Latin America	5.6%	-27.5%	-27.4%	-0.1%	82.2%
Middle East	7.4%	-52.6%	-43.6%	-11.6%	61.6%
North America	22.7%	-18.8%	-15.4%	-3.3%	78.6%

European carriers’ November international traffic declined 43.7% versus November 2019, much improved compared to the 49.4% decrease in October versus the same month in 2019. Capacity dropped 36.3% and load factor fell 9.7 percentage points to 74.3%.

Asia-Pacific airlines saw their November international traffic fall 89.5% compared to November 2019, slightly improved from the 92.0% drop registered in October 2021 versus October 2019. Capacity dropped 80.0% and the load factor was down 37.8 percentage points to 42.2%, the lowest among regions.

Middle Eastern airlines had a 54.4% demand drop in November compared to November 2019, well up compared to the 60.9% decrease in October, versus the same month in 2019. Capacity declined 45.5%, and load factor slipped 11.9 percentage points to 61.3%.

North American carriers experienced a 44.8% traffic drop in November versus the 2019 period, significantly improved over the 56.7% decline in October compared to October 2019. Capacity dropped 35.6%, and load factor fell 11.6 percentage points to 69.6%.

Latin American airlines saw a 47.2% drop in November traffic, compared to the same month in 2019, a marked upturn over the 54.6% decline in October compared to October 2019. November capacity fell 46.6% and load factor dropped 0.9 percentage points to 81.3%, which was the highest load factor among the regions for the 14th consecutive month.

African airlines’ traffic fell 56.8% in November versus two years’ ago, improved over the 59.8% decline in October compared to October 2019. November capacity was down 49.6% and load factor declined 10.1 percentage points to 60.3%.

Domestic Passenger Markets

NOV 2021 (%VS NOV 2019)	WORLD SHARE¹	RPK	ASK	PLF (%-PT)²	PLF (LEVEL)³
Domestic	54.2%	-24.9%	-18.3%	-6.6%	75.6%
Dom. Australia	0.8%	-71.6%	-57.4%	-27.9%	55.6%
Dom. Brazil	1.6%	-8.5%	-8.1%	-0.4%	82.3%
Dom. China P.R.	19.8%	-50.9%	-33.2%	-22.1%	61.1%
Dom India	2.1%	-17.1%	-7.1%	-9.6%	80.2%
Dom. Japan	1.4%	-37.5%	-23.6%	-14.3%	64.5%
Dom. Russian Fed.	3.4%	17.5%	12.6%	3.5%	83.5%
Dom. US	16.6%	-6.0%	-5.1%	-0.8%	81.4%

1) % of industry RPKs in 2020 2) Change in load factor vs. the same month in 2019 3) Load Factor Level

Australia remained at the bottom of the domestic RPK chart for the fifth consecutive month with RPKs 71.6% below 2019, albeit this was improved from a 78.5% decline in October, owing to the reopening of some internal borders.

US domestic traffic was down just 6.0% compared November 2019 – improved from an 11.1% fall in October, thanks in part to strong Thanksgiving holiday traffic.

LATAM Group projected to fly 72% of its flights in January

LATAM Airlines Group’s operational passenger projection for January 2022 is estimated to reach up to 72% (measured in available seat kilometers – ASK) of January 2019 levels and a pre-pandemic context. However, this estimate could adjust downwards depending on the increase in cases of the Omicron variant of COVID-19.

Operations in new destinations, such as Neiva (Colombia) and Loja (Ecuador), are planned to begin this month, in addition to the resumption of the seasonal Santiago-Punta del Este route.

LATAM plans to operate approximately 1,245 daily domestic and international flights during January, connecting 132 destinations in 18 countries. The cargo business has 1,190 flights scheduled on cargo freighters with an average utilization level that is 8% higher than the same period in 2019. These projections are subject to the evolution of the pandemic, particularly the rise in Omicron variant cases in the countries where LATAM Airlines Group operates.

In December 2021, passenger traffic (measured in revenue passenger-kilometers – RPK) was 68.8% in relation to the same period in 2019, based on an operation measured in ASK (available seat-kilometers) of 70.1% compared to December 2019. The load factor decreased 1.6 percentage points, reaching 82.0%.

In regards to cargo operations, the load factor was 60.6%, which corresponds to an increase of 3.4 percentage points compared to December 2019.

LATAM Airlines Group Operational Estimate – January 2022

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

Brazil	82% projected operation (versus January 2019). December 2021 projection reference: 74% 107% domestic and 54% international Total January destinations: 49 domestic (equivalent to 583 daily flights on average) and 19 international
Chile	60% projected operation (versus January 2019). December 2021 projection reference: 59% 85% domestic and 50% international Total January destinations: 16 domestic (equivalent to 166 daily flights on average) and 22 international Updates: International: Restart the seasonal route Santiago-Punta del Este (January and February)
Colombia	109% projected operation (versus January 2019). December 2021 projection reference: 102% 162% domestic and 71% international Total January destinations: 17 domestic (equivalent to 185 daily flights on average) and 4 international Updates: Domestic: New Bogotá-Neiva route
Ecuador	46% projected operation (versus January 2019). December 2021 projection reference: 40% 133% domestic and 21% international Total January destinations: 8 domestic (equivalent to 37 daily flights on average) and 2 international Updates: Domestic: New Quito-Loja route
Perú	67% projected operation (versus January 2019). December 2021 projection reference: 63% 105% domestic and 55% international Total January destinations: 19 domestic (equivalent to 159 daily flights on average) and 20 international
Cargo	91% projected operation (versus January 2019). December 2021 projection reference: 98% 82% domestic belly and 59% international belly* 152% dedicated freighter

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

Operational Estimate by Segment vs 2019 – January 2022

(Measured in ASK)

Domestic Spanish-speaking countries	88%
Domestic Brazil	107%
International	51%
Consolidated Total	72%

BA CityFlyer to launch four new routes from London City Airport

British Airways is launching four new routes across Europe in time for the summer season.

Operating from London City Airport, customers can now book to fly to Barcelona, Luxembourg, Milan and Thessaloniki – adding to BA CityFlyer’s already extensive network.

Flights to all destinations will operate on BA CityFlyer’s Embraer E190 aircraft. Luxembourg and Milan will take flight on March 27, 2022 and both will operate every day of the week. On June 18, 2022, Thessaloniki will launch, operating once a week on Saturday and on June 19, 2022, Barcelona (below) will operate six times a week – every day apart from Saturday.

Parc Guell at sunset, view of the city with seaside in background. Barcelona, Spain

A limited number of tickets start from the below fares, based on a return ticket in Euro Traveller:

To Barcelona from £82
To Luxembourg from £82
To Milan from £104
To Thessaloniki from £126

Routes to Jersey and Guernsey are also returning following the launch in Summer 2021. Flights will operate on Monday and Friday from June 20 to September 2, 2022.

Full schedule:

Route

Flight number

Start

End

Schedule

Frequency

LCY/BCN

BA8759

19 June

4 Sept

13.25 – 16.35

15.55 – 19.05 (Sunday)

Mon – Fri, Sun

BCN/LCY

BA8760

19 June

4 Sept

17.20 – 18.30

19.45 – 21.00 (Sunday)

Mon – Fri, Sun

Route	Flight number	Start	End	Schedule	Frequency
LCY/LUX	BA3291	28 March	28 Oct	07.55 – 10.05	Mon – Fri (Mon – Tue 18 June – 2 Sep)
LCY/LUX	BA3295	27 March	28 Oct	16.05 – 18.15	Mon – Fri, Sun (Weds – Fri, Sun: 22 June – 4 Sept)
LCY/LUX	BA3297	27 March	28 Oct	19.45 – 21.55	Mon – Fri, Sun
LUX/LCY	BA3292	28 March	29 Oct	07.05 – 07.20	Mon – Sat
LUX/ LCY	BA3294	28 March	28 Oct	10.55 – 11.10	Mon – Fri (Mon – Tue 18 June – 2 Sep)
LUX/LCY	BA3298	27 March	28 Oct	18.55 – 19.10	Mon – Fri, Sun (Weds – Fri, Sun: 22 June – 4 Sept)

Route

Flight number

Start

End

Schedule

Frequency

LCY/MXP

BA3289

27 March

29 Oct

Times vary

Daily

MXP/LCY

BA3290

27 March

29 Oct

Times vary

Daily

Route

Flight number

Start

End

Schedule

Frequency

LCY/SKG

BA2229

18 June

3 Sept

12.10 – 17.25

Saturday

SKG/LCY

BA2228

19 June

4 Sept

12.00 – 13.20

Sunday

Top Copyright Photo: British Airways-BA CityFlyer Embraer ERJ 190-100SR G-LCYM (msn 19000351) PMI (Ton Jochems). Image: 956470.

BA CityFlyer aircraft slide show:

BA CityFlyer aircraft photo gallery:

Icelandair adds new destinations in Europe

Icelandair today announced the addition of three new destinations to its international network for travel this summer: Rome, Alicante and Nice.

These new routes provide connections between North America and Iceland to three popular tourist destinations during the busiest travel time of the year. Passengers will also be able to take advantage of a multi-day stopover in Iceland, en route, at no additional airfare.

The World Heritage city of Rome, Italy, will be served twice a week between Reykjavik (KEF) and Rome Fiumicino Airport (FCO) on Wednesdays and Sundays beginning July 6, 2022 through September 4, 2022 with same day connections to and from North America.

The Nice flight will give access to the lively South of France region, operating between Reykjavik (KEF) and Nice Airport (NCE) from July 6, 2022 through August 27, 2022, on Wednesdays and Saturdays.

Flights to Alicante, Spain (ALC) will begin on February 10, 2022, with flights operating up to twice a week during the summer and into the fall season.

In addition, Icelandair has reinstated flights from Montreal and Vancouver, giving Canadians renewed options to both Iceland and Europe.

Top Copyright Photo: Icelandair Boeing 767-319 ER WL TF-ISN (msn 30586) MUC (Gunter Mayer). Image: 955675.

Finnair aircraft slide show:

Finnair reduces its schedule in February as increasing sick leaves take their toll

Finnair made this announcement:

The omicron coronavirus variant and flu season has led to a significant increase of sick leave among staff at Finnair and its partners. To cope with the resource challenges, Finnair is now reducing its traffic program for the month of February by around 20% and offering other flight options to its customers. These flight cancellations will enable Finnair to operate a more flexible schedule and adapt to the expected rise in sick leave across different functions at Finnair and its partners.

“Staff sick leave is now significantly impacting Finnair and airports in Finland as well as throughout the world. We aim to meet these resourcing challenges through the cancellation of flights, to avoid last-minute changes and better manage our customers’ expectations. This will give customers more time to prepare for flight schedule changes and adjust their travel plans if needed,” says Ole Orvér, Chief Commercial Officer at Finnair.

“We are sorry for the inconvenience and disruption this may cause to our customers. However, reducing our traffic program is necessary to better offer a smooth travel experience in the face of the expected resource challenges,” Orvér continues.
The majority of the cancelled flights are on routes where Finnair operates multiple daily flights, so many customers will be offered an alternative flight on the same day. These destinations include, for example, services to Stockholm, Oslo, Copenhagen, Paris and Rome.

Changes will also take place to long-haul flights: the inaugural of Finnair’s new Dallas service will move from February to March 27 and the start of the Nagoya flights, and added frequencies to Osaka, will move to the summer season 2022. Finnair will also reduce weekly frequencies to Singapore to twice a week and to Hong Kong to three. Finnair will be in touch with those customers affected by the cancellations via email and do its best to find alternative flights for them. Finnair will send the new flight details via email and customers can check them online through the Manage Booking or via the Finnair mobile app. Customers with cancelled flights also have the option to apply for a refund for unused tickets.

During the pandemic, Finnair has offered exceptional flexibility for all bookings and customers have been able to change their travel dates without a change fee. Until 28 February 2022, customers can change their travel dates as many times as they need, without any additional change fee. After that, they can make one additional change. Customers have used this opportunity actively, and the change requests have caused backlogs at Finnair’s Customer Service, which has recruited dozens of new employees to cope with the demand. In most cases, customers can make the change themselves online through the Manage Booking service.

Despite these proactive actions, last minute changes to flights are still possible due to sick leaves or weather-related disruption. In addition, the strike announced by Finnish labour union Pro for 17 January can also cause more disruption and therefore flight cancellations. Finnair is not a party in the dispute between the two labour unions, but any strike action would still have an impact upon Finnair aircraft maintenance. With our continued priority on safety, Finnair has therefore made special arrangements to secure the continued maintenance of its aircraft during the potential strike.