United to become first in aviation history to fly aircraft full of passengers using 100% sustainable fuel

United today will operate an unprecedented flight that will serve as a turning point in the industry’s effort to combat climate change: for the first time in aviation history, a commercial carrier will fly an aircraft full of passengers using 100% sustainable aviation fuelย (SAF). Also today, United announced the second round of corporate participants in the airline’sย Eco-Skies AllianceSMย program to collectively contribute towards the purchase of SAF.

United is the world leader in the usage and support for the development of SAF, an alternative fuel made with non-petroleum feedstocks, already having agreements to purchase nearly twice as much SAF as the known agreements of all other global airlines combined. SAFย has the potential to deliver the performance of petroleum-based jet fuel but with a fraction of its carbon footprint, and according to theย U.S. Department of Energy, the country’s vast feedstock resources are enough to meet the projected fuel demand of the entire U.S. aviation industry.

“United continues to lead from the front when it comes to climate change action,” said United CEOย Scott Kirby, who will fly onboard today’s historic SAF flight. “Today’s SAF flight is not only a significant milestone for efforts to decarbonize our industry, but when combined with the surge in commitments to produce and purchase alternative fuels, we’re demonstrating the scalable and impactful way companies can join together and play a role in addressing the biggest challenge of our lifetimes.”

The demonstration flight โ€“ which will depart today with more than 100 passengers fromย Chicago’sย O’Hare International Airport and land atย Washington, D.C.’sย Reagan National Airport โ€“ will be on a new United 737 MAX 8 and use 500 gallons of SAF in one engine and the same amount of conventional jet fuel in the other engine to further prove there are no operational differences between the two and to set the stage for more scalable uses of SAF by all airlines in the future. Currently, airlines are only permitted to use a maximum of 50% SAF on board. The SAF used on today’s flight is drop-in ready and compatible with existing aircraft fleets.

United is operating this unprecedented flight in partnership with Boeing, CFM International*,ย Virent โ€“ a subsidiary of Marathon โ€“ whose technology enables 100% drop-in SAF, and World Energy โ€“ the world’s first andย North America’sย only commercial SAF producer. United’s Kirby will be joined by executives from each of those companies on today’s flight along with other business leaders, government officials, NGOs and members of the media.

“Boeing is proud to support United on this historic event as we work together to make aviation more sustainable,” saidย Ihssane Mounir, Senior Vice President of Sales and Marketing for The Boeing Company. “As an industry, we are committed to addressing climate change, and sustainable aviation fuels are the most measurable solution to reduce aviation carbon emissions in the coming decades. No one entity can decarbonize aviation alone and it will require partnerships like this to ensure aviation is safe and sustainable for future generations.”

“We are honored to be part of this landmark event,” said Gaรซl Mรฉheust, president & CEO of CFM International.ย  “Drop-in SAF is something our industry can adopt now to begin making inroads on our commitment to be net zero carbon emissions by 2050. Along with our parent companies, GE Aviation and Safran Aircraft Engines, we applaud United for taking this bold initiative and look forward to even greater cooperation in the future.”

“We’re excited to partner with this group of innovative companies that are leading the way in sustainable aviation,” saidย Dave Kettner, president and general counsel of Virent. “Virent’s proprietary technology demonstrates that SAF can be 100% renewable and 100% compatible with our current aviation fleet and infrastructure. We are proud to be playing a role in this advancement toward sustainable aviation fuels.”

“When we fly, we connect,ย and our demand for the connections aviation makes possible are only going to grow,” saidย Gene Gebolys, CEO of World Energy. “But we need to develop affordable,ย high energy density,ย low-carbon liquid fuels at scale everywhere to allow those connections to be made sustainably. The pioneering work is the hardest work,ย and United has been with us from the very start.ย The flight path ahead will require tremendousย teamwork. We areย fortunateย to have partners like United to do that work and are thrilled to be a part of this important milestone today.”

United’s Eco-Skies Alliance program wasย launched inย April 2021ย and now has collectively contributed toward the purchase of more than 7 million gallons of SAF this year alone. With its nearly 80% greenhouse gas (GHG) emissions reductions on a lifecycle basis compared to conventional jet fuel, this is enough SAF to eliminate approximately 66,000 metric tons of GHG emissions, or enough to fly passengers more than 460 million miles. Including today’s newly announced participants, the program has nearly 30 participants including companies like DHL Global Forwarding, HP Inc. and Nike.

The new participants include:

  • American Family Insurance
  • Biogen
  • Bollorรฉ Logistics
  • CWT
  • Maersk
  • Meta
  • Microsoft
  • Palo Alto Networks
  • Salesforce
  • Visa
  • Yusen Logistics
  • Zurichย North America

Today’s SAF flight and new Eco-Skies Alliance participants are among the latest accomplishments towards United’s goal to beย 100% greenย by reducing its GHG emissions 100% by 2050, without relying on traditional carbon offsets. In a further step to build transparency and enable certified SAF emissions reductions for its corporate customers, last month United partnered with Microsoft, Air bp, and the Roundtable on Sustainable Aviation Biomaterials in the first everย book-and-claim pilot.

American Airlines makes additional commitment to Sustainable Aviation Fuel

American Airlines announced today that it has finalized a new sustainable aviation fuel (SAF) offtake agreement with Aemetis. The agreement brings the airlineโ€™s total SAF commitment to more than 120 million gallons, a signal of the integral role SAF will play in Americanโ€™s efforts to reduce carbon emissions and achieve its ambitious sustainability goals.

The airlineโ€™s agreement with Aemetis is the result of work with theย oneworldยฎ alliance, the first global airline alliance to commit to net-zero emissions by 2050 and to publish a pathway for doing so.ย oneworld is now the first global airline alliance toย announce a SAF purchase.

American has agreed to take delivery of 16 million gallons of Aemetis SAF annually over a seven-year period beginning in 2024, with fuel delivered to San Francisco International Airport. The SAF will be blended with traditional jet fuel at a 40/60 ratio to align with international standards.

American took its first delivery of SAF in mid-2020 and expects to use 9 million gallons by 2023. Additionally, American previously announced plans to purchase up to 10 million gallons of carbon-neutral SAF produced by Prometheus Fuels, which uses a novel process to make net-zero carbon transportation fuels.

Americanโ€™s goal is to reach net-zero emissions by 2050, and the airline was the first in North America toย commitย to set a science-based intermediate target for the year 2035. Additionally, American was recentlyย namedย to the Dow Jones Sustainability North America Index, the only passenger carrier to appear on the 2021 index. The companyโ€™s latestย ESG Reportย features an updated analysis of the airlineโ€™s path to net-zero, showing a greater role for SAF than its previous analysis.

 

 

Atlas Air extends its agreement with DB Schenker

Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc., has announced an extension of its partnership with Schenker Flight Services GmbH (DB Schenker), one of the worldโ€™s largest integrated logistics service providers, to provide transpacific service.

Atlas Airโ€™s relationship with DB Schenker includes supporting its global network by providing charter capacity service.

The new arrangement builds on an agreement Atlas Air reached with DB Schenker in 2020, and extends the dedicated capacity, which Atlas Air provides on multiple flights every week.

Video:

Norwegian to lease two Boeing 737 MAX 8 aircraft

Norwegian continues to selectively grow its aircraft fleet, and the company is pleased to announce that it has entered into agreement to lease two Boeing 737 MAX 8 aircraft.

Delivery will begin shortly to enable Norwegian to fulfill the announced Summer 2022 flying program with approximately 270 routes.

The lease term for each aircraft is for nine years. The agreement includes โ€˜power-by-the-hourโ€™ (PBH) arrangements for both the IATA Winter Seasons 2021/22 and 2022/23, giving Norwegian necessary flexibility to manage capacity through the low season.

Finally, Norwegian has the option, under the agreement, to substitute the subject 737 MAX 8 aircraft for new technology narrow-body aircraft from Airbus. The lessor is well reputed and has a longstanding relationship with Norwegian.

Qatar Airways to launch flights to Tashkent from January 17, 2022

Qatar Airways will add Tashkent, Uzbekistan to its global network with twice weekly flights. The first flight from Doha to Tashkent will take off on January 17, 2022, operated by an Airbus A320 aircraft, featuring 12 seats in Business Class and 120 seats in Economy Class.

Flight Schedule

Doha โ€“ Tashkent (All times in local)

Monday and Friday

Doha (DOH) to Tashkent (TAS)ย ย ย ย ย ย ย ย  QR377ย ย ย ย ย ย ย ย ย ย ย  Departs: 18:55ย ย ย ย ย ย ย ย ย ย ย  Arrives: 00:30 +1

Tuesday and Saturday

Tashkent (TAS) to Doha (DOH)ย ย ย ย ย ย ย ย  QR378ย ย ย ย ย ย ย ย ย ย ย  Departs: 01:50ย ย ย ย ย ย ย ย ย ย ย  Arrives: 04:00

Frontier Airlines announces 18 nonstop routes, 2 new destinations

Frontier Airlines today announces a significant rollout of 18 nonstop routes, including two new destinations: Aguadilla, P.R. and Fort Lauderdale/Hollywood, Fla., plus service expansions in Cancun, Mexico and San Juan, P.R.

New Routes to Cancun International Airport (CUN):

SERVICE FROM:

SERVICE START:

SERVICE FREQUENCY:

INTRO FARE:

Hartford, Conn. (BDL)**

Feb. 17, 2022

3x Weekly

To CUN: $99*

Buffalo, N.Y. (BUF)**

Feb. 18, 2022

3x Weekly

To CUN: $99*

Providence, R.I. (PVD)**

Feb. 19, 2022

1x Weekly

To CUN: $99*

**Subject to government approval.

New Routes to Fort Lauderdale-Hollywood International Airport (FLL):

SERVICE FROM:

SERVICE START:

SERVICE FREQUENCY:

INTRO FARE:

Atlanta (ATL)

Feb. 17, 2022

Daily

$29*

Buffalo, N.Y. (BUF)

Feb. 17, 2022

Daily

$49*

Islip, N.Y. (ISP)

Feb. 17, 2022

Daily

$39*

Orlando (MCO)

Feb. 17, 2022

Daily

$19*

Philadelphia (PHL)

Feb. 17, 2022

Daily

$39*

Providence, R.I. (PVD)

Feb. 17, 2022

Daily

$59*

Stewart, N.Y. (SWF)

Feb. 17, 2022

3x Weekly

$59*

Trenton, N.J. (TTN)

Feb. 17, 2022

Daily

$49*

Albany, N.Y. (ALB)

Feb. 18, 2022

3x Weekly

$49*

Rochester, N.Y. (ROC)

Feb. 18, 2022

2x Weekly

$49*

Green Bay, Wis. (GRB)

Feb. 19, 2022

1x Weekly

$49*

Portland, Maine (PWM)

Feb. 19, 2022

1x Weekly

$49*

New Routes to San Juan Airport (SJU):

SERVICE FROM:

SERVICE START:

SERVICE FREQUENCY:

INTRO FARE:

Boston (BOS)

Feb. 17, 2022

4x Weekly

$79*

Hartford, Conn. (BDL)

Feb. 18, 2022

3x Weekly

$79

New Route to Rafael Hernรกndez International Airport, Aguadilla, P.R. (BQN):

SERVICE FROM:

SERVICE START:

SERVICE FREQUENCY:

INTRO FARE:

Orlando (MCO)

March 24, 2022

3x Weekly

$59*

interCaribbean announces flights to Georgetown, Guyana

interCaribbean Airways has announced services from Georgetownย (GEO),ย Guyanaย toย Barbadosย (BGI), with connecting flights to St Vincent and theย Grenadinesย (SVD),ย Antiguaย (ANU),ย Grenadaย (GND),ย Dominicaย (DOM), andย St Luciaย (SLU).ย An onward flight viaย Barbadosย toย Antigua, will continue to Providenciales and connect onwards toย Havana, Cuba.

Flights are scheduled to begin operations onย December 17, 2021 in time for the holiday season with 12 weekly flights planned to operate betweenย Georgetownย andย Barbados.

In other news, interCaribbean Airways has been servingย Antigua from Tortola since 2015 with up to double daily flights with AM and PM departures, connecting to Europeย andย USA/Canadaย bound flights as well as connectionย Antiguaย with onward flights to 8 other onward cities.

Now, interCaribbean has announcedf new Antiguaย service with two new nonstop Jet service (ERJ145) destinations, connectingย Antiguaย (ANU) withย Barbadosย (BGI) with an initial two weekly flights, as well as nonstop service fromย Antiguaย (ANU) to Providenciales (PLS).

Theย Barbados flight continues immediately onwards to newly announced Georgetownย (GEO),ย Guyanaย with 2 hours of flying and a short transit time.ย The same connection point inย Barbadosย offers onward also to St Vincent and theย Grenadinesย (SVD),ย St Luciaย (SLU) andย Grenadaย (GND).

For the first time theย Eastern Caribbeanย can now experience jet service betweenย Antiguaย andย Barbados, and onwards toย Georgetown, making this the fast flight connection in the region.

New nonstop service to Providenciales (PLS),ย Turks and Caicos Islands, offers an immediate onward connection toย Havanaย (HAV),ย Cubaย as well asย Nassauย (NAS),ย Bahamas, andย Kingstonย (KIN),ย Jamaica. Travelers can now jet between Antiguaย andย Havanaย in less than 4 hours of flying time giving the fastest connection the market has seen.

Scheduleย Antigua–ย BarbadosAntigua
Flight JY 797 departsย Antiguaย 2.30pmย arrivesย Barbadosย 3.35pmย (Wednesday and Saturday)
Flight JY 792 departsย Barbadosย 12.10pm, arrivesย Antiguaย 1.15pm

Schedule Antigua-Providenciales-Antigua
Flight JY 794 departsย Antiguaย 1.45pmย arrives Providencialesย 2.45pm* (Wednesday and Saturday)
Flight JY 795 departs Providencialesย 10.30am, arrivesย Antiguaย 1.30*pm

* 1-hour time difference in winter betweenย Antiguaย and Providenciales

Flight are scheduled to begin operations from the week ofย December 17, 2021 in time for the holiday season and makingย Antiguaย more connected with the region than ever before.

Vietnam Airlines arrives in San Francisco

San Francisco International Airport (SFO) made this announcement on social media:

Vietnam Airlines aircraft photo gallery:

easyJet reports a financial loss for the fiscal year

easyJet issued this financial report for its fiscal year through September 30, 2021:

easyJet’s financial position, optimized network, margin enhancing ancillaries and cost restructure is fast tracking its recovery, providing a strong base to accelerate growth and deliver strong shareholder returns.

–ย ย ย ย ย  Headline loss before tax ofย ยฃ1,136 million, ahead of consensus.ย ยฃ4.4bnย of liquidity held providing renewed strength to capture opportunities.

–ย ย ย ย ย  Transformed business

oย ย Radical reallocation of our aircraft to higher contributing bases.

oย ย Step change in ancillary products delivering now and into the future – first in industry to implement dynamic pricing.

oย ย Cost base restructured – line by line cost savings delivered with further cost savings underway.

–ย ย ย ย ย  Summer ’22 – Current FY’22 H2 revenue booked is ahead of FY’19 level. Operational fleet plan increased by 25 aircraft as we capture growth opportunities.

Commenting on the results, Johan Lundgren, easyJet Chief Executive said:

“easyJet is moving through the pandemic with renewed strength having transformed the business by optimising our network and flexibility, delivering significant cost savings while also step-changing ancillary revenue. These initiatives alongside our strong, investment grade, balance sheet provide easyJet with renewed strength to manage any further Covid related travel disruptions, as well as a platform to fast track our growth and deliver strong shareholder returns. With this platform, we have the ambition to beat our targets set earlier this year.

“Having delivered FY’21 ahead of consensus, we have seen an encouraging start to this year with strong demand returning for peak winter holiday periods, coupled with increasing summer demand with Q422 capacity expected to be close to FY’19 levels. As theย UK’sย largest carrier, easyJet expects a significant benefit as theย UKย bounces back next summer. Our winning formula combined with the improvements made during the pandemic will accelerate our recovery.

“With ambitious plans for profitable growth we are expanding our leadership positions at key bases such asย Gatwickย andย Milanย with additional slots and aircraft this year and have 118 aircraft on order with a further 59 purchase options and rights confirmed to further build on this in the years to come.

“In summary, we remain mindful that many uncertainties remain as we navigate the winter, but we see a unique opportunity for easyJet to win customers and take market share from rivals in this period.”

Overview

It’s too soon to say what impact Omicron may have on European travel and any further short-term restrictions that may result. However, we have prepared ourselves for periods of uncertainty such as this. While we’ve seen an increase in transfers with some softening of trading for Q1 it is really encouraging to see that we are still seeing good levels of new bookings for H2 and we still expect that Q4 FY’22 will see a return to near pre pandemic levels of capacity as people take their long awaited summer holidays.

easyJet has optimized its network and reallocated aircraft to higher contributing bases alongside the launch of two additional seasonal bases. Our new ancillary products are delivering now, utilizing innovative industry leading dynamic revenue management to optimize returns. We have completed significant structural cost savings through seasonal contracts and improved productivity, while helping our customers navigate travel during the pandemic with our industry leading flexible policies.

Having successfully strengthened the balance sheet, we are fast tracking strategic investment and growth opportunities to deliver strong, sustainable shareholder returns. This is demonstrated by slot increases atย Gatwickย as well as additional slots which we have obtained in Linate,ย Lisbonย andย Portoย alongside the expansion of all seasonal bases in summer 22. We will continue to focus on competing where it really matters, being relentlessly efficient and only investing where we can deliver strong, sustainable returns for our shareholders.

easyJet operated a disciplined flying program throughout the 2021 financial year whilst continuing to deliver cost savings across every area of the business. As a result of the continued impact of Covid-19, easyJet has reported a headline loss before tax of ยฃ1,136 million.

Demand is accelerating with key periods such as October half term, ski and Christmas seeing strong performance. We continue to add capacity and expect to fly c. 70% of 2019 capacity in Q2 and expect that Q4 summer capacity will be at near 2019 levels. Customers will look for value as the economy recovers and short haul leisure demand will lead the recovery. easyJet will use its inherent strengths combined with the improvements made during the pandemic to grow throughout the recovery, which is already underway, and beyond.

Delivering growth in FY’22:

ยทย ย ย ย ย Operational fleet plan increased by 25 aircraft

ยทย ย ย ย ย Slots added atย Gatwick,ย Porto,ย Lisbonย and Linateย 

ยทย ย ย ย ย Additional aircraft added to all seasonal bases

Capacity:

ยทย ย ย ย ย Q1 Capacity expected to be c.65% of FY’19

ยทย ย ย ย ย Q1 Load Factor expected to be over 80%

ยทย ย ย ย ย Q2 Capacity is expected to be c.70% of FY’19ย 

ยทย ย ย ย ย Capacity expected to have recovered close to FY’19 levels by Q4 FY’22

ย 

Hedging

ยทย ย ย ย ย easyJet is currently c.55% hedged for fuel in the financial year ending on 30 September 2022 at c.US$498ย per metric tonne with the spot price as at 29 November 2021 beingย US$658.

Financial Summary

ยทย ย ย ย ย Headline loss before tax ofย ยฃ1,136 millionย (2020:ย ยฃ835 millionย loss) ahead of consensus.

oย ย Total revenue decreased by 52% toย ยฃ1,458 millionย (2020:ย ยฃ3,009 million) predominately due to H1 FY’20 having no impact from Covid-19.

oย ย Group headline costs decreased by 33% toย ยฃ2,594 millionย (2020:ย ยฃ3,844 million), driven by a decrease in capacity flown and the material savings achieved across many areas of the business from easyJet’s continued cost focus.ย 

ยทย ย ย ย ย Reported loss before tax ofย ยฃ1,036 millionย (2020:ย ยฃ1,273 million).

oย ย Non-headline gain ofย ยฃ100 millionย (2020:ย ยฃ438 millionย cost). Non-headline items consist of restructuring provision release and gains from the sale and leaseback of aircraft, offset by hedge discontinuation.ย 

ย 

ย ย 

2021

2020

ย ย ย ย  Change

Favourable/(adverse)

Capacity1ย (millions of seats)

28.2

55.1

(48.9)%

Load factor2ย (%)

72.5

87.2

(14.7)ppts

Passengers3ย (millions)

20.4

48.1

(57.5)%

Total revenue (ยฃ million)

1,458

3,009

(51.6)%

Headline EBITDAR (ยฃ million)

(551)

(273)

(101.8)%

Headline (loss)/profit before tax (ยฃ million)

(1,136)

(835)

(36.0)%

Reported (loss)/profit before tax (ยฃ million)

(1,036)

(1,273)

18.6%

Headline basic (loss)/earnings per share (pence)

ย ย ย ย ย ย ย ย ย ย ย ย ย ย  (166.9)

(149.7)

(11.5)%

Airline revenue per seat (ยฃ)

50.54

54.35

(7.0)%

Airline revenue per seat at Constant currency4ย (ยฃ)

50.90

54.35

(6.4)%

Airline headline cost per seat (ยฃ)

90.41

69.03

(31.0)%

Airline headline cost per seat excluding fuel and balance sheet revaluations at constant currency4ย (ยฃ)

78.62

55.94

(40.5)%

Headline return on capital employed (%)

(25.5)

(19.9)

(5.6)ppts

ย 

SAS reports a loss in its fiscal fourth quarter, lays out its ongoing strategy with SAS Connect in early 2022

Scandinavian Airlines-SAS issued this 4Q financial report:

AUGUST 2021โ€“OCTOBER 2021

  • Revenue: MSEK 5,762 (3,035)
  • Income before tax (EBT): MSEK -945 (-3,252)
  • Income before tax and items affecting comparability: MSEK -911 (-3,024)
  • Net income for the period: MSEK -744 (-2,566)
  • Earnings per common share: SEK -0.12 (-4.44)

SIGNIFICANT EVENTS DURING THE QUARTER

  • During the quarter, the number of passengers increased and more tickets were sold
  • Operations were scaled up to meet demand while more destinations opened up
  • SAS signed an agreement for the pre-delivery payment financing of about USD 100 million, covering ten A320neo aircraft with deliveries into Q2 FY2023

SIGNIFICANT EVENTS AFTER THE QUARTER

  • SAS established a partnership with Vattenfall, Shell and LanzaTech to investigate large-scale production of synthetic sustainable aviation fuel

NOVEMBER 2020โ€“OCTOBER 2021

  • Revenue: MSEK 13,958 (20,513)
  • Income before tax (EBT): MSEK -6,525 (-10,097)
  • Income before tax and items affecting comparability: MSEK -6,382 (-8,565)
  • Net income for the period: MSEK -6,523 (-9,232)
  • Earnings per common share: SEK -0.94 (-21.45)

COMMENTS BY THE CEO

It is encouraging to note the continued positive trend from the summer, with demand and ticket sales rising. However, 2021 was one of the most challenging years in the history of the aviation industry and the future remains hard to predict, primarily due to challenges connected to the ongoing pandemic.

IMPROVED QUARTERLY RESULTS STILL AFFECTED BY THE ONGOING PANDEMIC

Customer demand continued to increase through the yearโ€™s last quarter and as a result, our capacity increased 43% compared with the third quarter. Passengers flying with SAS increased 73% compared to the last quarter and the flown load factor reached approximately 60%, an increase of 7 percentage points compared with the earlier quarter. Still, uncertainties remain regarding the development of the COVID-19 pandemic and the transformation of SAS has to continue โ€“ to adapt to the new market. Earnings before tax ended at negative SEK 0.9 billion, which is an improvement of SEK 0.5 billion compared with last quarter, or a SEK 2.3 billion improvement year-on-year.

Total revenue increased 45% compared with the third quarter, an improvement of approximately SEK 2.7 billion compared with last year, but still 57% below the fourth quarter in 2019, which was unaffected by COVID-19.

ADAPTING SAS TO A NEW MARKET REALITY

Cost reductions across all of SAS remain in focus to optimize our competitive capability. Total operating expenses during the quarter ended at SEK 6.2 ยญbillion and total operating revenue landed at SEK 5.8 billion. Market dynamics have changed substantially during the pandemic and affect the entire airline industry. This requires SAS to take the next steps in the development of our operating model to ensure SAS is cost efficient and competitive. We are starting operation of SAS Connect out of Copenhagen in early 2022 and are evaluating possibilities to expand SAS Connect and to open bases in Stockholm and Oslo during the year.

We are also evaluating fleet options to handle thinner flows of passengers in our network โ€“ to ensure that we can offer competitive advantages, an attractive timetable for customers and lower the total environmental footprint.

We have now had a positive operating cash flow during two consecutive quarters. The work to preserve liquidity continues and at the end of the quarter, the cash position was at SEK 4.3 billion, which is similar to the cash position of SEK 4.4 billion at the end of Q3. During the quarter, SAS signed a predelivery payment financing of approximately USD 100 million that will cover financing of ten A320neo aircraft with deliveries into Q2 2023. The credit line that was established during Q3 with the major shareholders, is still fully undrawn, and provides a solid liquidity buffer during the pandemic recovery phase, should it be needed.

DEVELOPING OUR CUSTOMER OFFERING AND RE-OPENING ROUTES

When restrictions and demand allow, we will open more routes, and this winter we are flying more than 150 routes to 90 destinations. SAS has to remain agile to be able to quickly respond to changes in customer demand, which will be one of the success factors for airlines going forward. As a direct result of the US opening up for travelers, we have increased the number of flights to and from the US. SAS operates new, fuel-efficient A350 Airbus aircraft to the US, which have 30% lower fuel consumption compared to the aircraft they are replacing.

We also continue the development of our customer offering through the determined work with digitalization and personalization. For example, by expanding our SAS Go Light on our total network, where customers can choose competitively priced tickets and then add travel extras such as bags and seat selection.

SAS is a global leader in sustainable aviation. Reducing climate-impacting carbon emissions and striving to increase the supply and use of sustainable aviation fuels (SAF) are important components of that ambition. We are therefore proud to be part of a collaboration with Vattenfall, Shell and Lanzatech, to investigate the production of the worldโ€™s first synthetic sustainable aviation fuel. When full production is up and running, it could provide SAS with up to 25% of its requirement for sustainable aviation fuel in the 2030s.

LOOKING AHEAD

We remain cautious due to prevailing uncertainties, but see that underlying demand is healthy once restrictions are lifted, both for business and leisure travel. Short-term effect of recent developments needs yet to be fully analyzed, however we remain optimistic for the peak periods ahead of us. During the pandemic, we see that demand for travel has changed and SAS expects a greater number of leisure travelers and even more intense competition in the future.

I am grateful for all the hard work that all my colleagues at SAS are carrying out during our transformation, to ensure our performance remains at a high level and to always take care of our customers in the best possible way. Together with dedicated colleagues, a strong brand and operational excellence, we are working our way through these challenging times.

We welcome you on board our aircraft in one of Europeโ€™s most modern fleets!

Anko van der Werff,

President and CEO

Stockholm, November 30, 2021