SAS reports continued headwinds from the pandemic

Scandinavian Airlines has issued this statement:

MAY 2021–JULY 2021

Revenue: MSEK 3,982 (2,507)
Income before tax (EBT): MSEK -1,358 (-2,071)
Income before tax and items affecting comparability:
MSEK -1,237 (-784)
Net income for the period: MSEK -1,355 (-2,365)
Earnings per common share: SEK -0.19 (-6.18)

SIGNIFICANT EVENTS DURING THE QUARTER

SAS arranged a credit line of SEK 3 billion
Anko van der Werff joined as President and CEO

SIGNIFICANT EVENTS AFTER THE QUARTER

SAS has signed an additional pre-delivery payments financing of c. USD 100 million, covering 10 x A320neo aircraft with deliveries into Q2 FY2023
SAS has operated 22 flights on behalf of the Scandinavian authorities contributing to evacuation operations from Afghanistan

NOVEMBER 2020–JULY 2021

Revenue: MSEK 8,196 (17,478)
Income before tax (EBT): MSEK -5,655 (-6,880)
Income before tax and items affecting comparability:
MSEK -5,546 (-5,576)
Net income for the period: MSEK -5,838 (-6,696)
Earnings per common share: SEK -0.82 (-17.66)

COMMENTS BY THE CEO

We noted encouraging signs during the summer season with demand slowly increasing. Vaccination rates are also rising, but significant challenges remain ahead as new cases of the Delta variant are multiplying and delaying ramp-up. The imposed travel restrictions remain in force and continue to adversely affect demand for air travel.

QUARTER NEGATIVELY IMPACTED BY THE ONGOING PANDEMIC

Demand continued to gradually increase during the important summer season, and we increased our capacity 94% compared with the second quarter. Passenger numbers increased 144% compared with the last quarter and the load factor reached 52%, up almost 23 percentage points in comparison with the earlier quarter. However, the uncertainties surrounding the COVID-19 pandemic are far from over. Efforts to transform SAS’ entire business must continue to offset lower demand with lower costs. Earnings before tax ended at negative SEK 1.4 billion, which is still an improvement of SEK 0.7 billion compared with last year.

Total revenue increased 106% compared with the second quarter. Compared with last year this is an improvement of approximately SEK 1.5 billion, but still 70% below the third quarter of 2019, which was unaffected by COVID-19.

REDUCING COSTS AND MANAGING LIQUIDITY

SAS is celebrating 75 years of operations with a proven track record of successfully adapting to changing market conditions necessitated once again due to the pandemic. Cost reduction initiatives, such as reduced personnel expenses and streamlined operational functions, continue to deliver and total operating expenses were controlled during the quarter and landed at SEK 4.9 billion. We also continue to develop our operational platforms to increase competitiveness further.

The work to safeguard liquidity continues and at the end of the quarter the cash position was SEK 4.4 billion, which corresponds to the liquidity position at the end of the second quarter. Moreover, during the quarter a credit line was signed with major shareholders, the Danish and Swedish governments, thereby making an additional SEK 3.0 billion of liquidity available if necessary. The facility can be utilized until the end of 2022 and ensures that SAS has a liquidity buffer during the recovery phase following the COVID-19 pandemic. The facility complements the ongoing cost reduction activities.

MAKING TRAVELING EASIER AND OPENING ROUTES

The imposed travel restrictions make traveling difficult, and SAS is doing everything possible to facilitate a smooth travel experience for passengers. Our digital tool, SAS Travel Ready Center, allows passengers to track updates to travel restrictions and prepare their trip online, thus ensuring everything is ready when they arrive at the airport. We are also offering more flexible ticket rules and generous rebooking alternatives.

In parallel with adapting to a new market reality, we continue to open new routes. SAS increases the flights between the Scandinavian capitals and important destinations in its network to further improve connectivity for travelers. Meanwhile, more of our new, fuel-efficient aircraft are planned to be delivered during the year, making our fleet one of the most modern in Europe. We also proudly flew Scandinavian athletes to the Olympic games in Tokyo during the quarter.

LOOKING AHEAD

The recovery of the aviation industry depends greatly on the uncertain development of the pandemic. We are expecting travel to increase gradually as more and more people are vaccinated worldwide, but we are also aware that demand has changed during the pandemic. SAS expects a greater number of leisure travelers and even more intense competition in the future. In addition, customers are booking their tickets closer to their travel dates, which means that flexibility to ramp up and down, will be a success factor in the airline industry going forward.

I am very happy to be part of SAS’ future and I feel honored to assume the role as President and CEO of Scandinavia’s leading airline, which I take on with great enthusiasm. These are of course difficult times, both for customers and for employees, having to adjust to ever-changing rules and restrictions. In this regard, I would like to recognize the hard work performed by my SAS colleagues, to maintain our performance at a high level and to help customers as much as possible.

Together with a strong team of dedicated colleagues, we are striving to become the global leader in sustainable aviation, in parallel with navigating our way through the post-pandemic recovery period. It will take time and a lot of hard work, and we will need to make adjustments along the way, but with our great team, strong brand and operational excellence, we will make it happen.

On behalf of all of us at SAS, we look forward to welcoming you on board our flights!

Anko van der Werff,

President and CEO

Stockholm, September 1, 2021

Top Copyright Photo:

SAS aircraft slide show:

Ethiopian to allow economy passengers to purchase empty seats on board

Ethiopian Airlines has unveiled new digital option dubbed My Sheba Space that enables economy class travelers to purchase one or more empty seats on board to get extra space and relax.

Ethiopian has responded to COVID 19 pandemic by introducing passenger safety guidelines implementing social distancing and sanitization measures in its ultra-modern Addis Ababa Bole International Airport and within the aircraft. Reducing aircraft capacity and introduction of end to end passenger journey are among the initiatives Ethiopian has taken in its continued pursuit for elevated customer experience.

With bundled on-demand services and predictive intelligence, MyShebaSpace will offer extra space with a reasonable top up starting from $30. MyShebaSpace is not just about letting passengers pay extra to guarantee an empty seat next to them, it is about the airlines unwavering commitment to offer diversified options in line with changing customers’ demand. MyShebaSpace requires a 72-hour window before flight time to secure extra seat and is accessible on Ethiopian website and mobile app for convenience.

SWAPA lawsuit accuses Southwest of ignoring union bargaining duties during pandemic

From Reuters:

“The Southwest Airlines Pilots Association (SWAPA) filed a complaint in federal court in Dallas on Monday claiming that Southwest should have collectively bargained with the union instead of giving itself “force majeure” rights when air travel plummeted during the pandemic.

The union claims Southwest implemented an “emergency time off” program, altered schedules, and scaled back prescription drug and retirement benefits without bargaining, in violation of federal labor law.

It asked the court for an injunction, forcing the airline to stick to the terms of the collective bargaining agreement, which lapsed on Aug. 31, 2020, until a new agreement is reached.”

Read the full article:

https://www.reuters.com/legal/government/lawsuit-accuses-southwest-airlines-flouting-union-bargaining-duties-during-2021-08-31/

Historic Photo: Global Airlines – Condor SST Lockheed 1049G-82-153 Super G Constellation N9723C (msn 4680) BUR (Ted J. Gibson – Bruce Drum Collection). Image: 954854.

Copyright Photo: “Condor SST” – fake titles and SST nose for a movie: Global Airlines – Condor SST Lockheed 1049G-82-153 Super G Constellation N9723C (msn 4680) BUR (Ted J. Gibson – Bruce Drum Collection). Image: 954854.

Jet2.com switches to Airbus, orders 36 A321neos

Jet2.com has placed an initial order for 36 Airbus A321neos making the airline based in Leeds, United Kingdom, a new Airbus customer and a new Airbus A320neo Family operator. The order reflects Jet2.com’s ambitious fleet expansion and renewal plans. Engine selection will be made at a later date.

The aircraft will be configured for 232 seats with an Airspace cabin featuring innovative lighting, new seating products and 60 percent larger overhead baggage bins for added personal storage.

At the end of July 2021, the A320neo Family had won over 7,400 firm orders from over 120 customers worldwide.

WestJet introduces new flights to Scotland from Toronto

WestJet today announced new service between Toronto (Pearson) and Scotland with the addition of nonstop flights to Edinburgh and Glasgow beginning in Spring 2022. Adding to the airline’s international destination map, service between Edinburgh and Toronto is set to launch on June 2, 2022, while flights between Glasgow and Toronto will begin on May 20, 2022.

With the addition of Edinburgh to the airline’s international network, service between Toronto (YYZ) and Edinburgh (EDI) is set to operate three-times weekly effective June 2, 2022, while service between Toronto and Glasgow (GLA) will operate four-times weekly as of May 20, 2022.

👋🏻 pic.twitter.com/reIn3xDArv

— Edinburgh Airport (@EDI_Airport) August 31, 2021

By Spring 2022, WestJet will offer service to two Scottish destinations with service from Toronto to Edinburgh and Glasgow and the resumption of flights between Halifax and Glasgow.

Details of WestJet’s new services between Toronto and Scotland:

Route	Frequency	Start date
Toronto-Glasgow	4x weekly	May 20, 2022
Toronto-Edinburgh*	3x weekly	June 2, 2022

*New WestJet destination

Porter Airlines refreshes aircraft fleet with world’s lightest aircraft seat

Porter Airlines has completed the modernization of its De Havilland Dash 8-400 aircraft fleet with a series of updates ahead of its return to flying on Sept. 8.

All 29 aircraft now feature the new TiSeat E2 from Expliseat, the world’s lightest aircraft seat, along with a number of other cabin enhancements.

(CNW Group/Porter Airlines)

The seats use a combination of composite and titanium materials, making them approximately 50% lighter than the previous seats and reducing aircraft weight by approximately 1,000 lbs. This reduces approximate annual fuel consumption by 500,000 litres and corresponding CO2 emissions by 1,200 metric tons.

Other aircraft upgrades include new carpeting, lavatory enhancements, new sideboards and updated LED lighting on all aircraft. The majority of the fleet will also have received fresh exterior paint by October.

Porter uses a 78-seat configuration with a standard 30″ seat pitch on its Dash 8-400s. The slim design of the new seats enhances overall legroom.

United invites MileagePlus members to donate miles to help Afghanistan evacuee aid efforts

United today announced that its MileagePlus members can help in the Afghanistan relief effort by participating in the airline’s mile-raising platform, Miles on a Mission, and donate to three non-profit organizations that are using air travel to transport and support Afghan citizens. As part of this campaign, United will match all donations up to five million miles.

For the last week, United has directly supported the Department of Defense and its mission to transport Afghan evacuees to the U.S.

Participating non-profits, include:

Miles4Migrants: A non-profit that is using miles to book air travel for Afghans who have left their home country, and need flight assistance to reach their final destination.
Americares: A health-focused relief and development organization mobilizing medical professionals to provide in-flight medical care on United relief flights to the U.S.
World Central Kitchen: A food-focused, global relief organization that will provide meals to Afghan refugees as they arrive at various locations across the world.

United’s mile-raising campaign is an extension of the airline’s ongoing collaboration with Americares, World Central Kitchen and Miles4Migrants to support the Afghanistan relief efforts. Medical professionals from Americares have joined United volunteers on several of the airline’s recent relief flights to bring Afghan refugees, American citizens and service members to the U.S. United has also supported the efforts of World Central Kitchen at Washington Dulles International Airport as they provide comforting meals for all Afghan evacuees arriving in the U.S.

In addition to helping transport Afghan refugees to the U.S., United is working with partner organizations to help support the thousands of refugees who will need to be resettled across the country once they have been fully processed by the U.S. Government. United is partnering with Miles4Migrants to provide critically needed air travel to fly Afghan citizens from several military bases in the U.S. to their final destinations.

Additionally, United is working closely with Walgreens to ensure the passengers on the airline’s relief flights have all the critical personal care items they need to comfortably travel. Walgreens has generously donated personal care and comfort items to United including diapers, disinfecting wipes, feminine hygiene products, baby bottles and more, which are being provisioned onboard United’s CRAF flights to the U.S.

So far, United has operated 13 international missions, carrying more than 3,908 U.S. citizens and Afghan evacuees safely to the U.S. More than 8,000 United employees have raised their hands to participate in these missions – working as crew members, onboard translators, volunteer onboard medics, coordinating the complex operation and more. Many of these employees have personal or family ties to Afghanistan and/or are military veterans.

British Airways moves to the next phase of its lounge reopening plan

British Airways has made this announcement:

British Airways reopens its Concorde Room at New York’s JFK airport and Heathrow Terminal 5
To coincide the airline has partnered with a renowned mixologist, Mr Lyan, to create new bespoke cocktail menus available in its lounges, with two exclusive signature serves
Other enhancements include ‘surprise and delight’ lounge access for selected Bronze BA executive card holders and the introduction of ‘Forty Winks’ sleep pods in the Concorde Rooms at JFK & Heathrow
The airline will continue to gradually reopen lounges across its network

British Airways has today announced that it will move to the next phase of its lounge reopening plan, as it is set to once again open the doors to its Concorde Room (specifically for those flying in First) at JFK and Heathrow on September 1, with a number of other enhancements in store for customers.

The reopening of the airline’s two exclusive lounges, both of which have remained closed since March 2020, follows swiftly in the footsteps of the airline’s flagship US lounge, that started to welcome back eligible customers from the start of August.

To coincide with both Concorde Rooms opening their doors once again, British Airways will be introducing a new exciting cocktail menu, created exclusively for the airline by Mr Lyan (Ryan Chetiyawardana) (below), a figurehead in the global cocktail scene. Driven by sustainability and his love for experimenting with new ingredients, he has carefully created an array of elegant cocktails for customers to enjoy depending on their individual tastes and preferences, ahead of their flight.

The new menu contains seven cocktails, with two unique British Airways serves designed in celebration of the airline’s heritage and iconic colleagues. The two special cocktails are named the Barton and Lawford after Lynne Barton, the first female British Airways pilot, and Bill Lawford, the first ever British Airways pilot in 1919. The menu has been designed with a focus on the best of British seasonal ingredients that specifically embrace ‘in-flight’ and wind pollinated flavors. The Barton and Lawford will also be available in the Galleries Club lounges and First lounge.

Customers in the Concorde Room will continue to receive table service across the whole lounge, but visitors to other lounges will also benefit from using the airline’s new digital ‘Your Menu’ service which allows them to order food from the menu directly to their seat in the lounge with the use of a QR code close to them.

Elsewhere the airline will also be surprising a number of its Bronze Executive card holders on a daily basis in September and October with the taste of Silver Card benefits. British Airways will be inviting those who are close to the next threshold to use one of the airline’s lounge at Heathrow with a guest.

British Airways customers using the airline’s Concorde Room will also have access to the new ‘Forty Winks’ EnergyPods, to get some pre-flight shuteye if they wish to. Concorde Room customers will be able book an EnergyPod via dedicated hosts, request a time to be woken and choose a hot beverage to enjoy after their rest. Water and hot towels will be provided to add to the refreshing awakening experience.

Other enhancements to the customer experience also include the introduction of ‘Best of British menus’ on board the airline’s flights, focusing on seasonal ingredients and British provenance, taking customers on a culinary journey across the British Isles. British Airways recently announced that the first edition of the carefully curated menus will include a traditional roast with all the trimmings.