Comair to relaunch operations on September 1

Comair has issued this statement:

Comair aircraft will be back in the skies again from September 1, 2021 as planned.

The airline, which operates kulula.com and British Airways (operated by Comair) temporarily suspended services on Monday, July 5, 2021 in response to the implementation of an adjusted Level 4 lockdown, the prohibition of all non-essential travel in and out of Gauteng and low demand for air travel.

It is now preparing its aircraft, flight and cabin crews and airport personnel to ensure a seamless restart of services.

During the suspension its revenue management team has been working on some new, flexible fare options to better meet customers’ differing requirements.

Called Travel Your Way the three bundled affordable kulula.com fare offerings allow customers to pay only for what they need. They are:

Fly Light: A hop-on, hop-off option for those with only cabin bags offering the best possible fares. A change of booking fee of R299 applies.
Pack & Go: An all-round option to suit most traveller’s needs including one piece of checked luggage weighing up to 20kg and two free booking changes.
Fully Loaded: A fully flexible option allowing unlimited booking changes, two checked bags and Q-Jump to speed-up check-in procedures.

Comair marketing executive, Brian Kitchin, says temporarily suspending flights was the right decision while COVID-19 cases peaked and the vaccination program gained momentum.

British Airways (operated by Comair) will re-launch it’s Johannesburg/ Mauritius route operating two flights a week from November 30. It plans to add a third flight in future.

Air New Zealand announces its 2021 financial results as it continues to navigate COVID-19 impacts

Air New Zealand has made this announcement:

Air New Zealand has announced a loss before other significant items and taxation of $440 million for the 2021 financial year.

August 26, 2021

Financial results summary

Operating revenue of $2.5 billion, down 48 percent on the prior year
Cargo revenue up 71 percent on the prior year, supported by the New Zealand and Australian Government’s IAFC, MIAC and IFAM schemes (the airfreight support schemes) ¹
Loss before other significant items and taxation of $440 million ²
Loss before taxation of $411 million
Domestic capacity rebounded strongly as the year progressed, reaching 93 percent of pre-Covid for the three months ending July, driven by strong leisure demand and the return of corporate customers
Latest domestic nationwide lockdown expected to negatively impact financial operating performance
Liquidity of $1.3 billion as at 24 August 2021, comprised of $183 million cash and $1.15 billion of undrawn funds on the Government standby loan facility (the Facility)
Dividends remain suspended
Planned capital raise deferred to first quarter of calendar year 2022

Air New Zealand has announced a loss before other significant items and taxation of $440 million for the 2021 financial year – its first full 12-month period of operation with Covid-19 related international travel restrictions. Using the same metric, the company reported an $87 million loss for the 2020 financial year.

Statutory losses before taxation, which include a $29 million gain from other significant items, were $411 million, compared to a loss of $628 million last year.

The financial result benefited from approximately $450 million of Government assistance including airfreight support schemes as well as further subsidies and initiatives that are not expected to be repeated to the same extent in the 2022 financial year.

Ongoing border restrictions saw operating revenue decline 48 percent to $2.5 billion as international flying was significantly reduced, with capacity down 55 percent on the prior year, although cargo flying revenue grew by 71 percent compared to the prior year thanks to airfreight support schemes. The airline’s domestic business performed strongly, led by strong leisure demand as well as corporate customers flying at close to pre-Covid levels.

Chairman Dame Therese Walsh says the 2021 financial result reflected the reality of a year in which the airline was unable to fly two-thirds of its passenger network.

“In a severely constrained environment, Air New Zealand maintained cost discipline, focusing on delivering with excellence in the areas in its control. The return of a strong domestic business and growth in the cargo services that underpin our key export markets was a reminder of the airline’s crucial role in New Zealand’s infrastructure,” says Dame Therese.

“Air New Zealanders showed agility during constantly changing operating conditions, managing reopenings, pauses and then closures while generating new revenue from additional cargo routes and increasing domestic and regional passenger capacity to match an increased demand for domestic leisure travel.”

Dame Therese paid tribute to the continued commitment and sacrifice of the Air New Zealand team.

“To keep New Zealand connected to key markets, help Kiwis continue travelling and manage continued disruption to passengers’ travel plans, Air New Zealanders have again proven their aroha for customers. From our airport employees and flight crew who are among the most frequently tested groups in the country, to all our other operations and corporate teams across the network who have worked tirelessly behind the scenes to keep our customers and cargo moving, their efforts have been extraordinary.”

“These efforts, after 18 months of reduced pay and forfeited incentives, were recognised earlier this year when we announced eligible employees would each be provided with a $1,000 award of shares or cash. With significant uncertainty ahead, including the current lockdown, this was important recognition of the people who give so much to our business.”

Chief Executive Officer Greg Foran said the 2021 financial year was one in which the airline played the hand it was dealt, kept planes flying every day and took some important steps in the delivery of its refreshed strategy, Kia Mau.

“Our people developed new capabilities and dexterity, adapting quickly when conditions changed. Although the return of long-haul travel seems some time away, the changes the team made this year will serve us well when it returns,” he says.

“We have reimagined our domestic business, increasing the choice of flight times and introducing greater price differentiation for peak and off-peak flying. This allows us to offer more lower priced fares, which will unlock new demand for domestic tourism.”

“We capped fares to ensure travel isn’t out of reach when it’s needed most, reintroduced the popular Fast Bag service with new features, and improved our unaccompanied minors service to make travel easier for our most valuable cargo and safer for our people.”

“We had fun with our customers, trialing new inflight food and beverage options, made changes – while retaining the much-loved cookie – and will showcase great New Zealand products in the year ahead.”

Mr Foran says the airline also took meaningful steps towards its goal of net zero emissions by 2050.

“With almost daily reminders of the impact of climate change, we are supporting the development and deployment of electric, hybrid and hydrogen aircraft for domestic use, and engaging and collaborating with others in the private sector and the Government to make sustainable aviation fuel (SAF) supply a reality in New Zealand.”

“We also made some exciting enhancements to our Airpoints^TM^ loyalty programme, adding more store partners, improving access to upgrades and increasing the ability to share benefits among family and friends.”

“Strategic digital investments towards our goal of being ‘the world’s leading digital airline’ included equipping our turboprop aircrew with devices to replace paper-based systems, introducing a new supply chain management system and improving self-serve options for customers to use credits and manage bookings.”

Mr Foran also acknowledged the ongoing uncertainty in the airline’s operational and financial performance, including following the latest Covid-19 cases in New Zealand and subsequent lockdown.

“More than ever, this is a time to look after our people who continue to deliver those essential services, keeping cargo moving and getting Kiwis back home.”

Capital raise and liquidity

As announced on 13 August 2021, Air New Zealand received a letter from the Minister of Finance outlining his view that the current environment is not sufficiently certain and stable to enable the Crown to provide a firm pre-commitment to support a planned equity raise at this time. In this context, the airline has, in consultation with the Crown, decided to further defer its planned capital raise from 30 September 2021 until the first available window in the first quarter of calendar year 2022.

Given the critical role that the airline has in New Zealand’s economy and society, the Crown has again confirmed its longstanding commitment to maintaining a majority shareholding in Air New Zealand. Subject to Cabinet being satisfied with the terms of the airline’s proposed capital raise at the relevant time, the Crown has again confirmed that it will participate in an equity capital raise by purchasing the number of new shares necessary to maintain a majority shareholding.

On completion of the recapitalisation, Air New Zealand expects to repay all amounts drawn under the Facility. The Crown has confirmed to the airline that it shares this expectation.

Until the capital raise is completed, the airline has access to sufficient liquidity under the Facility, with $1.15 billion in remaining funds that allow it to continue operating and investing activities. Air New Zealand has drawn $350 million on the Facility as at 25 August 2021 and expects to draw down further in the coming months.

The airline’s operating cashflow for the 2021 financial year benefited from the one-off deferral of around $254 million in Fringe Benefit Tax (FBT) and PAYE payments, which will start to be repaid in the 2022 calendar year. An additional $60 million of FBT and PAYE is expected to be deferred in the first quarter of the 2022 financial year and repaid before 31 March 2022.

Dividend update

The Board continues to focus on preserving Air New Zealand’s liquidity, and given the ongoing uncertainty and continuing financial pressures on the airline, has determined it will not declare a final dividend for the 2021 financial year.

Air New Zealand’s Board does not expect to consider payment of dividends before the airline’s earnings and gearing substantially recover, and in the context of a supportive macroeconomic environment.

Outlook for 2022

Given uncertainty surrounding the current national lockdown, ongoing international travel restrictions and uncertainty regarding the level of demand as these restrictions lift, Air New Zealand has suspended 2022 earnings guidance.

Summary financial results

	Jun 2021 $M	June 2020 $M	Movement %
Operating revenue	2,517	4,836	(48.0%)
Loss before other significant items and taxation	(440)	(87)	(405.7%)
Other significant items	29	(541)	105.4%
Loss before taxation	(411)	(628)	34.6%
Net loss after taxation	(289)	(454)	36.3%
Operating cash flow	323	230	40.4%
Gearing	71.0%	69.2%	(1.8 pts)

Other significant items

Other significant items, representing a gain of $29 million in the 2021 financial year, were made up of $143 million of foreign exchange gains on uncovered debt and a gain of $21 million related to the sale of Heathrow landing slots partially offset by aircraft impairment and lease modification costs of $78 million, reorganisation costs of $39 million and the de-designation of hedges as a result of forecast transactions no longer expected to occur of $18 million.

¹ In March 2020 the New Zealand Government established the International Airfreight Capacity (IAFC) scheme to support aviation carries to continue to provide capacity on key international airfreight routes. Following the success of this scheme, the Government introduced the Maintaining International Air Connectivity (MIAC) scheme to support air services through to the end of October 2021, with the potential for an extension to March 2022. The Australian Government introduced the International Freight Assistance Mechanism (IFAM) in April 2020 to keep global airlinks open to Australia and awarded the contract to Air New Zealand in August 2020. It has subsequently been extended to September 2021.

² Losses before other significant items and taxation represent Earnings stated in compliance with NZ IFRS (Statutory Earnings) after excluding items which due to their size or nature warrant separate disclosure to assist with understanding the underlying financial performance of the Group. Losses before other significant items and taxation is reported within the Group’s audited annual financial statements.

Top Copyright Photo: Air New Zealand Boeing 787-9 Dreamliner ZK-NZE (msn 34334) LAX (Michael B. Ing). Image: 954809.

Air New Zealand aircraft slide show:

South African Airways to launch regional flights again on September 23

South African Airways has made this announcement:

The wait is finally over. In just under a month, the striking and familiar livery of SAA will once again be visible in the skies as the airline resumes operations. The carrier has confirmed the first flights will commence on Thursday, September 23, 2021.

SAA will as an initial phase operate flights from Johannesburg to Cape Town, Accra, Kinshasa, Harare, Lusaka and Maputo. More destinations will be added to the route network as it ramps up operations in response to market conditions.

According to the chairman of the SAA’s Board, John Lamola, since the national carrier came out of business rescue at the end of April 2021, the Department of Public Enterprises together with the Board and the Management team have been seized with planning for the relaunching of a restructured and fit for purpose airline that South Africans can again be proud of. “The airline is restarting with a formidable business case”, says Lamola.

Counting down the days to takeoff, looking forward to welcoming you on board. Let's go the distance.
BOOK NOW#FlySAA #LetsGOtheDistance @flysaa_care pic.twitter.com/N0rNV1xAlo

— SAA – South Africa (@flysaa) September 7, 2021

Air Serbia to extend flights to three Russian destinations throughout October

Air Serbia, the national airline of the Republic of Serbia, due to good results achieved during the summer season, decided to extend the period during which it will fly to three destinations in the Russian Federation – Saint Petersburg, Krasnodar, and its new destination Rostov-on-Don. Even though it was initially planned to operate flights until the end of September, it was decided to continue them until the end of the summer season, i.e. until the end of October and subject to further developments regarding the demand and travel restrictions, Air Serbia will decide on possible flying to these three destinations during the forthcoming winter season, as well.

Air Serbia plans to operate nearly 500 flights and carry about 60,000 passengers between Belgrade and its four destinations in the Russian Federation from the start of the year until the end of August. The load factor on the routes is over 80%.

Serbian national airline will continue flying to its destinations in Russia at the same dynamic – up to eight times a week to Moscow and twice a week to Saint Petersburg, Krasnodar and Rostov-on-Don.

Due to high demand among passengers from the region and the Russian Federation, Air Serbia boosted the frequency of its Moscow service in May, and restored the temporarily suspended flights to Krasnodar and Saint Petersburg in early June, as well as launched a new service to Rostov-on-Don. Thanks to direct flights to four important economic, industrial and cultural centres of Russia, the Serbian airline represents the main gateway for traveling to our region and beyond for passengers from the world’s biggest country.

Top Copyright Photo: Air Serbia Airbus A319-132 YU-APB (msn 2296) (90 Years) ZRH (Andi Hiltl). Image: 954808.

Air Serbia aircraft slide show:

QANTAS Group outlines its strategy for restarting international flights, will return some A380s

QANTAS Group has issued this report:

Gradual restart planned around National Cabinet’s phased reopening of international borders.
Current date of December 2021 remains in reach, based on pace of vaccine rollout.
Plans remain dependent on Government decisions in coming months, including future quarantine requirements.
Destinations with high vaccination rates are initial focus, including North America, UK, Singapore, Japan.
Early return of five A380s to meet high demand to Los Angeles and London from mid-2022.
Total of 10 A380s with upgraded cabins to return to service; two to be retired.

The Qantas Group has provided more detail on preparations for restarting its international flights, with plans linked to the vaccine rollout in Australia and key overseas markets.

On current projections Australia is expected to reach National Cabinet’s ‘Phase C’ vaccination threshold of 80 per cent in December 2021, which would trigger the gradual reopening of international borders.

Similarly, key markets like the UK, North America and parts of Asia have high and increasing levels of vaccination. This makes them highly likely to be classed as low risk countries for vaccinated travelers to visit and return from under reduced quarantine requirements, pending decisions by the Australian Government and entry policies of other countries.

This creates a range of potential travel options that Qantas and Jetstar are now preparing for. While COVID has shown that circumstances can change unexpectedly, the long lead times for international readiness means the Group needs to make some reasonable assumptions based on the latest data to make sure it can offer flights to customers as soon as they become feasible.

Flights to destinations that still have low vaccine rates and high levels of COVID infection will now be pushed out from December 2021 until April 2022 – including Bali, Jakarta, Manila, Bangkok, Phuket, Ho Chi Minh City and Johannesburg. Levels of travel demand – and therefore, capacity levels – will hinge largely on government decisions on alternative requirements to mandatory hotel isolation for fully vaccinated travelers.

Assuming current projections hold and the 80 per cent vaccine threshold is met in December, Qantas and Jetstar plan to trigger a gradual restart as outlined below. If those assumptions change or dates move, the restart plans will adjust accordingly.

SUMMARY OF INTERNATIONAL RESTART PLANS

From mid-December 2021, flights would start from Australia to COVID-safe destinations, which are likely to include Singapore, the United States, Japan, United Kingdom and Canada using Boeing 787s, Airbus A330s, and 737s and A320s for services to Fiji.
Flights between Australia and New Zealand will be on sale for travel from mid-December 2021 on the assumption some or all parts of the two-way bubble will restart.
Qantas’ ability to fly non-stop between Australia and London is expected to be in even higher demand post-COVID. The airline is investigating using Darwin as a transit point, which has been Qantas’ main entry for repatriation flights, as an alternative (or in addition) to its existing Perth hub given conservative border policies in Western Australia. Discussions on this option are continuing.
Five A380s will return to service ahead of schedule. These would fly between Sydney and LA from July 2022, and between Sydney and London (via Singapore) from November 2022. The A380s work well
on these long-haul routes when there’s sufficient demand, and the high vaccination rates in both markets would underpin this.
Qantas will extend the range of its A330-200 aircraft to operate some trans-Pacific routes such as Brisbane-Los Angeles and Brisbane-San Francisco. This involves some technical changes that are now being finalised with Airbus.
Flights to Hong Kong will restart in February and the rest of the Qantas and Jetstar international network is planned to open up from April 2022, with capacity increasing gradually.
Qantas to take delivery of three 787-9s (new aircraft that have been in storage with Boeing) during FY23 to operate additional flights to key markets as demand increases.
Jetstar to take delivery of its first three Airbus A321neo LR aircraft from early FY23, the extended range of which will free up some of its 787s to be redeployed on other markets.

In total, 10 of Qantas’ A380s with upgraded interiors are expected to return to service by early 2024, with timing dependent on how quickly the market recovers. Two A380s will be retired.

Readiness for international travel to restart is supported by ongoing repatriation and charter flights using A330s and 787s, as well as specific funding from the Australian Government for crew training and engineering work to return idle aircraft to service.

Outlining the restart assumptions as part of the national carrier’s full year results, Qantas Group CEO Alan Joyce said: “The prospect of flying overseas might feel a long way off, especially with New South Wales and Victoria in lockdown, but the current pace of the vaccine rollout means we should have a lot more freedom in a few months’ time.

“It’s obviously up to government exactly how and when our international borders re-open, but with Australia on track to meet the 80 per cent trigger agreed by National Cabinet by the end of the year, we need to plan ahead for what is a complex restart process.

“There’s a lot of work that needs to happen, including training for our people and carefully bringing aircraft back into service. We’re also working to integrate the IATA travel pass into our systems to help our customers prove their vaccine status and cross borders.

“We can adjust our plans if the circumstances change, which we’ve already had to do several times during this pandemic. Some people might say we’re being too optimistic, but based on the pace of the vaccine rollout, this is within reach and we want to make sure we’re ready,” added Mr Joyce.

Qantas has recently extended its Fly Flexible policy, offering customers who book international flights before 28 February 2022 with unlimited ‘fee free’ date changes when travelling before 31 December 2022. (A fare difference may apply).

Qantas has also extended credit vouchers for bookings made on or before 30 September 2021 to enable travel until 31 December 2023. Jetstar customers issued with a voucher due to COVID-19 disruptions are able to use their voucher to book flights until at least 31 December 2022, for flights up to the end of 2023.

International flights remain subject to Government and Regulatory approval.

NATIONAL CABINET ‘PHASE C’ REOPENING PLAN

Triggered when vaccine rate among eligible Australians reaches 80 per cent
Highly targeted lockdowns only
No caps on returning vaccinated Australians
Lift all restrictions on outbound travel for vaccinated Australians
Extend travel bubble for unrestricted travel to new candidate countries
Gradual reopening of inward and outward international travel with safe countries and proportionate quarantine and reduced requirements for fully vaccinated inbound travelers

Top Copyright Photo: QANTAS Airways Airbus A380-842 VH-OQE (msn 027) LAX (Michael B. Ing). Image: 954807.

QANTAS Airways aircraft slide show:

QANTAS Group posts significant loss from full year of COVID

QANTAS Group has issued this financial report:

Underlying Loss Before Tax: $1.83 billion
Statutory Loss Before Tax: $2.35 billion
$12 billion revenue impact from COVID-19 crisis in FY21
Net debt reduced in 2H21 to $5.9 billion
Statutory Net Free Cash flow of $267 million in 2H21
Restructuring program ahead of target, delivering $650 million in year one
Total liquidity of $3.8 billion, providing buffer against uncertainty
95 per cent of domestic flying cash positive
Record performance by Qantas Freight mostly offsetting cost of idling international operations
Continued strong cash generation, growth in members at Qantas Loyalty
Updated plan for restart of international services from end-2021
Ongoing flexibility for customers in response to booking uncertainty

The Qantas Group has posted a substantial full year loss as a result of the COVID crisis – but has started FY22 in a fundamentally better position to deal with uncertainty and manage its recovery compared with 12 months ago.

Total revenue loss from COVID reached $16 billion as the full year impact of minimal international travel and multiple waves of domestic border restrictions continued to hit travel demand.

The Group’s Underlying PBT loss was $1.83 billion. The statutory loss before tax – which includes one-off costs such as redundancies and aircraft write downs – was $2.35 billion. Underlying EBITDA was $410 million, in line with guidance provided in May.

Periods of open domestic borders in the second half saw significant cash generation by Qantas and Jetstar, which helped the Group to reduce net debt from $6.4 billion in February 2021 down to $5.9 billion by the end of June. Throughout the year, cash flow was underpinned by continued strong performance by Qantas Loyalty and significantly higher international yields for Qantas Freight.

As well as delivering an essential service under very challenging circumstances, the Group made significant progress towards its recovery program. Planned rightsizing is largely complete and much restructuring has been implemented. Central to these changes has been the ability to better manage costs in the face of sudden border closures. Cost benefits from the recovery program were ahead of expectations for FY21 at $650 million.

GROUP DOMESTIC

Qantas and Jetstar’s combined Underlying EBITDA from domestic flying was $304 million, falling to an Underlying EBIT loss of $669 million after non-cash depreciation and amortization.

The Group’s domestic capacity fell as low as 19 per cent in July 2020 before steadily recovering and then peaking at 92 per cent in May 2021, until outbreaks of the Delta variant triggered a series of lockdowns.

Demand proved resilient throughout the year, with quick uptake in bookings when domestic borders re-opened. The Group has announced 46 new domestic routes since the start of the pandemic, many to regional destinations, in response to a boom in leisure travel driven largely by the closure of international borders. Corporate travel demand had recovered to around 75 per cent of pre-COVID levels in May[1] and Qantas won an additional 34 major accounts across the year. Demand from business, along with leisure travel, is expected to bounce back strongly once lockdowns end.

To better meet this demand, Jetstar is bringing in idle Airbus A320 aircraft from Asia and QantasLink accessed capacity via Alliance Airlines’ Embraer E190 aircraft. Going forward, this will help the Group exceed its pre-COVID capacity and market share as restrictions are removed.

GROUP INTERNATIONAL AND FREIGHT

Group International (including Freight) posted an Underlying EBITDA loss of $157 million, increasing to an Underlying EBIT loss of $1.0 billion after depreciation and amortization.

Qantas and Jetstar’s international flying remained largely grounded for most of FY21 due to the continued closure of Australia’s borders. A travel bubble between Australia and New Zealand saw some flying return but ongoing outbreaks meant this corridor was heavily restricted at various stages; Qantas’ capacity reached an average of 40 per cent of pre-COVID levels during quarter four.

Since the start of the pandemic the Group has operated almost 400 flights repatriating Australians and maintaining critical links to the Pacific and Timor-Leste on behalf of the Australian Government, as well as freight missions to key export markets, with its Airbus A330 and Boeing 787 aircraft. These flights are continuing into FY22 and, together with specific government funding for crew training and engineering support, assist with readiness for regular international travel.

Jetstar airlines in Asia, which are based in Singapore and Japan, continued to suffer from minimal travel demand and incurred losses.

Demand for air cargo capacity remained extremely strong through FY21 due to a surge in online shopping in the Australian market and the belly space lost due to the cancellation of most international passenger flights. Qantas Freight was able to capitalize on this demand, delivering a record profit that significantly offset the costs of the Group’s grounded international operations.

QANTAS LOYALTY

Qantas Loyalty continued to perform well, generating over $1 billion in gross cash and achieving record member satisfaction.

Underlying EBIT was $272 million despite a full year of COVID-related travel restrictions. Earnings in the second half were higher than the first half of FY21 and higher than the second half of FY20.

While opportunities to redeem Qantas Points in the air were limited, there was extremely strong demand when borders did open. Between January and lockdowns in June, redemption levels on domestic flights were 30 per cent above pre-COVID levels.

Members remained highly engaged, earning and redeeming large volumes of points on the ground. Spending on credit cards linked to Qantas Points returned to pre-COVID levels in the fourth quarter and over 500,000 members have now earned points through the partnership with bp Australia. There were record levels of points redeemed via Qantas Wine and the Qantas Store, in line with broader consumer trends.

In a year with minimal air travel, the total number of Frequent Flyer members grew by almost 200,000 to reach 13.6 million. The Qantas Insurance portfolio also continued to grow.

SUPPORTING OUR CUSTOMERS

A number of initiatives have been introduced to make travel easier and safer for customers in the midst of the COVID crisis, including:

Extending Frequent Flyers status and offering status match to high-tier members of other airline programs.
Offering unlimited date changes on all Qantas domestic and international fares through to at least February 2022.
Increasing the number of reward seats available on domestic, Trans-Tasman and international flights by up to 50 per cent, providing members with more opportunities to use their points to travel when borders are open.
Practical support of the national COVID-19 vaccine rollout to help create a safer travel experience, including plans to make vaccination a requirement for all Qantas Group employees and offering rewards to Frequent Flyers who are fully vaccinated. The COVID-safe Fly Well and Work Well programs remain in place.

FINANCIAL FRAMEWORK

The Qantas Group remains one of only seven airlines in the world to retain an investment grade credit rating[2] throughout the pandemic. Its focus remains on cost control and cash generation to enable continued debt reduction back to its target range.

As at 30 June 2021, the Group had total liquidity of $3.8 billion – made up of $2.2 billion in cash plus committed undrawn facilities of $1.6 billion. Major cash outflows associated with redundancies, refunds and delayed supplier payments are largely complete. The Group has more than $2.5 billion in unencumbered assets.

Net capital expenditure was $693 million, mostly for maintenance on the Group’s fleet.

An Expression of Interest process was launched in July 2021 to sell up to 14 hectares of under-developed industrial land in Mascot, which, if sold, could unlock several hundred million dollars to further assist with
debt reduction.

RECOVERY PROGRAM

The Group’s COVID recovery plan targets at least $1 billion in permanent annual savings from FY23 onwards.Progress is ahead of schedule, with $650 million in benefits delivered in FY21; this is targeted to increase to $850 million by the end of FY22.

A total of 9,400 people have now left the Qantas Group – an increase on the prior estimate of 8,500 largely due to offshore job losses at airports and sales offices, some automation and an increase in voluntary redundancies.

Approximately 6,000 employees associated with international flying remain stood down due to the closure of Australia’s external border, while an additional 2,500 employees are stood down as a result of domestic restrictions. Federal Government income support is available to Australian-based employees during this acutely challenging time.

CEO COMMENTS

Qantas Group CEO Alan Joyce said: “This loss shows the impact that a full year of closed international borders and more than 330 days of domestic travel restrictions had on the national carrier. The trading conditions have frankly been diabolical.

“It comes on top of the significant loss we reported last year and the travel restrictions we’ve seen in the past few months. By the end of this calendar year, it’s likely COVID will cost us more than $20 billion in revenue.

“We’ve had to make a lot of big and difficult structural changes to deal with this crisis, and that phase is mostly behind us. As a result we’re geared to recover quickly, in-line with a national vaccine rollout that is speeding up.

“Things remain tough, especially for thousands of our people waiting to return to their jobs when borders open and hopefully stay open. Our focus is getting them back to work as soon as possible, which is why we were ramping up our flying and adding new destinations before the most recent lockdowns.

“Despite the uncertainty that’s still in front of us, we’re in a far better position to manage it than this time last year. We’re able to move quickly when borders open and close. We’re a leaner and more efficient organisation. And our requirement for all employees to be vaccinated will create a safer environment for our people and customers.

“When Australia reaches those critical vaccination targets later this year and the likelihood of future lockdowns and border closures reduces, we expect to see a surge in domestic travel demand and a gradual return of international travel.

“I’d like to specifically recognise everyone across this company, for dealing with a huge amount of upheaval due to this crisis and showing enormous commitment and professionalism in the process. Our people maintained an absolute focus on safety and on serving our customers, who have likewise been extremely understanding as we’ve all gone through this difficult period.”

FOCUS ON SUSTAINABILITY

The Qantas Group has previously announced clear and substantial sustainability goals, including capping its total emissions at 2019 levels, investing in a local Sustainable Aviation Fuel industry and reaching zero net emissions by 2050. The pandemic has slowed progress but the Group remains committed to reaching these targets, and has today announced a new Group Management Committee (GMC) position to drive this.

Current Group Executive, Andrew Parker, will become the Chief Sustainability Officer for the Qantas Group, having led these efforts since 2017 through his existing portfolio of Government, Industry, International and Sustainability.

As part of this change, the Group’s Chief Corporate Affairs Officer, Andrew McGinnes, will take on responsibility for Government Relations in addition to his existing responsibilities and become a permanent member of GMC as Group Executive, Corporate Affairs.

OUTLOOK

Recent outbreaks and associated domestic and trans-Tasman border closures are expected to have an impact in the order of $1.4 billion on the Group’s Underlying EBITDA in the first half of FY22. This estimate assumes borders in Victoria and New South Wales re-open in early December 2021. If borders open earlier and flying returns more quickly, capacity can be adjusted accordingly.

Unfortunately, the extended border closures will also extend the stand downs of domestic crew and airport staff beyond the eight weeks previously announced – however, no job losses are expected.

Vaccination rates are expected to reach 70 per cent of the eligible population during November, enabling domestic lockdowns and border restrictions to be steadily eased.

The Group’s liquidity, strong position in the domestic market and progress on restructuring gives confidence that the overall recovery plan remains on track despite these significant setbacks.

Key assumptions for FY22 are[3]:

Net debt expected to be in target range by end of FY22.
Group Domestic capacity expected to increase from 38 per cent in Q1 to 53 per cent of pre-COVID capacity in Q2 and rise to ~110 per cent in 2H22.
International border closures and quarantine restrictions expected to ease once 80 per cent of eligible Australians are vaccinated from December 2021.
Qantas International flying in 1H22 expected to be at approximately 15 per cent of pre-COVID levels (through government-sponsored freight services and repatriation flights) on a block hour basis.
Once Australia’s borders start to reopen, Group International capacity is expected be 30 to 40 per cent in Q3 and 50 to 70 per cent in Q4 compared with pre-COVID levels on an ASK basis.
Recovery plan expected to deliver additional $200 million of cost benefits in FY22.
Continued strong cash contribution from Qantas Loyalty, with plans to offer more ways to earn points and status credits on the ground.
Domestic freight demand expected to remain strong; international freight belly space expected to be constrained until international capacity stabilises.

[1] Based on May weekly intakes.

[2] Investment grade credit rating issued by either Moody’s or S&P.

[3] Please see Investor Presentation for more detail on assumptions.

Missing our A380’s? We hear you. Our engineers are taking great care of them during their down time in the Mojave desert while we wait for international travel demand to return to pre-COVID levels. VH-OQC recently flew from Victorville to LA to undergo a gear swing procedure. pic.twitter.com/PPuhraC8z4

— Qantas (@Qantas) June 3, 2021

ANA announces revised flight schedule for the second half of FY2021

ANA – All Nippon Airways made this announcement:

ANA will be increasing frequency on select domestic routes to and from Tokyo Haneda and will be strengthening its cooperation with Peach to optimize the ANA Group’s network, maximizing profit by responding to the expected recovery in demand as vaccination rollout expands.
• For international routes, ANA will continue to closely monitor border measures in each country as well as increased use of vaccine passports, and will respond to shifts in demand.
• Given strong demand for cargo operations, ANA will focus on increasing revenue by expanding the number of destinations to operate freighters and by utilizing passenger aircrafts for cargo operations.

All Nippon Airways (ANA), Japan’s largest and 5-Star airline for eight consecutive years, has announced its revised flight schedule for fiscal year 2021 (FY2021).

In the current fiscal year, ANA has responded to the decline in demand for both domestic and international routes caused by COVID-19 by reducing the number of flights and adjusting operations to optimize business. However, to meet the strong demand for cargo transportation, ANA has responded by demonstrating flexibly in its business plans, actively operating freighters, and passenger aircrafts for cargo operations.

As demand in overseas markets continues to recover alongside vaccine availability and increasing vaccination rates, ANA expects for demand within the Japanese market to follow. ANA will continue to closely monitor demand and is committed to increasing flexibility so that it can respond appropriately to future trends.

The key points for the second half of FY2021 are as follows:

Domestic Routes

• ANA will increase flight frequency on the Haneda-Sapporo and Haneda-Fukuoka routes and operate select routes as seasonal and/or limited flight operations. As demand recovers, ANA will operate flights with larger aircraft while also utilizing international aircraft to operate additional flights in response to rising demand. However, in areas where demand is in decline, ANA will reduce the number of flights and downsize the aircraft used while it adapts to trends in demand.
• With regard to the Hokkaido and Okinawa routes primarily departing from Chubu airport and Fukuoka airport, ANA Group will optimize the capabilities of its group network by scheduling additional flights to be operated by Peach Aviation, an airline known for its appeal among leisure travelers.
• Because the impact of COVID-19 continues to affect our business, ANA will continue to monitor demand trends and provide updated flight schedules on a monthly basis.

Routes to be increased for specific date ranges

Routes to be temporarily suspended or reduced for specific date ranges

1: The number of flights for the current service are according to the fiscal year 2021 flight schedule. The actual number of flights may differ based on flight reductions due to COVID-19.
2: In addition to the ANA flights listed above, Peach Aviation flights are also scheduled to begin or increased on this route.
3: For January 25, 29 and 31 the frequency will be 3 round trips/day, and 2 round trips/day on other dates.
4: For November 2, 7-8, 10-15, 17, 25, 28-29; December 1-3, 7-17, 19, 21-22, 24-31; January 1-4, 11, 13, 16-19, 21-22, 25-29; February 1-3, 6-8, 10-11, 16-21, 24; March 4-5, 7-8, 11, 14 the frequency will be 3 round trips/day, and for other dates the frequency will be 2 round trips/day.
5: For November 3-5, 8-10, 12-13, 16, 19, the frequency will be 1 roundtrip/day, and 0.5 round trip/day for December 7, 9.
6: For December 1, the frequency will be 1.5 roundtrip/day, and 1 round trip/day on other dates.
7: For November 5, 9, 13-14, 19-20, 24-25, 30; December 1-6, 8-9, 12-13, 17, the frequency will be 1 round trip/day. For October 31, November 1, 4, 6, 8, 10, 12, 15-16, 18, 21, 23, 26-29, December 7, 10-11, 14, 16, 18, January 31, February 1, 4-5, 15-16, 18-19, 21-22, 25-26 the frequency will be 0.5 round trip/day.

International Routes

• In order to provide customers with more information and to allow for earlier travel preparations, the suspension or reduction of select routes have been determined as follows.
• By making changes such as the transfer of the Tokyo Haneda-Washington D.C. and Tokyo Haneda-Houston routes to Tokyo Narita airport, ANA aims to accommodate demand for connections between Asia-North America while simultaneously maximizing the revenue per flight from both passenger and cargo operations. ANA will continue to flexibly respond to demand by reassessing our flight schedule on a monthly basis.

Period for change: October 31, 2021 to March 26, 2022

Freighter Routes

• Boeing 767 freighters will continue to operate the Beijing route, which has been in operation since July 2021. In addition, Boeing 777 freighters will be introduced on the Hong Kong, Taipei and Qingdao routes as non-scheduled flights. By expanding the number of destinations served with large freighters, ANA aims to capture demand for large-scale cargo deliveries. ANA will also add both non-scheduled and charter freighter flights in addition to utilizing passenger aircrafts for cargo operations. ANA remains committed to flexibly adapting its operations to meet market trends.

Period for change: October 31, 2021 to March 26, 2022

1: The number of flights for the current service are according to the fiscal year 2021 flight schedule, therefore the actual number of flights may differ.
*In addition to the above flights, non-scheduled and/or charter flights are expected to be added (including Boeing777F freighters to Hong Kong, Taipei, Qingdao) according to monthly plans.

Air Canada introduces mandatory COVID-19 vaccination policy for all employees and new hires

Air Canada today said it has introduced a new health and safety policy to further protect employees and customers that makes it mandatory for all employees of the airline to be fully vaccinated against COVID-19 and to report their vaccination status as of October 30, 2021. In addition, the airline is making full vaccination a condition of employment for any individual hired by the company.

Since the beginning of the pandemic Air Canada has been a leader in the adoption of science-based measures in response to COVID-19. This has included the airline being among the first to require pre-boarding temperature screening of customers, obligatory onboard mask-wearing policies and the use of testing. The decision to require all employees of Air Canada mainline, Air Canada Rouge and Air Canada Vacations to be fully vaccinated and report their vaccination status is another initiative to ensure the safety and well-being of all employees and customers.

Under the mandatory vaccination policy, testing will not be offered as an alternative. While Air Canada will fulfill its duties to accommodate employees who for valid reasons, such as medical conditions, cannot be vaccinated, failure to be fully vaccinated by October 30, 2021 will have consequences up to and including unpaid leave or termination, except for those who qualify for accommodation. Air Canada’s policy is also in accord with a recent announcement by the Government of Canada requiring employees in the federally regulated air, rail, and marine transportation sectors to be vaccinated by the end of October 2021.

Air Canada remains committed to the continued development and application of new safety measures and processes as they become available that are effective and convenient for customers. Such measures are vital to the safe restart of the air transport industry which, apart from enabling Canadians to travel freely, is also an essential driver of economic activity in Canada.

Bastian: Unvaccinated employees will be required to wear masks in all indoor Delta settings, take weekly COVID tests, and have a $200 monthly surcharge for healthcare coverage

Ed Bastian to Delta Colleagues Worldwide

COVID-19 update

Since the earliest days of the pandemic, our No. 1 priority has always been to protect our people and customers. Over the past 18 months, we have invested heavily in cleanliness, personal protective equipment, testing, and – most importantly – vaccines.

Today I’m pleased to announce that we’ve reached the milestone of 75% of our people vaccinated, which puts us one step closer to getting back to what we do best – connecting the world and running the best airline on the planet. I want to personally thank all of you who have taken the time to receive a vaccination – your actions are making a real difference.

In addition to vaccinating our people, we’ve been proud to partner with the state of Georgia to operate the state’s largest mass vaccination site at the Delta Flight Museum, where nearly 35% of the state’s mass vaccination doses were administered to residents. In total, more than 150,000 doses were administered to our employees, their family members and friends at Delta clinics around the country.

While we are grateful for the progress we’ve made, the most recent virus variants make it clear that more work remains ahead. The COVID-19 pandemic is a global health crisis, and one of the most dangerous challenges our world has faced in this lifetime. Over the past few weeks, the fight has changed with the rise of the B.1.617.2 variant – a very aggressive form of the virus. Our Chief Health Officer, Dr. Henry Ting, describes the variant as a “heat-seeking missile” that transmits predominantly through the unvaccinated community.

According to Dr. Ting, while breakthrough cases among the vaccinated do occur, the vast majority of those are mild and often present no symptoms at all. However, the variant has resulted in a significant rise in hospitalizations and deaths, almost entirely impacting those who have not yet been vaccinated. While we can be proud of our 75% vaccination rate, the aggressiveness of the variant means we need to get many more of our people vaccinated, and as close to 100% as possible.

We’ve always known that vaccinations are the most effective tool to keep our people safe and healthy in the face of this global health crisis. That’s why we’re taking additional, robust actions to increase our vaccination rate:

Effective immediately, unvaccinated employees are required to wear masks in all indoor Delta settings. This requirement will remain in place until community case rates stabilize.
Starting Sept. 12, any U.S. employee who is not fully vaccinated will be required to take a COVID test each week while community case rates are high. Those with a positive result will need to isolate and remain out of the workplace.
Beginning Nov. 1, unvaccinated employees enrolled in Delta’s account-based healthcare plan will be subject to a $200 monthly surcharge. The average hospital stay for COVID-19 has cost Delta $50,000 per person. This surcharge will be necessary to address the financial risk the decision to not vaccinate is creating for our company. In recent weeks since the rise of the B.1.617.2 variant, all Delta employees who have been hospitalized with COVID were not fully vaccinated.
Effective Sept. 30, in compliance with state and local laws, COVID pay protection will only be provided to fully vaccinated individuals who are experiencing a breakthrough infection.

More details will be coming soon from your divisional leaders.

I know some of you may be taking a wait-and-see approach or waiting for full FDA approval. With this week’s announcement that the FDA has granted full approval for the Pfizer vaccine, the time for you to get vaccinated is now. We can be confident that the Pfizer vaccine is safe and effective, and has undergone the same rigorous review for other approved medications to treat cancer and heart disease, as well as other vaccines.

If you aren’t fully vaccinated, I strongly urge you to discuss the issue with your personal physician or health provider. In addition, testing and vaccination information is available on Deltanet, and Dr. Ting provides regular, informative updates on the state of the virus and the tools available to keep yourself and your loved ones safe and healthy.

Protecting yourself, your colleagues, your loved ones and your community is fundamental to the shared values that have driven our success for nearly a century. Vaccinations are the safest, most effective, and most powerful tool we have to achieve our goals, live up to our values and move forward.

Boeing adds ANA and Qatar titles to its 777-9 N779XW, now gone

August 22, 2021 was the ending date of the Boeing Classic golf tournament in Seattle to which a Boeing airplane normally flies over the course to mark the end of the tournament.