OWG made this announcement:
A year after its arrival in theย Quebecย aviation market, OWG, the newest division of Nolinor Aviation, is getting ready to bounce back from the pandemic by adding its first Boeing 737-800 to its fleet. On the eve of a return to “normalcy“, this acquisition will provide a positive flying experience to more travelers allowing them to fly longer distances and support the creation of more than 20 specialized jobs.
For OWG, adding this type of aircraft represents an opportunity to offer destinations further away than what is currently possible. It also demonstrates the company’s commitment to continued growth. The new destinations offered by OWG will be announced in the coming weeks. As for the Boeing 737-800 that was acquired, it was purchase from a special purpose corporation wholly-owned byย Frank DeMarinisย and is expected to be in service in 2022, once its cabin has been modified to OWG’s image and standards.
About the Boeing 737-800ย :
About OWG
OWG is the newest division of Nolinor Aviation. The airline was launched in 2020 and offers scheduled flights to selectedย Caribbeanย destinations with a fleet of three 156-passenger Boeing 737-400s and one 189-passenger Boeing 737-800.
Scandinavian Airlines-SAS made this announcement:
Demand for travel continues to increase and SAS will start two new routes to the Canary Islands, direct flights to Tenerife from Stockholm and to Gran Canaria from Gothenburg. The new routes start on October 30, 2021.
SAS offers a comprehensive program to the Canary Islands during the winter of 21/22 with 6 routes and 17 departures per week which during the Christmas and New Year weekends increases to 30 departures per week.
Although many countries are now easing their entry restrictions, most countries still require various types of travel and test certificates, why it is important to be prepared well before arriving at the airport. To make it easier for travelers, SAS has developed a new digital platform, SAS Travel Ready Center.
SASโ Canary Islands routes and departures 30 OCT 21 -17 DEC 21 + 11 JAN 22 โ 26 MAR 22ย
| Stockholm | Las Palmas | 4 weekly |
| Stockholm | Tenerife | 1 weekly |
| Gothenburg | Las Palmas | 1 weekly |
| Copenhagen | Las Palmas | 3 weekly |
| Copenhagen | Tenerife | 2 weekly |
| Oslo | Las Palmas | 6 weekly |
SASโ Canary Islands routes and departures 18 DEC 21- 10 JAN 22
| Stockholm | Las Palmas | 7 weekly |
| Stockholm | Tenerife | 2 weekly |
| Gothenburg | Las Palmas | 2 weekly |
| Copenhagen | Las Palmas | 7 weekly |
| Copenhagen | Tenerife | 3 weekly |
| Oslo | Las Palmas | 7 weekly |
SmartLynx Airlines will operate five Airbus A321s for Royal Air Maroc:
A recently signed agreement between SmartLynx โ a member of the Avia Solutions Group (ASG), the largest aviation and aerospace group of companies in Central and Eastern Europe โ and Royal Air Maroc aptly illustrates SmartLynxโs commitment to the viability of long-term commercial partnerships.
The agreement comes after a rigorous Royal Air Maroc selection process and was based on SmartLynx EASA and IOSA agreements โ SmartLynx is an IOSA certified airline and an EASA charter agreement signee โ along with strong qualities and vast experience.
The expansion of the SmartLynx client portfolio through the addition of the long-established Royal Air Maroc underlines the companyโs vision of acquiring and maintaining valued partnerships which will add significant credence to its long-term growth plans.
As part of a long-term ACMI agreement (aircraft, crew, maintenance, and insurance) 5 SmartLynx A321 aircraft will come into service for the Moroccan national carrier and the countryโs largest airline. The esteemed 64-year old airline currently operates a fleet of 59 aircraft on routes to more than 80 countries globally.
In a period between July 1, 2021 and September 15, 2021 SmartLynx units will be based at 5 major hubs of Moroccan aviation; Tangierโs Ibn Battuta Airport, Fes Sais International Airport, Nador Airport, Casablanca Airport, and Oujda-Angads Airport.
South African Airways has made this announcement:
SAA has taken another significant step closer to resuming operations after being granted a renewed operating license by the regulator, the South African Civil Aviation Authority, under the stewardship of Captain Sakhile Reiling, SAAโs Interim Executive: Operations.
SAAโs Interim CEO Thomas Kgokolo says, โThis is an important development as SAA readies itself to take to the skies again in just a few weeks. At our Airways Park headquarters, in hangars and at terminals around the country our staff are hard at work in finishing the final preparatory phases before we make an official announcement about the exact take-off date.
โWhile I acknowledge there is frustration over a delay in confirming this date, all of us at SAA need to make sure vital components in a very complicated and multi-faceted process are working seamlessly before we start. Iโm confident that we will be able to make that announcement soon.โ
As SAA accelerates its readiness, Kgokolo has also confirmed that all management and specialist pilots have now been appointed and that the pilots who will form the nucleus of the fleetโs cockpit have been identified and the processes to bring them on board will conclude in the next two weeks.
Note: SAA will return to the skies with a much smaller and limited fleet. It is unclear what aircraft will be operated at this time.
Lufthansa Group issued this financial statement for the second quarter:
In the second quarter, the Lufthansa Group benefited from a significant market recovery with increasing passenger and booking numbers. Relaxation of travel restrictions in international air traffic and a great pent-up demand among passengers drove both demand and activity. In June alone, the number of bookings was more than twice as high as at the beginning of the quarter. As planned, the capacity offered at the end of June was 40 percent of the pre-crisis level.
“All Lufthansa employees worldwide have made great efforts to significantly lower costs in all areas. As a result, we have been able to stop the outflow of funds in the current phase of reviving our business and generate a positive cash flow for the first time since the beginning of the pandemic. The fact that more than 30,000 colleagues have left us in the process so far hurts us all, but is unavoidable to sustainably save the more than 100,000 remaining jobs. This unique crisis is also a unique opportunity for us to accelerate the transformation of Lufthansa in order to consolidate our global leadership role.”
Thanks to the positive development of the airlines, record results at Lufthansa Cargo and the continued recovery of Lufthansa Technik and the LSG Group, operating losses in the second quarter of 2021 declined significantly by 43 percent to -952 million euros compared to the first quarter of 2021.
Adjusted free cash flow in the second quarter was positive at 340 million euros, mainly due to strong bookings. Operating cash flow was positive at 784 million euros due to positive working capital effects related to strong bookings in the second quarter. Excluding these effects, the cash drain averaged 200 million euros per month.
The Group is making faster progress than previously planned towards its goal of reducing more than 3.5 billion euros in costs by 2024. Measures have already been implemented for more than half of the cost reductions. Originally, this level should only be achieved by the end of 2021. The voluntary programs offered in Germany and the planned job cuts at SWISS contribute to the sustainable cost reduction. The Group expects around 1,500 ground staff and just under 400 cockpit employees in Germany alone to take advantage of the current offers to leave the company. In Switzerland, 2,000 full-time jobs will be cut by the end of the year, including some 500 forced dismissals.
At the end of the first half year, the number of employees was 108,000. This means that around 30,000 employees have left the Group since the start of the crisis. Including the above-mentioned programs, over 1.1 billion euros of the targeted personnel savings of 1.8 billion euros have therefore already been realized or contractually agreed.
Group sales in the second quarter amounted to 3.2 billion euros, 70 percent higher than in the second quarter of the prior year (prior year: 1.9 billion euros). The operating loss based on Adjusted EBIT decreased to -952 million euros (prior year: -1.7 billion euros). Net income in the second quarter was -756 million euros (prior year: -1.5 billion euros).
Group sales in the first half of the financial year amounted to 5.8 billion euros (previous year: 8.3 billion euros). At -2.1 billion euros, the operating loss on the basis of Adjusted EBIT was lower in the first half of the year than in the previous year (previous year: -2.9 billion euros). Net income for the first half of the year was -1.8 billion euros (previous year: – 3.6 billion euros).
Traffic development in the second quarter
The capacity offered, measured in passenger kilometers, was 29 percent of the pre-crisis level of 2019 in the second quarter of 2021. In total, the airlines of the Lufthansa Group carried 7 million passengers in the past three months. This corresponded to 18 percent of the pre-crisis level compared to the second quarter of 2019. The seat load factor was 51 percent, 32 percentage points lower than in the second quarter of 2019. The development improved steadily over the course of the quarter. In June, offered capacity was already at 34 percent compared toย the same month in 2019, and around 40 percent at the end of the month. The load factor was 58% in June, positively influenced by the pick-up in demand on short- and medium-haul routes in Europe. The number of destinations served is currently at 84% of the pre-crisis level. By September, nearly all destinations will be offered again.
The Group’s airlines reduced their losses thanks to recovering demand and successful restructuring efforts. Adjusted EBIT at the Network Airlines was -1.2 billion euros (prior year: -1.5 billion euros) in the second quarter. In the first half of the year, the Network Airlines recorded an Adjusted EBIT of -2.5 billion euros (prior year: -2.4 billion euros). Eurowings reduced its operating loss on an Adjusted EBIT basis to -108 million euros in the second quarter (prior year: -183 million euros) and to -252 million euros in the first half year (prior year: -358 million euros).
In the freight business, Lufthansa Cargo continues to benefit from the scarce cargo capacity in the bellies of passenger aircraft and the continued high demand for air freight. Adjusted EBIT in the logistics segment rose to 326 million euros in the second quarter (previous year: 299 million euros). For the first half of the year, Lufthansa Cargo recorded an Adjusted EBIT of 640 million euros (previous year: 277 million euros), the highest ever result in this period in the history of Lufthansa Cargo. Continued structural capacity constraints in the global freight business are expected to support the revenue and earnings development of Lufthansa Cargo in the coming years as well.
Lufthansa Technik continued its earnings recovery and improved its Adjusted EBIT in Q2 to positive 86 million euros (previous year: -126 million euros). For the first half of the year, Lufthansa Technik reported an Adjusted EBIT of 102 million euros (previous year: – 122 million euros) and benefits mainly from the increasing demand of non-European airlines, whose home markets are recovering faster than the European market.
At the end of the second quarter, the Lufthansa Group had available liquidity of 11.1 billion euros. This includes unused funds from the government’s stabilization measures and loans of around 3.9 billion euros. The proceeds of a bond issue in July amounting to 1 billion euros have not yet been taken into account.
At 8.9 billion euros, net debt was 1.0 billion euros lower than at the end of 2020 (December 31, 2020: 9.9 billion euros). This is mainly due to the drawing of part of the Silent Participation I of the Economic Stabilization Fund, which is accounted for as equity. Excluding the drawing, net debt at 10.4 billion euros was around 500ย million euros higher at the end of 2020. In addition, supported by positive valuation effects on pension liabilities of 1.9 billion euros, the equity ratio increased by 4.2 percentage points to 7.7 percent compared to the end of 2020 (December 31, 2020: 3.5 percent).
“In our financial management, our focus remains on strengthening our balance sheet. The second quarter was another step in the right direction. However, there is no way around making the Lufthansa Group profitable again as quickly as possible and implementing further cost reductions.”
In addition to the restructuring measures, the repayment of state aid and asset divestitures are important components of the strategy for strengthening the balance sheet of the Lufthansa Group. As the recently issued bonds have once again demonstrated the good access the Group has to various forms of financing on the capital markets, preparations for a capital increase are continuing.
The development of the Lufthansa Group for the full year 2021 remains dependent on the pandemic situation, which has a significant direct impact on business development. Here, travel restrictions in particular have a decisive influence on customer demand.
The desire for travel is unbroken among people. Lufthansa therefore expects a positive development in demand for European tourism and an increasing recovery in business travel in the second half of the year. The Groupโs airlines have further expanded their range of long-haul flights to include tourist destinations. The company expects an increasing opening of the markets in the second half of the year. Air travel to North America should be possible again from late summer and gradually towards Asia towards the end of the year.
Based on this expectation, the Lufthansa Group continues to assume that the Group airlines’ capacity, measured in seat kilometers offered, will be around 40 percent of the pre-crisis level in 2019 in 2021. A further increase in capacity to around 50% of the pre-crisis level and an increase in passenger numbers is expected for the third quarter. The Group thus expects to be able to stop the operating cash outflow in the third quarter and to generate positive EBITDA.
In 2021 as a whole, the Lufthansa Group continues to expect an increase in Group sales and a reduction in operating loss as measured by Adjusted EBIT.
| Lufthansa Group | January โย June | April โย June | |||||
| 2021 | 2020 | ฮ | 2021 | 2020 | ฮ | ||
| Total revenue | EUR million | 5,771 | 8,335 | -31% | 3,211 | 1,894 | +70% |
| of which traffic revenue | EUR million | 3,637 | 5,641 | -36% | 2,095 | 1,102 | +90% |
| EBIT | EUR million | -2,114 | โ3,468 | +39% | -979 | โ1,846 | +47% |
| Adjusted EBIT1 | EUR million | -2,095 | โ2,899 | +28% | -952 | โ1,679 | +43% |
| Net profit/loss | EUR million | -1,805 | โ3,617 | +50% | -756 | โ1,493 | +49% |
| Earnings per share | EUR | -3.02 | โ7.56 | +60% | -1.26 | โ3.12 | +60% |
| Total Assets | EUR million | 40,838 | 39,887 | +2% | |||
| Operating cash flow | 18 | 363 | -95% | 784 | -1,004 | ||
| Gross Investments | EUR million | 612 | 897 | -32% | 459 | 127 | +261% |
| Adjustedย Freeย Cashflowย | EUR million | -607 | -510 | -19% | 340 | -1,130 | |
| Net Debt | EUR million | 8,930 | 7,314 | +22% | |||
| Adjusted EBIT-Margin | in % | -36.3 | -34.8 | -1.5pts. | -29.6 | -88.6 | +59.0pts. |
| Employees as of June 30 | 108,072 | 129,356 | -16% | ||||
1ย Adjusted EBIT is not a measure under IFRS. Information on the calculation of the Adjusted EBIT is available in the Annual Report 2020 of Deutsche Lufthansa AG.
Lufthansa guests traveling in Economy Class on select long-haul flights, effective August 2, 2021, will have the option of booking a Sleeperโs Row at the check-in or at the gate, before their flight. With this new attractive offer, passengers will receive an entire row of seats for themselves, consisting of three to four adjacent seats, for the entire duration of the flight. This offer comes with a comfortable pillow, blanket and mattress topper of Business Class quality, allowing passengers to fully relax while on board before reaching their final destination. The Safety during the flight is ensured by a special seat belt, which remains fastened even when the passenger is lying down, including separate safety instructions. Furthermore, passengers who book a Sleeper’s Row can benefit from pre-boarding, allowing them enter the aircraft earlier than other guests.
Lufthansa offers the Sleeper’s Row on long-haul flights of approximately eleven hours or more, for example on routes to the Far East, the United Statesโ west coast, Central and South America, or southern Africa. The surcharge is between 159 and 229 euros per route. A maximum of three Sleeper’s Rows are offered per flight. Reservations in advance are not possible.
Lufthansa tested the Sleeper’s Row on the route Frankfurt – Sรฃo Paulo – Frankfurt for several weeks at the end of last year. The offer received much positive feedback from passengers and was in high demand. The Sleeper’s Row is a further step towards more product diversity in Economy Class to meet passengers’ wishes for more comfort and individuality. By equipping the new long-haul aircraft, Lufthansa is providing its passengers additional services to make flying even more pleasant.
Brussels Airlines issued this financial report for the first half of 2021:
As a result of the coronavirus pandemic and its ongoing and unprecedented impact on the aviation sector, Brussels Airlines reports a negative EBIT of -143 million euros in the first semester of 2021. The non-essential travel ban in the first quarter and continuous travel restrictions severely impacted the airlineโs passenger numbers. First half-year revenues fell 45% below the prior-year level, to 138 million euros (H1 2020: 252 million euros). Compared to the previous year, Brussels Airlines transported 57% fewer passengers between January and June. The seat load factor dropped by 11.7 percentage points to 60.7%.
As a result, revenue at Brussels Airlines fell year-on-year by 45% to 138 million euros in the first semester of 2021 (H1 2020: 252 million euros). The operating income of 147 million euros was 48% lower than the year before (lH1 2020: 281 million euros). The COVID-19 crisis forced Brussels Airlines โ after a good start into the year โ to suspend its operation almost entirely for the period between mid-March and mid-June 2020. Since then, the production level is significantly lower and not yet back on pre-crisis levels.
In the first half-year of 2021, operating expenses fell by 37% to 290 million euros, primarily due to the volume-related decline in the cost of materials and services (H1 2020: 463 million euros). Brussels Airlines has reduced expenses significantly thanks to its turnaround program, Reboot Plus, of which the restructuring phase is almost completed. However, remaining fixed costs continue to put pressure on the operating expenses.
Accordingly, the airline reports an EBIT of -143 million euros and an adjusted EBIT of -143 million euros for the first six months of this year. Compared to the previous year, the EBIT decreased from -211 million euros (H1 2020) and the adjusted EBIT from -182 million euros (H1 2020). Last yearโs EBIT figure was impacted by a reduction of 29 million euros due to impairment losses on aircraft and rights-of-use for aircraft.
Due to the non-essential travel ban and the strict and continuously changing travel restrictions, the number of operated flights and passenger figures decreased even further. Compared to the first semester of 2020, which included a temporary suspension of all flights from March 21 to June 14, 2020, Brussels Airlines operated 55% fewer flights (6,295 flights compared to 14,114).ย The number of passengers transported dropped from 1,590,448 in the first semester of 2020 to 676,372 for the first half of 2021. As to the seat load factor, the latter went down from 72.4% to 60.7% in the first six months of 2021.
Brussels Airlinesโ turnaround program Reboot Plusย consists of two phases: the restructuring and transformation phases. As the restructuring phase, which aims to reduce the fleet size by 30% and the workforce by 25%, is almost completed, Brussels Airlines is looking forward to investing in a sustainable and structurally profitable future. In that future, the reduction of the airlineโs ecological footprint has a prominent place. On June 29, the Lufthansa Group Executive Board and the Board of Directors of SN Airholding have authorized the allocation of three Airbus A320neo aircraft to Brussels Airlines, which will leave the Airbus factory by summer 2023. These state-of-the-art aircraft, with significantly lower CO2 and noise emissions, will replace three older A319 aircraft. Modernizing the fleet is crucial to reaching the ambitious target of reducing the CO2 footprint by 50% by 2030 (compared to 2019 levels).
Due to the still volatile and highly unpredictable situation worldwide caused by the ongoing COVID-19 crisis, it is not possible to make forecasts for 2021 as a whole.
The summer of “Vax Happiness” for U.S. airlines with renewed bookings is turning into an operations challenge for some airlines, especially for Spirit Airlines and American Airlines.
From NBC News:
Message from Spirit Airlines on social media:
Copyright Photo: Over Manhattan: Ransome Airlines de Havilland Canada DHC-7-102 Dash 7 N176RA (msn 76) New York City (Jay Selman). Image: 402104.
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