Rhoades Aviation dba Transair is grounded

Transair, operated by Rhoades Aviation, which operated the Boeing 737-200 that ditched in the Pacific Ocean near Honolulu on July 2 has been grounded by the FAA.

The FAA has been looking into the maintenance and safety practices of Transair’s parent company, Rhoades Aviation, since the fall of 2020.

The FAA notified the company that it could no longer conduct maintenance inspections, in effect, grounding the remaining Transair Boeing 737-200s.

The order took effect on July 16, 2021.

Air Canada reports an operating loss of $1.133 billion

Air Canada today reported financial results for the second quarter 2021.

Operating revenues of $837 million, an increase of $310 million or 59 per cent from the second quarter of 2020.
Negative EBITDA ⁽¹⁾ (earnings before interest, taxes, depreciation, and amortization), excluding special items, of $656 million compared to negative EBITDA (excluding special items) of $832 million in the same quarter of 2020.
Operating loss of $1.133 billion compared to an operating loss of $1.555 billion in the second quarter of 2020.
Net cash burn ⁽¹⁾ of $745 million, or about $8 million per day, on average.
Unrestricted liquidity of nearly $9.8 billion at June 30, 2021.

“The COVID-19 pandemic continued to weigh on Air Canada and the Canadian airline industry in the second quarter, with its impact on travel reflected in our results. Our employees, as they always have, focused on taking care of our customers while carrying them safely to their destinations, and continued to ensure the prudent management of our company. I thank them for their ongoing care, creativity and hard work in this very challenging and complex environment,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“We are pleased to see vaccination rates increasing and more recent science-based easing of travel restrictions in Canada. The elimination of the quarantine period for fully vaccinated returning Canadians and the removal of other travel restrictions announced in June led to a significant increase in bookings. We expect this trend to further increase following the July 19^th announcement communicating positive changes to come for Canadian travel restrictions. Our employees and other stakeholders should be encouraged by the positive industry trends and the strong improvement in the outlook we see for our airline. However, as we have historically done, we will continue to manage both our cost structure and the balance sheet very conservatively.

“Our cash burn in the second quarter of about $8 million on average per day was better than earlier projections of $13–$15 million. We attribute this to increased bookings and our continuing effective cost controls. We ended the quarter with close to $9.8 billion in unrestricted liquidity. We have seen in countries where reopening is further along than in Canada that the easing of travel restrictions not only facilitates travel but also drives additional demand for air travel and provides a potent stimulus to overall economic activity. Our current booking trend seems to be evidence of this, and recent science-based easing of travel restrictions not only allows customers to travel but further adds to their confidence to make travel plans. Taking all these factors into account, we can optimistically say that we are turning a corner and expect to soon see correlated financial improvements as evidenced by our cash burn guidance of $3–$5 million per day for the third quarter.

“We are excited and ready to welcome back our valued customers in greater numbers and to introduce them to the many improvements we have made to enhance their journey. I remain fully confident that Air Canada will rebuild stronger and rise higher than ever before,” concluded Mr. Rousseau.

Second Quarter Updates

Capacity and Route Network

In the second quarter of 2021, Air Canada increased its ASM capacity by 78 per cent compared to the second quarter of 2020 (a reduction of 86 per cent when compared to the second quarter of 2019).

On June 14, 2021, Air Canada and Air Canada Cargo announced an initial list of planned routes for the Boeing 767-300ER freighters scheduled to enter service later in 2021. Since March 2020, Air Canada has operated more than 10,000 all-cargo flights using its wide-body passenger aircraft including certain temporarily modified Boeing 777 and Airbus A330 aircraft, which have additional available cargo space due to the removal of seats from the passenger cabin.

On June 15, 2021, Air Canada announced its peak summer schedule serving a total of 50 Canadian destinations from coast to coast. The schedule was developed to advance Canada’s economic recovery and to support the country’s tourism and hospitality businesses during the important summer period. It includes three new routes, the re-establishment of select regional routes, and wide-body aircraft featuring Air Canada Signature Class and Premium Economy Class on select transcontinental routes. In the second quarter of 2021, Air Canada also announced its international schedule for Summer 2021 and an expanded service to Hawaii for the Winter 2022 schedule, and, on June 18, 2021, operated its inaugural Montreal–Cairo flight.

On July 19, 2021, Air Canada announced its summer transborder schedule, including 55 routes and 34 destinations in the U.S., with up to 220 daily flights between the U.S. and Canada. The new schedule coincides with the easing of Canadian travel restrictions between the two countries as of August 9, 2021, including the removal of hotel quarantine requirements for all travellers, relaxed testing requirements for Canadians travelling to the US for less than 72 hours, and allowing fully vaccinated citizens and permanent residents of the U.S. to enter Canada for non-essential travel, and other measures.

Financing and Liquidity

In the second quarter of 2021, Air Canada concluded the following financing transactions:

On April 12, 2021, Air Canada entered into a series of debt and equity financing agreements with the Government of Canada (acting through Canada Enterprise Emergency Funding Corporation) which allows Air Canada to access up to $5.879 billion in liquidity through the Large Employer Emergency Financing Facility (LEEFF) program. The financial package provides for fully repayable loans that Air Canada would draw down if and as required. The package also included an equity investment for gross proceeds of $500 million for Air Canada shares at a price of $23.1793 per share, as well as an aggregate of 14,576,564 warrants exercisable for the purchase of an equal number of Air Canada shares, subject to customary adjustments, at a price of $27.2698 per share during a 10-year term; 50 per cent of the warrants vested concurrently with the implementation of the credit facilities and the remaining 50 per cent of the warrants will vest on a proportional basis to the amounts, if any, that Air Canada may draw under the unsecured credit facilities (excluding the refunds credit facility). Additional details on these agreements are provided in the “Overview” section of Air Canada’s Second Quarter 2021 MD&A.
On April 15, 2021, Air Canada repaid US $400 million of the 7.750% Senior (Unsecured) Notes, upon maturity.
On July 19, 2021, Air Canada announced that it had launched the syndication of a new senior secured term loan B expected to mature in 2028 (the “Term Loan”), and completed the syndication in respect of a new senior secured revolving facility expected to mature in 2025 (the “Revolving Facility”, together with the Term Loan, the “Senior Secured Credit Facilities”). Subject to market and other conditions, Air Canada intends to complete refinancing transactions seeking total gross proceeds of approximately US$5.35 billion, and which will include the entering into of the Senior Secured Credit Facilities. The proceeds of the Term Loan are intended to fund (i) the refinancing of the Company’s 4.75% senior secured notes due 2023 and 9.00% second lien notes due 2024, (ii) the refinancing of the Company’s indebtedness under the loan agreement dated as of October 6, 2016 and comprised of a syndicated secured US dollar term loan B facility and a syndicated secured US dollar revolving credit facility and (iii) working capital and other general corporate purposes of Air Canada and its subsidiaries. The proceeds of the Revolving Facility are intended to fund working capital and other general corporate purposes of Air Canada and its subsidiaries. Air Canada will review multiple funding sources when assessing these refinancing transactions. Closing of the Senior Secured Credit Facilities is expected to occur in the latter half of August 2021, subject to obtaining lender commitments, market conditions and customary closing conditions.

Second Quarter Financial Summary

Air Canada recorded a net loss of $1.165 billion or $3.31 per diluted share in the second quarter of 2021 compared to a net loss of $1.752 billion or $6.44 per diluted share in the second quarter of 2020.

In the second quarter of 2021, on a year-over-year capacity increase of 78 per cent, operating expenses of $1.970 billion decreased $112 million or five per cent from the same quarter in 2020.

In the second quarter of 2021, net cash flows used in operating activities of $1.377 billion deteriorated by $126 million from the same quarter in 2020 due to a decrease in cash from working capital, mainly attributable to ticket refunds of $997 million, which was partially offset by an improvement in advance ticket sales. Additionally, an increase in end of lease return costs as compared to the same quarter in 2020 were a contributing factor to the decrease of cash flows used in operating activities.

In the second quarter of 2021, net cash burn of $745 million, or about $8 million per day, on average, was better than management’s expectation of $13–$15 million per day, discussed in Air Canada’s May 7, 2021 news release. EBITDA in the second quarter was better than expected mainly due to continued very strong cost control and rapid adjustments of capacity to market demand. The EBITDA variance accounted for $2 million per day of the favourable variance in net cash burn. Working capital contributed $2 million per day to the favourable variance and was mainly due to stronger advance ticket sales than forecast and to the ongoing strong management of trade receivables and other working capital items. Capital expenditures were also lower than forecast in the quarter, in part, due to the strengthening Canadian dollar.

Outlook

Air Canada plans to increase its third quarter 2021 ASM capacity from the same quarter in 2020 by about 85 per cent. In the third quarter of 2021, when compared to the same period in 2019, ASM capacity is expected to decrease about 65 per cent. The airline continues to dynamically adjust capacity and take other measures as required to account for public health guidelines, travel restrictions globally and passenger demand.

Air Canada projects a net cash burn of $280–$460 million (or $3–$5 million per day, on average) in the third quarter of 2021. This net cash burn projection includes $2 million per day in capital expenditures, net of financing, and $4 million per day in lease and debt service costs. The net cash burn projection for the third quarter of 2021 excludes the remaining amount of expected eligible refunds of non-refundable fares being processed pursuant to the change in refund policy announced on April 12, 2021 for flights impacted by the COVID-19 pandemic, as these refunds are eligible for draws under the Government of Canada $1.404 billion refund credit facility. As such, these refunds are generally cash neutral to Air Canada’s liquidity position, up to the $1.404 billion limit of the facility.

In April 2021, Air Canada started offering eligible customers who purchased non-refundable tickets for travel on or after February 1, 2020 but did not fly, the option to obtain a refund to the original form of payment. On June 10, 2021, the deadline to seek refunds under this COVID-19 Refund Policy was extended to July 12, 2021. Air Canada has paid $997 million as at the end of the second quarter and expects to pay about an additional $200 million in the third quarter, which will be eligible for draws under the Government of Canada $1.404 billion refund credit facility.

Additional details on the COVID-19 Refund Policy are provided in the “Overview” section of Air Canada’s Second Quarter 2021 MD&A and on Air Canada’s website at www.aircanada.com.

⁽¹⁾ Non-GAAP Measures

Below is a description of certain non-GAAP financial measures used by Air Canada to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for, or superior to, GAAP results. Readers are advised to review the section entitled “Non-GAAP Financial Measures” in Air Canada’s Second Quarter 2021 MD&A for a further discussion of such non-GAAP measures and a reconciliation of such measures to Canadian GAAP.

EBITDA (earnings before interest, taxes, depreciation, and amortization) is commonly used in the airline industry and is used by Air Canada as a means to view operating results before interest, taxes, depreciation, and amortization. These costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. Air Canada excludes special items from EBITDA as these items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful. Refer to the “Non-GAAP Financial Measures” section in Air Canada’s Second Quarter 2021 MD&A for a discussion of special items relating to the second quarter of 2021.

Net cash burn is commonly used in the airline industry and is used by Air Canada as a measure of cash used to maintain operations, support capital expenditures, and settle normal debt repayments, all before the net impact of new financing proceeds. Net cash burn is defined as net cash flows from operating, financing for aircraft deliveries, and investing activities. Excluded are proceeds from non-aircraft financings, lump sum debt maturities made where Air Canada has refinanced or replaced the amount, and proceeds from sale and leaseback transactions. Net cash burn also excludes movements between cash and short and long-term investments, and refunds for non-refundable fares being processed for flights impacted by the COVID-19 pandemic. Such refunds are eligible for draws under the Government of Canada $1.404 billion refunds credit facility and, therefore, are generally cash neutral to Air Canada’s liquidity position (up to the $1.404 billion limit of the facility) and improve net working capital.

(1)	Adjusted pre-tax income (loss), EBITDA (excluding special items) (earnings before interest, taxes, depreciation, and amortization), and adjusted CASM are each non-GAAP financial measures. Refer to section 15 “Non-GAAP Financial Measures” of Air Canada’s Second Quarter 2021 MD&A for descriptions of Air Canada’s non-GAAP financial measures.
(2)	Unrestricted liquidity refers to the sum of cash, cash equivalents and short and long-term investments, and the amount of available credit under Air Canada’s revolving and other credit facilities. At June 30, 2021, unrestricted liquidity amounted to $9,775 million comprised of $5,661 million in Cash and cash equivalents, Short-term investments, and Long-term investments and $3,975 million available under undrawn credit facilities with the Government of Canada and $139 million available to be drawn under the refunds credit facility. At June 30, 2020, unrestricted liquidity of $9,120 million consisted of cash, cash equivalents and short-term investments of $8,644 million, and long-term investments of $476 million.
(3)	Except for the reference to average number of FTE employees, operating statistics in this table include third party carriers operating under capacity purchase agreements with Air Canada.
(4)	Reflects FTE employees at Air Canada and its subsidiaries. Excludes FTE employees at third party carriers operating under capacity purchase agreements with Air Canada.
(5)	Revenue passengers are counted on a flight number basis (rather than by journey/itinerary or by leg) which is consistent with the IATA definition of revenue passengers carried.
(6)	“pp” denotes percentage points and refers to a measure of the arithmetic difference between two percentages.
(7)	“NM” denotes “Not Meaningful” and is included in the table above where a comparison to prior periods would not be meaningful.

American Airlines reports second quarter 2021 financial results

American Airlines Group Inc. today reported its second-quarter 2021 financial results, including:

Second-quarter net profit of $19 million, or $0.03 per diluted share. Excluding net special items¹, second-quarter net loss of $1.1 billion, or ($1.69) per share.
Second-quarter revenue of $7.5 billion, up 87% sequentially from the first quarter of 2021.
Ended the second quarter with approximately $21.3 billion of total available liquidity, a record for the Company.
Accelerated the deleveraging process with prepayment of $950 million spare parts term loan.
Company plans to pay down approximately $15 billion of debt by the end of 2025.

“We have taken a number of steps to solidify our business through our Green Flag Plan and it shows in our second-quarter results,” said American’s Chairman and CEO Doug Parker. “We have reshaped our network, simplified our fleet and made our cost structure more efficient, all to create an airline that will outperform competitors and deliver for customers. The green flag has dropped and we are ready thanks to the tremendous efforts and dedication of the American Airlines team.”

American is committed to strengthening its business and returning to profitability by focusing on its three strategic objectives: Create a world-class customer experience, make culture a competitive advantage and build American to thrive forever.

To create a world-class customer experience, American:

Plans to operate more than 150 new routes this summer, including several new destinations and greater connectivity in Miami, Austin, Texas, and Orlando, Florida. During the summer season, American expects to fly more than 90% of its domestic seat capacity and 80% of its international seat capacity, in each case as compared to 2019.
Scheduled 10 new domestic and four new international destinations from Austin for this fall as a result of increased customer demand. American and its partners will offer the most options in Austin this fall, with nearly 100 peak day departures.
Transitioned regional flight operations at Reagan National Airport from Gate 35X to a new 14-gate concourse, providing customers with a range of new amenities, including an all dual-class operation.
Continued to launch COVID-19 testing tools to make flying safer and easier, including self-administered and packable home tests.
Worked with VeriFLY to expand the app’s capabilities to include COVID-19 vaccination verification, which is now available in 11 countries, with more planned in the third quarter. Customer usage of VeriFLY has quadrupled since the first quarter and the app can be used at expedited check-in lanes at most U.S. hub airports.
Introduced Five Star Essentials at Charlotte Douglas International Airport, Dallas Fort Worth International Airport and Miami International Airport. The service provides an extra set of hands during the customer journey from check-in to the gate.
Continued to welcome back customers to Admirals Club lounges across the system with new signature menu offerings and the expansion of innovative touchless technology. All Admirals Club lounges will reopen by the end of August and American’s Flagship Lounge locations will start reopening this fall.
Reintroduced full beverage service in all domestic premium cabins and resumed offering canned drinks, juice and water in the main cabin.
Revamped its premium cabin onboard amenity kits in partnership with Shinola and D.S. & Durga, brands celebrated for thoughtful design and creativity.
Refreshed its inflight entertainment offerings by adding new lifestyle entertainment choices with free access to Rosetta Stone and Skillshare, making it the first U.S. airline to tap into online/remote learning from 35,000 feet.

To make culture a competitive advantage, American:

Fortified its staffing by completing all required recall pilot training and bringing back more than 3,000 team members from leaves — with thousands more flight attendants returning from leaves this fall. American has hired nearly 3,500 new team members so far in 2021 and plans to hire 350 pilots this year and more than 1,000 pilots and 800 flight attendants in 2022.
Donated 10 million AAdvantage^® miles to Make-A-Wish, the organization that creates life-changing wishes for children with critical illnesses, to help grant 95 wishes, in honor of American’s 95th birthday.
Initiated a new partnership with the National Park Foundation to encourage exploration of some of the country’s most iconic natural wonders, historic sites, and cultural treasures, and to connect customers with opportunities to support the future of America’s national parks. Customers donated more than 37 million AAdvantage miles to the National Park Foundation through the airline’s new Miles for Our Planet initiative.
Raised nearly $1.5 million in support of the American Red Cross and Red Crescent Societies’ efforts to fight the COVID-19 pandemic around the world, including in Brazil, India and other countries in need of assistance to battle the devastating virus. The airline and more than 11,000 AAdvantage members raised the full amount in less than one month.
Partnered with United Way of Miami-Dade to provide travel assistance and help reunite families that were impacted by the tragic building collapse in Surfside, Florida.

To build American to thrive forever, American:

Committed to develop a science-based target for reducing its greenhouse gas emissions by 2035, supporting the airline’s existing commitment to reach net-zero emissions by 2050. American also agreed to terms to purchase up to 10 million gallons of carbon-neutral sustainable aviation fuel (SAF) produced by Prometheus Fuels, which uses a novel process to make net zero carbon transportation fuels, including SAF.
Announced investment in Vertical Aerospace, a leading U.K.-based engineering and aeronautical business developing electric vertical takeoff and landing aircraft. With the investment, American is demonstrating its focus on emerging technologies to reduce carbon emissions and investing in innovative ways that could improve the customer journey.
During the second quarter, American had debt amortization and prepayments of approximately $985 million.

Liquidity and balance sheet

The Company’s daily cash burn rate turned positive for the second quarter to a cash build rate of approximately $1 million per day². American ended the second quarter with a record of approximately $21.3 billion of total available liquidity. The Company expects to keep near-term liquidity at elevated levels but expects to step down its target liquidity to approximately $10 billion to $12 billion in 2022.

American is committed to improving its balance sheet. The Company now expects to reduce its debt by more than $15 billion by the end of 2025 versus its previous guidance of $8 billion to $10 billion. American plans to accomplish this objective through naturally occurring amortization, by using excess cash and free cash flow to pay down prepayable debt, and by potentially using cash instead of debt for certain future aircraft deliveries.

As evidence of the Company’s commitment to delever and its confidence in the future, today American is prepaying the entirety of its $950 million spare parts term loan that was scheduled to mature in April 2023.

Network and partnerships

American and JetBlue continue to roll out benefits for customers to create a seamless customer experience. Starting this fall, AAdvantage elite and TrueBlue Mosaic members will also begin to enjoy benefits across both carriers. This next phase of benefits will include priority check-in, security and boarding, plus up to two complimentary checked bags. American’s AAdvantage members and JetBlue’s TrueBlue members already earn miles or points traveling on either carrier. AAdvantage is now the only loyalty program that allows elite status-earning opportunities when flying across three U.S. carriers — American, JetBlue and Alaska Airlines.

As a result of American’s Northeast Alliance with JetBlue, New York and Boston travelers are seeing significantly expanded travel opportunities with new nonstop service and additional codeshare routes. As part of the alliance, American and JetBlue will operate more than 700 daily flights from New York and Boston this winter, giving customers more choice than any other airline can offer. Additionally, customers traveling on a joint American-JetBlue itinerary will now experience the fastest secure side connecter at New York — JFK and an industry-leading network. Expansion of the airline’s network will provide better global connectivity for growing markets like Austin, Texas, and Nashville, Tennessee.

With American’s extensive network, partnerships and membership in oneworld, customers returning to travel have access to an unmatched global network.

Guidance and investor update

American will continue to match its forward capacity with observed bookings trends. Based on current trends, the Company expects its third-quarter capacity to be down approximately 15% to 20% compared to the third quarter of 2019. American expects its third-quarter total revenue to be down approximately 20% versus the third quarter of 2019. The Company also expects its third quarter pre-tax margin excluding net special items will be between negative 3% and negative 7%³.

Southwest reports second quarter 2021 results

Southwest Airlines Company today reported its second quarter 2021 financial results:

Second quarter net income of $348 million, or $.57 per diluted share, driven by a $724 million offset of salaries, wages, and benefits expenses related to the receipt of Payroll Support Program (PSP) proceeds under the Consolidated Appropriations Act, 2021 and American Rescue Plan Act of 2021
Excluding special items¹, second quarter net loss of $206 million, or $.35 loss per diluted share
Second quarter operating revenues of $4.0 billion, down 32.2 percent compared with second quarter 2019
Generated second quarter operating cash flow of $2.0 billion and free cash flow¹ of $1.9 billion; achieved positive average daily core cash flow² in June
Ended second quarter with liquidity³ of $17.9 billion, well in excess of debt outstanding of $11.4 billion

Gary C. Kelly, Chairman of the Board and Chief Executive Officer, stated, “Second quarter 2021 marked an important milestone in the pandemic recovery as leisure travel demand surged. We generated net income in June 2021, representing our first monthly profit without taking into account the benefit of temporary salaries and wages cost relief provided by PSP proceeds, since the negative effects of the pandemic began in March 2020. While the rapid ramp up in June travel demand provided stability to our financial position, it has impacted our operations following a prolonged period of depressed demand due to the pandemic. Therefore, we are intensely focused on improving our operations as we restore our network to meet demand. I am beyond thankful for our People, who are heroes, and whose resiliency, hard work, and unwavering resolve is on display every day. I am pleased for them that we were able to accrue $85 million of profitsharing for our Employees in second quarter 2021, for a total of $109 million in first half 2021.

“Compared to the last four quarters, second quarter 2021 operating revenues significantly improved, decreasing 32.2 percent compared with second quarter 2019. June 2021 operating revenues decreased 20.7 percent, compared with June 2019. Monthly operating revenue trends improved sequentially throughout the quarter. Leisure passenger traffic in June 2021 rebounded above June 2019 levels, while passenger fares were comparable with June 2019. Based on current bookings, leisure passenger traffic and fares in July are expected to trend higher than July 2019 levels. Business revenues continue to lag leisure revenue trends; however, we are encouraged by the improvement in business revenues in second quarter 2021, and we continue to experience steady weekly improvements in business bookings, thus far, in July 2021.

“Second quarter 2021 jet fuel prices increased significantly compared with first quarter 2021 and second quarter 2020. Despite cost penalties of technology and weather disruptions, our second quarter 2021 non-fuel cost performance was in line with guidance. We currently expect higher fuel prices and capacity-driven cost increases in third quarter 2021, year-over-year. To support the return of flight activity, we expect to recall the vast majority of our Employees early from voluntary time-off by the end of third quarter 2021, which is expected to reduce our prior forecasted savings from voluntary leave programs beyond second quarter 2021. Absent the costs associated with fewer Employees on leave, along with ramp up costs and premium pay offered for Operations Employees, third quarter 2021 non-fuel unit costs, excluding special items and profitsharing, are forecast to trend in line with, or below, 2019 levels⁴.

“Our balance sheet strength remains unmatched in the U.S. airline industry and a competitive differentiator. As of June 30, 2021, our total liquidity was $17.9 billion. Average core cash burn² was approximately $1 million per day in second quarter 2021; however, as anticipated, we achieved positive average core cash flow in June 2021, which was approximately $4 million per day. Based on our current booking trends and cost outlook, we are hopeful to be profitable, both on a GAAP and non-GAAP basis, again in third and fourth quarter 2021. Should the pandemic negatively affect our current trends, we are prepared to manage through it.

“We have tremendous flexibility and opportunity with our Boeing 737 MAX (MAX) order book. In addition to committing 55 aircraft to 18 new cities and approximately 37 aircraft to Hawaii by the end of this year, we intend to utilize new aircraft next year and beyond to restore most of our pre-pandemic routes and frequencies, and pursue new market opportunities. We can choose to accelerate fleet modernization efforts if these growth opportunities do not materialize. We believe 2022 will be another transition year in the pandemic recovery, and our primary goals will be to deliver operational reliability with optimized resources; generate solid profits and margins; restore and grow the route network; and reduce carbon emissions intensity.

“We recently announced I will transition to Executive Chairman in February 2022, at which time Bob Jordan, Executive Vice President, will become Chief Executive Officer. Bob is well-prepared to take on this important role as a gifted and experienced executive with 33 years of broad experience at Southwest. A smooth transition is underway, and we remain focused on managing through the pandemic, as well as sharpening up our strategic plan with a crystal clear set of initiatives for the next five years. In addition to restoring our route network and core operational efficiency, these initiatives include the continued rollout of Global Distribution System (GDS) access for corporate travelers; the acceleration of fleet modernization efforts to replace our 737-700 aircraft with the MAX; and the development of tangible steps to minimize our carbon footprint and support our goal to be carbon neutral by 2050. I have the utmost confidence in Bob, our Southwest Leadership Team, and the People of Southwest Airlines to successfully implement these initiatives and lead the Company forward. And I’m proud to continue to be a part of the Team for years to come.”

Revenue Results and Outlook
The Company’s second quarter 2021 operating revenues increased 297.6 percent, year-over-year, to $4.0 billion, but decreased 32.2 percent compared with second quarter 2019 due to the pandemic. Second quarter 2021 operating revenue per available seat mile (RASM, or unit revenues) was 11.99 cents, a decrease of 18.9 percent, compared with second quarter 2019, primarily driven by a passenger revenue yield decrease of 18.9 percent and a load factor decrease of 3.5 points.

The Company performed significantly better than expected at the outset of the quarter. The Company experienced sequential monthly improvements in operating revenues during second quarter 2021, driven primarily by improvements in leisure passenger traffic and fares. While business travel demand continued to lag leisure trends, June 2021 managed business revenues were down approximately 69 percent, which represented another sequential improvement compared with a decrease of 77 percent in May 2021, and a decrease of 80 percent in April 2021, all compared with respective 2019 levels.

The following table presents selected revenue and load factor results for second quarter 2021:

April 2021

May 2021

June 2021

2Q 2021

Operating revenue compared with 2019 (a)

Down 42.2%

Down 34.7%

Down 20.7%

Down 32.2%

Previous estimation

Down ~42%

Down ~35%

Down ~20%

(b)

Load factor

79.0%

83.5%

85.5%

82.9%

Previous estimation

(c)

~84%

~85%

(b)


(a)	The Company believes that operating revenues compared with 2019 is a more relevant measure of performance than a year-over-year comparison due to the significant impacts in 2020 due to the pandemic.
(b)	No previous estimation provided.
(c)	Remains unchanged from previously provided estimation.

Thus far, the Company continues to experience typical leisure booking patterns for summer and fall 2021 travel. The Company’s revenue outlook for August 2021 is impacted by less holiday travel, an estimated one to two point headwind, compared with August 2019, as the Labor Day holiday weekend falls in September 2021, whereas it was split between August and September in 2019. Despite steady weekly improvements in business bookings, thus far, in July, the lag in business travel recovery is expected to continue to have a negative impact on close-in demand and average passenger fares in third quarter 2021.

The following monthly table presents selected preliminary estimates of revenue and load factor for July and August 2021:

Estimated
July 2021

Estimated
August 2021

Operating revenue compared with 2019 (a)

Down 10% to 15%

Down 12% to 17%

Previous estimation

Down 15% to 20%

(b)

Load factor

~85%

~80%

Previous estimation

(c)

(b)


(a)	The Company believes that operating revenues compared with 2019 is a more relevant measure of performance than a year-over-year comparison due to the significant impacts in 2020 due to the pandemic.
(b)	No previous estimation provided.
(c)	Remains unchanged from previously provided estimation.

The Company achieved its goal of enabling industry-standard corporate bookings through Amadeus’s GDS platform and Travelport’s multiple GDS platforms (Apollo, Worldspan, and Galileo) in 2020. The Company plans to go live with Sabre on July 26, 2021. The Company also uses Airlines Reporting Corporation (ARC) to handle the industry-standard settlement of tickets booked through Travelport and Amadeus channels. Sabre tickets are also expected to settle via ARC. The Company’s enhancement of its GDS channel strategy is part of its larger “channel of choice” offering and complements its direct strategy through the expanding Airline Tariff Publishing Company’s (ATPCO) New Distribution Capability (NDC) Exchange, as well as its existing SWABIZ® direct travel management tool. The goal is to distribute Southwest’s everyday low fares to more business travelers through their preferred channel.

Cost Performance and Outlook
Second quarter 2021 operating expenses increased 59.9 percent, year-over-year, to $3.4 billion, but decreased 30.9 percent compared with second quarter 2019 due to the pandemic. Excluding special items, second quarter 2021 operating expenses increased 31.9 percent, year-over-year, to $4.2 billion. Second quarter 2021 operating expenses per available seat mile (CASM, or unit costs) decreased 17.3 percent, compared with second quarter 2019. Excluding special items, second quarter 2021 CASM increased 1.0 percent, compared with second quarter 2019.

The following table presents economic fuel costs per gallon¹, including the impact of fuel hedging premium expense and fuel derivative contracts, for second quarter 2021 and the prior year period:


	Second Quarter
	2021	2020
Economic fuel costs per gallon	$1.92	$1.33
Fuel hedging premium expense	$24 million	$24 million
Fuel hedging premium expense per gallon	$0.06	$0.12
Fuel hedging cash settlement gains per gallon	$0.02	—

The Company’s second quarter 2021 available seat miles (ASMs, or capacity) per gallon (fuel efficiency) declined 8.7 percent, year-over-year, due to the return to service of more of its least fuel-efficient aircraft, the Boeing 737-700. When compared with second quarter 2019, fuel efficiency improved 4.5 percent in second quarter 2021 due to the March 2021 return to service of its most fuel-efficient aircraft, the MAX. The MAX is critical to the Company’s efforts to modernize its fleet, reduce carbon emissions intensity, and achieve carbon neutrality by 2050. The Company expects third quarter 2021 fuel efficiency to be in line with second quarter 2021, on a nominal basis.

Based on the Company’s existing fuel derivative contracts and market prices as of July 15, 2021, the following table presents estimates of economic fuel costs per gallon⁵, including the estimated impact of fuel hedging premium expense and fuel derivative contracts, for third and fourth quarter 2021 and prior year periods:

Third Quarter

Fourth Quarter

2021

2020

2021

2020

Economic fuel costs per gallon

$2.05 to $2.15

$1.23

$2.05 to $2.15

$1.25

Fuel hedging premium expense

$25 million

$24 million

$25 million

$24 million

Fuel hedging premium expense per gallon

$0.05

$0.08

$0.05

$0.08

Fuel hedging cash settlement gains per gallon

$0.04

—

$0.02

—

As of July 15, 2021, the fair market value of the Company’s fuel derivative contracts for the remainder of 2021 was an asset of approximately $67 million, and the fair market value settling in 2022 and beyond was an asset of approximately $422 million. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.

Excluding fuel and oil expense, second quarter 2021 operating expenses increased 39.0 percent, year-over-year, and decreased 31.4 percent, compared with second quarter 2019. The Company accrued $85 million of profitsharing expense in second quarter 2021, compared with no profitsharing accrual in second quarter 2020. The Company’s second quarter 2021 net income included special items, the largest of which was a pre-tax benefit of approximately $724 million of PSP proceeds, which offset salaries, wages, and benefits expenses and was comprised of $177 million under the Consolidated Appropriations Act, 2021 and $547 million under the American Rescue Plan Act of 2021.

Excluding fuel and oil expense, special items, and profitsharing, second quarter 2021 operating expenses increased 13.3 percent, year-over-year, which was in line with the Company’s expectation. The year-over-year increase was driven primarily by variable, flight-driven expenses as capacity increased 86.8 percent, year-over-year. As expected, the Company realized approximately $325 million of cost savings in second quarter 2021 from voluntary separation and extended leave programs. The Company now estimates annual 2021 cost savings from these programs to be approximately $1.0 billion, down from its previous guidance of $1.1 billion to $1.2 billion due to earlier than projected Employee recalls from voluntary leave programs. The Company expects third quarter 2021 cost savings from these programs to be approximately $150 million. Second quarter 2021 CASM, excluding fuel and oil expense, special items, and profitsharing expense, decreased 39.3 percent, year-over-year, driven primarily by the significant increase in capacity and increased 7.6 percent, compared with second quarter 2019.

Based on current cost trends and capacity plans, third quarter 2021 operating expenses and unit costs, excluding fuel and oil expense, special items, and profitsharing, are expected to increase in the range of one to five percent, compared with third quarter 2019⁴. The Company currently expects three to four points of the unit cost increase in third quarter 2021 to be attributable to ramp up costs and premium pay offered to Operations Employees. Another one point is expected to be attributable to lower estimated cost savings from voluntary leave programs due to higher than projected Employee recalls.

Other expenses in second quarter 2021 decreased $20 million, year-over-year, primarily due to an improvement in other gains and losses driven by adjustments for fuel derivative contracts not designated as fuel hedges for accounting purposes, which are excluded from the Company’s non-GAAP results as a special item.

The Company’s second quarter 2021 effective tax rate was 31 percent. The Company currently estimates its annual 2021 effective tax rate to be approximately 26 percent, compared with its previous guidance of approximately 23 percent. The higher tax rate in second quarter and annual 2021 is primarily due to higher state taxes than previously estimated.

Fleet and Capacity
The Company ended second quarter 2021 with 736 Boeing 737 aircraft, including 68 MAX 8 aircraft. During second quarter 2021, the Company took delivery of seven MAX 8 aircraft from The Boeing Company (Boeing). The Company expects delivery of one more leased MAX 8 aircraft in 2021. Also during second quarter 2021, the Company returned one leased 737-700 aircraft to its lessor and expects to return one more leased 737-700 aircraft in 2021, for a total of 10 retirements in 2021. As of June 30, 2021, 39 737-700 aircraft remained in temporary storage due to the prolonged period of depressed demand levels. These aircraft are expected to have required maintenance checks completed and be returned to service by the end of this year.

In March, the Company amended its aircraft order book with Boeing through 2031 driven by growth opportunities and ongoing fleet modernization plans for less carbon-intensive aircraft. During second quarter 2021, the Company further amended its aircraft purchase agreement with Boeing, including a Supplemental Agreement in June 2021 to accelerate 10 MAX options from 2023 to 2022. On July 1, 2021, the Company exercised three options for delivery in 2022. And, the Company intends to exercise another three options this month for 2022 delivery. Upon the intended exercise of these three additional options, the Company’s 2022 firm orders will be 70 with 44 remaining options, and bring its order book with Boeing to 389 MAX firm orders (240 MAX 7 and 149 MAX 8) and 262 MAX options (MAX 7 or MAX 8) for years 2021 through 2031. The Company continues to expect that more than half of the MAX aircraft in its firm order book will replace a significant amount of its 461 737-700 aircraft over the next 10 to 15 years to support the modernization of its fleet, a key component of its environmental sustainability efforts. Additional information regarding the Company’s aircraft delivery schedule is included in the accompanying tables.

The Company’s second quarter 2021 capacity increased 86.8 percent, year-over-year, due to increased flight activity driven primarily by increased leisure passenger traffic. The following table presents capacity results for second quarter 2021:

April 2021

May 2021

June 2021

2Q 2021

ASMs year-over-year

Up 82.9%

Up 125.8%

Up 64.3%

Up 86.8%

Previous estimation

Up ~83%

Up ~126%

Up ~65%

Up ~87%

ASMs compared with 2019

Down 23.8%

Down 18.2%

Down 7.4%

Down 16.4%

Previous estimation

Down ~24%

Down ~18%

Down ~7%

Down ~16%

The Company expects its third quarter 2021 capacity to increase from second quarter 2021 levels, based on the expectation of further improvement in travel demand. The Company is in the process of adjusting its published flight schedules for September and October 2021. Including these adjustments, the following table presents capacity estimates for third quarter 2021:

Estimated
July 2021

Estimated
August 2021

Estimated
September 2021

Estimated
3Q 2021

ASMs year-over-year

Up ~41%

Up ~68%

Up ~49%

Previous estimation

(a)

Up ~39%

(b)

ASMs compared with 2019

Down ~3%

Up ~3%

Comparable

Previous estimation

(a)

Comparable

(b)


(a)	Remains unchanged from previously provided estimation.
(b)	No previous estimation provided.

In addition, the Company currently expects its fourth quarter 2021 capacity to increase approximately 68 percent, year-over-year, and to be comparable with fourth quarter 2019. The Company will continue to monitor demand and booking trends and adjust capacity, as needed. As such, the Company’s actual flown capacity may differ materially from currently published flight schedules or current estimations.

Liquidity and Capital Deployment
As of June 30, 2021, the Company had approximately $16.9 billion in cash and short-term investments, and a fully available revolving secured credit facility of $1.0 billion. During second quarter 2021, the Company reached an agreement with the U.S. Department of Treasury and received approximately $1.9 billion in PSP proceeds under the American Rescue Plan Act of 2021. The Company also received its third and final disbursement of PSP proceeds in the amount of $259 million under the Consolidated Appropriations Act, 2021. The Company currently has unencumbered assets with an estimated value of more than $11 billion, including aircraft value estimated in the range of $9 billion to $10 billion, and approximately $2 billion in non-aircraft assets such as spare engines, ground equipment, and real estate. In addition, the Company has significant value from its Rapid Rewards® loyalty program. As of July 21, 2021, the Company had cash and short-term investments of approximately $16.8 billion.

Net cash provided by operations during second quarter 2021 was $2.0 billion, driven primarily by PSP proceeds of $1.5 billion. Second quarter 2021 capital expenditures were $95 million. The Company now estimates its 2021 capital expenditures to be in the range of $500 million to $600 million, compared with its previous guidance of approximately $500 million, primarily due to an increase in aircraft pre-delivery payments associated with the 2022 option exercises for MAX deliveries next year, in addition to other aircraft related capital expenditures shifting into 2021. Based on 70 firm orders planned for 2022, the Company’s contractual aircraft capital expenditures for 2022⁶ are now estimated to be approximately $1.6 billion, compared with its previous guidance of approximately $1.5 billion. Further, the Company’s total contractual aircraft capital expenditures for all years 2021 through 2026, which represent 209 MAX firm orders (175 MAX 7 and 34 MAX 8 aircraft), are estimated to be approximately $5.7 billion. Fleet and other capital investment plans are expected to continue to evolve as the Company manages through this pandemic recovery period, and the Company intends to evaluate the exercise of its remaining 44 MAX options for 2022 as decision deadlines occur throughout the remainder of this year.

As of June 30, 2021, the Company had current and non-current debt obligations that totaled $11.4 billion. The Company repaid approximately $43 million in debt and finance lease obligations during second quarter 2021 and is scheduled to repay approximately $111 million in debt and finance lease obligations in second half 2021. Based on current debt outstanding and current market interest rates, the Company expects third quarter 2021 interest expense to be approximately $115 million. As of June 30, 2021, the Company was in a net cash position⁷ of $5.5 billion, and its adjusted debt⁸ to invested capital (leverage) was 57 percent. The Company remains the only U.S. airline with an investment-grade credit rating by all three rating agencies.

A look back: Hot Pants, Love Potions, and the Go-go Genesis of Southwest Airlines – Texas Monthly

Alaska Air Group reports second quarter 2021 results

Alaska Air Group issued this financial statement for the second quarter:

Financial Results:

Reported net income for the second quarter of 2021 under Generally Accepted Accounting Principles (GAAP) of $397 million, or $3.15 per share, compared to a net loss of $214 million, or $1.74 per share in the second quarter of 2020.
Reported a net loss for the second quarter of 2021, excluding CARES Act Payroll Support Program (PSP) wage offsets, special items and mark-to-market fuel hedge accounting adjustments, of $38 million, or $0.30 per share, compared to an adjusted net loss of $439 million or $3.57 per share, in the second quarter of 2020.
Reported a debt-to-capitalization ratio, including short-term borrowings related to COVID-19, of 56%.
Held $4.0 billion in unrestricted cash and marketable securities as of June 30, 2021.
Generated $840 million in operating cash flow in the second quarter, inclusive of $489 million of PSP funding, bolstered by improved advance bookings on a surge in demand for air travel. Excluding PSP funding, quarterly operating cash flows improved over $580 million from the first quarter of 2021.

Operational Updates:

Announced plans to grow our mainline and regional fleets, exercising options for 13 Boeing 737-9 MAX with deliveries in 2023 and 2024, and nine E175 to be operated by Horizon Air with deliveries in 2022 and 2023. In addition, expanded our long-term capacity agreement with SkyWest Airlines by eight aircraft to be delivered in 2022.
Announced new service to Central America with new routes to Belize from Seattle and Los Angeles, with service slated to begin in November 2021.
Issued recall notices to all pilots on incentive lines for return to work by October 2021.
Continued our history of providing meaningful incentive programs to our employees with $67 million in cash bonuses earned to date.
Announced seven new domestic routes aimed at providing our West Coast guests more options to sun-filled destinations, including three new routes serving Boise, Idaho.

Liquidity Updates:

Received $664 million through a combination of grants and loans from the U.S. Treasury under an extension of the PSP.
Repaid approximately $570 million in debt, including the full $135 million loan from the U.S. Treasury made available under the CARES Act and the $363 million outstanding balance on two credit facilities.

Sustainability Updates:

Announced five-part pathway to achieve a net zero carbon footprint by 2040, putting the airline on track to meet the annual carbon intensity target that is part of its performance-based pay program for all employees.
First airline to implement network optimization software, Flyways, using artificial intelligence and machine learning to optimize air traffic and enable more fuel-efficient flight paths for aggregate savings of fuel, carbon emissions and time.
Partnered with Boeing to launch a 737-9 ecoDemonstrator to test advanced technologies that can enhance the safety and sustainability of air travel. The aircraft will conduct five months of flight tests across the U.S.
Revealed “Our Commitment” aircraft in partnership with long-time partner UNCF, a symbol of the airline’s commitments to increase diverse representation in our leadership, advance education as a critical component of equity, and to make Alaska Airlines a place where everyone feels they belong.

Alaska Air Group Inc. today reported second quarter 2021 GAAP net income of $397 million, or $3.15 per share, compared to a net loss of $214 million, or $1.74 per share in the second quarter of 2020. Excluding the impact of payroll support program wage offsets, special items and mark-to-market fuel hedge adjustments, the company reported an adjusted net loss of $38 million, or $0.30 per diluted share, compared to an adjusted net loss of $439 million, or $3.57 per diluted share in 2020.

“As we put the worst of last year’s downturn behind us, Alaska is back on the path to profitability,” said CEO Ben Minicucci. “We are executing our plan, rebuilding our network, leveraging our capacity to meet growing demand, and delivering exceptional service and value to our guests. I’m incredibly proud and grateful for how hard our employees are working and how they show up for each other and our guests every day with focus on safety, operational excellence and care.”

The following table reconciles the company’s reported GAAP net income (loss) per share (EPS) for the three and six months ended June 30, 2021 and 2020 to adjusted amounts.

	Three Months Ended June 30,
	2021				2020
*(in millions, except per-share amounts)*	Dollars		Diluted EPS		Dollars		Diluted EPS
GAAP net income (loss) per share	$	397	$	3.15	$	(214)	$	(1.74)
Payroll support program wage offset	(503)		(3.99)		(362)		(2.94)
Mark-to-market fuel hedge adjustments	(46)		(0.37)		(6)		(0.05)
Special items – impairment charges and other	(4)		(0.03)		69		0.56
Special items – restructuring charges	(23)		(0.18)		—		—
Special items – merger-related costs	—		—		1		0.01
Income tax effect of reconciling items above	141		1.12		73		0.59
Non-GAAP adjusted net loss per share	$	(38)	$	(0.30)	$	(439)	$	(3.57)

	Six Months Ended June 30,
	2021				2020
*(in millions, except per-share amounts)*	Dollars		Diluted EPS		Dollars		Diluted EPS
GAAP net income (loss) per share	$	266	$	2.12	$	(446)	$	(3.62)
Payroll support program wage offset	(914)		(7.27)		(362)		(2.94)
Mark-to-market fuel hedge adjustments	(68)		(0.54)		3		0.02
Special items – impairment charges and other	14		0.11		229		1.86
Special items – restructuring charges	(12)		(0.10)		—		—
Special items – merger-related costs	—		—		4		0.03
Income tax effect of reconciling items above	240		1.91		31		0.25
Non-GAAP adjusted net loss per share	$	(474)	$	(3.77)	$	(541)	$	(4.40)

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables. A glossary of financial terms can be found on the last page of this release.

A conference call regarding the second quarter results will be streamed online at 8:30 a.m. PDT on July 22, 2021. It can be accessed at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.

References in this update to “Air Group,” “Company,” “we,” “us,” and “our” refer to Alaska Air Group, Inc. and its subsidiaries, unless otherwise specified.

This news release may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by any forward-looking statements. For a comprehensive discussion of potential risk factors, see Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Some of these risks include the risks associated with contagious illnesses and contagion, such as COVID-19, general economic conditions, increases in operating costs including fuel, competition, labor costs and relations, our indebtedness, inability to meet cost reduction goals, seasonal fluctuations in our financial results, an aircraft accident, and changes in laws and regulations. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. We operate in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on our business or events described in any forward-looking statements. We expressly disclaim any obligation to publicly update or revise any forward-looking statements after the date of this report to conform them to actual results. Over time, our actual results, performance or achievements will likely differ from the anticipated results, performance, or achievements that are expressed or implied by our forward-looking statements, and such differences might be significant and materially adverse.

Alaska Airlines and its regional partners serve more than 120 destinations across the United States and to Mexico, Canada and Costa Rica. The airline emphasizes Next-Level Care for its guests, along with providing low fares, award-winning customer service and sustainability efforts. Alaska is a member of oneworld. With the global alliance and the airline’s additional partners, guests can travel to more than 1,000 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at newsroom.alaskaair.com and blog.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Alaska Air Group, Inc.

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except per-share amounts)

2021

2020

Change

2021

2020

Change

Operating Revenues:

Passenger revenue

1,352

309

338

2,011

1,790

Mileage Plan other revenue

118

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…

Hi Fly adds another Airbus A330-300 to its fleet

Hi Fly has announced the addition of one more Airbus A330-300 to its fleet. It was exactly 2.40pm local time when the aircraft, msn 1779 and registered as 9H-HFA, touched down at Beja Airport, flown in from Malta by Commander Carlos Mirpuri.

With comfortable interiors, warm colors and relaxed atmosphere, the aircraft seats 249 passengers in a two class configuration (46 high comfort business class seats with flat beds and 203 economy seats).

Photos by the airline.

Tailwind Air to launch Boston Harbor to Manhattan flights

Tailwind Air has announced the first-ever airline service from Manhattan’s New York Skyport (IATA code: NYS) on East 23rd Street to Boston Harbor (IATA Code: BNH), where a dedicated, seven-minute water taxi will transfer clients to the South Boston waterfront. Flights are approximately seventy-five minutes and will start on August 3, 2021.

While Tailwind Air’s seaplane fleet is young, less than five-years on average, seaplane travel certainly is not. The Manhattan Skyport opened in 1936, hosting popular seaplane travel for decades. For nearly 100 years, seaplane operations have been part of the core transportation landscape of maritime cities such as Seattle, Miami, and Vancouver. “By reconnecting Boston and New York City via seaplane, we more closely unite two urban cores.”

Tailwind Air’s fleet of Cessna Grand Caravan EX amphibians is piloted by experienced and highly qualified captains. Tailwind Air currently flies to and from Manhattan, Montauk, Easthampton, and Shelter Island on a regular schedule. Last week, Tailwind announced weekday commuter flights to Bridgeport, CT.

The daily weekday route from Boston Harbor (BNH) to Manhattan (NYS) running through November includes:

Depart: 07:00am Arrives: 08:25am (eff Aug 21, 2021)

10:05am 11:30am

2:10pm 3:35pm (eff Aug 21, 2021)

5:20pm 6:45pm

Daily Manhattan (NYS) to Boston Harbor (BNH)

Depart: 08:00am Arrive: 09:25am

09:30am 10:55am (Eff Aug 21, 2021)

2:30pm 3:55pm

4:45pm 6:05pm (Eff. Aug 21, 2021)

One-way fares start at $395 from Manhattan to Boston Harbor.

Tailwind Air plans to add additional route offerings in 2022, as well as to advance electric seaplane technology and explore innovations in urban air mobility.

Air Canada introduces “Rise Higher”, a new brand spot

Air Canada today unveiled its comprehensive program in support of Team Canada’s journey to the Tokyo 2020 Olympic and Paralympic Games, which includes today’s launch of “Rise Higher”, a new brand spot. The airline began flying Team Canada athletes, coaches and support staff from Toronto and Vancouver to Japan on July 1 onboard a Boeing 787 Dreamliner in a special livery. Air Canada is further celebrating the country’s athletes through innovative activations, exclusive access and engagement opportunities for fans.

Top Copyright Photo: TMK Photography.

Video:

In addition to its unwavering support in transporting Team Canada safely to and from the Tokyo 2020 Olympic and Paralympic Games, Air Canada is proud to:

Premier its new “Rise Higher” brand spot during the Olympic Games Opening Ceremony broadcast, which is being released concurrently online via Air Canada’s social media channels;
In collaboration with CBC/Radio-Canada, encourage Canadians to share how they #FlytheFlag/#HautLeDrapeau as they cheer on Team Canada in Tokyo. Canadians could win two round-trip tickets to anywhere Air Canada flies in North America or a spot to participate in one of six exclusive virtual experiences where they will have a unique opportunity to talk to athletes live from Tokyo;
Give Canadian fans the chance to interact with some athletes and be among the first to welcome them back home while they are onboard their Air Canada flight through one of five Twitter Q&A sessions hosted by Team Canada. Details on how to participate will be posted via Team Canada’s social channels;
Support athletes traveling from major airports across Canada with Air Canada’s own employee-driven initiative that involves the collaboration and dedicated efforts of Air Canada employees to ensure a seamless customer experience;
Give athletes distinctive, individual care kits, including Canadian-made travel essentials to make their flight more comfortable, a complimentary Wi-Fi streaming pass courtesy of our partner Intelsat, and Aeroplan points;
Provide all athletes with complimentary 35K status which includes free checked bags, through the Aeroplan Elite Podium Program;
Celebrate Team Canada’s journey with a special seat sale from Canada to all destinations Air Canada flies to. Seats are available for booking now, with further details at aircanada.com.

Air Canada has been a sponsor of the Canadian Olympic Team since 1988 and a sponsor of the Canadian Paralympic Team since 2007.

Frontier Airlines announces 21 new routes with key expansions in Atlanta, Dallas/Fort Worth and Las Vegas

Frontier Airlines has announced 21 new nonstop routes, including significant buildup in three major markets with nine new routes in Atlanta (ATL), seven in Dallas/Fort Worth (DFW) and five in Las Vegas (LAS).

New Routes from Hartsfield-Jackson Atlanta International Airport (ATL):

Baltimore (BWI)	Sept. 8, 2021	4x Weekly	$29*	Wednesday, Saturday
Cancun (CUN)	Nov. 2, 2021	4x Weekly	To CUN: $69*	Tuesday, Thursday, Saturday
Chicago (ORD)	Sept. 8, 2021	4x Weekly	$29*	Monday, Wednesday, Saturday
Detroit (DTW)	Sept. 7, 2021	3x Weekly	$29*	Tuesday, Thursday
Houston (IAH)	Sept. 8, 2021	4x Weekly	$29*	Monday, Wednesday, Saturday
Montego Bay, Jamaica (MBJ)	Nov. 1, 2021	3x Weekly	To MBJ: $99*	Monday, Wednesday
New Orleans (MSY)	Sept. 9, 2021	3x Weekly	$29*	Tuesday, Thursday, Sunday
West Palm Beach, Florida (PBI)	Nov. 1, 2021	Daily	$29*	From ATL: Monday, Tuesday, Wednesday, Sunday / To ATL: Tuesday, Wednesday, Thursday, Friday
St. Louis (STL)	Sept. 7, 2021	3x Weekly	$29*	Tuesday, Thursday, Sunday

Now at SXM:

New Routes from Dallas Fort Worth International Airport (DFW):

Buffalo, New York (BUF)	April 24, 2022	3x Weekly	On Sale at a Later Date
Durango, Colorado (DRO)	April 30, 2022	1x Weekly	On Sale at a Later Date
Hartford, Connecticut (BDL)	April 25, 2022	3x Weekly	On Sale at a Later Date
Phoenix (PHX)	Nov. 1, 2021	4x Weekly	$29*	Monday, Wednesday, Saturday
San Diego (SAN)	Sept. 7, 2021	3x Weekly	$39*	Tuesday, Thursday
San Francisco (SFO)	Sept. 8, 2021	4x Weekly	$49*	Monday, Wednesday, Saturday
Tampa (TPA)	Nov. 1, 2021	4x Weekly	$49*	Monday, Wednesday, Saturday

New Routes from Las Vegas McCarran International Airport (LAS):

Des Moines, Iowa (DSM)	Sept. 10, 2021	2x Weekly	$59*	Monday, Thursday, Friday, Sunday
Harlingen, Texas (HRL)	Sept. 9, 2021	2x Weekly	$49*	Monday, Thursday, Friday, Sunday
Minneapolis (MSP)	Sept. 9, 2021	4x Weekly	$29*	From LAS: Wednesday, Thursday, Friday, Saturday / *To LAS: Monday, Wednesday, Saturday, Sunday
New Orleans (MSY)	Sept. 9, 2021	4x Weekly	$59*	From LAS: Thursday, Friday / To LAS: Monday, Sunday
Sioux Falls, South Dakota (FSD)	Sept. 9, 2021	2x Weekly	$49*	From LAS: Thursday, Sunday / To LAS: Monday, Friday

Note: Not all days of the week may operate during the entire promotional period. Frequency and times are subject to change.

When life gives you lemons, make lemonade! There’s just some-fin about the newest addition to our fleet, Sonny the Lemon Shark! 🍋🦈

Learn about this jaw-some animal here: https://t.co/W3tHXb7PQw #SharkAwarenessDay #sharkweek @UMiamiRSMAS @BiminiSharkLab pic.twitter.com/SmZe12OmHw

— Frontier Airlines (@FlyFrontier) July 14, 2021

Top Copyright Photo: Frontier Airlines (2nd) Airbus A320-251N WL N383FR (msn 10584) (Manteo, the Red Wolf) SNA (Michael B. Ing). Image: 954372.

Frontier Airlines aircraft slide show:

United to pull out of Paine Field on October 5

United Airlines has announced it will suspend the Denver – Everett (Paine Field) route on October 5. This was the only United Express route operated to PAE. It previously operated a route from PAE to the San Francisco hub.