Austrian Airlines insists on a global digital travel certificate

"Marchfield"

Austrian Airlines made this announcement:

โ€ข End of โ€œPre Travel Clearanceโ€ to reduce the bureaucracy of traveling
โ€ข EU agreement on a uniform corona certificate from 1 July onwards as an essential step
โ€ข CEO Alexis von Hoensbroech: “A globally recognized solution must follow in order to give aviation a full boost”

Just in time for the start of the summer holiday season, Austria announced further easing of the current entry regulations. From 10 June onwards, a mandatory โ€œPre Travel Clearanceโ€ will only be required from people entering from a high-incidence and virus variant area. Previously, the European Union had agreed on a uniform certificate for corona vaccinations, tests and recovery. The digitally readable document is intended to make traveling across the EU easier and to put an end to the differently managed regulations for entering EU countries from 1 July.

With the global vaccination rate rising and the number of infections falling, the focus lies increasingly on restoring global freedom of travel. This is also reflected in the demand for flight tickets to the North Atlantic region this summer. โ€œIt is important that the EU Covid certificate is now followed by a globally recognized solution in order to give aviation a full boost. Travel is a basic need. People long for new experiences and for reunions with family, friends and business partnersโ€, emphasizes Alexis von Hoensbroech.

Last but not least, transatlantic air traffic is a driving economic factor. The prospect easing air travel is therefore essential. An international Covid certificate would give aviation an important uplift and enable a return to more flight connections and services at pre-crisis levels.

In other news, the Austrian federal government has once again imposed a landing ban on flights from the United Kingdom. This will initially apply from June 1-20, 2021 inclusive.

Finally, the airline has announced that Russia had not allowed its flight from Vienna to Moscow to land in Moscow without flying through Belarusian airspace.

European airlines are being urged to avoid flying over Belarus.

Austrian Airlines fleet

 

The Austrian Airlines fleet currently consists of 83ย aircraft, which are divided into the long-haul fleet and the short and medium-haul fleet.

Boeing 777-200ER

The modern wide-bodied aircraft has the longest range in the world and carries you to Shanghai or nonstop to Cape Town. The spacious cabin and sophisticated equipment make long-haul flights a relaxed experience.

Boeing 767-300ER

The Boeing 767 is a little smaller than the Boeing 777, but is also used on long-haul flights. Austrian has six of these aircraft in its fleet, which fly to destinations such as Washington, Beijing or Montreal.

Airbus A321-211

The Airbus A321-211 is valued for its high fuel efficiency and low noise and emissions values. It is ideal for short and medium-haul flights, and is mainly used for European and Middle Eastern routes.

Airbus A321-111

With a length of 44.5ย metres, the Airbus A321-111 is the biggest brother in the A320 family. It is mainly used on short and medium-haul flights, such as those to Finland or Germany.

Airbus A320-200

From 1987, the Airbus 320 was the first passenger aircraft to be completely controlled by the fly-by-wire system, which was revolutionary at the time. This digital control technology is now standard. The Airbus is ideal for flights with a range of up to 3,600ย kilometres.

Airbus A319-111

The Airbus A319-111 has a length of 33.8ย meters, making it one of the smallest aircraft in the Airbus family. It is used for destinations up to 3,000ย kilometres. For example, it flies to Innsbruck and Sofia.

Embraer 195

The Embraer 195ย offers a surprising amount of space on short and medium-haul flights: thanks to the generous aisle height and seat width, up to 120ย passengers can travel in exceptional comfort. Austrian uses these aircraft to fly to destinations such as Amsterdam or Venice.

Bombardier Q400

In the areas of environmental sustainability, efficiency and convenience, the Q Series from Bombardier sets new standards. You can enjoy this travel experience at Austrian on European routes.

 

Top Copyright Photo: Austrian Airlines Airbus A320-214 OE-LBI (msn 1937) ZRH (Rolf Wallner). Image: 953896.

Austrian Airlines aircraft slide show:

Hawaiian Airlines ends โ€˜Ohana by Hawaiian service, ATRs to leave Hawaii

Cargo operations launched on August 13, 2018 with N810HC

Hawaiian Airlines announced on May 27 that it will not restart its โ€˜Ohana by Hawaiian passenger service between Honolulu and Molokaโ€˜i and Lฤnaโ€˜i as well as its statewide ATR freighter cargo service.

Freighter service with ATR 72 aircraft was suspended in November 2020 and passenger service with ATR 42 aircraft was halted January 14, 2021.

Above Photo: Konstantin von Wedelstaedt.

Service between Honolulu and Kapalua was suspended in March 2020. The severe decline in Neighbor Island travel demand resulting from the COVID-19 pandemic and state and county quarantine measures triggered a labor provision that led to the temporary suspension of passenger and cargo flights. Hawaiian decided to permanently end service following an in-depth assessment of the overall operation and its long-term viability.

Hawaiian would have incurred significant costs and faced numerous obstacles in restarting service with its current fleet of aircraft. The soonest flights could have resumed was at the end of this year.

โ€˜Ohana by Hawaiian was operated by Idaho-based Empire Airlines as a third-party feeder carrier. When service was at its peak, Empire employed 82 pilots, flight attendants and maintenance personnel in the state of Hawaiโ€˜i as well as 15 at its home base in Idaho. All 97 employees were dedicated to the โ€˜Ohana operation.

Contractor Worldwide Flight Services employed a staff of 28 to provide ground handling services. All other โ€˜Ohana by Hawaiian operations were managed by Hawaiian employees, who will be reassigned to other areas of the company.

Hawaiian has begun moving its ATR fleet to the U.S. mainland for storage and eventual sale. The company lent some of its ground support equipment to Mokulele Airlines, which is providing service between Honolulu and Molokaโ€˜i and Lฤnaโ€˜i.

Hawaiian launched โ€˜Ohana by Hawaiian flights in the spring of 2014, followed by all-cargo service in the summer of 2018.

Videos:

Top Copyright Photo: Ohana by Hawaiian-Empire Airlines ATR 72-212 (F) N810HC (msn 423) HNL (Ivan K. Nishimura). Image: 943082.

‘Ohana by Hawaiian aircraft slide show:

Spain reopens to leisure travel, Delta adds new flights to Europe

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Delta Air Lines has made this announcement:

After more than a year of restrictions on international travel, more European countries are reopening for U.S. leisure and other non-essential travelers โ€“ in time for those seeking new adventures this summer and to further support economic recovery from the global pandemic.

Spain is the latest country to reopen to leisure travel, as Spanish government officials announced last week that the country will open to vaccinated travelers beginning June 7. For customers who wish to connect with loved ones or enjoy new experiences, Delta currently serves Madrid daily from New York-JFK and will add three-times-per-week service from New York-JFK to Barcelona beginning June 6 and from ATL beginning Aug. 5.

As the European Union takes steps toward reopening borders, it is up to individual member countries to decide when and how to lift their restrictions. Delta will continue to expand service as travel returns and keep customers up to date on which international destinations are open to visitors.

Customers are encouraged to review entry requirements for their destination, including whether a vaccination certificate or negative COVID-19 test is required. You can find details on theย Delta Discover Mapย on delta.com or check the official government website of their destination country.

Hereโ€™s a snapshot of trans-Atlantic destinations that are currently open or that will open throughout the summer to vaccinated travelers and/or travelers with negative tests (seeย Deltaโ€™s Return to International Travelย page for details specific to each destination):

Destination Schedule Details
Athens, Greece
  • New daily service from ATL begins July 2 on Airbus A330-300
  • Daily service from JFK begins May 28 on Airbus A330-300
Dubrovnik, Croatia
  • New four-times-weekly service from JFK begins July 2 on Boeing 767-300ER
Barcelona, Spain
  • Three-times-weekly service from JFK begins June 6 on Boeing 767-300ER
  • Three-times-weekly service from ATL begins Aug. 5 on Boeing 767-300ER
Madrid, Spain
  • Daily service from JFK is now available on Boeing 767-300ER
Reykjavik, Iceland
  • New service from BOS is now available on Boeing 757-200
  • Service from JFK is now available on Boeing 757-200, 767-300ER from July 2
  • Service from MSP begins May 27 on Boeing 757-200
Milan, Italy
  • Daily service from JFK is now available on A330-300
Rome, Italy
  • Five-times-weekly service now available, daily service from ATL begins May 26 on Airbus A330-300
  • New service from BOS begins Aug. 5 on Boeing 767-300ER
  • Three-times-weekly service from JFK now available on Airbus A330, increasing to daily July 1
Venice, Italy
  • Five-times-weekly service from ATL begins Aug. 5 on Boeing 767
  • Daily service from JFK begins July 2 on Boeing 767-300ER

Flights to Croatia, Greece, Iceland and Spain are operated in partnership with Air France, KLM and Virgin Atlantic. Our flights to Italy are operated in conjunction with Alitalia. This schedule, including routes and frequency, remains subject to change.

Top Copyright Photo: Delta Air Lines Airbus A350-941 N506DN (msn 175) AMS (Ton Jochems). Image: 950895.

Delta aircraft slide show (Airbus):

KLM expands its intercontinental network this winter, adding six new destinations

Will become PH-BVV, "National Park Cocos Island"

KLM Royal Dutch Airlines made this announcement:

After the previously announced expansions in Europe for summer 2021, KLM will also be adding new destinations to its intercontinental network on commencement of its winter schedule (October 31, 2021 to March 26, 2022). This ties in with KLMโ€™s strategy of first expanding its network where recovery will be quickest, offering customers the broadest possible choice of destinations. The new destinations include Mombasa, Orlando, Cancun, Bridgetown, Port of Spain and Phuket.

The Kenyan beach destination of Mombasa will be served twice a week, operating Boeing 787-9 equipment. This aircraft type will also be used to operate flights to Orlando in Florida (four times a week) and to the Mexican beach resort of Cancun (three times a week). The Airbus A330 will fly customers to Bridgetown (Barbados, three times a week) and Port of Spain (Trinidad and Tobago, three times a week). The Thai island of Phuket will be served with four flights a week, operating Boeing 777-300 equipment.

Network strategy

During the Covid-19 pandemic, KLM has done everything possible to maintain its network of destinations in order to continue carrying cargo and enabling passengers to travel when necessary โ€“ of course, in accordance with the rules and regulations prescribed by both the Dutch government and local authorities. KLM will continue to work closely with the Dutch government to uphold effective and proportionate measures tailored to the situation in the Netherlands and abroad.

This strategy has served KLM well throughout the Covid-19 crisis. With the general situation and outlook now improving, network expansion is back on the agenda, especially within and to regions where recovery will be quickest. The six new destinations fit the bill.

The aim is to offer KLMโ€™s customers the biggest network possible. Network planning must be flexible, enabling KLM to respond quickly to market opportunities. With this expansion, the network of destinations will almost reach its pre-Covid-19 level, only utilising less capacity, and fewer frequencies and aircraft. Once demand increases, we will operate more flights and/or deploy larger aircraft.

Flight schedules

 

Mombasa will be combined with Nairobi on the return journey to Amsterdam. This also applies to Orlando and Miami. Phuket will be served both to and from Amsterdam via Kuala Lumpur. Bridgetown and Port of Spain will be combined and Cancun will be a non-stop connection.

The flight schedules will be as follows for the six new destinations:

Flight number From/to Days of the week Departure time Arrival time

Mombasa

KL0563 Amsterdam-Mombasa Thurs/Sun 10:10 20:50
KL0563 Mombasa-Nairobi Thurs/Sun 21:40 22:50
KL0563 Nairobi-Amsterdam Thurs/Sun 23:59 06:25*

Orlando

KL0625 Amsterdam-Orlando Mon/Sat 11:15 15:00
KL0625 Orlando-Miami Mon/Sat 16:45 17:50
KL0625 Miami-Amsterdam Mon/Sat 18:50 09:15*
KL0629 Amsterdam-Miami Thurs/Fri 10:40 14:40
KL0629 Miami-Orlando Thurs/Fri 16:30 17:35
KL0629 Orlando-Amsterdam Thurs/Fri 18:35 08:40*

Cancun

KL0689 Amsterdam-Cancun Tue/Thurs/Sat 10:40 15:40
KL0690 Cancun-Amsterdam Tue/Thurs/Sat 17:40 08:50*

Bridgetown and Port of Spain

KL0781 Amsterdam-Bridgetown Mon/Thurs/Sat 12:25 16:45
KL0781 Bridgetown-Port of Spain Mon/Thurs/Sat 17:50 19:00
KL0781 Port of Spain-Amsterdam Mon/Thurs/Sat 20:35 10:30*

Phuket

KL0801 Amsterdam-Kuala Lumpur Mon/Wed/Fri/Sat 20:50 15:45*
KL0801 Kuala Lumpur-Phuket Tue/Thurs/Sat/Sun 17:05 17:35
KL0802 Phuket-Kuala Lumpur Tue/Thurs/Sat/Sun 20:00 22:30
KL0802 Kuala Lumpur-Amsterdam Tue/Thurs/Sat/Sun 23:50 05:55*

(*) Arrives the next day

All times are local. Flight schedules are subject to change.ย 

Top Copyright Photo: KLM Royal Dutch Airlines Boeing 777-300 ER N5514J (PH-BVV) (msn 66888) PAE (Nick Dean). Image: 952537.

KLM aircraft slide show:

Air France strengthens its flight schedule to the French Overseas Territories, Caribbean and Indian Ocean

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Air France is increasing the number of long-haul services to its leisure destinations. Subject to the relaxation of travel restrictions,ย the airline now plans to operate up to 98 weekly flights this summer to the French Caribbean, Reunion Island, French Guiana, French Polynesia, Saint-Martin, the Dominican Republic and the Riviera Maya in Mexico.

This summer, Guadeloupe, Martinique, French Guiana and Reunion Island will be linked to both Paris-Charles de Gaulle and Paris-Orly, providing connections to the entire Air France short, medium and long-haul network.


Flight schedule โ€“ 2021ย summer season:

On departure from Paris-Orly:

  • Pointe-ร -Pitreย (Guadeloupe),ย Fort-de-Franceย (Martinique),ย Saint-Denis de La Rรฉunion:
    o Up to 14 weekly flights to each destination
  • Cayenne (French Guiana):
    o Up to 7 weekly flights

On departure from Paris-Charles de Gaulle:

  • (Guadeloupe),ย Fort-de-Franceย (Martinique),ย Saint-Denis de La Rรฉunion:
    โ€‹o Up to 7 weekly flights to each destination
  • Cayenne (French Guiana):
    o Up to 3 weekly flights
  • Papeete (French Polynesia):
    o Up to 3 weekly flights
  • Saint Martin:
    o Up to 7 weekly flights
  • Punta Cana (Dominican Republic):
    o Up to 7 weekly flights
  • Santo Domingo (Dominican Republic):
    o Up to 3 weekly flights
  • Cancun (Mexico):
    o Up to 5 weekly flights


Flights will be operated by Boeing 777 and Airbus A330 equipped with the Business, Premium Economy and Economy cabins.

Still subject to the lifting of travel restrictions, Air France also plans to serve the following overseas, Caribbean and Indian Ocean destinations from Paris-Charles de Gaulle this summer:ย Antananarivoย (Madagascar),ย Havanaย (Cuba) andย Port-Louisย (Mauritius).
Top Copyright Photo: Air France Boeing 777-328 ER F-GSQS (msn 32962) DUB (Greenwing). Image: 929141.

Air France aircraft slide show:

Air France operates its first long-haul flight powered by Sustainable Aviation Fuel (SAF)

Air France-KLM, Total, Groupe ADP and Airbus have joined forces to carry out the first long-haul flight powered by Sustainable Aviation Fuel (SAF) (1)ย produced in France. At 3:40 p.m. today, Air France Flight 342 took off from Paris-Charles de Gaulle airportโ€™s Terminal 2E for Montreal with its tanks filled for the first time with sustainable aviation fuel produced in Totalโ€™s French plants.

This flight is a tangible result of the four groupsโ€™ shared ambition to decarbonize air transportation and to develop a SAF supply chain in France, prerequisite to the generalization of their use in French airports.

No modifications to storage and distribution infrastructure, aircraft or engines are required to incorporate biofuels. Their gradual introduction worldwide should significantly reduce CO2ย emissions from air transportation, in line with the United Nationsโ€™ Sustainable Development Goals.

The biofuel used for this flight was made from waste and residue sourced from the circular economy. Total produced the SAF from used cooking oil at its La Mรจde biorefinery in southern France and at its Oudalle factory near Le Havre, without using any virgin plant-based oil.

This first 100% French SAF received ISCC-EU certification from the International Sustainability & Carbon Certification System, an independent organization that guarantees sustainability. The 16% blend on this flight avoided the emission of 20 tons of CO2.

By developing and supporting Franceโ€™s first industrial SAF production, Air France-KLM, Total, ADP Group and Airbus are paving the way for France to drive innovation in the energy and environmental transition. French legislation calls for aircraft to use at least 1% SAF by 2022 for all flights originating in France, ahead of the European ambition scheduled to gradually ramp up to 2% by 2025 and 5% by 2030, as part of the European Green Deal.

To meet these requirements, Total will also produce SAF at its Grandpuits zero-crude platform near Paris as from 2024.

This flight also illustrates the synergy of the different drivers for reducing aviationโ€™s environmental footprint, i.e., sustainable aviation fuel, latest-generation aircraft and electrification of ground operations. The Airbus A350 used for the flight consumes 25% less fuel than its predecessor. Whatโ€™s more, the aircraft was serviced by the first 100% all-electric refueling truck, developed in France with Total expertise, and all of the ground support equipment used by Air France was fully electric powered.

Air France-KLM is a pioneer in testing sustainable aviation fuels. KLM made its first SAF-powered flight in 2009. Since then, the Group has multiplied the number of innovative programs. Between 2014 and 2016, for example, it carried out 78 Air France flights powered by a 10% SAF blend in collaboration with a Total affiliate. These tests showed that the use of SAF had no impact on the reliability of airline operations. Air France-KLM intends to strengthen its leadership in SAF in the years ahead, while contributing to research on future generations of aircraft.

In addition to this flight, Airbus is conducting several series of tests to certify airliners to fly with 100% SAF in the coming decades. Airbus has also installed SAF refueling stations at its industrial facilities so it can be used in production operations, as well as for aircraft deliveries. ย These installations contribute to Airbusโ€™s ambition to decarbonize all of its industrial operations.

WestJet welcomes the findings outlined by the Health Canada Testing and Screening Expert Advisory Panel in theย Border Measures Report

WestJet welcomes the findings outlined by the Health Canada Testing and Screening Expert Advisory Panel in theย Border Measures Report released on May 27 and thanks the panel for their efforts in bringing forward this report.

“Over the past 15 months, WestJet has been requesting science-based travel guidance and this report represents a responsible path forward,” said Ed Sims, WestJet President and CEO. “These findings are evidence-based recommendations that are proportionate and reduce risks. We ask that the government immediately prepare a safe restart plan based on this report and current global policies. With vaccinations ramping up, Canadians need to know they can travel once again.”

Outlined in the report and demonstrated successfully by the Alberta Testing Pilot Program, YVR’s Pre-Departure Testing Program and the McMaster Study, programs in which WestJet was an active participant, the relationship betweenย testingย andย quarantine can safely evolve based on science, data and vaccination levels.

As vaccination rates continue to rise, we are optimistic that based off the report’s recommendations, Canadians can look forward to the easement of onerous border measures. WestJet will continue to advocate for policy changes that support Canada’s recovery and the restoration of more than 750,000 travel and tourism industry jobs.

WestJet remains committed to building back even stronger for the betterment of all Canadians. A healthy WestJet will help lead a stronger recovery, increasing competition and consumer choice while lowering the cost of travel for Canadians, all while safely anchoring Canada’s vital air travel and tourism sectors.

Spirit Airlines adds two more routes from Louisville

Spirit Airlines has announced the addition of two new, nonstop routes from the Derby City to Tampa (TPA) and Fort Myers (RSW) on Florida’s Gulf Coast starting later this year.ย 

Flights from Louisville (SDF)

Destination:

Flights Available:

Launch Date:

Fort Lauderdale (FLL)

Daily

May 27, 2021

Las Vegas (LAS)

Daily

May 27, 2021

Los Angeles (LAX)

Daily

May 27, 2021

Orlando (MCO)

Daily

May 27, 2021

Pensacola (PNS)

3X Weekly

June 10, 2021

Fort Myers (RSW)ย NEW

4X Weekly

Nov. 17, 2021

Tampa (TPA)ย NEW

3X Weekly

Nov. 18, 2021

Spirit flight 1227 will be the airline’s first departure from Louisville Muhammad Ali International Airport (SDF). Plans call for it to leave under a water cannon salute with nonstop service to Fort Lauderdale/Hollywood. The rest of the day’s schedule calls for flights to and from Orlando, Las Vegas and Los Angeles with service to Pensacola following in June. Thursday’s announcement means SDF travelers will be able to catch nonstop flights to seven citiesโ€”and connections throughout the U.S., Latin America and the Caribbeanโ€”while enjoying Spirit’s famous low fares, Signature Service and on-time performance.

Spirit continues to seize growth opportunities as demand for air travel increases. This year, 16 new fuel-efficient Airbus A320neo planes will join the airline’s Fit Fleetโ„ข, which is among the youngest in the industry. Next year, Spirit plans to accept another 21 new planes.

Alaska Airlines is coming to Belize

Alaska Airlines has made this announcement:

Looking to escape to a new tropical destination from the West Coast? Alaska Airlines is expanding its horizons to the breathtaking beaches, idyllic islands and ancient culture ofย Belizeย beginning this fall.

Seasonal service will operate four times a week betweenย Los Angelesย andย Belizeย City (BZE), and twice weekly betweenย Seattle/Tacomaย andย Belizeย City, beginningย Nov. 19 โ€“ just in time for the holiday season.

Xunantunich – Mayan Ruins

Flight times based on local times

The Great Blue Hole, Belize

Belizeย will be the fourth countryย Alaskaย flies to from its West Coast hubs, joiningย Canada,ย Mexicoย andย Costa Rica.

SAS reports on the COVID-19 impacted results of the second quarter

Delivered on February 7, 2020

Scandinavian Airlines-SAS issued this financial report on the second quarter:

Q2 2021 –ย A QUARTER DOMINATED BY THE ONGOING PANDEMIC

FEBRUARY 2021โ€“APRIL 2021

  • Revenue: MSEK 1,932 (5,264)
  • Income before tax (EBT): MSEK -2,361 (-3,722)
  • Income before tax and items affecting comparability: MSEK -2,361 (-3,714)
  • Net income for the period: MSEK -2,433 (-3,470)
  • Earnings per common share: SEK -0.35 (-9.15)

SIGNIFICANT EVENTS DURING THE QUARTER

  • The Board of SAS appointed Anko van der Werff as President and CEO. The Board concurrently appointed Karl Sandlund, Chief Commercial Officer at SAS, as acting President and CEO.
  • SAS secured financing for the majority of its aircraft deliveries until the second quarter of 2022.

SIGNIFICANT EVENTS AFTER THE QUARTER

  • SAS has ensured that there is support from the main owners, the Governments of Denmark and Sweden, to gain access to a credit facility amounting to SEK 3.0 billion.

NOVEMBER 2020โ€“APRIL 2021

  • Revenue: MSEK 4,214 (14,971)
  • Income before tax (EBT): MSEK-4,297 (-4,809)
  • Income before tax and items affecting comparability: MSEK -4,309 (-4,792)
  • Net income for the period: MSEK -4,483 (-4,331)
  • Earnings per common share: SEK -0.64 (-11.49)

COMMENTS BY THE CEO

New coronavirus cases remained high during the quarter, resulting in strict travel restrictions and low demand for flights. Focus for the quarter has been on lowering SASโ€™ costs, preserving liquidity and further strengthening SASโ€™ future competitiveness. The increase in vaccination rates provides some hope for the relaxation of restrictions, and an increase in demand ahead of the important summer season.

CONTINUED NEGATIVE IMPACT FROM THE PANDEMIC

Even if the number of people vaccinated is growing globally,ย high numbers of new cases and strict travel restrictionsย continue to impact society and slow recovery for the airline industry. Demand remained low during the second quarter and the number of passengers fell 2.4 millionย year-on-year, and was down 140,000 on the previous quarter.

SAS is continuing to successfullyย adapt production to the prevailing circumstances, which is reflected with an unchanged load factor compared with the previous quarter. As a direct consequence ofย fewer passengers, revenue fellย SEK 3.3 billionย (-63%)ย year-on-year andย SEKย 350 million (-15%)ย compared with our first quarter.

Weak demandย makes it necessary to continue to adapt operations and reduce costsย to offset the substantial loss of revenue. This has resulted in costs being SEK 4.6 billion (down: -54%) lower year-on-yearย and almost SEK 0.5 billionย (down: -11%) lower than in the previous quarter. Despite the loss for the quarter amounting to SEK 2.4 billion, SASย posted an improved EBIT for the first time since the pandemicโ€™s outbreak, bothย year-on-year andย compared with the previous quarter.

Another prioritized area is to secure liquidity for when demand once again normalizes. Through active efforts to improve operational cash flowย in parallel with SAS securing a number of major financing transactions, cash at the end of the quarter amounted to SEK 4.4 billion. Down only SEK 300 million compared with the end of the first quarter. Moreover, SAS has secured financing for the majority of its aircraft deliveries until the second quarter of 2022.

PENT-UP DEMAND AHEAD OF THE IMPORTANT SUMMER SEASON

Infection, delayed vaccinations and continued stringent travel restrictions have led to a slower than hoped for recovery. However, SAS is ready to welcome our customers back on board as travel restrictions ease ahead of the important summer season. For the summer, SAS is opening 180 direct routes and also increasing capacity on domestic routes within the Scandinavian countries. After the quarter ended, we also announced an extended partnership with Airtours over the next four years, starting in the summer of 2021 and corresponding to a value of approximately SEK 800 million.

To reduce uncertainty when booking flights, SAS is offering more flexible ticket rules and generous rebooking alternatives. We are also now launching SAS Travel Ready Center, a digital tool, to make it easier for passengers to access information about current travel restrictions concerning their destinations and to upload necessary travel documents.

Together with an increased belief in relaxed restrictions and a number of positively received campaigns, these activities have increased forward bookings for the summer and autumn, albeit from lower levels compared with what is typical for this time of the year.

Customersโ€™ booking patterns have also changed during the pandemic. Many customers are now increasingly choosing to book their tickets much closer to their travel dates, which makes it difficult to predict demand during the summer. The most crucial factor for an airline industry recovery is the relaxation of travel restrictions. Since the rates of infection and vaccinations are decisive in this regard, SAS is carefully following vaccination trends across the world.

The prevailing uncertainty means that access to liquidity is essential for all airlines. SAS has therefore ensured that there is support from the major shareholders, the Governments of Denmark and Sweden, to gain access to a credit line facility amounting to SEK 3.0 billion. The aim of credit line facility is to create a liquidity buffer as a complement to other ongoing activities at SAS to reduce costs and strengthen liquidity.

ADAPTATION TO CHANGED MARKET CONDITIONS

SASย expects significantly changed market conditions following the pandemic,ย with a greater number of leisure travelers and even more intense competition.

Retaining our position as market leader in Scandinavia following the pandemic will require SAS to continue to adapt operations to future market conditions. During the pandemic, SASย has streamlined all aspects of its operations, reduced the number of employees, entered into new collective agreements to increase productivity and reached agreements concerning frozen salary levels. These necessary measures have had a substantial impact and reduced personnel expenses almost 35% year-on-year. Moreover, we have negotiated agreements with suppliers, whichย has resulted in deferred payments, lower costs and a higher variable component in relation to fixed costs.

However, there will be even greater requirements for efficiency and seasonally adapting operations moving forward. Access to flexible and suitable production is required to be able to offer a complete network and a timetable adapted to Scandinavian requirements for business, leisure and regional destinations. Accordingly, SAS is continuing to develop its operational model that has proved successful in the past few years.

SAS has signedย a new collective bargaining agreement for pilots and cabin crew with the Danish union FPU which is a part of FH (The Danish Confederation of Trade Unions). The new agreement means that SASย can establish a complementary base in Copenhagen. With the agreement, SAS improves the flexibility and seasonal adaptations required to maintain its leading position in Scandinavia. As a first step, SAS intends to create new workplaces in Denmarkย instead of reopening the base in Malaga that closed earlier as a direct result of the pandemic. The new Danish operation will be established using our European operating license, which guarantees a quick and cost-efficient start of operations.

SAS remains committed to its ambitious sustainability target of reducing carbon emissions 25% already by 2025 compared with the base year 2005.ย  In the short term, anย accelerated phase-out of older aircrafts means that the share of new, fuel-efficient aircraft in the fleet is rapidly increasing. This is also having a direct impact on our emissions reporting, where carbon emissions per available seat kilometer decreased more than 10% year-on-year. During the quarter, we also secured a minimum of 20% of our planned need of sustainable aviation fuel until 2025.

To conclude, on behalf of the Board of Directors and all the employees at SAS, myself included, I would like to thank Rickard Gustafson, who held the position as President and CEO of SAS with a great level of commitment for a decade. Rickard applied a good leadership culture in his leadership of the company through the necessary change process applicable for SAS and the airline industry as a whole. We wish him every success with his new assignment. At the same time, I would like to wish Ankoย van der Werff a warm welcome as SASโ€™ new CEO in July.

I would also like to thank all of my colleagues at SAS for their commitment and endeavors as well as our customers for all their support. As Scandinaviaโ€™s leading airline, we look forward to being able to welcome our passengers back on board.

Karl Sandlund

Acting President and CEO,ย Stockholm, May 27, 2021

Top Copyright Photo: Scandinavian Airlines-SAS Airbus A350-941 SE-RSB (msn 378) IAD (Brian McDonough). Image: 949631.

SAS aircraft slide show: