Ryanair to further cut its winter schedule due to decreased demand

Ryanair has released its revised winter schedule. Due to increased flight restrictions imposed by EU Governments, air travel to/from much of Central Europe, the UK, Ireland, Austria, Belgium and Portugal have been heavily curtailed. This has caused forward bookings to weaken slightly in October, but materially in November and December.

In light of these weaker bookings, and Ryanair’s plan to operate with a 70% load factors, Ryanair has today further reduced its winter schedule (November – March) taking capacity down from 60% to 40% of prior year. Ryanair expects to maintain up to 65% of its winter route network, but with reduced frequencies. In addition to the winter closure of bases in Cork, Shannon, and Toulouse, Ryanair has announced significant base aircraft cuts in Belgium, Germany, Spain, Portugal and Vienna.

With this greatly reduced winter capacity and load factors of approx. 70%, Ryanair now expects full year (FY21) traffic to fall to approximately 38m guests, although this guidance could be further revised downwards if EU Governments continue to mismanage air travel and impose more lockdowns this winter.

Ryanair’s Group CEO Michael O’Leary said:

“We have continued to flex our capacity in Sept & Oct to reflect both market conditions and changing Government restrictions, with the objective of sustaining a 70% load factor, which allows us operate as close to breakeven as possible and minimise cash burn. While the Covid situation remains fluid and hard to predict, we must now cut our full year traffic forecast to 38m guests.

While we deeply regret these winter schedule cuts they have been forced upon us by Government mismanagement of EU air travel. Our focus continues to be on maintaining as large a schedule as we can sensibly operate to keep our aircraft, our pilots and our cabin crew current and employed while minimising job losses. It is inevitable, given the scale of these cutbacks, that we will be implementing more unpaid leave, and job sharing this winter in those bases where we have agreed reduced working time and pay, but this is a better short term outcome than mass job losses. There will regrettably be more redundancies at those small number of cabin crew bases, where we have still not secured agreement on working time and pay cuts, which is the only alternative. We continue to actively manage our cost base to be prepared for the inevitable rebound and recovery of short haul air travel in Europe once an effective Covid-19 vaccine is developed.

In the meantime, we urge all EU Governments to immediately, and fully, adopt the EU Commission’s Traffic Light System, which allows for safe air travel between EU states on a regional basis to continue (without defective travel restrictions) for those countries and regions of Europe, who are able to demonstrate that their Covid case rates are less than 50 per 100,000 population.”

Ryanair aircraft photo gallery:

United Airlines shifts from surviving the COVID-19 crisis to positioning to lead the rebound

United Airlines made this announcement:

United Airlines (UAL) today announced third-quarter 2020 financial results. Since the beginning of the crisis, the company has been at the forefront of the industry in delivering on its three-pillar strategy of building and maintaining liquidity, minimizing cash burn and variabilizing its cost structure. Achieving these objectives has supported the airline’s ability to manage the crisis as well as or better than its competitors and positions United to lead the industry when demand for air travel returns.

In addition, United expects that third-quarter revenue performance will be the best, even in a historically difficult environment, among our large network competitors – once they have all reported their quarterly results. By almost any revenue measure, the company expects on a year-over-year basis, with our total unit revenue of down 26 percent, passenger unit revenue of down 47 percent, cargo revenue of up 50 percent and loyalty revenue of down 45 percent to be stronger results than those that will be achieved by each of our legacy competitors.

“Having successfully executed our initial crisis strategy, we’re ready to turn the page on seven months that have been dedicated to developing and implementing extraordinary and often painful measures, like furloughing 13,000 team members, to survive the worst financial crisis in aviation history,” said United CEO Scott Kirby. “Even though the negative impact of COVID-19 will persist in the near term, we are now focused on positioning the airline for a strong recovery that will allow United to bring our furloughed employees back to work and emerge as the global leader in aviation.”

United CleanPlus: Keeping Our Customers and Employees Safe

Partnered with the Defense Advanced Research Projects Agency (DARPA) to study how effectively the unique airflow configuration on board an aircraft can prevent the spread of aerosolized particles among passengers and crew.
Only airline maximizing ventilation systems by running the auxiliary power on mainline aircraft during the entire boarding and deplaning process, so our customers and crew get the important safety benefits provided by high-efficiency particulate air (HEPA) filtration systems.
First U.S. airline to announce the launch of a COVID-19 pilot testing program for customers traveling on United from San Francisco International Airport (SFO) to Hawaii.
Added Zoono Microbe Shield, an EPA-registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes, to the airline’s already rigorous safety and cleaning procedures and expects to add the coating to the entire mainline and express fleet before the end of the year.
Since COVID-19 began, first major U.S. airline to require flight attendants to wear masks onboard, and among first to require all customers to wear masks onboard. In the third quarter, extended mask requirements to require customers to wear a face covering in the more than 360 airports where United operates around the world, including United customer service counters and kiosks, United Club locations, United’s gates, and baggage claim areas.
Launched the United Automated Assistant, a new chat function that gives customers a contactless option to receive immediate access to information about cleaning and safety procedures put in place due to COVID-19.
Began cleaning pilot flight decks with Ultraviolet C (UVC) lighting technology on most aircraft at hub airports to disinfect the flight deck interior and continue providing pilots with a sanitary work environment.

Pillar 1 – Raising and Maintaining Liquidity

Since March, the company has raised over $22 billion through commercial debt offerings, stock issuances and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) Payroll Support Program grant and loan, among other items.
The company’s total available liquidity¹ at the end of the third quarter 2020 was approximately $19.4 billion.
Entered into the first-of-its-kind loyalty backed transaction, borrowing $6.8 billion secured against MileagePlus Holdings in the form of a $3.8 billion bond and a $3.0 billion term loan.
Secured the ability to borrow $5.2 billion with the U.S. Treasury under the CARES Act loan program between now and March 2021 and expects to have the ability to increase the borrowing capacity up to $7.5 billion, subject to government approval.
Entered into an agreement with CDB Aviation to finance, via a sale leaseback transaction, two Boeing 787-9 and ten Boeing 737 MAX aircraft that are currently subject to purchase agreements between United and The Boeing Company.

Pillar 2 – Minimizing Cash Burn

Reduced total operating costs by 59 percent versus the third quarter of 2019. Excluding special charges², reduced operating costs by 48 percent versus the third quarter of 2019.
Achieved target average daily cash burn³ during the third quarter of $21 million plus $4 million of average debt principal payments and severance payments per day, compared to second-quarter average daily cash burn of $37 million plus $3 million of debt principal payments and severance payments per day.

Pillar 3 – Variabilizing Cost Structure

Reduced non-labor operating expenses, excluding special charges and depreciation, by 63 percent in the third quarter, against a capacity reduction of 70 percent.
Restructured and significantly reduced our management and administrative functions. These reductions are expected to be largely permanent, even as demand recovers.
Reached a landmark agreement with its pilot group that avoids furloughs by securing flexibility in work hours, while also reaching agreements to provide a path to early retirement and reduce expense through voluntary leave of absence programs. These agreements position the company to rebound quickly when demand returns.
Created a program with the Association of Flight Attendants (AFA) that reduced 3,300 flight attendant furloughs while allowing the company to react more quickly to network changes.
Reduced furloughs of International Association of Machinists and Aerospace Workers (IAM) represented employees through an agreement that incentivizes employees to take a leave of absence.
Worked with the union representing dispatchers to reduce furloughs and create staffing flexibility as demand returns through an agreement that allows dispatchers to voluntarily reduce their work schedules.
Offered employees comprehensive voluntary separation packages, retirement packages and/or extended leaves of absence with approximately 9,000 employees opting to participate.

Third-Quarter Financial Results

The company had a net loss of $1.8 billion, and an adjusted net loss⁴of $2.4 billion.
Total operating revenues were down 78 percent year-over-year, on a 70 percent decrease in capacity year-over-year.
Passenger revenue was down 84 percent year-over-year.

Expanding Customer Benefits

First among U.S. global airlines to permanently eliminate change fees on all standard economy and premium cabin tickets for travel within the U.S., and starting January 1, 2021, any United customer can fly standby for free on a flight departing the day of their travel regardless of the type of ticket or class of service.
First U.S. airline to introduce the Destination Travel Guide, a new interactive map tool on united.com and the United mobile app that allows customers to filter and view destinations’ COVID-19 related travel restrictions.
First U.S. airline to introduce an interactive map feature for customers on united.com, powered by Google Flight Search Enterprise Technology, to easily compare and shop for flights based on departure city, budget and location type. Customers can simultaneously compare travel to various destinations in a single search.
Announced plan to continue installing Polaris Business Class on Boeing 787 fleet.

Reimagining Our Route Network

Announced 28 new domestic routes and 9 new international routes.
Resumed nonstop service on 146 domestic routes.
Resumed and/or launched service on 78 international routes to 33 destinations in 18 countries around the world, including: Aruba, Belgium, Brazil, Canada, China, Costa Rica, Dominican Republic, El Salvador, French Polynesia (Tahiti), Guatemala, Honduras, India, Ireland, Jamaica, Philippines, Singapore, South Korea and Switzerland.
Compared to June, United had nonstop service in 127 more domestic and 29 more international markets in July, 157 more domestic and 57 more international markets in August, and 151 more domestic and 80 more international markets in September.
Announced increased service to China from two to four weekly flights between San Francisco and Shanghai’s Pudong International Airport. Once service resumes, United will be the only U.S. airline flying to mainland China directly.
Announced plans to expand global route network with new nonstop service to Ghana, Hawaii, India, Nigeria, and South Africa. With these new routes, United will offer more nonstop service to India and South Africa than any other U.S. carrier and remain the largest carrier between the U.S. mainland and Hawaii.
Announced plans to add up to 28 daily nonstop flights this winter connecting customers in Boston, Cleveland, Indianapolis, Milwaukee, New York/LaGuardia, Pittsburgh, and Columbus, Ohio to four popular Florida destinations.
Announced plans to fly roughly 40 percent of its full schedule in October 2020 compared to October of last year.
Increased cargo revenue by 50 percent by leveraging international flying and deploying strategic international cargo-only missions.

Doing Our Part to Help Fight COVID-19 Since Crisis Began

Booked over 2,900 free flights for medical professionals to support COVID-19 response in New Jersey/New York and California.
More than 19.2 million miles donated by MileagePlus members and 7.6 million miles matched by United to help organizations providing relief during COVID-19.
Donated nearly 1.2 million pounds of food from United Polaris lounges, United Club locations, and catering kitchens to local food banks and charities.
Over 7,500 face masks were made from upcycled unused employee uniforms.
More than 800 gallons of hand sanitizer produced by United employees in San Francisco for use by United employees.
Donated 15,000 pillows, 2,800 amenity kits, and 5,000 self-care products to charities and homeless shelters.
More than 2.2 million pounds of food and household goods were processed by United employees at the Houston Food Bank.
Flew more than 146.8 million pounds of medical equipment and personal protective equipment (PPE) and 3.1 million pounds of supplies to support military troops.
More than 2,400 United employees worldwide have volunteered, with over 33,400 hours served.
United began flying a portion of its Boeing 777 and 787 fleet as dedicated cargo charter aircraft, as of March 19, to transfer freight to and from U.S. hubs and key international business locations. Since then, we have operated over 6,500 cargo-only flights and moved over 223 million pounds of a variety of goods.
Through a combination of cargo-only flights and passenger flights, United has transported more than 401 million pounds of freight, which includes 154 million pounds of vital shipments, such as medical kits, PPE, pharmaceuticals and medical equipment, and more than 3 million pounds of military mail and packages.

JetBlue adds winter service to Montrose/Telluride, CO

JetBlue Airways today announced it will launch new nonstop winter seasonal service to Telluride, Colorado – one of the premier ski destinations in the West – from Boston Logan International Airport (BOS), New York John F. Kennedy International Airport (JFK) and Los Angeles International Airport (LAX). The three new routes launch on December 19, 2020.

JetBlue will serve Montrose Regional Airport (MTJ) in western Colorado, just 90 minutes north of the famed ski destination. JetBlue will be the only airline to offer nonstop service between Montrose and New England and will offer a new choice for ski-bound travelers in New York City and Southern California.

Schedule between Boston (BOS) and Montrose, Colo. (MTJ)
Saturdays & Select Wednesdays | December 19, 2020 – March 27, 2021

BOS – MTJ Flight #2325	MTJ – BOS Flight #2326
9:05 a.m. – 12:25 p.m.	1:10 p.m. – 7:35 p.m.

Schedule between New York (JFK) and Montrose, Colo. (MTJ)
Limited Saturdays | December 19 – February 20, 2021

JFK – MTJ Flight #2543	MTJ – JFK Flight #2542
8:00 a.m. – 11:07 a.m.	12:00 p.m. – 6:07 p.m.

Schedule between Los Angeles (LAX) and Montrose, Colo. (MTJ)
Limited Saturdays | December 19 – February 20, 2021

LAX – MTJ Flight #2540	MTJ – LAX Flight #2541
10:30 a.m. – 1:30 p.m.	2:20 p.m. – 3:35 p.m.

JetBlue will operate all routes using its Airbus A320 aircraft.

WestJet pulls back from Atlantic Canada

WestJet today announced it will be indefinitely suspending operations to Moncton, Fredericton, Sydney and Charlottetown, while significantly reducing service to Halifax and St. John’s. The suspension eliminates more than 100 flights weekly or almost 80 percent of seat capacity from the Atlantic region starting November 2 and also suspends operations to Quebec City, with the removal of Toronto service.

“It has become increasingly unviable to serve these markets,” said Ed Sims, WestJet President and CEO. “Since the pandemic’s beginning, we have worked to keep essential air service to all of our domestic airports, however, demand for travel is being severely limited by restrictive policies and third-party fee increases that have left us out of runway without sector-specific support.”

With today’s announcement, all flights to and from Moncton, Fredericton, Sydney, Charlottetown and Quebec City will be discontinued as of November 2. A return to service date is unknown at this time. Guests impacted will be contacted directly regarding their options for travel to and from the region.

Since 2003, WestJet has successfully brought competition and lower fares to the Atlantic region through new service and routes, while driving tourism and business investments. As of 2019, the airline had added more than 700,000 annual seats to the region since 2015, while creating the opportunity for travel to, from and within the region on 28 routes. The airline has also worked to grow Halifax as the Atlantic gateway to Europe through the introduction of successful nonstop transatlantic service to London-Gatwick, Paris, Glasgow and Dublin since 2016, providing key economic and tourism links between the regions. Up until this announcement, WestJet was the only Canadian airline that maintained 100 per cent of its pre-COVID domestic network.

In addition to the Atlantic Canada service changes, WestJet today also announced the airline will be laying off an additional 100 corporate and operational support employees as prospects for any near-term recovery continue to fade and demand remains weak across its operations. These permanent layoffs do not include airport staff from affected Atlantic airports due to WestJet’s previous airport transformation announcement.

Temporary Route Suspensions:

Route	Planned 2020 Frequency (Pre-COVID)	Current Frequency	Frequency Effective Nov. 2, 2020
Halifax – Sydney	1x daily	2x weekly	Suspended
Halifax – Ottawa	1x daily	2x weekly	Suspended
Moncton – Toronto	3x daily	4x weekly	Suspended
Fredericton – Toronto	13x weekly	4x weekly	Suspended
Charlottetown – Toronto	3x weekly	2x weekly	Suspended
St. John’s – Toronto	1x daily	5x weekly	Suspended
Quebec City – Toronto	3x daily	4x weekly	Suspended

Planned service in Atlantic Canada as of Nov. 2, 2020:

Route	Frequency Effective Nov. 2, 2020
Halifax – Toronto	2x daily
Halifax – Calgary	9x weekly
Halifax – St. John’s	11x weekly

SAS launches new shareholder program

Scandinavian Airlines-SAS has made this announcement:

SAS shareholders are an important part of the company’s future. SAS consequently launches a new shareholder program with exclusive travel benefits for shareholders that are EuroBonus members and own more than 4 000 shares.

All shareholders that are EuroBonus members and owners of more than 4 000 shares on November 30, 2020, are eligible to join the shareholder program. Members of the program will receive the campaigns provided to SAS employees 2-3 times a year, with heavily discounted prices on selected domestic and international air fares.

Shareholders with 100 000-1 million shares by November 30, 2020, also have a possibility to receive EuroBonus Gold status.

Shareholders with more than 1 million shares by November 30, 2020, have a possibility to receive EuroBonus Diamond status.

SAS shareholders play an important part in supporting SAS as a vital part of Scandinavian infrastructure and on our journey towards global leadership within sustainable aviation.

Porter Airlines extends service restart to December 15

Porter Airlines made this announcement:

Porter Airlines is extending its temporary service suspension to Dec. 15, based on continuing travel restrictions associated with COVID-19.

“The flare up of COVID-19 cases in certain markets during the last month dampened any expectation of changes to government restrictions that will enable us to begin flying again in November,” said Michael Deluce, president and CEO, Porter Airlines. “The federal government is indicating that they need more confidence about what course the pandemic will take before restrictions are reconsidered. We hope that lifting of travel restrictions will soon be possible given evolving technology, such as rapid testing, and health and safety investments that the travel industry is making.”

Porter is waiving change and cancellation fees on all fares booked through Dec. 15, including Porter Escapes vacation packages.

Porter temporarily suspended operations as of March 21, 2020 due to COVID-19.

Delta Air Lines announces third quarter financial results, announces fleet retirements

Delta Air Lines today reported financial results for the September quarter 2020. Detailed results, including both GAAP and adjusted metrics, are on page four and are incorporated here.

“While our September quarter results demonstrate the magnitude of the pandemic on our business, we have been encouraged as more customers travel and we are seeing a path of progressive improvement in our revenues, financial results and daily cash burn,” said Ed Bastian, Delta’s chief executive officer. “The actions we are taking now to take care of our people, simplify our fleet, improve the customer experience, and strengthen our brand will allow Delta to accelerate into a post-COVID recovery.”

September Quarter Financial Results

Adjusted pre-tax loss of $2.6 billion excludes $4.0 billion of items directly related to the impact of COVID-19 and the company’s response, including fleet-related restructuring charges and charges for voluntary separation and early retirement programs for Delta employees, which were partially offset by the benefit of the CARES Act grant recognized in the quarter
Total adjusted revenue of $2.6 billion declined 79 percent on 63 percent lower capacity versus prior year
Total operating expense, which includes the $4.0 billion of COVID-related items described above, decreased $1.0 billion over prior year. Adjusted for those items and third-party refinery sales, total operating expense decreased $5.5 billion or 52 percent in the September quarter compared to the prior year, driven by lower capacity- and revenue-related expenses and strong cost management in the business
At the end of the September quarter, the company had $21.6 billion in liquidity
During the September quarter cash burn (see Note A) averaged $24 million per day, and $18 million per day for the month of September

Revenue Environment

Delta’s adjusted operating revenue of $2.6 billion for the September quarter was down 79 percent versus the September 2019 quarter as demand for air travel remains under significant pressure. Passenger revenues declined 83 percent on 63 percent lower capacity. Non-ticket revenue streams have performed relatively better than passenger revenues, with total loyalty revenues declining 60 percent and cargo declining 25 percent.

“With a slow and steady build in demand, we are restoring flying to meet our customers’ needs, while staying nimble with our capacity in light of COVID-19,” said Glen Hauenstein, Delta’s president. “While it may be two years or more until we see a normalized revenue environment, by restoring customer confidence in travel and building customer loyalty now, we are creating the foundation for sustainable future revenue growth.”

Setting the Foundation for Recovery

Delta has taken a number of actions to position the company to accelerate into a post-COVID recovery:

Taking great care of Delta people

Through the voluntary separation and early retirement programs, voluntary unpaid leaves, job sharing and other initiatives, the company has been able to avoid involuntary furloughs for ground and flight attendant employees
Launching a “Stop the Spread. Save Lives.” campaign to emphasize the six core health actions that protect Delta employees against COVID-19, including wearing masks, social distancing, testing and getting a flu shot. Delta is providing no-cost COVID-19 testing and flu shots for its U.S. employees

Improving the customer experience

Emphasizing health and safety with the Delta CareStandard, a multi-layered approach that includes intense cleaning protocols, blocking middle seats and requiring masks onboard all aircraft
Reducing complexity for customers by eliminating change fees for nearly all domestic fares and redeposit/reissuance fees on domestic reward tickets for SkyMiles Members
Taking a customer-centric approach to refunds, with approximately $2.8 billion returned to customers year-to-date

Simplifying the fleet

Restructuring its Airbus and CRJ aircraft order books to better match the timing of aircraft deliveries with network and financial needs over the next several years. The restructuring reduces aircraft purchase commitments by more than $2 billion in 2020 and by more than $5 billion through 2022
Accelerating its fleet simplification strategy, which is intended to modernize and streamline the company’s fleet, enhance the customer experience and generate cost savings. The company has announced plans to accelerate retirements of nearly 400 aircraft by 2025, including more than 200 in 2020

Fleet Type	Number of Aircraft	Estimated Final Retirement During the Quarter Ended
MD-90	26	June 2020
767-300ER	7	June 2020
A320	10	June 2020
MD-88	47	June 2020
737-700	10	September 2020
777	18	December 2020
CRJ200	125	December 2023
717	91	December 2025
767-300ER	49	December 2025
Total	383

Cost Performance

Total adjusted operating expense for the September quarter decreased $5.5 billion or 52 percent versus the prior year quarter excluding $3.1 billion in charges related to the voluntary separation and early retirement programs for employees, $2.2 billion in restructuring charges from fleet-related decisions, and a $1.3 billion CARES Act benefit. This performance was driven by a $1.8 billion or 78 percent reduction in fuel expense, a 75 percent reduction in maintenance expense from parking or retiring nearly 40 percent of mainline aircraft and lower volume- and revenue-related expenses. Salaries and benefits expense was down 32 percent as a result of approximately 18,000 employees electing to depart the company in addition to benefits from voluntary unpaid leaves, work hour reductions and other initiatives.

Non-operating expense for the quarter was $349 million higher versus the prior year quarter, driven primarily by $221 million in higher interest expense from increased debt levels the company has incurred during the COVID-19 pandemic.

“Our results this quarter were underpinned by a strong focus on costs, as we reduced adjusted operating expenses by more than 50 percent, similar to the June quarter, despite flying 23 points more capacity,” said Paul Jacobson, Delta’s chief financial officer. “That cost focus allowed the increase we’ve seen in net sales to flow directly into an improvement in our daily cash burn, which improved from $27 million per day in June to $18 million per day in September.”

Balance Sheet, Cash and Liquidity

Delta ended the September quarter with $21.6 billion in liquidity. Cash used in operations during the quarter was $2.6 billion. Daily cash burn averaged $24 million for the quarter, with an average of $18 million for the month of September.

At the end of the September quarter, the company had total debt and finance lease obligations of $34.9 billion with adjusted net debt of $17.0 billion, $6.5 billion higher than December 31, 2019. In September, Delta completed the largest debt offering in aviation history, raising $9.0 billion at a blended average rate of 4.75 percent secured by its SkyMiles loyalty program. In addition, the company borrowed $1.5 billion at a blended yield of 4.4 percent in connection with the issuance of tax-exempt bonds, that will be used to finance the LaGuardia airport project. The company’s total debt had a weighted average interest rate of 4.3 percent at September 30, 2020.

Subsequent to the end of the quarter, the company repaid the $3 billion, 364-day term loan that it entered into in March, increasing its unencumbered asset base to $9 to $10 billion of aircraft, engines and spare parts and reducing remaining debt amortization and maturities to $2.3 billion through the end of 2021. The company also repaid $2.6 billion under its revolving credit facilities drawn down in March 2020.

At the end of the September quarter, the company’s Air Traffic Liability stood at $4.6 billion, including a current liability of $4.4 billion and a non-current liability of $0.2 billion. The non-current liability represents the current estimate of tickets to be flown, as well as credits to be used, beyond one year. Travel credits represent approximately 60 percent of the Air Traffic Liability at the end of the September quarter.

CARES Act Accounting, Fleet Restructuring and Voluntary Separation and Early Retirement Program Charges

In the September quarter, the company received $701 million under the payroll support program (PSP) of the CARES Act, consisting of $491 million in additional grant funds and a $210 million increase in the low-interest, unsecured 10-year loan. The September quarter amount includes an incremental $157 million beyond the initial $5.4 billion Delta was allocated in April 2020. In the September quarter, approximately $1.3 billion of the grant was recognized as a contra-expense, which is reflected as “CARES Act grant recognition” on the Consolidated Statements of Operations. The company expects to use the remaining proceeds from the PSP by the end of 2020.

During the September quarter, the company made the decision to retire its 717-200 fleet and the remainder of its 767-300ER fleet by 2025 and its CRJ-200 fleet by 2023. As a result of these decisions, the company recorded $2.2 billion in fleet-related charges, which are reflected in “Restructuring charges” on the Consolidated Statement of Operations.

The company offered voluntary separation and early retirement programs to employees during the September quarter. Approximately 18,000 employees participated in the programs, with most leaving the company August 1, resulting in a $3.1 billion restructuring charge in the September quarter, which is reflected in “Restructuring charges” on the Consolidated Statement of Operations. Cash payments in connection with these programs totaled $813 million in the September quarter, and these payments are excluded from daily cash burn figures. The company anticipates an additional $150 to $250 million in cash payments in the December quarter, $600 million in 2021 and the remaining payments in 2022 and beyond.

September Quarter Results

September quarter results have been adjusted primarily for the CARES Act grant recognition and restructuring charges described above.

	GAAP		$ Change	% Change
($ in millions except per share and unit costs)	3Q20	3Q19	$ Change	% Change
Pre-tax (loss)/income	(6,859)	1,947	(8,806)	NM
Net (loss)/income	(5,379)	1,495	(6,874)	NM
Diluted (loss)/earnings per share	(8.47)	2.31	(10.78)	NM
Operating revenue	3,062	12,560	(9,498)	(76)	%
Operating expense	9,448	10,489	(1,041)	(10)	%
Fuel expense	486	2,239	(1,753)	(78)	%
Non-operating expense	473	124	349	NM
Total debt and finance lease obligations	34,870	10,119	24,751	NM
Total revenue per available seat mile (TRASM)	10.82	16.58	(5.76)	(35)	%
Consolidated unit cost (CASM)	33.40	13.85	19.55	NM
Average fuel price per gallon	1.25	1.94	(0.69)	(36)	%

	Adjusted		$ Change	% Change
($ in millions except per share and unit costs)	3Q20	3Q19	$ Change	% Change
Pre-tax (loss)/income	(2,589)	1,968	(4,557)	NM
Net (loss)/income	(2,096)	1,507	(3,603)	NM
Diluted (loss)/earnings per share	(3.30)	2.33	(5.63)	NM
Operating revenue	2,645	12,507	(9,861)	(79)	%
Operating expense	5,004	10,460	(5,455)	(52)	%
Fuel expense	489	2,257	(1,768)	(78)	%
Non-operating expense	230	79	151	NM
Adjusted net debt	17,012	10,265	6,747	66	%
Total revenue per available seat mile (TRASM, adjusted)	9.35	16.51	(7.16)	(43)	%
Consolidated unit cost (CASM-Ex)	15.96	10.15	5.81	57	%
Average fuel price per gallon	1.25	1.96	(0.71)	(36)	%

About Delta Air Lines Delta Air Lines (NYSE: DAL) is the U.S. global airline leader in safety, innovation, reliability and customer experience. Powered by our employees around the world, Delta has for a decade led the airline industry in operational excellence while maintaining our reputation for award-winning customer service.

Today, and always, nothing is more important than the health and safety of our customers and employees. Since the onset of the COVID-19 pandemic, Delta has moved quickly to transform the industry standard of clean while offering customers more space across the travel journey. These and numerous other layers of protection ensure a safe and comfortable travel experience for our customers and employees.

With our mission of connecting the people and cultures of the globe, Delta strives to foster understanding across a diverse world and serve as a force for social good.

Lufthansa will deploy four Airbus A350-900s to Frankfurt hub this winter

Lufthansa has made this announcement:

For the duration of the winter timetable (until the end of March 2021) Lufthansa will be deploying four of the currently parked Airbus A350-900s to its hub in Frankfurt. The Airbus A350-900 is one of the most modern and environmentally friendly long-haul aircraft in the world.

Over the next few months the A350-900 will be serving Chicago and Los Angeles from Frankfurt, by temporarily replacing the Boeing 747-8 for this period of time. From December onwards, the ultra-modern A350-900 will also be flying from Frankfurt on the route to Tokyo/Haneda instead of the Airbus A340-300. All flights will be operated by Munich-based cabin and cockpit crews.

The A350-900 not only offers Lufthansa customers a top product on board, it is also extremely environmentally friendly, efficient and quiet. Compared to a Boeing 747-8, the Airbus A350-900 consumes around 12 percent less fuel and emits less CO2. At the same time by operating the A350-900 in Frankfurt, the fleet will be optimally used in an efficient and sustainable way under the current circumstances.

Lufthansa’s A350-900 fleet currently encompasses 16 Munich- based aircraft. Due to the sharp reduction in the number of flights offered as a result of the corona pandemic, only seven A350-900s will initially be operated at Munich in the winter timetable of 20/21 on routes to North America and Asia.

Lufthansa aircraft photo gallery:

Southwest Airlines to add service at Chicago O’Hare International and Houston George Bush Intercontinental Airport

Southwest Airlines, due to grounded aircraft, continues to add large airports it previously never served. Following Miami, the company is now coming to Chicago O’Hare and Houston Bush Intercontinental.

The airline made this announcement:

Southwest Airlines today announced plans to expand its footprint in Chicago and Houston to give more travelers access to Southwest’s iconic hospitality, low fares, and customer-friendly policies.

Chicago O’Hare International Airport
Work is underway to add new service from Chicago O’Hare International Airport (ORD), alongside existing service from the carrier’s longtime Chicago home, Midway International Airport (MDW). Midway remains one of the busiest airports in Southwest’s network. Since first arriving in Chicago in 1985, Southwest has grown into one of the city’s largest employers with more than 4,800 Chicago-based Employees.

George Bush Intercontinental Airport
As Southwest approaches a commemoration of 50 years of flying, the carrier intends to return to Houston George Bush Intercontinental Airport (IAH), complementing its substantial operation at Houston Hobby (HOU). Intercontinental served as one of three airports where Southwest operated on its first day in operation, June 18, 1971. The carrier moved to Hobby Airport shortly thereafter though it operated service from both airports between 1980 and 2005. Southwest remains a key employer in the City of Houston, providing nearly 4,000 jobs.

Service to both airports is anticipated to begin in the first half of 2021. Additional details, including schedules and fares, will be available soon.

How the new Italia Trasporto Aereo SpA will replace the current Alitalia – Società Aerea Italiana

Newco, which replaced the current Alitalia, is now on the scene in Italy.

Italia Trasporto Aereo SpA (Alitalia 4th) was born on Friday, October 9, 2020 when four Italian ministers signed the constitution act: Roberto Gualtieri (economy), Stefano Patuanelli (economic development), Nunzia Catalfo (labor) and Paola De Micheli ( transport and infrastructure) cleared the new airline company with Chairman Francesco Caio (currently chairman at Saipem in the oil & gas world business) and Fabio Maria Lazzerini as CEO, at this time chief business officer in Alitalia SAI.

Italia Trasporto Aereo will start operations with 20 million € investment capital and will shortly get 3 billion € from Italy‘s Government.

The head office will be in Rome and take over the current Alitalia SAI in AS.

Paola De Micheli choose the motto for Italia Trasporto Aereo as “bring Italy to the world”.

Above: Left: Fabio Maria Lazzerini is the CEO and chief business officer of the current Alitalia.

Right: Francesco Caio is the new appointed chairman of Italia Trasporto Aereo SpA and is still the Saipem SpA oil and gas company chairman.

In the past weeks, Fabio Maria Lazzerini was designed CEO on June 29, 2020, told about a month ago in an audit to the low chamber transport commission;

The new airline was pushed to be set up from current Alitalia SAI in AS by commissar Giuseppe Leogrande. In a speech last Wednesday in the low chamber transport and infrastructure commission said “we urge to have the new airline soon in business for our workers families”.

“The current Alitalia is in business for carrying and continuing to fly people inside the country, In Europe and to New York with responsible management for operating as most cost effective is possible and reducing to minimum the losses. In the first 9 months have seen -1.7 billion € in gross profits and in August carried about 650,000 people on 7,619 (-57%) flights flown and only 319 million € of tickets and services sold. Low demand times of this year were in April with only 47,000 flyers carried on 1,490 flights and only 20 million € of business in ticket sold. In February 2020 Alitalia carried 1,363,000 people on 13,521 flights.”

Marco Finelli reporting from Italy.