Southwest Airlines is planning to cut around 40 percent of its flight schedule in October.
This will translate to around 35,000 fewer flights due to a decrease in flying demand due to the on-going COVID-19 pandemic.
At this time, Southwest is not planning any employee furloughs.
World COVID-19 10 top hot spots. Source: John Hopkins.
American Airlines is planning to cut its workforce by 40,000, including 19,000 involuntary cuts, in October as the COVID-19 pandemic continues to affect air travel, unless the government extends aid for airline employee payrolls, according to Reuters.
American Airlines is planning to furlough 1,600 pilots and 8,100 flight attendants in October due to COVID-19 and decreased flying demand, despite attractive low fares.
The company has been aggressive with encouraging voluntary retirements in order to reduce the number of layoffs.
American Airlines willย fly less than 50% of its normal schedule in the fourth quarter, with international flying reduced to only a quarter of 2019 levels.
Fleet:
Alaska Airlines has made this announcement:
With hygiene and safety concerns top of mind, Alaska Airlines is making it easier for guests to travel touch-free. Through improved technology and innovation, Alaska is creating more convenience and less contact among guests and employees during travel.
Over the coming weeks, new touch-free options for Alaska guests and employees will include the ability:
The Alaska Airlines mobile app is still the single best tool to limit contact while traveling. The Android and iPhone app allows guests to check in for their flight, generate a mobile boarding pass, change seats and prepay for bags. Guests can also stay up to date on their flight status, gate changes and boarding notifications.
“These advancements help make the travel experience easy and almost entirely touch-free for our guests and are just part of the many ways we’re keeping our guests and employees safe during this time,” said Charu Jain, senior vice president of merchandising and innovation.
Recently, Alaska implemented nearly 100 actions to keep guests and employees safe. Flyers must always wear a cloth mask or face covering when at the airport or onboard Alaska aircraft and complete a health agreement at check-in to acknowledge and attest to their willingness to adhere to the mask requirement. Other layers of safety include: EO Essential Oils alcohol-based, relaxing French lavender-scented sanitizing wipes available on all Alaska and Horizon Air flights; enhanced cleaningย ย between every flight; hospital-grade HEPA air filters; an air filtration system that circulates fresh, outside air into the cabin every three minutes; limited onboard service to reduce interactions; hand-sanitizing stations throughout the journey and more. The actions are allย part of Alaska’s commitment to Next-Level Care.
From the Alaska Airlines blog:
With hygiene and safety concerns top of mind, weโve made it easy for your travels to be almost entirely touch-free.
With the Alaska mobile app, you can check in for your flight, generate a mobile boarding pass and so much more. Plus, our improved technology will soon allow us to scan boarding passes up to six feet apart, print bag tags without touching the check-in kiosk and purchase food and beverages on board using your stored payment preference.
See whatโs in the works to make your journey more convenient and touch-free:
Great trips call for great planning! Now available in First Class on select flights over 2 hoursโand coming soon to Premium Class and Main Cabinโguests can pre-order meals on flights (that have them) beforehand using the Alaska app or at alaskaair.com. You can also store your payment preference using your Alaska Airlines account so when it comes time to pay for your meal in the air, you can do so touch-free.
Unfortunately, our food & beverage service is still limited to reduce the interactions between our flight crews and guests. So your foodie favorites may not be there but hopefully will be back soon! Hereโs what weโre currently offering on board (for more details visit our website):
Soon, you will be able to print your bag tags by simply scanning yourย boarding pass (mobile or printed at home) at one of our kiosks. Hereโs how it works: Once you pay for your baggage fee(s) using the Alaska mobile app or online, you can simply walk up to our kiosk at the airport, scan your boarding pass and your tags will be printed from the kiosk where you can safely grab the tag from the machine to place it onto your bag(s). You can also print your bag tags from home if thatโs easier or ask one of our agents for assistance.
Once youโve placed your tag on your bag(s), you can safely drop off your baggage to one of our agents, while maintaining physical distance.
Currently, our agents are able to scan guestsโ boarding passes using a mobile tablet or scanner while boarding. To help create more distance between guests, weโre providing our agents with the ability to scan a boarding pass from six feet awayโif the conditions are just right. To scan from that far away, the boarding area will need to have good lighting and the barcodes need to be printed clearly. While we canโt achieve this laser-focus every time, our agents are working hard to โmind their wingspanโ and taking every measure to keep our guests safe.
Coming soon to an airport near you will be a messaging tool that our customer service agents will useโto avoid printing & handling boarding passes or receiptsโthat is capable of sending you a text message that includes all of your travel information with a link to your boarding pass, gate and seat assignment.
Agents can also email any receipts, such as bag fees, if needed.
Theย Alaska mobile app is still the single best tool to limit contact while traveling.ย You can make sure your trip is as smooth as possible every step of the way by using it to check in for your flight, generate a mobile boarding pass, change seats and prepay for your bags. The app also keeps you up to date on your flight status, gate changes and boarding notifications. Download the app today if you donโt already have it!
Since the COVID-19 outbreak, Alaska has implemented nearly 100 actions to keep guests and employees safe, all part of Alaskaโs commitment to Next-Level Care. Some examples include:
Virgin Atlantic Airways has made this announcement:
Virgin Atlantic customers can book with confidence this year with the introduction of free COVID-19 insurance cover on all new and existing bookings.
The policy, which applies automatically to all flights booked with Virgin Atlantic, is designed to complement existing travel insurance and provide additional peace of mind for upcoming trips, whether customers are already booked or plotting a getaway.
In the event that they or anyone else on their booking becomes ill with COVID-19 while travelling, Virgin Atlantic COVID-19 Cover ensures related costs are covered, no matter how long the trip is or even if theyโre visiting another destination on the same overseas trip. The insurance policy is fulfilled by Allianz Assistance and covers emergency medical and associated expenses while abroad totalling ยฃ500,000 per customer โ the highest value of policy offered by any airline to date, with no excess payment required.
The policy also covers expenses incurred up to ยฃ3,000 if a customer is denied boarding, at either departure or in destination, orย has to quarantineย due to positive or suspectedย COVID-19 during a trip.
Customers booked to travel from 24 August 2020 up to and including 31 March 2021 will automatically receive the new COVID-19 Cover and Virgin Atlantic Holidays customers will also benefit, where the flights on their holiday booking are with Virgin Atlantic. Providing the customer is travelling on a Virgin Atlantic ticket, if the flight is operated by a partner airline or a Joint Venture carrier – Delta Air Lines or Air France-KLM – the cover will also apply. Tickets can be booked via virginatlantic.com, by phone or through a travel agent, including reward tickets on Virgin Atlantic flights.
โOur priority is always the health and safety of our people and customers and this industry-leading Virgin Atlantic COVID-19 Cover ensures customers can continue to fly safe and fly well with us.
โFollowing our return to the skies to much-loved destinations like Barbados, weโre planning more services in the autumn, as travel restrictions continue to ease, including London Heathrow to Montego Bay, Antigua, Lagos and Tel Aviv. Whether itโs to visit friends and relatives or take a well-deserved break, we believe this complimentary cover will provide some added reassurance for our customers as they start to plan trips further afield. It applies in parallel to existing travel insurance policies which may now exclude COVID-19, and provides comprehensive cover for coronavirus, recognising the needs of our customers as we restart services.โ
Virgin Atlantic COVID-19 Cover joins the airlineโs flexible booking policy to give as much choice as possible to customers as they make their future travel plans. Customers booking with the airline have the option to make two date changes to their flights, with rebooking available up until 30 September 2022. These date changes have the associated change fee waived, though potential fare differences may be incurred if the new travel dates are after 30 November 2020.
The cover starts from the point of booking and ends whenย the customer returns homeย or to a hospital or nursingย homeย inย theirย homeย country.ย One-way trips are also included, with the insurance cover valid until the end of the journey, which is defined asย 12ย hours after theย arrival ofย the customerโsย finalย flight.
For a full breakdown of Virgin Atlantic COVID-19 Cover and more information on the policy visit the Virgin Atlantic website: https://flywith.virginatlantic.com/gb/en/news/coronavirus/free-global-cover-for-COVID-19.html
As part of its multi-layered approach to public health measures, and for customer convenience, peace of mind and confidence, Virgin Atlantic will direct customers towards a list of recommended companies that offer COVID-19 ‘PCR Antigen’ testing, where itโs required to travel.ย This list will be constantly reviewedย by the Medical, Health and Safety teamsย to ensure theย highest standards. Information about the testing requirements for destinations that Virgin Atlantic currently flies to can be found on the website: https://flywith.virginatlantic.com/gb/en/news/coronavirus/travel-restrictions.html
From Reuters:
“Delta Air Lines is set to furlough 1,941 pilots in October, the carrier said in a memo to employees on Monday that noted the fallout from the COVID-19 pandemic and plunging air travel demand.”
Lufthansa Group has made this announcement:
The airlines of the Lufthansa Group are restricting the exceptions from the obligation to wear a mask on board their flights. From September 1, 2020, an exemption from the obligation to wear a mask during the flight for medical reasons will only be possible if a medical certificate is presented on a form provided by the airline. Passengers can download the document from the airlines’ websites. In addition, passengers who are unable to wear a mask during the flight must present a negative covid-19 test, which is not older than 48 hours at the scheduled begin of the journey. This ensures maximum safety for the passengers travelling with them.
As of today, passengers will be comprehensively informed about the new requirements, including on the airlines’ websites and social media channels, as well as via e-mail and via SMS. This is intended to give customers the opportunity to adapt to the changed rules in good time.
The airlines in the Lufthansa Group already introduced compulsory masks on board their flights at the beginning of May, making them one of the first airlines worldwide to do so. Exceptions to this rule were previously only possible with a medical certificate. The new rules on the compulsory wearing of masks now ensure even better protection for all passengers.
The airlines in the Lufthansa Group have introduced extensive hygiene measures on board and on the ground. They are also in close contact with the European Aviation Safety Agency (EASA), the European Centre for Disease Prevention and Control (ECDC) and national authorities to promote the ongoing development and harmonization of health standards in air transport during the corona pandemic.
In principle, the risk of contracting the on board of an aircraft is very low. The cabins are equipped with filters that clean the air of contaminants such as dust, bacteria and viruses.
Scandinavian Airlines-SAS issued this report for the last quarter:
MAY 2020โJULY 2020
SIGNIFICANT EVENTS DURING THE QUARTER
SIGNIFICANT EVENTS AFTER QUARTER END
NOVEMBER 2019โJULY 2020
CONTINUED NEGATIVE IMPACT OF COVID-19
We are encouraged to see that demand is slowly returning as we continue to ramp-up our operations. So far, the demand for air travel has developed in line with our expectations, with domestic traffic leading the way. Simultaneously we are making good progress in adapting our cost structure to a market defined by lower demand. Although there are significant challenges ahead, I am confident that SAS will return as a sustainable and profitable airline following a successful implementation of the recapitalization plan. Aviation fulfils a vital part of Scandinaviaโs infrastructure, and is important to enable connectivity to the rest of the world as demand returns.
FINANCIAL SUMMARY
The coronavirus and travelling restrictions has led to a collapse in the demand for air travel. Consequently, the number of passengers traveling with SAS dropped 86% and total revenue decreased 81% in the quarter. Domestic travel has rebounded more quickly than other parts of our business and accounts for most of our quarterly revenue.
Despite our immediate measures to reduce costs to adapt to a new reality, the cost reduction of 67% did not offset the sharp decline in revenue. As a result, earnings before tax came in at SEK -2.1 billion, some SEK 3.6 billion below last year. The result was positively impacted by SEK 840 million from a strengthening of the Swedish krona, primarily against the US dollar. However, in line with other airlines, the negative development in aircraft valuations necessitated a SEK 1,040 million write down of some aircraft assets.
Our focus on preserving cash is evident through a monthly operating cash burn of SEK 320 million. This is of course significantly worse than last year but below the range we presented in the second quarter, and we will continue to monitor cash burn as we slowly continue to ramp-up operations. At the end of the third quarter our cash position was SEK 6.2 billion, which includes the SEK 3.3 billion drawn under the credit facility guaranteed by the Danish and Swedish states.
CUSTOMER DEMAND SLOWLY INCREASING
Demand continues to return slowly and in line with the estimated ramp-up plan we presented in the second quarter. In the quarter, demand was centered around domestic travel and attractive European summer destinations. In July, SAS operated 8,700 departures representing some 25% of prior year available seat kilometers. This is an increase of some 20 percentage points compared to the first month of this quarter. During the fourth quarter, we will continue to ramp-up production and we expect to reach 30% -40% of prior year available seat kilometers by the end of Q4.
Despite the slow but ongoing recovery as noted in our traffic figures, demand going forward remains uncertain and is heavily dependent on the easing of travel restrictions as well as passenger confidence and willingness to travel. Furthermore, it is difficult to predict how demand will evolve during the coming fall and winter due to changed customer behavior with bookings being made closer to the date of travel. Our current expectation is that the ramp-up phase for the airline industry may last until 2022 before demand can reach more normalized levels, with a return to pre COVID-19 levels a few years thereafter.
PROGRESS ON REVISED BUSINESS PLAN
SAS continues to make progress with its revised business plan, which is based on four building blocks: To be the preferred airline for Scandinaviaโs frequent travelers; to transition to a hyper modern single-type fleet; to establish a fully competitive operating model, and; to achieve global leadership in sustainable aviation. During the quarter several milestones were reached.
Almost 4,000 redundancies (of approximately 5,000 in total) have now been concluded and local employment agreements are being renegotiated. In July, we signed an agreement to outsource ground handling operations in both Gothenburg and Malmรถ, concentrating our operations to the three main hubs in Copenhagen, Oslo and Stockholm. Even though the initiatives regarding our work force are difficult and unfortunate, these measures are unavoidable and necessary to safeguard SAS for the future.
Through constructive dialogue with Airbus, we have managed to defer 8 A320neo and 2 A350-900 aircraft deliveries. These deferrals are important as they reduce our capital expenditures for 2021โ2024 and better align deliveries of new aircraft with the expected return in demand. We are still committed to achieving a single-type fleet operation by 2023, based on new Airbus aircraft that will provide lower fuel consumption and reduced maintenance costs compared with our current fleet composition. Furthermore, we have made progress on our ambitious sustainability goals by accelerating the phase out of older and less fuel-efficient aircraft. We have also renegotiated agreements with several suppliers, including wet-lease providers. The new agreements will lead to lower costs and increased flexibility, through a higher share of variable costs going forward.
We have introduced new procedures to ensure that our customers experience the safest travel experience possible and continue to provide an attractive timetable for travelers to, from and within Scandinavia. At the same time, we regret that many customers are still waiting for refunds from canceled flights. I would like to emphasize that our customers that are entitled to refunds will be refunded, and we have increased our capacity to handle the large number of cancellations in these unprecedented circumstances.
PROGRESS ON RECAPITALIZATION PLANย
Despite our own efforts, the COVID-19 pandemic has resulted in a need to remedy the liquidity situation and the negative equity caused by the outbreak. During the quarter SAS reached an agreement in principle with the noteholders committee representing a large proportion of the holders of SAS bonds and hybrid notes. Furthermore, the governments of Denmark and Sweden have now approved the revised recapitalization plan, which has also been approved by the European Commission under applicable State aid rules framework.
The next steps of the plan are to obtain a vote in favor of the offer from the bond and hybrid holders at the noteholders meeting on September 2, and a vote in favor of the recapitalization plan at the extraordinary shareholdersโ meeting scheduled for September 22. The entire revised Recapitalization plan is expected to be completed early November.
SAS plays a vital role in connecting the Scandinavian countries to the rest of the world, as well as being an important infrastructure provider within the region. By focusing on rebuilding our domestic and intra-Scandinavian presence, we have been able to increase capacity ahead of competition. I am grateful that our major shareholders have decided to support SAS and trust that others will do the same in these unprecedented times.ย SAS is determined to continue as Scandinaviaโs leading airline as the world recovers from the COVID-19 pandemic.
On behalf of all of us at SAS, Iโm looking forward to once again welcoming you onboard on one of our flights soon!
Rickard Gustafson,
President and CEO
Stockholm, 25 August 2020
Finnair has made this announcement:
Finnair has started co-operation negotiations on its plan to reduce up to 1,000 jobs, to make other structural changes and to implement additional temporary layoffs due to the impacts of the corona pandemic.ย Theย co-operation negotiationsย concern approximately 2,800ย employees working at Finnairย in Finland, and similarย processes are conducted in Finnairโs units abroad.ย Finnairย employs a total ofย approximately 6,700ย employees, ofย whomย 6,200ย are based in Finland.ย Almost all ofย Finnairโs employeesย in Finland have been temporaryย laid off for a part of the spring and summer.ย In addition to the planned personnel reductions, Finnair will continue to apply temporary layoffs forย practically allย its personnelย in Finland. The temporary layoffs can be either for fixed term or until further notice.
The goal is to ensure the continuity of Finnairโs core operations so that cabin and flight deck crew can return to workย graduallyย as soon as the marketย recoversย and flights can be increased. For this reason, Finnair is not currently planning permanent reduction of its flying personnel in Finland.
โCOVID-19 is the deepest crisis of aviation. The pandemic and the exceptionally tight travel restrictions in Finland have impactedย flight demandย andย we will operate only a small part of our capacity compared to last year. A rapid turn for the better in the pandemic situation is unfortunately notย inย sight. Our revenue has decreased considerably, and that is why we simply must adjust our costs to our new sizeโ, says Topi Manner, Finnair CEO.
โWeย want to build a competitive future for Finnair and retain as many jobs at Finnair as possible. Also, we want to be able to offer good connections to the world for Finns and the Finnish economy in the future. Unfortunately, this requires the measures we announced today. As the timeline for aviationโs recovery is unclear, our plan is also to implement significant temporary layoffs to adjust our resources.โ
Finnair wants to act responsibly in this difficult situation and willย supportย affected employeesย throughย a social program,ย whichย will include practical job-to-job support,ย training andย guidanceย onย entrepreneurship.
The planned personnel reduction measures areย included in Finnairโs savings target, which Finnair has today updated from 80 million eurosย to 100 million euros.
Texel Air has made this announcement:
Texel Air, an established private airline and MRO based in the Kingdom of Bahrain, announces the arrival of the latest addition to its fleet, the Boeing 737-700 FlexCombiโข (N393AG), a first of a kind aircraft conversion developed to provide the most versatile third party cargo charter solution available in the market today.ย
The aircraft arrived at the Companyโs private hangar at the Bahrain International Airport where it was greeted by H.E Engineer Kamal bin Ahmed Mohamed, Minister of Transportation & Telecommunications alongside other VIPs and the management and Board members of Texel Air.ย
The aircraft, which will be based in the Kingdom of Bahrain, is unique in its ability to be configured in seven different ways for multiple purposes in a remarkably fast 48-hour time frame. The FlexCombiโข can switch seamlessly to operate humanitarian, government, express integrator and commercial flights from major airports to smaller remote runways with configuration flexibility achieved without compromise in cargo volumes and customised mission capability. In addition to cargo, the aircraft is able to transport up to 24 people as well as offering the option for medical evacuation flights using two speciality medical beds installed on the aircraft. The aircraft is able to load both civil (PAG) and (463L) pallets and its initial and planned configurations include:ย
Initial Configurationsย
Planned configurations
The FlexCombiโข also has a number of standard and optional features outside of the multiple interior configurations. These operational enhancements were researched and adopted to ensure the aircraft was able to meet both current and evolving requirements of the airlineโs diverse customer base.ย
American Airlines has made this announcement:
SurfaceWiseยฎ2 the first-ever long-lasting product approved by the EPA that will help fight the spread of the novel coronavirus
American Airlines is upgrading its Clean Commitment by adding the electrostatic spraying solution SurfaceWiseยฎ2 from Allied BioScience to its multitiered cleaning and safety program in the coming months. The SurfaceWise2 solution is the first-ever long-lasting product to help fight the spread of the novel coronavirus that is approved by the U.S. Environmental Protection Agency (EPA).
โThe American Airlines Clean Commitment is our promise that weโre taking bold measures and using the latest products and technology to help ensure our customersโ well-being when they travel with us,โ said David Seymour, Americanโs Chief Operating Officer. โThanks to rigorous evaluations conducted by the experienced professionals at the EPA, the American Airlines team and Allied BioScience, our multitiered program will become even stronger at safeguarding our customers and team members from virus such as coronavirus and the flu.โ
โSurfaceWise2โs long-lasting defense provides a layer of protection against viruses not offered by any other solutions on the market,โ said Maha El-Sayed, PhD, Allied BioScience Chief Science Officer. We look forward to also seeing SurfaceWise2 used in offices, schools, gymnasiums and other high-traffic areas to support the nation in safely reopening.โ
In the coming months, American will begin using SurfaceWise2 for electrostatic spraying on surfaces inside its aircraft with plans to use the product throughout its entire fleet, including those in its American Eagle regional partners. Other elements of the airlineโs multitiered Clean Commitment, include enhanced aircraft cleaning performed before every mainline flight and an even deeper overnight cleaning.
โSurfaceWise2 creates an invisible barrier on surfaces, which physically breaks down and kills virus cells,โ said Dr. Charles Gerba, a leading infectious disease expert. โThis helps protect passengers and crew members against the transmission of coronavirus via surfaces, particularly on high-touch areas such as seats, armrests, tray tables and overhead bin doors.โ
Paired with the use of face coverings, thorough cleaning protocols and HEPA filters, the use of SurfaceWise2 will help make the travel experience even safer for team members and customers who are ready to return to the skies.
High-efficiency particulate air (commonly known as HEPA) filters have purified the air on Americanโs entire mainline fleet โ and most regional jets โ since the late 1990s. HEPA technology is also used in hospitals and medical facilities around the world, helping keep medical environments clear of bacteria and viruses while providing clean air.
American continues to build on its commitment to the safety and well-being of its customers and team members throughout their travel journey. The airline has implemented multiple layers of protection, including enhanced cleaning of Americanโs spaces in airports and its airplanes and enforcement of its face coverings policy. Only those under the age of 2 are exempt from wearing a face covering while traveling with American.
American has expanded the frequency of cleaning in airport areas under its control, including gate areas, ticket counters, passenger service counters, baggage service offices and team member rooms. Customers on every flight receive sanitizing wipes or gel, and American has also limited food and beverage delivery on board aircraft to reduce touchpoints between flight attendants and customers.
In addition to using SurfaceWise2 as its new electrostatic spraying solution in the coming months, every mainline aircraft is disinfected at every turn, including hand-cleaning seat buckles, seats, tray table and numerous other surfaces. Located in the seatback pocket, American Way magazine is now printed with a new paper treatment process called Biomasterยฎ, which is an antimicrobial technology that helps prevent the growth of unwanted microbes.
American continues to work with the Global Biorisk Advisory Council for GBAC STARยฎ Accreditation for its fleet of aircraft and customer lounges. American is the first airline to seek GBAC STAR accreditation and expects to receive the designation by the end of 2020.
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