Qatar Airways resumes flights to Kigali, Rwanda and Nairobi, Kenya

Qatar Airways has announced the resumption of services to Jomo Kenyatta International Airport (NBO) – Nairobi, Kenya with 14 weekly flights and to Kigali International Airport (KGL) – Kigali, Rwanda with three weekly flights. With the addition of Kigali and Nairobi, the airline now operates 33 weekly flights to eight destinations in Africa including Addis Ababa, Dar es Salaam, Djibouti, Kilimanjaro, Zanzibar and Tunis.

During COVID-19 pandemic, Qatar Airways Cargo continued operating its scheduled twice-weekly with A330 freighters and four times weekly with Boeing 777 freighters to Nairobi along with freight charters. These flights provided much required capacity, supporting exporters and importers and bringing in essential medical supplies. With the resumption of passenger flights to Nairobi, the cargo carrier will operate 20 flights in total, offering more than 700 tonnes of cargo capacity each week, each way.

Qatar Airways has further enhanced its onboard safety measures for passengers and cabin crew. The airline has introduced Personal Protective Equipment (PPE) for cabin crew which includes gloves, face masks, safety glasses and a new protective gown that is fitted over their uniforms. A modified service that reduces interactions between passengers and the crew inflight has also been introduced.

Onboard, all Qatar Airways passengers are now provided with a complimentary protective kit. Inside a ziplock pouch they will find a single-use surgical face mask, large disposable powder-free gloves and an alcohol-based hand sanitiser gel. The airline has also introduced disposable face shields for adults and children. Passengers travelling from Hamad International Airport (HIA) will receive their face shields at the check-in counters, whereas at other destinations, the face shields will be distributed at the boarding gates.

Finnair’s traffic was down by 90% in July

Finnair issued this report for July 2020:

The COVID-19 pandemic impact was still clearly visible in the July traffic figures, cargo demand was fairly strong

In July, Finnair carried 145,300 passengers, which is 90.0% less than in the corresponding period of 2019 but 163.0% more than in June 2020.

The overall capacity measured in Available Seat Kilometres (ASK) decreased in July by 88.7% year-on-year. Finnair operated 93 daily flights (cargo-only included) on average which was 24.4% compared to July 2019. The differences between capacity figures are explained by the shorter operated flights on average and by smaller operated aircraft compared to July 2019. Finnair’s traffic measured in Revenue Passenger Kilometres (RPKs) decreased by 94.8%. The Passenger Load Factor (PLF) decreased by 48.2% points to 41.4%. All passenger traffic figures were still impacted by the COVID-19 pandemic related capacity reductions, which was visible especially in the North Atlantic figures as there were no related scheduled flights in July.

The ASK decline in Asian traffic was 88.6%. The North Atlantic capacity decreased by 100.0%. In European traffic, the ASKs were down by 87.0%. The ASKs in domestic traffic decreased by 73.9%.

RPKs decreased in Asian traffic by 97.6%, in North Atlantic traffic by 100.0%, in European traffic by 91.1% and in domestic traffic by 72.7%.

The PLF was 18.8% in Asian traffic but it was supported by the cargo operations and high cargo load factor. The PLF was 61.2% in European traffic and 73.0% in domestic traffic, whereas there was no PLF figure in North Atlantic traffic due to zero passenger flights in July.

Passenger numbers decreased in Asian traffic by 97.7%, in North Atlantic traffic by 100.0%, in European traffic by 89.5% and in domestic traffic by 75.4%.

Available scheduled cargo tonne kilometres decreased by 88.4% year-on-year and revenue scheduled cargo tonne kilometres decreased by 85.0%, both due to the impact of COVID-19 pandemic on scheduled flights. However, cargo related available tonne kilometres decreased by 81.5% and revenue tonne kilometres decreased by 73.0% and they included also the cargo-only flights mostly operated between Europe and Asia as well as Europe and North America. The total cargo tonnes were down by 12.8% from June 2020 as the demand was slightly weaker and as the cargo market capacity increased in July. The cargo load factor was still clearly higher than in the corresponding period of 2019.

In July, 95.9% of all Finnair flights arrived on schedule (78.4%).

Traffic statistics for August 2020 will be published on Tuesday 8 September 2020.

Finnair Traffic Performance July 2020
	Month	% Change	YTD	% Change
Total traffic
Passengers 1,000	145.3	-90.0	2,898.8	-65.9
Available seat kilometres mill	494.7	-88.7	10,510.1	-61.6
Revenue passenger kilometres mill	204.9	-94.8	7,344.1	-67.2
Passenger load factor %	41.4	-48.2p	69.9	-12.1p
Cargo tonnes total	3,561.6	-75.9	44,080.3	-54.5
Available tonne kilometres mill	106.4	-83.2	1,795.5	-55.1
Revenue tonne kilometres mill	43.3	-90.2	942.8	-64.0

Asia
Passengers 1,000 Asia	5.8	-97.7	472.7	-68.3
Available seat kilometres mill Asia	237.5	-88.6	4,922.3	-63.6
Revenue passenger kilometres mill Asia	44.6	-97.6	3,622.0	-67.9
Passenger load factor % Asia	18.8	-71.2p	73.6	-9.9p

Europe
Passengers 1,000 Europe	107.2	-89.5	1,695.1	-68.4
Available seat kilometres mill Europe	233.0	-87.0	4,107.0	-60.3
Revenue passenger kilometres mill Europe	142.6	-91.1	2,690.9	-67.9
Passenger load factor % Europe	61.2	-28.3p	65.5	-15.6p

North Atlantic
Passengers 1,000 North Atlantic	0.0	-100.0	82.3	-68.5
Available seat kilometres mill North Atlantic	0.0	-100.0	848.9	-63.1
Revenue passenger kilometres mill North Atlantic	0.0	-100.0	647.1	-67.4
Passenger load factor % North Atlantic	N/A	N/A	76.2	-10.0p

Domestic
Passengers 1,000 Domestic	32.3	-75.4	648.7	-53.3
Available seat kilometres mill Domestic	24.2	-73.9	631.9	-45.6
Revenue passenger kilometres mill Domestic	17.7	-72.7	384.1	-48.5
Passenger load factor % Domestic	73.0	3.4p	60.8	-3.4p

Cargo Traffic
Europe tonnes	328.9	-88.9	7,613.8	-59.9
North Atlantic tonnes	0.0	-100.0	2,542.2	-65.9
Asia tonnes	1,766.1	-83.1	22,482.5	-67.9
Domestic tonnes	27.9	-32.1	193.2	-44.9
Cargo scheduled traffic total tonnes	2,123.0	-85.6	32,831.6	-66.1
Cargo flights, tonnes**	1,438.7	100.0	11,248.7	100.0
Cargo Traffic tonnes total	3,561.6	-75.9	44,080.3	-54.5
Available tonne kilometres* mill	31.3	-81.5	488.2	-54.7
Revenue tonne kilometres mill	25.1	-73.0	286.0	-53.4
Available sched. cargo tonne kms*, mill	19.5	-88.4	384.9	-64.3
Revenue sched. cargo tonne kms, mill	14.0	-85.0	204.4	-66.7
Cargo load factor* %	80.1	25.0p	58.6	1.7p
– North-Atlantic cargo load factor* %	N/A	N/A	66.3	10.7p
– Asia cargo load factor* %	77.4	18.4p	57.1	-4.6p
Scheduled traffic Cargo load factor*, %	71.6	16.5p	53.1	-3.7p

* Based on average operational cargo capacity

** Including purchased traffic

Change %: Change compared to the figures of the respective periods in the previous year (p = points).
Available seat kilometres. ASK: Total number of seats available. multiplied by the number of kilometres flown.
Revenue passenger kilometres. RPK: Number of revenue passengers carried. multiplied by kilometres flown.
Passenger load factor: Share of revenue passenger kilometres of available seat kilometres.
Available tonne kilometres. ATK: Number of tonnes of capacity for carriage of passengers. cargo and mail. multiplied by kilometres flown.
Revenue tonne kilometres. RTK: Total revenue load consisting of passengers. cargo and mail. multiplied by kilometres flown.
Overall load factor: Share of revenue tonne kilometres of available tonne kilometres.

SAS’ traffic was down by 76% in July

Scandinavian Airlines-SAS has released its traffic figures for July 2020:

SAS Traffic figures – July 2020

SAS capacity was down by 76% and total number of passengers were 75% lower compared to same period last year. Number of passengers remains low due to limited demand in the light of the ongoing COVID-19 pandemic.

SAS continues to resume flights to its destinations as demand returns and travel restrictions are easing. Compared to June, the number of passengers increased by nearly 300 thousand but showed a decrease of 2.5 million compared to same period last year. Domestic routes are showing the strongest recovery, whereas demand for Intercontinental and European travel remains weak.

“We continue to note a slow recovery of demand, in line with our expectations. As demand slowly returns, we are pleased to gradually ramp up our operations while ensuring a safe travel experience for our customers and employees,” says Rickard Gustafson, CEO SAS.

SAS scheduled traffic	Jul20	Change¹	Nov19-Jul20	Change¹
ASK (Mill.)	1 308	-73.5%	18 575	-47.2%
RPK (Mill.)	662	-83.9%	11 746	-54.1%
Passenger load factor	50.6%	-32.6 p u	63.2%	-9.6 p u
No. of passengers (000)	699	-73.0%	10,429	-48.8%

Geographical development, schedule	Jul20 vs. Jul19		Nov19-Jul20 vs. Nov18-Jul19
	RPK	ASK	RPK	ASK
Intercontinental	-97.4%	-87.1%	-58.6%	-50.6%
Europe/Intrascandinavia	-84.7%	-77.0%	-56.3%	-50.9%
Domestic	-39.0%	-16.0%	-37.7%	-29.7%

SAS charter traffic	Jul20	Change¹	Nov19-Jul20	Change¹
ASK (Mill.)	18	-97.4%	867	-66.5%
RPK (Mill.)	14	-97.8%	754	-68.0%
Load factor	81.9%	-12.5 p u	87.0%	-3.9 p u
No. of passengers (000)	6	-97.7%	248	-71.0%

SAS total traffic (scheduled and charter)	Jul20	Change¹	Nov19-Jul20	Change¹
ASK (Mill.)	1 326	-76.4%	19 442	-48.5%
RPK (Mill.)	676	-85.8%	12 500	-55.3%
Load factor	51.0%	-33.6 p u	64.3%	-9.8 p u
No. of passengers (000)	705	-75.2%	10,676	-49.7%

¹ Change compared to same period last year. p u = percentage units

Preliminary yield and PASK	Jul20	Nominal change	FX adjusted change
Yield, SEK	1.10	27.6%	32.3%
PASK, SEK	0.56	-22.5%	-19,6%

			Jul20
Punctuality (arrival 15 min)			95.7%
Regularity			99.4%
Change in total CO₂emissions, rolling 12 months			-36.1%
Change in CO₂emissions per available seat kilometer			-3.5%
Carbon offsetting of passenger related emissions			39%

Definitions:

RPK – Revenue passenger kilometers
ASK – Available seat kilometers
Load factor – RPK/ASK
Yield – Passenger revenues/RPK (scheduled)
PASK – Passenger revenues/ASK (scheduled)
Change in CO₂emissions per available seat kilometers – SAS passenger related carbon emissions divided with total available seat kilometers (incl. non-revenue and EuroBonus), rolling 12 months
Carbon offsetting of passenger related emissions – Share of SAS passenger related carbon emissions compensated by SAS (EuroBonus members, youth tickets and SAS’ staff travel)
From fiscal year 2020 we report change in CO₂ emissions in total and per Available Seat Kilometers (ASK) to align with our overall goal to reduce our total CO₂ emissions by 25% by 2025, compared to 2005.

United now cleaning flight decks with UVC lighting

United Airlines has made this announcement:

United Airlines is now cleaning pilot flight decks with Ultraviolet C (UVC) lighting technology on most aircraft at its hub airports to disinfect the flight deck interior and continue providing pilots with a sanitary work environment. The airline is using handheld, AUVCo blades from the American Ultraviolet company to kill any viruses that may reside on sensitive switches and touch screen displays within the flight deck.

United has tested a variety of uses for UVC lighting as a disinfectant and consulted with its United CleanPlus partners at the Cleveland Clinic to determine that the flight deck was the most effective use of the technology.

“Safety is our highest priority and we continue to research, test and roll out new technologies to keep our aircraft and terminals safe for both customers and crew,” said Bryan Quigley, United’s senior vice president of flight operations. “Flight decks have many working parts, screens and components that are challenging to clean with traditional hand wipes and liquids, especially for someone who isn’t a pilot. The UVC lighting gives us a faster, more effective disinfection of one of the most important areas of the aircraft.”

United currently uses electrostatic spraying to disinfect its aircraft cabins, one of the most effective techniques to clean around harder to reach surfaces, particularly overhead bins and spaces within tray tables. United’s use of UVC lighting in the flight deck – along with electrostatic spraying in the cabin – further reflects the airline’s approach of matching the right type of technology to the right settings.

This latest enhancement of using UVC lighting technology is another way United is working with its partners at the Cleveland Clinic to guide its policies and procedures on safety and cleanliness.

“United implementing UVC lighting in its flight decks is an important tactic because we know that the virus can be killed by ultraviolet light,” said Dr. James Merlino, Chief Clinical Transformation Officer at Cleveland Clinic. “It’s one more measure that we can implement to ensure that we’re doing all we can to keep passengers, flight attendants and crews safer.”

United is focused on delivering a new level of cleanliness on the ground and in the air. In addition to the initiatives mentioned above, several of the airline’s precautionary measures to further ensure a cleaner environment include:

At Check-In

Implementing temperature checks for employees and flight attendants working at hubs and other airports throughout the airline’s system
Installing sneeze guards at check-in and gate podiums
Promoting social distancing with floor decals to help customers stand six feet apart
Becoming the first airline in the world to roll out touchless check-in capabilities for customers with bags

At the Gate

Disinfecting high-touch areas such as door handles, handrails, elevator buttons, telephones and computers
Providing hand sanitizer and disinfectant wipes
Rolling out Clorox Total 360 Electrostatic Sprayers in select markets to disinfect gate areas at United’s hub airports
Enabling customers to self-scan boarding passes
Boarding fewer customers at a time and, after pre-boarding, boarding from the back of the plane to the front
Introduced real-time seat assignment update text and email notifications to further United’s touchless airport experience

On Board

Using electrostatic spraying to disinfect most aircraft prior to flight
Disinfecting high-touch areas – such as tray tables and armrests – prior to boarding
Reducing contact between flight attendants and customers during snack and beverage service
Deplaning in groups of five rows at a time to reduce crowding
Providing onboard items including pillows and blankets upon request

Brussels Airlines reports first-half loss of EUR 182 million due to coronavirus pandemic

Brussels Airlines has releases this report:

As a result of the coronavirus pandemic and its unprecedented impact on the aviation sector, Brussels Airlines reports a loss of EUR -182 million in the first six months of 2020, despite the drastic cost-control measures taken to combat the crisis. First half revenues fell to EUR 252 million, 63% below their prior-year level. (H1 2019: EUR 684 million). Brussels Airlines transported 67% fewer passengers between January and June and the seat load factor dropped by 7.4 percentage points to 72.4%.

The coronavirus, which brought aviation worldwide to a standstill within a few weeks’ time, had a dramatic impact on the financial results of Brussels Airlines in the first half year of 2020.Brussels Airlines temporarily suspended all scheduled flights from 21 March to 14 June 2020. Minimal flight capacities were maintained for repatriating Belgian and German citizens, to transport medical equipment to Africa and to bring medical masks from China. On 15 June, the airline finally relaunched its commercial flights again, with a limited network.

As a result, the airline reports an adjusted EBIT of EUR -182 million for the first six months of the year (H1 2019: EUR -36 million). The EBIT decreased to EUR -211 million (previous year: EUR -36 million). The difference compared with the adjusted EBIT is due to write-downs of EUR 29 million on right-of-use assets consisting of two Airbus A330-200s and eight Airbus A319s already in the first quarter.

Revenues were down by 63%, from EUR 684 million to EUR 252 million. Brussels Airlines transported 1,590,448 passengers between January and June, compared to 4,854,603 last year. 14,114 flights were operated, a 64% decline compared to the 39,267 flights in the first half of 2019. The seat load factor dropped 7.4 percentage points from 79.8% to 72.4%.

In response to the crisis, Brussels Airlines took immediate and drastic actions not only to reduce variable costs but also to reduce fixed costs (technical unemployment for staff; stopping all temporary contracts; supplier negotiations; stop of all projects and investments…). The total operating expenses decreased by 39% to EUR 463 million, primarily due to the volume-related decline and measures in the cost of materials and services.

The turnaround program Reboot Plus, which was already planned before the coronavirus crisis hit, is now being further intensified as a result of the coronavirus outbreak. With Reboot Plus, Brussels Airlines is structurally tackling its cost structure and optimizes its network by cutting marginally profitable and unprofitable routes, resulting in a fleet reduction of 30%. The overall size of the company, and as a consequence of its workforce, will become 25% smaller. At the same time, the airline focuses on structural profitability in order to enable solid growth. The carrier therefore needs to reduce its overall costs, increase efficiency and productivity. To reach its target of increased competitiveness and structural profitability, Brussels Airlines takes several measures; such as negotiations with lessors to reduce its fleet size; cost reductions through supplier negotiations; simplification and automation of processes; increase of efficiency at the level of operations and product alignment with the Lufthansa Group network airlines.

In line with its restructuring plan, and to overcome the current crisis, the company recently reached two major milestones. First, an agreement could be reached with its social partners concerning the turnaround of the company, which foresaw the reduction of 1000 jobs within the company. Thanks to alternative measures, to which the employees could subscribe, the number of forced dismissals is limited to 60. Secondly, the Belgian Government and Lufthansa agreed on a stabilization package to help Brussels Airlines overcome the unprecedented crisis and to become structurally profitable.

Since resuming flight operations on 15 June, the airline has slowly and gradually been increasing its flight operations again for both holidaymakers and business travellers, in line with market demand and taking into account the constantly changing travel restrictions.

Due to the still volatile and highly unpredictable situation worldwide, it is not possible to make forecasts for 2020 as a whole.

Brussels Airlines

		Jan-Jun 20	Jan-Jun 2019	Change in %
Revenue	€m	252	684	-63
Operating expenses	€m	463	757	-39
Adjusted EBITDA	€m	-119	32
Adjusted EBIT	€m	-182	-36	-406
EBIT	€m	-211	-36	-486
Employees as of 31.06	number	3,729	3,875	-3
Flights	number	14,114	39,267	-64
Passengers	thousands	1,590	4,855	-67
Available Seat-kilometres	millions	3,834	10,528	-64
Revenue Seat Kilometres	millions	2,776	8,402	-67
Passenger Load Factor	%	72.4	79.8	-7.4 pts

These figures are excluding the Brussels Airlines operations out of Düsseldorf.

Brussels Airlines aircraft photo gallery:

Brussels Airlines aircraft slide show:

https://airlinersgallery.smugmug.com/frame/slideshow?key=BVfgNz&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

Eurowings extends flight schedule by 26 new holiday destinations

Eurowings has made this announcement:

Düsseldorf: expansion of destinations in Italy, France, Portugal and Poland
Hamburg: new routes e.g. to Gran Canaria and Fuerteventura
Cologne/Bonn: holiday destinations Faro, Catania, Bastia and Kavala on offer again
Stuttgart: with the market leader Eurowings directly to Athens, Rome or Valencia
Berlin: From the capital non-stop to Heraklion and Split

The longer the corona crisis lasts, the more people’s longing for a holiday from the crisis grows. Eurowings is serving the reawakening desire to travel from its main German airports with 26 additional holiday destinations, which are now being added to the range of the largest German holiday airline. The large Eurowings locations in Düsseldorf, Hamburg, Stuttgart, Cologne/Bonn and Berlin will be correspondingly better connected, especially to popular tourist cities and metropolises.

“Even if the road back to normality is still a long way off: The tourist demand is noticeably increasing for us”, says Jens Bischof, CEO of Eurowings: “We react to this demand with flights to the most popular holiday destinations in Europe”.

New Eurowings destinations from August

From Hamburg, four new destinations are planned for August: Eurowings takes off for Stockholm, the Hungarian Budapest, Paris and Milan-Malpensa. From Cologne/Bonn, Eurowings flies to Catania in Italy, Kavala in Greece and Bastia in Corsica from August. From Stuttgart, Eurowings passengers will now fly to destinations such as Athens, Valencia, Amsterdam and Dresden. From Berlin, Eurowings flies to Heraklion and Split in August. From Düsseldorf, Eurowings passengers will be able to travel to Bari, the coastal city of Porto or the French city of Lyon, among other destinations, again from August.

New Eurowings destinations from September and October

In September and October, Eurowings will continue to satisfy the travel hunger of its passengers with 28 new routes from all over Germany: From its largest location in Düsseldorf, the airline will be flying to the Polish cities of Wroclaw and Krakow as well as to Geneva and Newcastle in September. Guests will also be able to book flights to Nice, Venice and Dubrovnik from September onwards. Eurowings passengers will fly to Gran Canaria from the capital of North Rhine-Westphalia in October. From October, Eurowings will also be flying from

Hamburg to Gran Canaria and Fuerteventura. From September Eurowings takes off from Cologne/Bonn to Faro in Portugal, Budapest in Hungary and Dresden. From Stuttgart, the airline will be flying its passengers in September to Hurghada in Egypt and Krakow, and the connection to Rome will also be resumed.

This means that Eurowings offers flights to over 85 destinations in Germany and Europe by the end of the summer timetable.

Passenger safety is a top priority for Eurowings, particularly regarding maximum hygiene on the ground and on board. The website eurowings.com provides information on the hygiene measures developed with experts, the adapted in-flight service, the current flight schedule and the flexible options for travel arrangements.

Eurowings aircraft photo gallery:

Eurowings aircraft slide show:

https://airlinersgallery.smugmug.com/frame/slideshow?key=NT859D&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

Consequences of Coronavirus pandemic have a considerable impact on Lufthansa result

Lufthansa Group has made this announcement:

Adjusted EBIT declines to minus 1.7 billion euros in the second quarter despite significant cost reductions
Comprehensive “ReNew” restructuring programme to ensure global competitiveness after the crisis
Lufthansa Cargo with strong second quarter
Number of employees already reduced by 8,300 – redundancies no longer ruled out in Germany as well
Normalization of demand to pre-crisis level expected for 2024 at the earliest

The collapse in demand for air travel due to the Coronavirus pandemic led to an 80 percent drop in revenue for the Lufthansa Group in the second quarter to 1.9 billion euros (previous year: 9.6 billion euros). Most of the revenue (1.5 billion euros) was generated by Lufthansa Cargo and Lufthansa Technik.

The Lufthansa Group Adjusted EBIT in the quarter under review amounted to minus 1.7 billion euros (previous year: 754 million euros), despite extensive cost reductions. Operating expenses were reduced by 59 percent, primarily through the introduction of short-time working for large parts of the workforce and the cancellation of non-essential expenditures. However, these measures were only partially able to compensate for the decline in sales. The consolidated net income of Lufthansa Group for the months April to June amounted to minus 1.5 billion euros (previous year: 226 million euros).

The logistics division benefited from stable demand. The loss of cargo capacity in passenger aircraft (“bellies”) led to a significant increase in yields. Lufthansa Cargo’s Adjusted EBIT thus rose to 299 million euros (previous year: minus 9 million euros).

First half of 2020
In the entire first half of 2020, Lufthansa Group revenue fell by 52 percent to 8.3 billion euros (previous year: 17.4 billion euros). Adjusted EBIT amounted to minus 2.9 billion euros (previous year: 418 million euros) and EBIT to minus 3.5 billion euros (previous year: 417 million euros). The difference between the two figures is mainly due to depreciation on aircraft and aircraft usage rights amounting to 300 million euros, goodwill impairments totaling 157 million euros and the impairment of joint venture holdings in the MRO segment totaling 62 million euros.

In addition, the negative market value development of fuel cost hedging contracts had a negative impact of 782 million euros on the financial result in the first six months of the year. Compared with the first quarter, this effect decreased by 205 million euros. The Lufthansa Group net result for the first half of the year thus amounted to minus 3.6 billion euros (previous year: minus 116 million euros).

Traffic development in the second quarter of 2020
In the second quarter of 2020, the Lufthansa Group airlines carried 1.7 million passengers, 96 percent fewer than in the previous year. Capacity fell by 95 percent. The seat load factor was 56 percent, 27 percentage points below the previous year’s figure. Freight capacity offered fell by 54 percent due to a lack of capacity on passenger aircraft. The decline in freight kilometers sold was 47 percent. This reflects an increase in cargo load factor by 10 percentage points, to 71 percent.

Traffic development in the first half of 2020
In the first six months, the Lufthansa Group airlines carried a total of 23.5 million passengers, two thirds fewer than in the same period last year (minus 66 percent). Capacity decreased by 61 percent. The seat load factor fell by 9 percentage points to 72 percent in the period. Freight capacity offered fell by 36 percent and cargo kilometres sold by 32 percent. This resulted in an increase in cargo load factor by 4 percentage points to 66 percent.

Cash flow and liquidity development
Capital expenditure fell to 897 million euros (previous year: 1,904 million euros) in the first half of the year, mainly due to postponing planned aircraft deliveries, with only 127 million euros of capital expenditure in the second quarter. The drastic reduction in capital expenditure, the Group-wide focus on securing liquidity and strict working capital management limited the cash outflow despite the significant drop in earnings. The adjusted free cash flow for the first half of the year thus amounted to minus 510 million euros (previous year: 269 million euros). Net debt increased by 10 percent compared with the end of 2019, to 7.3 billion euros.

Centrally available liquidity amounted to 2.8 billion euros on June 30, a decrease of 1.4 billion euros compared with the end of the first quarter (31 March 2020: 4.2 billion euros).

The funds agreed with the Economic Stabilization Fund of the Federal Republic of Germany (WSF) to stabilize Lufthansa Group are not yet included in the liquidity figures as of 30 June 2020. Including these funds amounting to 9 billion euros, the Group had a total of 11.8 billion euros in liquidity available as of 30 June 2020.

Since the beginning of July, the Group has received 2.3 billion euros from the stabilization package. As a result of the capital increase, with which the WSF has acquired a 20 percent stake in the company’s share capital, the Lufthansa Group received cash of around 300 million euros. The release of the first instalment of the KfW (Kreditanstalt für Wiederaufbau) loan contributed one billion euros, and the establishment of the WSF’s Silent Participation II provided a further one billion euros.

Cash outflows since the balance sheet date related primarily to the payment of refund claims for cancelled flights. In July, the Group paid out just under one billion euros. In total, the Group has so far reimbursed around two billion euros to customers in the current year 2020.

Lufthansa Group decides on “ReNew” restructuring program
The Group currently expects demand for air travel to return to pre-crisis levels in 2024 at the earliest. Lufthansa Group has therefore decided on a comprehensive restructuring programme entitled “ReNew”, which also includes the restructuring program already underway at the airlines and service companies.

The aim remains to maintain the global competitiveness and future viability of the Lufthansa Group. The program includes the reduction of 22,000 full-time jobs in the Lufthansa Group. The Group’s fleet is to be permanently reduced by at least 100 aircraft. Nevertheless, the capacity offered in 2024 is to correspond to that of 2019. To this end, productivity is supposed to be increased by 15 percent by 2023, among other things by reducing the number of the flight operations (AOCs) to a maximum of ten in future. The size of the Executive and Management Boards of the Group companies will be reduced and the number of executives in the Group is supposed to be lowered by 20 percent. In the administration of Deutsche Lufthansa AG, 1,000 jobs will be cut. The sum of these measures should make it possible to refinance the funds of the stabilization package as quickly as possible. The financial planning of Lufthansa Group stipulates that positive cash flows will be generated again in the course of 2021. Lufthansa Group currently (as of 30 June 2020) has 129,400 employees, about 8,300 fewer than at the same time last year. The Group’s objective was to avoid redundancies as far as possible. Against the background of the market developments in global air traffic and based on the course of the negotiations on necessary agreements with the collective bargaining partners, this goal is no longer realistically within reach for Germany either.

Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said: “We are experiencing a caesura in global air traffic. We do not expect demand to return to pre-crisis levels before 2024. Especially for long-haul routes there will be no quick recovery.

We were able to counteract the effects of the coronavirus pandemic in the first half of the year with strict cost management as well as with the revenues from Lufthansa Technik and Lufthansa Cargo. And we are benefitting from the first signs of recovery on tourist routes, especially with our leisure travel offers of the Eurowings and Edelweiss brands. Nevertheless, we will not be spared a far-reaching restructuring of our business.

We are convinced that the entire aviation industry must adapt to a new normal. The pandemic offers our industry a unique opportunity to recalibrate: to question the status quo and, instead of striving for “growth at any price”, to create value in a sustainable and responsible way.”

Outlook
Since the beginning of July, the Group has further expanded its flight program. This primarily concerns short-haul leisure travel. Lufthansa Group had already made the expansion of its market position in this segment a focal point of its strategy before the Corona crisis. The airlines Eurowings and Edelweiss play an important role in this context.

In July, the Group gradually increased its offering to around 20 percent of the previous year’s level, with load factors of over 70 percent in European short-haul traffic.

In the third quarter, capacity offered is planned to increase to an average of around 40 percent of the prior year capacity on short- and medium-haul routes and to around 20 percent on long-haul routes. In the fourth quarter, capacity is planned to further increase to an average of around 55 percent (short- and medium-haul) and around 50 percent (long-haul). With this, the Group plans to return to 95 percent of the short- and medium-haul and 70 percent of the long-haul destinations by the end of the year. Thanks to a high degree of flexibility in supply and capacity planning, this figure can also vary at short notice.

Despite the capacity expansion, the Lufthansa Group also expects a clearly negative Adjusted EBIT in the second half of 2020 and thus a further significant decline in Adjusted EBIT for the full year. This reflects the expectation that important long-haul routes will continue to be served only to a very limited extent due to ongoing travel restrictions.

Swiss reports first-half operating loss

Swiss International Air Lines issued this statement:

The consequences of the coronavirus pandemic impacted severely on SWISS’s business results for the first six months of 2020. The Airline of Switzerland reported an operating loss of CHF 266.4 million for the period, which compares to an operating profit of CHF 245.3 million for the first half of 2019. Total 2020 first-half revenues amounted to CHF 1.17 billion, a 55-per-cent decline from the CHF 2.57 billion¹ of the prior-year period. SWISS²transported 64.0 per cent fewer passengers in the first half of 2020 than it had in the same period last year. First-half systemwide seat load factor amounted to 71.2 per cent, 10.8 percentage points down from its prior-year level. SWISS’s European services are seeing some revival in demand. But the corresponding trends on the intercontinental network, which is key to any substantial business recovery, have been markedly more modest to date. In view of the still highly dynamic situation, no full-year earnings forecast for 2020 can currently be made.

The massive restrictions on global air travel that have been imposed in response to the coronavirus pandemic have hit Swiss International Air Lines (SWISS) severely, too. For several weeks in spring only a minimal timetable of SWISS services could be offered, substantially reducing income levels. Total first-half revenues amounted to CHF 1.17 billion, 55 per cent down on the CHF 2.57 billion¹ of the same period last year. The operating result (or Adjusted EBIT) for the period declined accordingly: SWISS reported a first-half operating loss of CHF 266.4 million (which compares to an operating profit of CHF 245.3 million for the first half of 2019). In view of the still highly dynamic overall situation and the unpredictability of further developments, no forecast can yet be made for the 2020 full-year Adjusted EBIT result.

“Thanks to the prompt actions we took to safeguard our liquidity, our fixed costs have been substantially reduced,” says Chief Financial Officer Markus Binkert. “With the loans from the Lufthansa Group and the prospective bank credit facilities backed by the Swiss Confederation, our liquidity is secure. But we still need to further reduce our structural costs, to ensure that we can repay our loans as swiftly as possible.”

SWISS will make further comprehensive economies to enhance its cost structure over the next few months. These will include a thorough analysis of the deployment of its present aircraft fleet, and the cessation companywide of all investments which are not essential to flight and business operations.

Second quarter hit particularly hard by the coronavirus pandemic

While its effects were already felt in the first-quarter period, it was in the second quarter of 2020 that the coronavirus pandemic impacted particularly hard on SWISS’s business activities. With travel restrictions of growing severity increasingly imposed all over the world, the company was compelled to reduce its flight schedules to a minimum and park a large part of its aircraft fleet for several weeks. Revenues declined accordingly: the CHF 243.7 million generated for the second quarter of 2020 was 82.8 per cent down on the CHF 1.41 billion¹of the prior-year period. The period also produced an operating loss of CHF 182.3 million, which compares to an operating profit of CHF 196.9 million for the same period last year.

Massive declines in passenger numbers

SWISS² transported a total of 3,167,624 passengers in the first half of this year – 64.0 per cent fewer than it had in the prior-year period. A total of 29,667 flights were operated, 59.5 per cent fewer than in the first half of 2019. Some 57.1 per cent less capacity was offered systemwide in available seat-kilometre (ASK) terms, while first-half total traffic volume, measured in revenue passenger-kilometres (RPK), declined by 62.7 per cent. Systemwide seat load factor for the period amounted to 71.2 per cent, a decline from the prior-year period of 10.8 percentage points.

The steepest monthly year-on-year decline in passenger volumes was April’s 99.2 per cent. Passenger numbers for June were still 92.2 per cent down on 2019. June 2020 seat load factor amounted to 41.6 per cent, 45.5 percentage points below its prior-year level.

A focus on repatriation and cargo flights

In addition to maintaining a minimal network of air connections between Switzerland and the world, SWISS and its sister airline Edelweiss operated 35 repatriation flights until beginning of July 2020 flying some 7,400 travellers – mostly Swiss nationals – to Switzerland from all over the world as part of the largest repatriation programme ever conducted by the Swiss Federal Department of Foreign Affairs. The company’s Swiss WorldCargo division has also performed just under 600 dedicated cargo flights until the end of June, transporting over 15,000 tonnes of goods (primarily medicines and further medical items) to supply the Swiss people and support the Swiss economy.

Further service resumptions planned

SWISS’s minimal flight operations were steadily ramped up in June to 15 to 20 per cent of originally-planned capacity. By this autumn, around one-third of the company’s capacities should be on offer again to some 85 per cent of the destinations which enjoyed SWISS service before the crisis began. Two-thirds of the 91-aircraft SWISS fleet have been back in operation since July – 41 short-haul and 17 long-haul aircraft, the latter including three Boeing 777s that have been temporarily converted to carry cargo on their main deck, too.

SWISS has also developed a comprehensive protection concept to keep its customers’ air travel as safe as possible. The provisions here include the compulsory wearing of face masks on board, intensified aircraft cleaning and modified inflight service. And in addition to its flexible rebooking options, the company has also introduced a guaranteed return flight provision for all its European routes.

The present summer holiday season has brought strong demand – especially for European flights – and high seat load factors that are almost at their prior-year levels, albeit with substantially lower capacities. The increases in passenger numbers are mainly being seen in the tourist travel and the visiting-friends-and-relatives segments: demand remains extremely weak on the business travel front. Intercontinental traffic volumes are also recovering only very slowly, in view of the many immigration restrictions which are still in place here.

“These positive trends in the demand for air travel in Europe make us cautiously optimistic,” says SWISS CEO Thomas Klühr. “We are well aware, though, that we still have a long way to go before this crisis is overcome. And one crucial factor for our substantial and sustainable recovery will be the further developments in our intercontinental business, particularly to and from the key North America region.”

¹ SWISS adopted new accounting principles at the end of 2019 in compliance with those of the Lufthansa Group. Total revenues of CHF 1.42 billion for the second quarter and of CHF 2.58 billion for the first half of 2019 were previously reported in July 2019.

² excluding Edelweiss Air

Swiss International aircraft photo gallery:

Swiss International aircraft slide show:

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Coronavirus crisis puts pressure on Austrian Airlines’ Q2 results

Austrian Airlines has made this announcement:

As a result of the coronavirus crisis and the cessation of Austrian Airlines‘ flight operations for a period of close to three months, Austria’s national carrier generated adjusted earnings before interest and taxes (adjusted EBIT) of minus EUR 99 million in the second quarter of 2020, down from positive results of EUR 46 million in the prior-year quarter. Accordingly, the adjusted EBIT for the first half of 2020 equaled minus EUR 235 million. The number of passengers carried by Austrian Airlines fell by 70 percent to around 2 million due to the pandemic.

“The coronavirus crisis has hit the airline sector with full force. Worldwide travel restrictions almost completely brought flight operations to a standstill in the second quarter. Our business is slowly recovering since the resumption of flights on June 15”, explains Austrian Airlines CFO Wolfgang Jani.

Results in detail
With the exception of humanitarian cargo flights, the second quarter consisted of practically only two weeks of minimum operations in June. Whereas in the previous year the airline carried around four million passengers between April and June, this figure was only 53,000 in 2020. Revenue slumped by 94 percent to EUR 35 million. During the same period, total revenues fell by 90 percent to EUR 59 million (Q2 2019: EUR 610 million). Total expenses for the same period amounted to EUR 158 million, a decrease of 72 percent (Q2 2019: EUR 565 million) compared with the same quarter of the previous year. Adjusted EBIT ultimately amounted to EUR -99 million in the second quarter (Q2 2019: EUR 46 million).

In the first half of 2020, sales revenues fell by 67 percent to EUR 322 million (first half of 2019: EUR 973 million). In the same period, operating expenses fell by 44 per cent to EUR 598 million (first half of 2019: EUR 1,064 million). This was counteracted by a package of short-term cost-cutting measures and short-time working for the entire workforce. Adjusted EBIT, which excludes valuation losses on aircraft disposals, among other items, amounted to EUR -235 million (H1 2019: EUR -53 million). EBIT amounted to EUR -299 million.

Current booking development and capacity utilization
The coronavirus crisis and the related travel restrictions which impacted Austrian Airlines through no fault of its own continue to necessitate a large degree of flexibility in planning business operations. Landing bans in effect from July 16-31, 2020 resulted in flight cancellations and cut the passenger load factor from an average of about 70 percent to 60 percent. Nevertheless, Austrian Airlines registered a large number of short-term bookings, enabling the airline to look into the future with optimism.

In particular, holiday destinations are well booked. For example, routes such as Athens, Larnaca and Thessaloniki show an average passenger load factor of about 90 percent. In terms of flight traffic to neighboring countries, the aircraft flying to Germany and Switzerland show an average capacity utilization of between 60 and 70 percent.

“Business trips and tourist travel as well are slowing picking up steam”, Wolfgang Jani adds. “Nevertheless, we only expect a slow ramping up of the aviation industry. The crisis is far from over, and this will be reflected in the performance indicators for the entire year”, CFO Jani concludes.

In other news, Austrian Airlines calls for comprehensive COVID-19 testing to replace general landing and entry bans:

• A comprehensive COVID-19 testing program for travelers from high risk countries should bring back the freedom to travel
• Landing bans recently triggered widespread uncertainty on the part of travelers
• CEO von Hoensbroech: “Whoever is healthy and not infected should be allowed to travel.”

Last Friday the Austrian Federal Government allowed landing bans for flights from 18 countries to expire. These bans did not apply in other EU member states. Nevertheless, the many different travel regulations in the European Union make it more difficult for people to travel freely and for airlines to reliably plan flight schedules. At a press conference, Austrian Airlines CEO Alexis von Hoensbroech called for comprehensive COVID-19 tests to be carried out on all passengers from high risk countries as a means of alleviating this situation.

“The freedom to travel is an important cornerstone of our modern-day society which should not be curtailed in the long term. Whoever is healthy and not infected should also be allowed to travel”, Austrian Airlines CEO von Hoensbroech stated.

Because of the duration of the coronavirus crisis and the increasing uncertainty on the part of passengers, it makes good sense to introduce health checks on a global basis for people travelling by air. This can only be ensured by carrying out comprehensive COVID-19 tests on travelers from high risk countries. “We are advocating an international solution”, von Hoensbroech emphasizes. “No other means of transport offers as good an opportunity for health checks as the aviation sector. This possibility is exactly what we should leverage in order to facilitate travelling in times of the coronavirus without compromising health protection. This approach is also in the interests of passengers because a further step towards ensuring freedom of travel is also a further step towards returning to normalcy”, he adds. According to Austrian Airlines experts, public authorities and governments are now called upon to collaborate with the airlines in order to introduce safe, practical and cost-effective testing methods and to coordinate them on an international level.

Recently Lufthansa CEO Carsten Spohr joined other airline CEOs form Europe and the U.S. in a letter sent to U.S. Vice President Mike Pence and Ylva Johansson, EU Home Affairs Commissioner, demanding a U.S.-EU testing program to once again enable airlines to operate transatlantic flights. The testing program should replace entry bans and quarantine regulations. Austrian Airlines CEO von Hoensbroech also supports such a solution. “Good flight connections between the USA and Europe are essential for a strong ethnic and economic interdependence between our continents. For this reason, flight connections should be resumed as quickly as possible – of course by optimally combining the freedom to travel with the protection of people’s health”, Mr. von Hoensbroech concludes.

Finally, Austrian Airlines is adding further holiday destinations to its summer flight schedule. The Greek destinations Kalamata, Preveza, Skiathos and Skiros are back in the flight schedule since the beginning of August. Sardinia, with Cagliari and Olbia, and Sicily, with Catania, are also part of the Austrian Holidays program since August. In addition, Austria’s home carrier is also flying to Ibiza again. All flights take place once a week on Saturdays or Sundays.

From September, Austrian Airlines will also fly to the Canary Islands of Gran Canaria and Tenerife every Saturday. Austria’s home carrier is thus adding ten holiday destinations to its summer program. These and other holiday flights can be booked on the Austrian Holidays website and via travel agencies.

Austrian Airlines aircraft photo gallery:

Austrian Airlines aircraft slide show:

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JetBlue to block seats through October 15

JetBlue Airways today announced several updates to its Safety from the Ground Up program, a multi-layered commitment to the safety of its crew members and customers. JetBlue is extending its commitment to seat distancing for flights through at least October 15 by blocking middle seats in rows where parties are not traveling together. JetBlue is also extending its Go Back and Forth with Confidence initiative through October 15, which provides travel flexibility by waiving change and cancellation fees for new bookings. Finally, JetBlue is strengthening its face covering policy to prohibit masks with vents or exhalation valves, and will no longer allow customers to claim exemptions from wearing a face covering altogether.

“Our Safety from the Ground Up program continues to be a thoughtful and always evolving set of layered protection measures that demonstrates our commitment to keeping our crewmembers and customers safe while providing them with peace of mind in the air and on the ground,” said Joanna Geraghty, president and chief operating officer, JetBlue. “We continue to hear from our customers that added space onboard and travel flexibility are incredibly important to them during this time and we want them to know we are listening because we are all in this together.”

JetBlue’s safety program is focused on four areas: healthy crewmembers; clean air and surfaces; more space, fewer touchpoints; and travel flexibility. As part of its “more space, fewer touchpoints” focus, JetBlue’s seat distancing policy provides assurance that customers will not be seated directly next to someone they don’t know. Middle seats are blocked on its Airbus aircraft, and on its smaller Embraer 190 aircraft, JetBlue is blocking aisle seats. The airline does allow customers traveling together to sit in middle and aisle seats.

Strengthening safety with face covering policy adjustments

JetBlue was the first airline to require customers to wear a face covering during the entire travel journey, including at the airport. In line with information from the Centers for Disease Control and JetBlue’s own medical experts, starting August 10, the airline will no longer allow the use of face masks with vents or exhalation valves. JetBlue will also no longer allow customers to claim exemptions from wearing a face covering altogether.

“The simple act of wearing a proper face covering is one way we can all help ensure the safety of all JetBlue crewmembers and customers,” Geraghty said. “Our terminals and airplanes are a shared space, and every customer must wear a proper face covering or will need to delay their travel on JetBlue until face coverings are no longer required. Our policy is meant to offer the strongest level of protection for everyone given all that we currently know about how COVID-19 is transmitted.”

An acceptable face covering or mask must cover a customer’s nose and mouth and is required to board all JetBlue flights. If a crewmember identifies a face covering or mask that does not appear sufficient based on its features or potential lack of protection, they will provide a mask for the customer to use instead. Customers two years and younger will not be required to wear a face covering if they cannot maintain one.

Customers who do not agree to wear a face covering will not be allowed to board any aircraft, and customers who do not follow crewmember requests to wear a face covering while in flight will be reviewed for future travel on JetBlue.

Expanding safety technology

JetBlue has long been known for sourcing innovative technology, and the pandemic has created opportunities to expand on that innovation. Mostly recently, JetBlue partnered with Honeywell to pilot the company’s UV Cabin System. The system harnesses the power of UV-C lights connected to two arms on what looks like a high-tech beverage cart. The arms sweep the light over aircraft interior surfaces, helping to reduce viruses and bacteria. The airline is piloting the technology while continuing its hand cleaning and electrostatic disinfection.

JetBlue has also rolled out technology meant to further reduce common touchpoints. They include:

Mobile app check-in with touchless bag tag integration, avoiding the need to touch kiosks
Automated bag drop, avoiding close proximity with crewmembers
Touchless self-boarding, avoiding crewmembers handling boarding passes and personal devices
Mobile device remote control pairing for inflight entertainment, avoiding the use of in-seat remote and/or touchscreen menus onboard

A multi-layered safety program on the ground and in the air

As part of JetBlue’s Safety from the Ground Up program, the airline has expanded a number of new enhancements that further reduce common touchpoints on the ground and in the air.

JetBlue’s program puts in place safeguards across four focus areas, and the airline continues to work under the guidance of an infectious disease specialist and informed by CDC guidelines.

Healthy crewmembers

Steps to ensure the health and safety of JetBlue’s crewmembers include:

Conducting temperature checks for our pilots and inflight crewmembers
Providing paid sick leave and additional time off programs so crewmembers do not come to work sick
Following company-wide protocols for reporting cases of the coronavirus, notifications and return to work clearance
Providing disinfectant kits for pilot use on the flight deck
Requiring face coverings for all crewmembers while boarding, in flight, and when physical distancing cannot be maintained

Clean air and surfaces

JetBlue is using disinfectant approved to kill coronavirus and maintaining healthy air onboard its aircraft. Steps include:

More frequent disinfecting of common surfaces like kiosks and counters inside our airport terminals
Providing hand sanitizer throughout terminals and disinfectant wipes to customers on board upon request
Increasing aircraft cleaning before every flight and overnight, including surfaces that are touched most like tray tables
Using electrostatic sprayers to disinfect the inside of our aircraft
Piloting Honeywell’s UV Cabin System as another layer of protection against viruses and bacteria
Filtering cabin air through hospital-grade HEPA air filters with cabin air completely changing about every three minutes

More space, fewer touchpoints

To increase physical distancing and to decrease touchpoints, JetBlue is implementing the following steps:

Requiring face coverings for all customers during check-in, boarding and in flight
Blocking middle seats on larger aircraft and aisle seats on smaller aircraft for those not traveling together (at least through October 15)
Providing the most space between each row of seats in coach of any U.S. airline* and spacious seating on all aircraft
Requiring all travelers to complete a health declaration
Providing touchless check-in and boarding experiences using the JetBlue mobile app and self-boarding gates for many of our flights
Implementing a back-to-front boarding process for most customers to minimize passing in the aisle
Streamlining onboard service to minimize physical interactions and maximize safety and comfort
Using your personal device as a remote for seatback screens on select planes

Travel flexibility

JetBlue has adjusted policies allowing customers to choose to travel when they are comfortable:

Waiving change and cancel fees for tickets purchased by October 15 to give customers confidence when booking
Extending Travel Bank credit expirations to a 24-month period for credits issued between Feb. 27 and June 30
Providing 24/7 support and award-winning customer service