Tag Archives: Airbus A320-214 WL

Dortmund becomes the official home airport of the “BVB Mannschafts-Airbus“

Germanwings' 2016 "Borussia Dortmund Mannschaftsairbus" (Team Airbus) logo jet

Eurowings has made this announcement:

Eurowings is strengthening Dortmund: In the 2021 summer flight schedule, the Lufthansa subsidiary is significantly expanding its services and offering travelers from Dortmund six additional attractive holiday destinations in Spain, Italy and Greece. The new tourist destinations Alicante, Malaga, Catania, Naples, Heraklion and Kavala complement the existing connections that Eurowings already successfully operates to Lufthansa’s hub in Munich as well as to Split and Mallorca. Eurowings has expanded its connections to the popular Balearic island in particular.

“BVB Mannschafts-Airbus“ regular guest in Dortmund

To serve the expanded summer program, Eurowings will station a second aircraft in the Ruhr metropolis from June 2021. In this context, the “BVB Mannschafts-Airbus” –  a photo motif known throughout Europe due to its special black and yellow livery – will also be a regular guest in Dortmund in the future and take off from its home airport in the Ruhr region. This means that BVB fans from the Ruhr region will have the opportunity to meet “their plane” even more often than in the past.

“Dortmund is not only the home of our partner Borussia Dortmund, it is also where the roots of Eurowings lie,” said Eurowings CEO Jens Bischof. “That’s why we feel a particularly close bond with this aviation location and are expanding our flight offerings with all due caution. In doing so, we are strictly adhering to our industry-leading hygiene concept. Together with all Dortmund residents, we are pleased that the BVB Mannschafts-Airbus can now take off from here more frequently.”

Free middle seat bookable on all Eurowings flights from Dortmund

As on all Eurowings flights, passengers can reserve a free middle seat also from Dortmund in advance for as little as 10 euros and book it online at eurowings.com. The free middle seat can also be booked subsequently via the call center or even shortly before departure at the check-in counter. A reservation is possible as long as there are still enough seats available on the booked flight. If a passenger opts for the offer, the free seat is blocked with the booking and thus guaranteed not to be allocated elsewhere.

The 2021 summer destinations from Dortmund at a glance

Germany
Dortmund-Munich up to 11 times a week

Croatia
Dortmund-Split up to twice a week

Spain
Dortmund-Mallorca up to 16 times a week
NEW from June 2: Dortmund-Alicante up to twice a week
NEW from June 2: Dortmund-Malaga up to twice a week

Italy
NEW from June 2: Dortmund-Catania up to three times a week
NEW from June 4: Dortmund-Neapel up to twice a week

Greece
NEW from June 1: Dortmund-Heraklion up to three times a week
NEW from June 3: Dortmund-Kavala up to twice a week

In other news, Eurowings has integrated health data collection into the digital travel chain:

Available immediately on all Eurowings flights from Germany to Spain: Eurowings is integrating a new offer for particularly flexible, time-saving and safe travel in times of Corona. Passengers flying from Germany to Spain can now use the new health data solution “myHealth Docs” to conveniently check with just a few clicks whether they have all the necessary entry documents for their upcoming flight – such as an online registration as well as a negative Corona test.

The digital solution “myHealth Docs” was already successfully tested by many passengers on an Eurowings flight from Cologne/Bonn to Palma de Mallorca over the Easter weekend. In a further step, the airline has now extended the new service to all flights from Germany to Spain – additional flight connections as well as functions, such as uploading negative test results, are being planned.

Usage of the newly integrated “myHealth Docs” health data solution

To use the new service, Eurowings passengers check in for their flight as usual via the Eurowings customer app. In a next step, they can use the newly integrated solution “myHealth Docs” to fill out a digital health self-disclosure, which is required for entry in times of pandemic. This includes, for example, answering a couple of health questions, confirming the existence of the online registration for Spain as well as the existence of a negative Corona test. Based on this data, the digital boarding pass is automatically generated – with the additional note that all mandatory entry documents are complete.

Considerable time saving and reduction of physical contacts

By using “myHealth Docs”, passengers benefit from considerable time savings as they can easily see at a glance which documents are required: Thus, all passengers are well prepared for their flight, which in turn saves time at the check-in. Moreover, within the framework of the Lufthansa Group’s leading hygiene concept, this ensures that physical contacts at the airport are reduced to a minimum.

With the integration of “myHealth Docs” into the Eurowings customer app, Eurowings takes a further step in the digitalization of required entry documents, thus facilitating travel in times of pandemic.

Eurowings hygiene concept

The obligation to wear a protective medical mask continues to apply on Lufthansa Group flights to and from Germany. Passengers are obliged to wear either a surgical mask or an FFP2 mask or mask with the KN95/N95 standard during boarding, the flight and when leaving the aircraft. An exemption from this obligation to wear a mouth-nose mask during the flight is only possible for medical reasons if the medical certificate is issued on a form provided by the Lufthansa Group and a negative Covid19 test is available that is not older than 48 hours at the scheduled start of the journey.

In principle, infection on board is very unlikely. All aircraft of the Lufthansa Group are equipped with the highest-quality air filters, which ensure an air quality similar to that in an operating room. In addition, the air circulates vertically – instead of being distributed throughout the cabin – and is thus completely exchanged every two to three minutes. Furthermore, all Eurowings customers benefit from automatically included Corona travel protection when they choose a travel insurance policy of their choice with the airline.

Finally, Eurowings is planning to fly to Russia and Georgia for the first time:

Starting in summer with Eurowings nonstop to Russia and Georgia: the airline launches three new direct connections starting in July, flying its passengers from Düsseldorf to Russia for the first time – to Ekaterinburg and Krasnodar in Southern Russia – as well as to the Georgian capital Tbilisi.

The flights expand the range in the “Visit Friends and Relatives” segment, in which the Lufthansa subsidiary already offers numerous flights to Greece, Croatia, Algeria and Turkey, for example. Most recently, connections to Beirut in Lebanon and Erbil in northern Iraq were added to the Eurowings program in December. Eurowings is the leader in this market segment and is increasingly expanding its position in response to growing demand. As a result, even more travelers benefit from direct connections to their home countries.

The new routes will be operated by an Airbus A320.

Eurowings flights to Russia

From Düsseldorf to Krasnodar

From July 19, passengers will fly directly from Düsseldorf to Krasnodar in Southern Russia. Flights will be operated on Mondays and Fridays, each followed by a return flight

Monday: DUS – KRR, 11:45 a.m. – 4:55 p.m.; KRR – DUS, 6:15 p.m. – 9:30 p.m.
Friday: DUS – KRR, 07.15 a.m. – 12.25 p.m.; KRR – DUS, 13.45 p.m. – 17.00 p.m.

From Düsseldorf to Ekaterinburg

Starting July 24, Eurowings takes it passengers from Düsseldorf to Ekaterinburg every Saturday morning. The return flight leaves in the afternoon of the same day, touching down in Düsseldorf in the evening.

Saturday: DUS – SVX, 11:10 a.m. – 6:50 p.m.; SVX – DUS, 7:40 p.m. – 9:55 p.m.

Flights to Georgia

From Düsseldorf to Tbilisi

Starting July 21, Eurowings will connect Düsseldorf with the Georgian capital Tbilisi. On Wednesdays and Sundays, an Airbus A320 will take off from the capital of North Rhine-Westphalia to Georgia. Return flights to Düsseldorf are also offered on Wednesdays and Sundays.

Wednesday: DUS – TBS, 11:45 a.m. – 6:00 p.m.; TBS – DUS, 6:50 p.m. – 9:30 p.m.
Sunday: DUS – TBS, 07.15 a.m. – 1.30 p.m.; TBS – DUS, 2.20 p.m. – 5.00 p.m.

All flight times are local times.

Top Copyright Photo: Eurowings Airbus A320-214 WL D-AIZR (msn 5525) (BVB 09 – Mannschaftsairbus) LHR (SPA). Image: 941520.

Eurowings aircraft slide show:

Allegiant announces its first agreement with the Teamsters

Allegiant Air Airbus A320-214 WL N252NV (msn 7868) BFI (Nick Dean). Image: 949885.

Allegiant Air today announced that the company and the International Brotherhood of Teamsters (IBT), representing Allegiant’s workforce of maintenance technician and related employees, have reached an agreement in principle on all remaining open issues for the first collective bargaining agreement between the parties. The agreement in principle is subject to finalization between the parties and ratification by the employee group, which includes line and heavy maintenance technicians as well as stores employees and some administrative maintenance staff.  A ratification vote is expected to occur by the end of July, 2021. Allegiant currently employs 415 maintenance technician and related employees.

The process of negotiating a first collective bargaining agreement for Allegiant maintenance technician and related employees began in January 2019. The parties had temporarily suspended negotiations early in 2020 due to the COVID-19 pandemic, but talks resumed in September.  The International Brotherhood of Teamsters was most recently certified as the group’s exclusive representative on March 7, 2018.

Top Copyright Photo: Allegiant Air Airbus A320-214 WL N252NV (msn 7868) BFI (Nick Dean). Image: 949885.

Allegiant Air aircraft slide show:

easyJet expects a first half loss before tax in the range of £690 to £730 million

Promoting easyJet holidays

easyJet (UK) released this financial statement:

Summary

easyJet has operated a disciplined flying program over the winter months whilst continuing to deliver a major restructuring and cost reduction program.  As a result, easyJet expects a first half headline loss before tax in the range of £690 to £730 million, which is slightly better than expectations.  The effects of the cost-out program will support improved margins and reduce seasonality for the future.  Our capacity forecasting has been accurate and disciplined throughout the pandemic, which has allowed for strong cost control.  Our focus on cash generative flying over the winter season has minimized cash burn, with cash burn in the second quarter better than guidance.

As at 31 March 2021 easyJet has unrestricted access to c.£2.9 billion of liquidity having raised over £5.5 billion since the beginning of the pandemic1, and is well positioned to capitalize on the recovery of travel once restrictions are eased across the network. 

easyJet has maintained a high level of operational flexibility to respond to rapidly-changing travel restrictions.  We will continue to operate a reduced schedule throughout much of Q3 but are ready to ramp up our operations to match the level of demand we see in the market.

 

Johan Lundgren, CEO of easyJet, said:

 

 easyJet has maintained a disciplined approach to flying during the first half of our financial year, resulting in a first half loss and cash burn better than expectations.  We continue to have access to significant levels of liquidity alongside easyJet’s major cost-out program which continues to deliver ongoing cost and efficiency benefits.  All of this positions us well to lead the recovery.

 

“We welcome the confirmation by the UK Government that international travel is on track to reopen as planned in mid-May.  easyJet was founded to make travel accessible for all and so we continue to engage with Government to ensure that the cost of the required testing is driven down so that it doesn’t risk turning back the clock and make travel too costly for some. 

 

“We continue to closely monitor the situation across Europe and with vaccination programs accelerating, most countries are planning to resume flying at scale in May.  We have the operational flexibility to rapidly increase flying and add destinations to match demand.  easyJet is ready to resume flying, prepared for the ramp up and looking forward to being able to reunite people with their families or take them on leisure and business flights once again.  As a result, we remain well-positioned for the recovery this summer and beyond.”

 

 

Revenue

Passenger numbers2 for the six months ending 31 March 2021 decreased by 89% to 4.1 million, in line with a decrease in capacity3 to 6.4 million seats, representing 14% of H1 2019 capacity levels. This led to total group revenue for the six months ending 31 March 2021 decreasing by c.90% to c.£235 million, with passenger revenue decreasing by c.91% to c.£165 million and ancillary revenue decreasing by c.87% to c.£70 million.

 

 

Cost & Cash Burn

Group headline costs excluding fuel for the first half decreased by c.59% to c.£845 million, driven by a decrease in capacity flown and the material savings achieved across many areas of the business from easyJet’s major cost-out program.  easyJet maintained a disciplined approach to capacity and cash management and as a result, total cash burn during the second quarter was c.£470 million, which is better than previous guidance.

 

The structural cost-out program we announced last year, easyJet’s largest ever, is on track to achieve our targeted cost savings and will position easyJet well to lead the recovery in aviation.  

 

 

Capacity

During the first half easyJet flew 14% of H1 2019 capacity, in line with our expectations.  Our capacity forecasting has been accurate and disciplined throughout the pandemic, which has helped deliver strong cost control. 

 

January

2021

February 2021

March 2021

Q2

2021

Passengers (thousand) 2

456

367

405

1,228

Seats flown (thousand)

787

612

663

2,062

% of 2019 capacity flown

12%

9%

8%

9%

Load factor 4

58%

60%

61%

60%

 

 

Network

easyJet remains disciplined in focussing on profitable flying.  Our operations, financial and commercial teams are running dynamic schedule updates, on a regular basis, in order to capitalize on all available demand.  We retain significant operational flexibility to enable us to capture pent-up demand and are able to ramp up flying quickly when demand returns. 

 

 

Flexibility

easyJet’s market-leading flexible customer policies are driving trust and confidence to book.  We are offering more flexibility than ever before.  Our Protection Promise for both flights and holidays means that customers can book now with the confidence that if their plans change, so can their booking.

 

 

Ancillaries

Ancillary revenues represent a significant opportunity for easyJet to increase revenue per seat and margins in the coming years. 

 

In January easyJet launched a new fare class called Standard Plus, which is performing well.  Our new cabin bag policy came into effect in February and early indications show that this is also on track relative to our revenue expectations, as well as having a positive effect on our On Time Performance metrics.  The ability to bring a large overhead cabin bag on board is now bundled with Up front and Extra legroom seating.  The seating and bag packages are actively yield managed and dynamically priced from £7.99. 

 

 

Balance Sheet & Liquidity

easyJet has taken swift and decisive action successfully raising over £5.5 billion in liquidity since the beginning of the pandemic1, from a diversified range of funding sources. 

 

In March easyJet’s subsidiary easyJet FinCo B.V. issued a €1.2 billion bond under our Euro Medium Term Note (EMTN) program.  The bond matures in March 2028 and has a coupon of 1.875%.  There was good market appetite for the bond, which was heavily oversubscribed.  easyJet continues to maintain access to a diverse range of funding sources and continues to review its debt maturity profile. 

 

As at 31 March 2021 easyJet has unrestricted access to c.£2.9 billion of liquidity, comprising cash and cash equivalents, money market funds, money market deposits plus the undrawn portion of the UKEF facility.  The first £300 million tranche of easyJet’s borrowings from the CCFF was repaid in March 2021 and the remaining £300 million is due in November 2021.  easyJet has no other debt maturities outstanding until FY 2023. 

 

We retain ownership of 56% of the total fleet, with 41% unencumbered.  Sale and leaseback transactions on 23 aircraft were concluded during H2 2020, raising £608 million gross proceeds and adding c.£50 million to pro forma per annum headline costs.  During H1 2021 transactions were concluded on 35 aircraft, raising £842 million gross proceeds and adding a further c.£90 million to pro forma per annum headline costs. 

Photo: IG/speedbirduk

As previously indicated, easyJet will continue to review its liquidity position on a regular basis and will continue to assess further funding opportunities.

 

 

Fuel & FX hedging

Due to the sustained lower capacity expected for several months ahead, easyJet has continued to see hedge ratios moving over 100% from both a jet fuel and FX perspective.  To mitigate the effects of this, easyJet has taken action to close out over-hedge positions, to mitigate its exposure to volatility in the fair value of discontinued hedges.  easyJet continues to hedge contractual exposures (such as leases and capex) and has decreased the amount of operational hedging that is taken out for future periods until there is greater clarity around exposures.

 

 

Non-Headline Items

Non-headline items for the six months ending 31 March 2021 are expected to reflect a net c.£55 million credit.  This is comprised principally of gains related to sale and leaseback transactions, with a net charge related to fuel hedge discontinuation being largely offset by a release of restructuring provisions.  The release of restructuring provisions is based on current expectations of our latest discussions with unions, on which we will provide a further update at the half year results.  This will be subject to review by our auditors. 

 

 

Outlook

Based on current travel restrictions in the markets in which we operate, easyJet expects to fly up to 20% of 2019 capacity levels in Q3 with an expectation that capacity levels will start to increase from late May onwards.  We maintain significant flexibility to ramp capacity up or down quickly depending upon the unwinding of travel restrictions and expected demand across our European network. 

 

The group headline loss before tax for the six months ending 31 March 2021 is expected to be in the range of £690 to £730 million. 

 

The group reported loss before tax is expected to reflect the positive impact of the non-headline items discussed above. 

 

easyJet will release half year results for the six months ending 31 March 2021 on 20 May 2021. 

 

At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any further financial guidance for the 2021 financial year.  Customers are booking closer to departure and visibility remains limited. 

 

 

KEY H1 FINANCIALS

 

Six months ended

31 March 2021

31 March 2020

Change

Fav./(adv.)

Number of flights

35,100

244,235

(85%)

Peak operating aircraft

161

318

(49%)

Passengers (thousand) 2

4,086

38,566

(89%)

Seats flown (thousand)

6,412

42,702

(85%)

Load factor 4

63.7%

90.3%

(26.6ppts)

Total group revenue (£ million)

c.235

2,382

(90%)

Passenger revenue (£ million)

c.165

1,833

(91%)

Ancillary revenue (£ million)

c.70

549

(87%)

Total group headline cost (£ million)

(c.940)

(2,575)

64%

Group headline profit/(loss) before tax (£ million)

(690-730)

(193)

(497-537)

Top Copyright Photo: easyJet holidays (easyJet UK) Airbus A320-214 WL G-EZOA (msn 6412) LGW (Robbie Shaw). Image: 948409.

easyJet (UK) aircraft slide show:

 

Eurowings flies to Russia and Georgia for the first time

Eurowings issued this statement:

Starting in summer with Eurowings nonstop to Russia and Georgia: the airline launches three new direct connections starting in July, flying its passengers from Düsseldorf to Russia for the first time – to Ekaterinburg (above) and Krasnodar in Southern Russia – as well as to the Georgian capital Tbilisi.

The flights expand the range in the “Visit Friends and Relatives” segment, in which the Lufthansa subsidiary already offers numerous flights to Greece, Croatia, Algeria and Turkey, for example. Most recently, connections to Beirut in Lebanon and Erbil in northern Iraq were added to the Eurowings program in December. Eurowings is the leader in this market segment and is increasingly expanding its position in response to growing demand. As a result, even more travelers benefit from direct connections to their home countries.

The new routes will be operated by an Airbus A320.

Special 2021 livery to salute Eurowing's employees during COVID-19

Above Copyright Photo: Eurowings Airbus A320-214 WL D-AIZS (msn 5557) (The World’s Greatest Team) PMI (Javier Rodriguez). Image: 953364.

Eurowings flights to Russia

From Düsseldorf to Krasnodar

From July 19, passengers will fly directly from Düsseldorf to Krasnodar in Southern Russia. Flights will be operated on Mondays and Fridays, each followed by a return flight

Monday: DUS – KRR, 11:45 a.m. – 4:55 p.m.; KRR – DUS, 6:15 p.m. – 9:30 p.m.
Friday: DUS – KRR, 07.15 a.m. – 12.25 p.m.; KRR – DUS, 13.45 p.m. – 17.00 p.m.

From Düsseldorf to Ekaterinburg

Starting July 24, Eurowings takes it passengers from Düsseldorf to Ekaterinburg every Saturday morning. The return flight leaves in the afternoon of the same day, touching down in Düsseldorf in the evening.

Saturday: DUS – SVX, 11:10 a.m. – 6:50 p.m.; SVX – DUS, 7:40 p.m. – 9:55 p.m.

Flights to Georgia

From Düsseldorf to Tbilisi

Starting July 21, Eurowings will connect Düsseldorf with the Georgian capital Tbilisi. On Wednesdays and Sundays, an Airbus A320 will take off from the capital of North Rhine-Westphalia to Georgia. Return flights to Düsseldorf are also offered on Wednesdays and Sundays.

Wednesday: DUS – TBS, 11:45 a.m. – 6:00 p.m.; TBS – DUS, 6:50 p.m. – 9:30 p.m.
Sunday: DUS – TBS, 07.15 a.m. – 1.30 p.m.; TBS – DUS, 2.20 p.m. – 5.00 p.m.

All flight times are local times.

Eurowings aircraft photo gallery:

Eurowings aircraft slide show:

Allegiant loses $33 million in the first quarter

Allegiant Air Airbus A320-214 WL N252NV (msn 7868) BFI (Nick Dean). Image: 949885.

Allegiant Travel Company has  reported the following financial results for the first quarter 2020, as well as comparisons to the prior year:

Consolidated Three Months Ended March 31, Percent
Change
(unaudited) (in millions, except per share amounts) 2020 2019
Total operating revenue $ 409.2 $ 451.6 (9.4) %
Operating income (loss) (117.8) 91.1 (229.3)
Income (loss) before income taxes (130.7) 73.9 (276.9)
Net income (loss) (33.0) 57.1 (157.8)
Diluted earnings (loss) per share $ (2.08) $ 3.52 (159.1)
Consolidated – adjusted Three Months Ended March 31, Percent
Change
(unaudited) (in millions, except per share amounts) 2020 2019
Adjusted operating income(1) $ 55.1 $ 91.1 (39.5)
Adjusted income before income taxes(1) 42.2 73.9 (42.9)
Adjusted net income(1) 33.3 57.1 (41.7)
Adjusted diluted earnings per share (1) $ 2.05 $ 3.52 (41.8)
Airline only Three Months Ended March 31, Percent
Change
(unaudited) 2020 2019
Airline operating revenue (millions)(1) $ 404.7 $ 448.3 (9.7) %
Airline operating income (millions)(1) 51.1 98.5 (48.1)
Airline operating margin 12.6 % 22.0 % (42.7)
Airline income before income taxes (millions) (1) $ 38.8 $ 81.5 (52.4)
Airline fully diluted earnings per share(1) $ 1.89 $ 3.98 (52.5)
Airline CASM ex fuel (cents)(1) 6.51 6.40 1.7
(1) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.

“The events that have unfolded over the last eight weeks are truly unprecedented,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “We began to see the first signs of demand weakness at the end of February, with a steep downward demand trajectory by mid-March. Despite March revenues down nearly 40 percent year over year, we finished the quarter with airline-only EPS of $1.89 per share and an airline-only operating margin of 12.6 percent. These numbers are a true testament to the flexibility of our model and our ability to right-size capacity quickly and seamlessly.

“Since the onset of the pandemic, we have been laser-focused on ensuring the health and safety of our employees and passengers. Enhancing our cleaning procedures, adding health precautions and employing smart principles of social distancing, we recently launched our Going the Distance for Health and Safety initiative as a resource to customers, the details of which can be found in the bullets below. It outlines a set of principles which are as much a part of our DNA as flying from small cities to vacation destinations. These principles are designed to evolve with travel needs, as a permanent part of our operation.

“In addition to health and safety enhancements, we took early and decisive action to preserve liquidity and reduce cash burn. These measures, outlined below, have brought immediate and significant progress over the past few weeks. Most notably, more than 25 percent of our team members have strengthened these efforts by participating in voluntary leave and pay reduction programs. I am humbled by their generosity and personal investment in our company. These investments will help preserve jobs and the company alike. The effect of these combined liquidity preservation measures has reduced daily cash burn to roughly $2.1 million a day, in a matter of a few weeks.

“As previously reported, we will receive $172 million in payroll support under the CARES Act, of which $86 million has been received to date, with the remainder being paid in installments. In addition, we will receive nearly $100 million in federal income tax refunds during the second quarter of 2020 related to favorable net operating loss (NOL) carryback rules as outlined by the CARES Act. We anticipate another projected $100 million or more early next year related to 2020 expected losses and capital expenditures. I look at this very material $200 million plus in federal income tax refunds as our ‘equity’ offering other carriers are currently pursuing in the market. With these refunds and our aggressive cost and capital expenditure savings, we believe we have sufficient liquidity going forward. Should we project a need for additional funds, we have up to $276 million of dry powder available through the end of September from the CARES Act loan program.

“Near term is painful and will continue to be painful. But I believe our model, given the current economic impact, is best-suited to withstand the brutal impact from this pandemic. In the near term, we will most likely shrink our fleet by as many as 25 aircraft. These aircraft, particularly the motors, will ‘seed’ our near and long-term ability to materially reduce planned engine overhauls, beginning in 2020 and for years thereafter. Going forward, the market will favor buyers, not sellers as has been the case the past few years. We will be able to use our expertise, as we did with the MD80s, to purchase aircraft and associated parts at what we believe will be substantial discounts to recent prices. We will ‘manage’ planned overhauls via our balance sheet versus expensive overhaul shop visits. Another substantial advantage is that we do not have meaningful aircraft purchase commitments in 2021 and beyond. The combination of our retirements and the greatly reduced cost of used aircraft and their motors is a key part of both our near-term liquidity benefit and long-term – 2021 and beyond –  reduced capital requirements for our growth. Finally, I am reminded of a saying I used with our MD80s, namely ‘we were a non-capital-intensive business in a capital-intensive industry.’

“Going forward, we are prepared to make tough choices and take any steps necessary to adapt and right-size our cost structure. Since the outset of the COVID-19 crisis, we have taken proactive measures to adjust quickly and aggressively to meet the demands of this challenging and changing environment. With that said, our low-cost business model has proven its resilience during past economic downturns, and we expect it will support our ability to rebound here as well. The Allegiant model, based on simplicity, flexibility and optionality is well-suited for these difficult environments.”

Covid-19 Responses – Going the Distance for Health and Safety

  • Enhanced aircraft cleaning, including regular treatment with an advanced antimicrobial protectant that kills viruses, germs and bacteria on contact for 14 days. Our treatment schedule, along with regular cleaning processes, far exceeds manufacturer guidelines
  • Social distancing principles at check-in, boarding and on-board, including limiting adjacent row seating and allowing only customers on the same itinerary to utilize middle seats as practicable
  • Volatile Organic Compound (VOC) air filters that ensure the air quality on our planes exceeds HEPA standards
  • Complimentary health and safety kits, which include a single-use face mask, a pair of non-latex disposable gloves and cleaning wipes, provided to all of our customers
  • Crew members wear face masks on board and gloves during in-flight service
    • All in-flight service offerings consist of prepackaged, factory sealed goods
    • In-flight service frequency has been reduced to once per flight

Network and Customer Experience

  • Reduced April capacity by 87.4 percent
    • Evaluating May and June and expect significant capacity reductions based on diminished leisure demand trends
  • Waived change and cancellation fees for all customers for future travel
  • Extended expiry on credit vouchers to two years

Cash Outlay Reduction – as much as $375 million in cash outlay reductions to our initial 2020 plan

  • Suspended all stock buybacks and dividends
  • Executives reduced salaries by 50 percent and Board members are foregoing cash compensation
    • Neither the chairman and CEO nor the president draw a salary
  • Enacted a hiring freeze and offering voluntary leave
    • More than 1,100 team members are currently participating in some form of pay reduction program
  • Suspended nearly all contractor positions, subscriptions, non-essential training and travel
  • Suspended all non-essential capital expenditures including non-airline subsidiaries
  • Extended payment terms and renegotiating contracts with vendors

CARES Act Relief

  • Payroll support in the amount of $171.9 million comprised of $150.3 million in direct grants and a $21.6 million low-interest, unsecured 10-year loan.
    • Received first installment of $86 million with remainder expected over the next three months
    • Warrants will be issued to the U.S. Department of the Treasury to purchase 25,898 shares at a strike price of $83.33 per share
  • Federal income tax refund of $94 million related to 2018 and 2019 net operating loss carrybacks
  • Anticipated federal income tax refund of $100 million expected to be received between March and May 2021 for 2020 net operating loss carryback
  • Submitted application under the Loan Program with the option to access up to $276 millionsecured loan through September 2020

Balance Sheet, Cash and Liquidity

  • Total cash and investments at March 31st and April 30th were $464 million and $517 million(1), respectively
  • Repriced Term Loan B facility with a 150 basis points rate reduction and upsized by $100 millionin February
  • Obtained financing of $31 millionin April secured by two A320 aircraft
  • Current 2Q20 cash burn is expected to be $2.1 million per day(2)
    • Cash burn assumes gross bookings for 2Q20 average $750 thousand per day
    • 3Q20 cash burn is expected to be $1.5 million per day assuming gross bookings average $750 thousand per day
  • Further sources of liquidity expected during the second quarter around $163 million, including:
    • Additional payroll support from CARES Act in the amounts of $68.7 million
    • Federal income tax refund of $94 million related to net operating losses from 2018 and 2019
  • Reduced full year capital expenditures by $260 million
    • $100 million reduction in airline capital expenditures
      • Expect all remaining 2020 aircraft and engine acquisitions to be financed
    • $160 million reduction in non-airline capital expenditures
  • We currently have 28 unencumbered aircraft and 8 unencumbered spare engines with an appraised value of roughly $431 million
  • Air traffic liability at March 31 and April 30 was $304 million and $305 million, respectively
    • March 31 and April 30 balance related to future scheduled flights are $137 million and $95 million
    • March 31 and April 30 balance related to travel vouchers issued for future use are $167 million and $210 million

(1) April 30 ending cash balance of $517 million includes the first installment payment received under the CARES Act Payroll Support Program of $86 million.

(2) Daily cash burn defined as cash from operations less debt and rent obligations and capital expenditure outflows excluding aircraft and engine acquisitions as they are expected to be financed. Excludes impact of CARES Act Payroll Support Program funding.

Non-airline Subsidiaries

  • Nearly all non-airline subsidiary spend has been suspended indefinitely
  • COVID-19 triggered impairment review and as a result of the uncertainty moving forward, the company recognized a total impairment of $163 million over its non-airline subsidiaries:
    • Sunseeker impairment of $137 million – suspended construction indefinitely
      • No plans for future capital commitments from Allegiant
      • Exploring potential strategic partnerships
    • Nonstop impairment of $18 million – reorganized to be self-sufficient, not requiring future funding from the airline
      • Warren location temporarily closed – produced positive cash flow prior to closing
      • Permanently closed Utah locations
    • Teesnap impairment of $8 million – reorganized to be self-sufficient, not requiring future funding from the airline
      • Remains an asset held for sale

First quarter 2020 results

  • TRASM decreased 13.4 percent
    • March capacity cut 23.3 percent and down 12.2 percent year over year
  • Airline only CASM, excluding fuel increased 1.7 percent on capacity growth of 4.0 percent
    • CASM, excluding fuel had been on track to be down 2.0 percent on capacity growth of 16.0 percent prior to COVID-19 scheduling changes

Top Copyright Photo (all others by the airline): Allegiant Air Airbus A320-214 WL N252NV (msn 7868) BFI (Nick Dean). Image: 949885.

Allegiant Air aircraft slide show:

Eurowings outlines its basic flight schedule

Eurowings Airbus A320-214 WL D-AEWP (msn 7377) PMI (Ton Jochems). Image: 949939.

Against the background of the coronavirus crisis, Eurowings continues to ensure its basic service at the airports of Düsseldorf, Hamburg, Cologne/Bonn and Stuttgart: a basic flight program enables important domestic German connections as well as flights to selected destinations in Europe. Eurowings has now extended its flight schedule and adds additional connections as of May 2020. One focus will be on destinations in the Mediterranean region. For the first time, the island of Mallorca will again be served from several German locations.

Eurowings destinations from Düsseldorf

From Düsseldorf, Eurowings flies up to nine times a week to Hamburg and Berlin, up to six times a week to Vienna, Zurich and London and up to four times a week to Milan, Salzburg – Eurowings is the first airline to take off again from Salzburg – and Sylt. The destinations Barcelona and Manchester are offered up to three times a week. Eurowings takes off twice a week to Budapest, Catania, Ibiza, Naples, Olbia, Prague, Rome and Thessaloniki from the largest airport in North Rhine-Westphalia. Flights to Heraklion are offered once a week. The Balearic island of Mallorca is connected up to seven times a week.

Eurowings destinations from Cologne/Bonn

From Cologne/Bonn, Eurowings offers up to six weekly flights each to Berlin, Hamburg and Munich and flies up to three times a week to Edinburgh. Twice a week each to Lisbon, Kavala and Zagreb and once a week to Bastia. Eurowings flies to Mallorca up to seven times a week.

Eurowings destinations from Hamburg

From Hamburg Eurowings offers daily connections to Mallorca. Flights to Cologne/Bonn and Stuttgart are offered six times a week, while Eurowings flies to Vienna four times a week. There are up to nine weekly connections to Düsseldorf from Hamburg.

Eurowings destinations from Stuttgart

From Stuttgart, Eurowings flies four times a week to Berlin and six times a week to Hamburg. The airline offers up to seven weekly connections to Mallorca.

Eurowings destinations from Munich

Eurowings currently flies from Munich six times a week to Cologne/Bonn and the Balearic island of Mallorca.

Top Copyright Photo: Eurowings Airbus A320-214 WL D-AEWP (msn 7377) PMI (Ton Jochems). Image: 949939.

Eurowings aircraft slide show:

Eurowings wins HLX Touristik as new partner for Eurowings Holidays

Eurowings has made this announcement:

With HLX Touristik GmbH, Eurowings has gained a new partner for its tour operator brand ‘Eurowings Holidays’, founded in 2017: With immediate effect, Eurowings cooperates with HLX, a travel provider specializing in the packaging of flight and hotel offers with guaranteed best prices. Eurowings customers can book high-quality low-cost package tours via the ‘Eurowings Holidays’ portal at holidays.eurowings.com. HLX is one of the leading providers in this segment and has been successfully operating holiday portals for Lufthansa and Swiss for several years.

Eurowings Digital Managing Director Oliver Schmitt comments: “As Germany’s largest holiday airline, we are significantly expanding the range of ‘Eurowings Holidays’ together with HLX. With Eurowings you can not only fly cheaply, but also book complete trips with many additional services, such as rental cars, insurance and local activities – with just a few clicks, simply and conveniently from one source.

Eurowings (Europe) Airbus A320-214 WL OE-IQD (msn 7056) (Eurowings Holidays) AYT (Ton Jochems). Image: 943735.

Above Copyright Photo: Eurowings (Europe) Airbus A320-214 WL OE-IQD (msn 7056) (Eurowings Holidays) AYT (Ton Jochems). Image: 943735.

The change to HLX is associated with a significant expansion of the range of low-cost package tours and additional services. Thus, the hotel offer which is availabe on the reservation portal holidays.eurowings.com grows on over 45.000 hotels. New are also the “Nobag” tariffs which are very popular particularly in combination with city trips.

Karl Heinz Kögel, Managing Director of HLX Touristik: “We look forward much to the partnership with Eurowings. Together we offer customers professionally organized, high-quality package tours with individual design options and a best-price guarantee. Many of these are exclusive to ‘Eurowings Holidays’.”

The ‘Eurowings Holidays’ portfolio includes short and city trips to vibrant metropolises as well as long-haul trips to the world’s most beautiful holiday destinations. In addition to an expanded hotel portfolio, customers will also benefit in future from top offers with best price guarantees and a fresh brand presence with an optimized user experience. They also have the option of booking individual trips with or without free baggage allowance.

Members of the Eurowings Boomerang Club receive one flight mile for every euro they spend. When booking a package tour with a Eurowings flight, Boomerang Club members additionally receive 250 (domestic German), 500 (continental) and 750 miles (intercontinental) per route, depending on the destination. At the start of the cooperation, there will be a special campaign: when booking between 6 and 16 January 2020, customers will receive an immediate discount of up to 220 euros on the travel price.

Eurowings aircraft photo gallery:

easyJet launches easyJet holidays with a logo jet

Launched on November 28, 2019

easyJet has launched its own holiday arm amid concerns that the British public will be put off booking a trip with a company famed for its budget approach to air travel.
easyJet holidays went live on Thursday, November 28, 2019, selling packages to 5,000 hotels in more than 100 destinations, predominantly in Europe. Each booking comes with 23kg checked baggage per customer and transfers, where available.
For this reason the pictured easyJet A320 G-EZOA has received a special livery with “easyjet holidays” titles and special decals on the rear fuselage.
easyJet made this announcement:

easyJet on November 28 launched a new holiday business aimed at shaking up the sector with flexible, great-value holidays to handpicked hotels across Europe.

UK customers can book Europe’s most loved hotels, together with any easyJet flight, on one platform. This will help to reduce the seven hours holidaymakers spend on average searching for a holiday, according to research by the new holiday company.

easyJet holidays will offer lots of peak-time holiday availability and more weekend flying than anyone else. All holiday bookings will include 23kg hold baggage per person, offering great value and extra ease, especially with families in mind, and beach holidays will also include a transfer.

The business has been built to overcome the things that frustrate travellers the most. This includes the amount of time spent looking for good deals (25%), the added expense of travelling at preferred times (21%) and the lack of flexibility with flight times and dates (17%).

easyJet holidays customers will benefit from ultimate flexibility and can choose exactly how many nights they wish to stay thanks to the strength of the easyJet fleet and its flying schedule. The airline has more than 330 aircraft flying up to 670 routes a day to beach and city locations, resulting in great-value holidays, no matter the duration or time of year.

easyJet holidays is directly contracting hotels for the first time, giving holidaymakers the choice of staying at handpicked hotels. The range of high-quality hotels has been carefully selected by experts, with bespoke collections carefully designed to suit every holiday type. The beach collections include ‘Luxury’, ‘Adult’, ‘Family’ and ‘Undiscovered’, for authentic accommodation off the beaten track. For city breaks, the hotels will be highlighting ‘Luxury’ and ‘Boutique’ collections. Customers can choose from over 5,000 hotels across more than 100 destinations.

The business has also introduced new technology to ensure a quick and seamless customer experience, including integration with easyJet’s app and a completely new website. The new website also features advanced mapping technology, meaning customers can explore a city or resort or start to plan their trip before they book. Key points of interest and walking routes from chosen hotels are highlighted – together with new itinerary guides for a selection of cities – so that customers can start to make the most of their holiday before they travel.  The website will also feature TripAdvisor ratings, following research showing that holidaymakers trust these reviews over anything else (40%) when it comes to choosing which hotel to book. It will also use AI to learn and personalise the experience for customers.

Garry Wilson, Chief Executive of easyJet holidays, said: “easyJet has been a pioneer in transforming travel for almost 25 years and we want to bring that to the holidays sector. “We know the way people travel is continuously evolving; we know customers want flexibility on when and how they holiday; we know customers want flexibility on when and how they holiday; we know they want to be able to easily pick a hotel to suit their needs and we know they want a hassle-free booking process. We’re really excited to help meet these needs with the launch of our new modern and relevant holidays business.”

Javier Rodriguez reporting from Spain.
Top Copyright Photo: easyJet holidays (easyJet UK) Airbus A320-214 WL G-EZOA (msn 6412) PMI (Javier Rodriguez). Image: 948408.
easyJet (UK) aircraft slide show:

Allegiant Travel Group reports its second quarter 2019 results

Allegiant Air Airbus A320-214 WL N247NV (msn 7704) FLL (Bruce Drum). Image: 104577.

Allegiant Travel Company (Allegiant Air) has reported the following financial results for the second quarter 2019, as well as comparisons to the prior year:

Consolidated Three Months Ended
June 30,
Percent Six Months Ended
June 30,
Percent
(unaudited) 2019 2018 Change 2019 2018 Change
Total operating revenue (millions) $ 491.8 $ 436.8 12.6 % $ 943.4 $ 862.2 9.4 %
Operating income (millions) 108.1 74.2 45.7 199.2 154.2 29.2
Net income (millions) 70.5 50.0 41.0 127.7 105.2 21.3
Diluted earnings per share $ 4.33 $ 3.10 39.7 % $ 7.84 $ 6.52 20.2 %
Airline only Three Months Ended
June 30,
Percent Six Months Ended
June 30,
Percent
(unaudited) 2019 2018 Change 2019 2018 Change
Airline operating revenue (millions) $ 486.8 $ 434.6 12.0 % $ 935.1 $ 858.9 8.9 %
Airline operating income (millions) 115.5 76.1 51.8 214.0 158.0 35.4
Airline operating margin(2) 23.7 % 17.5 % 6.2 22.9 % 18.4 % 4.5
Airline diluted earnings per share(1) $ 4.81 $ 3.21 49.8 $ 8.80 $ 6.75 30.4
Airline CASM ex fuel (cents)(1) 5.65 6.02 (6.1 ) 6.00 6.17 (2.8 )

(1) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.
(2) Percent point change

“I’m happy to report the second quarter of 2019 was Allegiant’s 66th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “We commented last quarter about the benefits of our all Airbus fleet. These benefits are continuing and increasing. We led the industry in Q1 with a 22 percent airline operating margin; this quarter the airline generated a 24 percent operating margin, a six percentage point increase from the previous year. And we accomplished these results with seven fewer aircraft this year compared to 2018. The fuel efficiencies of the Airbus continue to impress. We consumed 4.9 percent more fuel in Q2 compared to last year but produced 13.4 percent more ASMs. Correspondingly, our CASM ex-fuel declined 6.1 percent year over year. I’m comfortable stating we believe we will be the only carrier this quarter who had lower unit costs this year versus last year.

“On the revenue front, scheduled service revenue was $11 million per aircraft during the first six months of the year, over $2 million more than last year’s per aircraft revenue during the same period. Additionally, we generated approximately $3.5 million of EBITDA per aircraft in the same period or about $1.1 million greater per aircraft than the same period last year.

“Our operations continue to excel. We have solely led or tied for the industry lead in completion factor every month in 2019.  One of our challenges in the past few years has been our ability to scale our operations during our peak periods in the summer months and maintain a high completion rate.  In June 2018, we were number five in completion rate; this year we were number one. I’m happy to report we have had only ten days where we have had a mechanical cancellation since the beginning of the year.

“This combination of superior financial results and industry-leading operational performance, along with the proprietary model we have developed and continue to operate is a tribute to our excellent team members. Looking forward, we are excited about the opportunities in front of us including our ability to operate our leisure model to Mexico and the Caribbean in the coming years.”

New Routes:

Airline operational highlights

•         Departures in the second quarter up 13.8 percent year over year despite seven fewer average aircraft in service
•         Average number of aircraft in service decreased 7.6 percent from 92 to 85 year over year
•         Spare aircraft reduced from twelve down to four spares year over year
•         Block hour utilization increased by 20.5 percent to 8.8 block hours per aircraft per day
•         Led industry in completion every month in 2019
•         Maintenance cancellations down 87.6 percent year over year
•         On time performance (A-14) for the quarter was 77.7 percent up 2.8pts year over year
•         Net promoter score is up an average of 8pts year over year
•         Irregular operation costs – second quarter down $7.2 million or 57.6 percent

Airline only second quarter 2019 results

•         Diluted earnings per share were $4.81, up 49.8 percent year over year
•         23.7 percent operating margin for the quarter and 22.9 percent year to date
•         TRASM decreased 1.6 percent on capacity growth of 13.6 percent
•         May TRASM grew 2.4 percent on 11 percent growth in ASMs
•         June TRASM grew 0.7 percent on 13.5 percent growth in ASMs
•         Total fare is down only 0.5 percent despite increasing aircraft utilization by 20.5 percent
•         Year-to-date average total fare has increased 1.0 percent to $120.49
•         Fixed fee flying revenue increased 63.2 percent
•         Fuel gallons used increased only 4.9 percent on ASM growth of 13.4 percent
•         Increase in ASMs per gallon of 8.1 percent to 82.3
•         Airline unit cost excluding fuel decreased by 6.1 percent
•         Maintenance and operational improvements were the largest drivers

Liquidity and shareholder returns

•         Total cash and investments at June 30 were $695 million
•         Paid off high yield bond balance of $102 million in July
•         Currently, we have 26 unencumbered aircraft
•         $81 million available under the revolving credit facility
•         Returned $11 million in dividends in the second quarter
•         Expect to pay dividend of $0.70 per share on September 27, 2019 to shareholders of record as of September 20, 2019

Non-airline highlights

•         Non-airline businesses resulted in a combined operating loss of $7.4 million during second quarter
•         Evaluating strategic alternatives for Teesnap
•         Triggered the business classification of an entity held for sale in July 2019
•         SunseekerResorts FY19 CAPEX reduced to a range between $150 and $175 million
•         Operated two family entertainment centers (FEC’s) during second quarter
•         Rebranded FEC’s from G4CE to Allegiant Nonstop effective June 1, 2019

Aircraft fleet plan by end of period
Aircraft – (seats per AC) YE18 1Q19 2Q19 3Q19 YE19
A319 (156 seats) 32 37 37 37 38
A320 (177/186 seats) 44 47 49 53 55
Total 76 84 86 90 93

Aircraft listed in table above include only in-service aircraft and future aircraft under contract (subject to change)

Top Copyright Photo: Allegiant Air Airbus A320-214 WL N247NV (msn 7704) FLL (Bruce Drum). Image: 104577.

Allegiant Air aircraft slide show:

Route Map:

TAP to fly to Banjul, Gambia

TAP Portugal - Air Portugal Airbus A320-214 WL CS-TNT (msn 4095) LIS (Ton Jochems). Image: 946599.

TAP will begin flying to Banjul, the capital of The Gambia, on October 26, 2019. TAP will offer three flights per week from Lisbon.

This is another example of the national airline strengthening its service to Africa, a market in which TAP has recorded significant growth.

The service will use Airbus A320 aircraft, with three flights per week, leaving Lisbon at 20:55 on Tuesdays, Thursdays and Saturdays and arriving in Banjul at 00:10 the next day. The flights will then leave Banjul at 01:05 (on Wednesdays, Fridays and Sundays), arriving at Humberto Delgado Airport at 06:05 (all times local).

TAP flies to the following destinations in Africa: Morocco (Marrakesh, Casablanca, Tangier and Fez), Cape Verde (Sal, Praia, S. Vicente and Boa Vista), Senegal (Dakar), Guinea-Bissau (Bissau), Ivory Coast (Abidjan), Togo (Lomé), Ghana (Accra), S. Tomé and Príncipe (S. Tomé), Angola (Luanda) and Mozambique (Maputo) – a total of 16 cities in 10 countries.

The new destination of Banjul, in The Gambia, and the recently announced start of flights to Conakry, in Guinea, bring the number of African countries and cities the national airline directly serves from Portugal to 12 and 18, respectively.

TAP carried more than 1.1 million passengers on its African routes in 2018, an increase of 11.3% compared to the previous year. TAP continues its growth in Africa with these new destinations for 2019.

Top Copyright Photo: TAP Portugal – Air Portugal Airbus A320-214 WL CS-TNT (msn 4095) LIS (Ton Jochems). Image: 946599.

TAP aircraft slide show: