AirAsia Group announced (11-Aug-2020) a "pick up in key operational metrics" in Jun-2020 compared to May-2020, including tripling the number of passengers carried by AirAsia Malaysia, and doubling the number of passengers carried by Thai AirAsia. [more - original PR]
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Copa Airlines is working to resume limited operations before a more pronounced restart of service in Sep-2020. The company has been grounded since Mar-2020 as its home country of Panama, and many other countries in Latin America, have essentially shut off their borders.
By YE2020 Copa could operate up to 40% of the capacity it deployed in 2019, but the company is working to size its fleet to accommodate what could be much lower demand for the next couple of years.
Despite being grounded for five months, Copa remains on solid footing, which is commendable, given that some of its larger peers in Latin America have sought to restructure under Chapter 11 bankruptcy protection.
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St. Louis Lambert Airport: privatisation now back in playOnly a few months ago it looked as if the ‘great white hope’ for the airport leasing programme in the U.S. had fallen through as, beset by political disagreements, a once supportive mayor pulled the rug on the project. But now a ballot has been secured by supporters of the project which could change the city charter to authorise the lease.
St Louis-Lambert International Airport is the major airport serving the city of St Louis, Missouri and is the busiest in the state. It also serves the surrounding metropolitan area, which includes much of south-eastern Illinois, and it continues to be an important transport facility in the region, with Southwest Airlines the largest operator at the airport.
In Jun-2020 supporters of leasing St. Louis Lambert International Airport (STL) called for a Nov-2020 ballot measure that would change the city charter to authorise a long term public-private partnership (P3) lease of the airport. If passed by the obligatory 60% of those voting, that authorisation would require leasing the airport to private operators if they commit to at least USD1.7 billion.
But the requirement that the successful bidder should find USD1.7 billion, even over a 50-year lease, could prove to be too onerous.
Canada’s smaller airlines are taking different approaches to their businesses while the country is closed off due to travel restrictions that have largely been in place since Mar-2020.
Porter Airlines has not operated since that time, and now does not project resuming operations until Oct-2020. The airline’s major passenger segment was business travellers, and predicting when corporate travel will resume is tough, since many businesses are extending work from home options for employees.
The ultra-low cost operator Flair Airlines is building back some service in the summer high season. Previously, the airline has stated that it was expecting to see some improvement in demand by Jun-2020, and its route additions would suggest that the airline is benefitting from movement off the bottom in demand patterns; or, the company is aiming to stimulate traffic with low fares.
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Fraport 1H2020 financial report - recovery begins, but slowlyHalf-year airport financial reports for 2020 are coming thick and fast now. At the same time in 2019 operators would not have believed that the equivalent period this year would reveal revenue losses of 50% or more, EBITDA down by 95%, and net profits destroyed.
Fraport, which apart from its Frankfurt hub operates airports or contracts for specific segments such as retail operations across the world, is no different.
But while those international operations have largely dragged down the core German activity with the exception of the Lima airport, Fraport, like other operators, has reported that retail operations have not been as badly impacted as other revenue streams.
Construction will be halted on all projects apart from Terminal 3 at Frankfurt, while up to 4,000 jobs will be shed permanently.
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GOL expects return of business travel in Brazil by end-2020Brazil’s largest airline GOL continues to add capacity back to its network and is anticipating a return to 80% of all frequencies and markets by the end of 2020, as the airline expects some corporate travel will resume during the Sep-2020 to Oct-2020 period.
The airline believes larger corporate clients could begin travelling again as states and localities in Brazil begin to open up. That should allow GOL to widen its booking curve, which for now remains short, at broadly 20 days.
Even as Brazil’s COVID-19 cases continue to climb, GOL has concluded that demand has been steadily recovering, and the airline’s sales and traffic continue to move off the lows that the airline dropped to in Apr-2020.
26-Mar-2020
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11-Aug-2020 3:44 PM
Mesa Air Group reports USD3.4m profit in Q3FY2020, sees 'significant opportunities ahead'
Mesa Air Group reported (10-Aug-2020) net income of USD3.4 million in Q3FY2020, compared to USD3 million in Q3FY2019. Total operating expenses fell 64.5% year-on-year to USD57.9 million, due to fewer operations and maintenance expenses, reflecting the impacts of COVID-19 and the federal grant received through the Payroll Support Agreement. Mesa Air Group chairman and CEO Jonathan Ornstein said the group reported "both a profit and positive cash flow", which it attributed to "our relentless focus on low costs and reliable operations, the construct of our agreements with our major partners, and the dedication and hard work of all our employees". Despite "significant opportunities ahead", Mr Ornstein said the group is still faced with "COVID-19 related challenges". He explained: "Our fleets continue to be utilised below 60%, aircraft financing has become more difficult, and the recovery time projected for demand to return to pre-COVID-19 levels". [more - original PR]
Iran Air, via its official Twitter account, announced (11-Aug-2020) the appointment of Alireza Barkhor as CEO, succeeding Touraj Dehghani Zanganeh who was appointed to lead the Iran Civil Aviation Organization. Positions previously held by Mr Barkhor include deputy commander of air force operations and chairman of Saha Airlines.
Sydney Airport stated (10-Aug-2020) it is anticipated that the group's financial performance will continue to be affected due to the likely adverse impact of the coronavirus pandemic on operations. In respect of operating costs (excluding security recoverable costs), the group expects to maintain tight discipline and is targeting at least a 35% reduction for the 12 months from 01-Apr-2020. The group is targeting a capital investment range of AUD150 million (USD107.3 million) to AUD200 million (USD143.1 million) for the 12 months from 01-Apr-2020, compared to a historical run rate of approximately AUD350 million (USD250.4 million) p/a. The focus for the next 12 months is on essential projects targeting safety, maintenance and asset resilience. No final distribution is expected to be paid for 2020. The board will update on the outlook for future distributions as more clarity emerges on recovery from the pandemic. [more - original PR]
Sydney Kingsford Smith Airport announced (11-Aug-2020) a fully underwritten pro rata accelerated renounceable entitlement offer, with retail rights trading, to raise AUD2 billion (USD1.4 billion). The airport stated the entitlement offer substantially reduces net debt, supports its commitment to maintaining a strong investment grade credit rating, further increases liquidity available to the airport and is expected to enhance the financial resilience of Sydney Airport. Combined with existing liquidity, the entitlement offer proceeds will cover debt maturities, as well as be used for general corporate purposes, including but not limited to capital expenditure. [more - original PR]
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11-Aug-2020 10:01 AM
Air Arabia reports USD46m loss in 1H2020, anticipates 'gradual' recovery from COVID-19 crisis
Air Arabia reported (10-Aug-2020) a net loss of AED169 million (USD46 million) in 1H2020, reflecting the significant impacts of COVID-19 on the airline. Turnover was AED1.02 billion (USD277.7 million), a decline of 53% year-on-year. Air Arabia chairman Abdullah Bin Mohamed Al Thani said the carrier commenced 2020 with "strong performance promising another year of growth and profitability", however the "full impact of COVID-19 on airline operations was fully materialised in the second quarter as a result of border closures and flights suspension across all key markets". He noted this change has "led airlines to focus on controlling cost while supporting global relief efforts with repatriation and aid flights". Air Arabia handled 2.48 million passengers in 1H2020, down 57%. Mr Al Thani concluded: "The prospects of the global aviation industry remain strong and will continue to play a vital role in the global economic recovery. While we started to see gradual opening of selective markets around the world, it is now clear that COVID-19 will continue to have a lasting impact on the aviation industry and the path to recovery is expected to be gradual. At Air Arabia, while we remain in a strong position weathering the COVID-19 impact, we continue to look at this challenge with a long-term view keeping business continuity as the prime focus". [more - original PR]
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