Air Cargo climbs to near pre-pandemic levels during 2022....

Air Cargo Closes 2022 Near Pre-Pandemic Levels

                     The International Air Transport Association (IATA) released data for global air freight markets showing that 2022 full-year demand for air cargo took a significant step back from 2021 levels but was close to 2019 performance.

 

Global full-year demand in 2022, measured in cargo tonne-kilometres (CTKs*), was down 8.0% compared to 2021 (-8.2% for international operations). Compared to 2019, it was down 1.6% (both global and international).

 

Capacity in 2022, measured in available cargo tonne-kilometres (ACTKs), was 3.0% above 2021 (+4.5% for international operations). Compared to 2019 (pre-COVID) levels, capacity declined by 8.2% (-9.0% for international operations).

 

December saw a softening in performance: global demand was 15.3% below 2021 levels (-15.8% for international operations). Monthly cargo demand tracked below 2021 levels from March 2022. Global capacity was 2.2% below 2021 levels (‑0.5% for international operations). This was the tenth consecutive monthly contraction compared to 2021 performance. 

Ended the year with mixed signals:

Global new export orders, a leading indicator of cargo demand, have stayed at the same level since October. For major economies, new export orders are shrinking except in Germany, the US, and Japan, where they grew.

Global goods trade decreased by 1.5% in November, down from a 3.4% increase in October.

The Consumer Price Index for G7 countries indicated inflation tracking at 6.8% for December. The 0.6 percentage point drop compared to November (7.4%) was the largest over the course of year. Inflation in producer (input) prices reduced to 12.7% in October, its lowest level so far in 2022.

“In the face of significant political and economic uncertainties, air cargo performance declined compared to the extraordinary levels of 2021. That brought air cargo demand to1.6% below 2019 (pre-pandemic) levels. The continuing measures by key governments to fight inflation by cooling economies are expected to result in a further decline in cargo volumes in 2023 to -5.6% compared to 2019. It will, however, take time for these measures to bite into cargo rates. So, the good news for air cargo is that average yields and total revenue for 2023 should remain well above what they were pre-pandemic. That should provide some respite in what is likely to be a challenging trading environment in the year ahead,” said Willie Walsh, IATA’s Director General. 

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2022 Regional Performance

Asia-Pacific airlines posted an 8.8% decrease in demand in 2022 compared to 2021 (-7.4% for international operations) and a capacity increase of 0.5% (+5.8% for international operations). Compared to 2019 (pre-COVID levels), demand was 7.8% below (-3.9% for international operations) and capacity was down 17.2% (-12.2% for international operations). In December, Asia-Pacific airlines recorded the worst performance of all regions, posting a 21.2% decrease in demand (-20.4% for international operations) compared to 2021. Capacity fell 3.9% (-1.4% for international operations) during the same period. Airlines in the region continue to be impacted by lower levels of trade and manufacturing activity and disruptions in supply chains due to China’s rising COVID cases.

IAG Cargo’s 2023 Graduate Scheme is now open for applications....

IAG Cargo has started the application process for its 2023 graduate scheme at London Heathrow

IAG Cargo helps to keep the world’s economy moving using the belly hold of passenger aircraft to transport essential goods that positively impact society across five continents

Successful candidates will join the two-year programme rotating through a range of head office functions helping them to establish a career in air cargo and logistics

 

IAG Cargo, the cargo division of International Airlines Group (IAG), has started the application process for its 2023 graduate scheme, commencing this September. IAG Cargo is looking to welcome a new cohort of eight graduates to join the 2-year programme following a successful restart in 2022. Candidates will gain valuable experience in different areas of the business including revenue management, human resources, operations, and sales.

IAG Cargo helps to keep the world’s economy moving using the belly hold of its five sister airlines – British Airways, Iberia, Aer Lingus, Vueling and LEVEL – to transport essential goods that positively impact society across five continents. IAG Cargo works to support trade in a variety of different industries, whether it’s to keep the global automobile production line on schedule, stock supermarket shelves, transport ballot papers for an election or deliver life-saving medicine.

Graduates from the 2022 intake have already made an impressive impact and have been involved in several exciting projects from a mentor session with senior leaders in the business to sustainability and digitalisation, and soon they’ll be visiting IAG Cargo’s hub at Madrid Barajas Airport.

Caroline Andrews, Chief People Officer at IAG Cargo said: “I am delighted to open applications for a new cohort of graduates following such a successful 2022 intake. Since our graduate scheme began eleven years ago, they have become a vital part of our success and an important talent pool for IAG Cargo. Working with high-performing teams across the business our graduates are nurtured and supported in a collaborative environment to help them fulfil their true potential and develop into future leaders.

Budget airline Norwegian to lease six Boeing 737 MAX 8 aircraft as passenger numbers jump in January

The European budget airline Norwegian has signed a Letter of Intent (LOI) with Air Lease Corporation ALC to lease six Boeing 737 MAX 8 aircraft which are in addition to the three 737 MAX 8 aircraft the carrier has already agreed to lease from ALC.

The aircraft are to be delivered in a short time to Norwegian, in good time ahead of the summer 2023 season, the final agreement is subject to certain closing conditions.

“The addition of these modern and fuel-efficient aircraft fits well with our fleet strategy. It will also help counteract delays from Boeing for other aircraft that were due to be delivered to Norwegian this spring,” said Geir Karlsen, CEO of Norwegian.

In January, Norwegian had 1.1 million passengers, an increase of 78 percent from this month last year.

“People traditionally travel less in January, instead using this time of year to book their next travels. Nevertheless, we had close to full flights to warmer destinations this month. Our New Year’s sales campaign resulted in more than one million sold seats, a satisfying start to this year’s ticket sales. We see that the positive booking trend continues also after this sale. Many of our passengers are currently planning their travels for this year’s school breaks and long weekends in May”, said Geir Karlsen, CEO of Norwegian.

This year’s summer program comprises 300 routes to 114 destinations, including several new destinations. With an expanded route network and new aircraft, Norwegian continues to recruit new colleagues.

“The past week has been very particular for the Nordic aviation sector, marked by Flyr’s bankruptcy. I strongly sympathise with the employees, customers and others affected by the situation. We would like to make sure stranded passengers reach their destinations, provided we have free seats available. We also invite employees that have been affected by the bankruptcy to apply to job vacancies at Norwegian”, said Karlsen.

Norwegian had 1,131,474 passengers in January, up 78 percent from January 2022. The load factor in January was 78 percent. The capacity (ASK) was 1,870 million seat kilometres, while actual passenger traffic (RPK) was 1,453 million seat kilometres. In January, Norwegian operated an average of 62 aircraft and 99.5 percent of the scheduled flights were completed. Punctuality, as measured by the number of flights departing within 15 minutes of scheduled time, was at 85.0 percent in January.

Reaching for the sky....jobs at Titan Airways

Since its foundation in 1988, Titan Airways has grown into one of the UK's most prestigious charter airlines specialising in VIP and corporate travel as well as airline sub-charter and aircraft leasing services.

The company established itself for its ability to provide an aircraft at very short notice, indeed, many of the leading airlines in Europe call upon Titan Airways to provide an instant operational solution. The firm says it can have an aircraft airborne within 60 minutes from confirmation in passenger or freight configuration.  Its modern, reliable aircraft can operate from all major international and regional airports day and night, 365 days a year.

The airline is now looking for staff to join its highly respected business.  The airline is welcoming applications for the following roles based at London Stansted -

Technical Planner

Buyer - Stores

Flight Manager/Loadmaster

German-based.

A320 Type Rated First Officers

Titan regularly seeks the right individuals to join their teams and employs people in a variety of roles throughout the company, including pilots, cabin crew and engineers. They also have positions in safety and quality, operations, in-flight services, administration, commercial sales and finance.

Most staff are based at the headquarters at London Stansted, where it has a large open-plan office and a 33,335 square-foot hangar. 

For more details...

Careers - Titan Airways (titan-airways.com)

Air New Zealand update on recent flooding in Auckland

Fly to net zero update.....

As we turned to 2023, in Europe, the NATO pipeline supplying Brussels Airport with kerosene was opened on 1 January for the transport of SAF. Brussels Airlines transported the very first batch of sustainable aviation fuel transported via this route on the same day at Brussels Airport. Teesside International Airport has collaborated with Air France-KLM on the airline’s SAF program, becoming the first UK airport to do so. On the other side of the pond, The US Department of Energy announced over $100m in funding to expand US biofuels production, as the Biden administration works to cut greenhouse gas emissions from transportation and meet climate goals, the department told Reuters. The Department plans to award $118m to 17 projects designed to accelerate the production of biofuels. In the State of Illinois, state lawmakers have approved legislation to create a $1.50/USG SAF tax credit that airlines can use to satisfy all or part of their state use tax liabilities. The legislation will create a tax credit for every gallon of SAF sold to or used by an air carrier in Illinois. Honeywell recently received its first delivery of SAF at its Phoenix Engines campus to support development and production testing of auxiliary power units (APUs) and propulsion engines at the site, along with testing of fielded units from Honeywell's repair and overhaul facility. In the Middle East, Masdar, ADNOC, bp, Tadweer (Abu Dhabi Waste Management Company) and Etihad Airways announced an agreement to conduct a joint feasibility study on production of SAF and other products in the UAE, such as renewable diesel and naphtha, using municipal solid waste (MSW) and renewable hydrogen. Meanwhile, Emirates successfully completed the ground engine testing for one of its GE90 engines on a Boeing 777-300ER using 100% SAF. Newly-established Saudi Arabian lessor AviLease has reached a provisional agreement with the Saudi Investment Recycling Company (SIRC) for production and distribution of sustainable fuel in the country.  In Asia, Asiana Airlines announced entering an agreement with Shell to secure SAF from 2026. Japan's two leading air carriers, All Nippon Airways and Japan Airlines, have agreed to source SAF from US producer Raven in deals involving Tokyo-based trading house Itochu. The airlines will buy SAF that Raven aims to produce commercially as early as 2025, using it on international flights.

New route and sales news from Aussie airline Qantas

Qantas has launched a sale with discounted fares to 26 destinations across the airline’s international network and will launch a new route between Melbourne and Jakarta.

QANTAS INTERNATIONAL SALE

More than 170,000 seats are up for grabs, with the sale fares up to 35 per cent below the normal lead-in fares. Discounts vary from route to route and selected travel dates and days apply. Examples of some of the sale fares include:

• Melbourne – Delhi from $999 return
• Melbourne – London from $1,699 return
• Melbourne – Singapore from $759 return
• Melbourne – Dallas/Fort Worth from $1,899 return
• Sydney – Los Angeles from $1,299 return
• Sydney – Santiago from $1,699 return
• Sydney – Bengaluru from $999 return
• Sydney – Seoul from $949 return
• Brisbane – Singapore from $759 return
• Perth – Singapore from $599 return

The sale runs until Tuesday, 7 February 2023, unless sold out prior.*

Air Canada Cargo Continues Investing to Improve Operations, Products and Services

Air Canada Cargo this week unveiled a renewed customer reception area at its London Heathrow facility, marking one of the latest investments in improving its services to customers around the globe. The reception area is the first part of a wider project to modernize many parts of its London facility, which is Air Canada Cargo’s largest European hub.

The revitalized reception area in this self-handled facility provides a new customer area to receive trucked shipments. Incorporating many design elements found in Air Canada’s premium offerings at airports, the London Heathrow cargo customer reception area includes a living wall featuring three types of locally-sourced mosses that help purify the air in the reception area, reflecting Air Canada’s sustainability efforts. The new space also includes improved workstations for Air Canada Cargo customer service agents to better serve clients.

“This improvement to our London Heathrow facility is the first of many investments in both customer-facing areas and our operations. The new space better represents the Air Canada Cargo brand and is a clear sign of the airline’s commitment to London as a hub facility as it continues strategically expanding the business,” said John Lloyd, Senior Director – Europe, Middle East and India for Air Canada Cargo.

Sun Country Airlines reports fourth quarter and full year 2022 results

Q4 2022 GAAP diluted EPS of $0.12 and operating margin of 6.7%

Q4 2022 Adjusted diluted EPS of $0.13(1) and adjusted operating margin of 7.0%(1)

FY 2022 GAAP diluted EPS of $0.29 and operating margin of 6.2%

FY 2022 Adjusted diluted EPS of $0.42(1) and adjusted operating margin of 6.5%(1)

Sun Country Airlines Holdings, Inc. has reported financial results for its fourth quarter and full year ending December 31, 2022.  “Thank you to the entire Sun Country team for a successful 2022,” said Jude Bricker, Chief Executive Officer of Sun Country. “Our unique and diversified business model continued to produce strong results in the face of significant industry challenges, as we grew year-over-year revenue by 43.6% to $894.4 million, a record high for Sun Country. Despite constraints on our growth, the impact of Omicron in Q1 and a 71% increase in fuel prices versus 2021, we produced a GAAP pre-tax margin of 2.7% and an adjusted pre-tax margin of 3.7% for the year while growing scheduled service block hours nearly 18%. Over the important holiday travel season, our operations team produced the industry’s highest completion factor of 99.3%. We are very optimistic about 2023, as we continue to see strong bookings, unit revenues and earnings growth heading into Q1.”

Icelandair: 2022 a turnaround year

The latest results from Icelandair have now been released for 2022 for what has been described as a turnaround year. 

Highlights include: 

Full-year EBIT USD 19 million, improving by USD 136 million

Strong revenue generation resulting in the best fourth quarter performance since 2015

Capacity in Q4 2022 95% of the 2019 capacity

Unit revenue in Q4 up 13% year-on-year

Weather disruptions in December negatively affecting results in Q4 2022

Leasing operation gaining momentum and strong profitability in 2022

A new B767-300 freighter entered operations in December

Seven B737 MAX aircraft added to the fleet in 2022

Strong balance sheet and total liquidity of USD 318 million at end of year

Reduction in CO2 emissions by 17% per OTK compared to 2021

January 2023 record sales month and good outlook in all markets

EBIT ratio expected to be in the 4-6% range for the full year of 2023

Icelandair President and CEO Bogi Nils Bogason made this statement on the airline's performance during 2022, which has been seen by many as a key turnaround year for the financially constrained carrier, “The year 2022 was characterized by a great turnaround of our business. Strong revenue generation with record passenger revenue in the second half of the year and significant EBIT improvement shows that our business model has proven its worth yet again. We are back on track, stronger than ever and ready to operate the largest flight schedule, in terms of frequency and destinations, in the history of Icelandair.

Our strategy and actions throughout the pandemic ensured we were prepared to rapidly increase capacity to meet the steep increase in demand in all our markets. In 2022, we doubled our flight schedule and transported 3.7 million passengers to 51 destinations.

As the aviation industry as a whole, we experienced external operational challenges that affected the summer peak, in addition to severe weather conditions towards the end of the year. We were, however, in a good position to respond to these challenges and reduce the impact on our customers due to our extensive flight schedule, frequency of flights and the resourcefulness of our employees.

Icelandair Cargo has been an integral part in our recovery, ensuring important revenue generation throughout the pandemic and during the ramp-up. We believe that our plans of establishing a cargo hub in Iceland will provide great opportunities for the Company as well as Icelandic businesses. Furthermore, our leasing business emerged strongly from Covid with 2022 being one of the best performing years in the history of Loftleidir-Icelandic.

The successful ramp-up of our operations following the pandemic has been crucial for the recovery of Icelandic tourism and economy. In 2022, we brought around 740 thousand tourists to Iceland and recruited around 1,000 employees. To safeguard the value that aviation and travel create, it is important to ensure a sustainable future of these industries. We have a strong focus on economic, social and environmental sustainability across our operations and are working with our key stakeholders towards our goals in this area.

Our operating environment will remain challenging this year with inflation and increased salary cost. We are, however, confident that people will continue to prioritize travel and there will be great opportunities for Iceland as a destination as we see reflected in our near-term booking flow.

I would like to thank our customers for their trust, our partners for their cooperation and our shareholders for their support during the year. However, first and foremost, I would like to thank our employees for what we have achieved together. With our exceptional team, robust foundations of our business, healthy financial position and of course our extensive and flexible route network that allows us to constantly adapt, we look forward to seizing the opportunities ahead and continuing to bring the spirit of Iceland to the world.”

Consolidated Financial Statements Icelandair Group 

Aer Lingus Regional to start flights to Belfast City Airport from East Midlands Airport

Emerald Airlines, largest operator out of Belfast City Airport and exclusive operator of the Aer Lingus Regional network, today announces a new service from East Midlands Airport (EMA) to Belfast City.

The East Midlands to Belfast City service will start on Sunday 26 March, initially as a daily service, and will increase up to double daily from mid-April. Tickets are on sale now at www.aerlingus.com

Commenting on the announcement, Ciarán Smith, Head of Commercial at Emerald Airlines said: “We are very pleased to be strengthening our schedule out of Belfast City Airport. As the demand for travel options from Belfast only increases, this new route will no doubt be warmly welcomed. Earlier this week we announced that we will be adding 15,000+ seats immediately across our existing network from Belfast City, and we will continue growing these services in the months ahead.”

Steve Griffiths, East Midlands Airport’s Managing Director, said: “We’re delighted that the Aer Lingus Regional service between EMA and Belfast City will begin next month. This news will be well received by the passengers who make use of this popular route which is an important part of our domestic offer. We look forward to working with the airline as they seek further opportunities to grow their operation here.”

Getting Qantas back to its best....... the word according to the airlines CEO Alan Joyce

The boss of Australian airline Qantas has released the following statement on how he thinks the carrier is doing and how it is working hard to get back to its best.

Getting it back to its best.....

As the CEO of Qantas, people are always keen to tell you how they think the airline is doing. Whatever their feedback is, I always see it first and foremost as a reflection of the strong connection Australia has with the national carrier.

To be honest, we know that connection has been tested at times.

Six months ago, a lot of people felt we’d let them down and the figures showed why. Almost half our flights were late, our rate of misplaced bags had more than doubled and we were cancelling up to 7 per cent of our schedule.

Perception wise, it didn’t help that this came after some controversial restructuring decisions to make sure we survived COVID. And it didn’t matter that airlines around the world had the same problems as travel restarted. If your flight to the Gold Coast just got cancelled, it doesn’t make you feel any better if the delays are worse in Amsterdam.

Knowing that we were routinely letting customers down was hugely disappointing for everyone at Qantas. It’s the exact opposite of our culture.

Delta and American Express team up to deliver travel savings with TakeOff 15

Eligible Delta SkyMiles American Express Card Members can take 15% off Award Travel on Delta flights, anytime₁. The new TakeOff 15 benefit is available to Delta SkyMiles Gold, Platinum, and Reserve Consumer and Business American Express Card Members.


Eligible Delta SkyMiles American Express Card Members have another reason to start planning their next trip: beginning February 2, these cardholders can take 15% off Award Travel on Delta flights, anytime1.


The new TakeOff 15 benefit is available to Delta SkyMiles Gold, Platinum, and Reserve Consumer and Business American Express Card Members.

East Midlands Airport welcomes 30,000 visitors to its Aerozone

East Midlands Airport’s education facility, The Aerozone, has been used by 30,000 students since it opened in 2010. 

To mark the occasion, 28 Year 5 and 6 students from Dovecote Primary School in Clifton, Nottingham, attended a celebration event on Thursday 2 February at 10am. 

The Aerozone is East Midlands Airport’s bespoke on-site education facility which runs a programme of events through the year designed to inspire and enthuse young people about the airport, aviation and future careers within the sector. It provides an opportunity to find out first-hand what goes on behind the scenes. 

The facility was established as part of the airport’s wider commitment to supporting the local community. With its versatile classroom, interactive learning resources and proximity to the airport terminal, young people who attend the courses are immersed in a full airport experience. A recent addition includes a portable air traffic control simulator which gives users a virtual experience of what’s involved in being an air traffic controller. 

For the youngest children, there is also the ‘East Minilands’, a fun and interactive role-play area where children can dress up in uniform and have a go at being security officers or check-in staff. The space includes a check-in desk, security search area, café, shop and mock aeroplane cabin, complete with ten aircraft seats. 

Spaceflight names Tiphaine Louradour as new CEO

Spaceflight Inc., a premier launch and in-space transportation services provider, announced this week that industry veteran and global business leader Tiphaine Louradour has joined the company as chief executive officer (CEO). She succeeds Curt Blake, a founding executive in the rideshare business who has served as Spaceflight CEO and president since 2013, establishing it as the leader in smallsat rideshare, navigating the development of a global portfolio of launch vehicles and services, including its ground-breaking Sherpa™ orbital transfer vehicle (OTV) program.

With 25 years as a global business leader, Louradour brings a wealth of strategic leadership, sales, and operational experience with past positions as president at International Launch Services, Inc. (ILS) and as ULA’s president, ULS global commercial sales. In addition, she has held senior leadership roles for multinational consulting firms, national firms and start-up companies in a variety of industries with geographically diverse environments.

“I could not be more excited to accept the position as CEO of this well-established company with its impressively talented team and long history of solving customers’ challenges in getting to, and around, space,” said Louradour. “My goal in leading this organization is to build on its ground-breaking achievements and expand the launch and on-orbit service offerings beyond LEO. I’m very much looking forward to working with the team, as well as its customers and partners, to continue to evolve Spaceflight and especially its Sherpa OTV program, into its next phase of growth.”