Exclusive: United Airlines only needs 3,000 of 25,000 flight attendants in June - sources

United Airlines Holdings Inc has told staff that it only has work for about 3,000 of its about 25,000 flight attendants in June, sources said, and warned of job losses if demand does not recover by the time government payroll aid expires in the fall......»»

Category: topSource: reutersMay 15th, 2020

Alaska Air Group, Inc. (NYSE:ALK) Q3 2023 Earnings Call Transcript

Alaska Air Group, Inc. (NYSE:ALK) Q3 2023 Earnings Call Transcript October 19, 2023 Alaska Air Group, Inc. misses on earnings expectations. Reported EPS is $1.83 EPS, expectations were $1.88. Operator: Good morning, ladies and gentlemen and welcome to the Alaska Air Group 2023 Third Quarter Earnings Call. [Operator Instructions] Today’s call is being recorded and […] Alaska Air Group, Inc. (NYSE:ALK) Q3 2023 Earnings Call Transcript October 19, 2023 Alaska Air Group, Inc. misses on earnings expectations. Reported EPS is $1.83 EPS, expectations were $1.88. Operator: Good morning, ladies and gentlemen and welcome to the Alaska Air Group 2023 Third Quarter Earnings Call. [Operator Instructions] Today’s call is being recorded and will be accessible for future playback at After our speakers’ remarks, we will conduct a question-and-answer session for analysts. I would now like to turn the call over to Alaska Air Group’s Vice President of Finance, Planning and Investor Relations, Ryan St. John. Ryan St. John: Thank you, operator and good morning. Thank you for joining us for our third quarter 2023 earnings call. This morning, we issued our earnings release along with several accompanying slides detailing our results, which are available at On today’s call, you will hear updates from Ben, Andrew and Shane. Several others of our management team are also on the line to answer your questions during the Q&A portion of the call. This morning, Air Group reported third quarter GAAP net income of $139 million. Excluding special items and mark-to-market fuel hedge adjustments, Air Group reported adjusted net income of $237 million. As a reminder, our comments today will include forward-looking statements about future performance, which may differ materially from our actual results. A landscape view of a passenger and cargo airplane taking off from the airport runway. Editorial photo for a financial news article. 8k. –ar 16:9 Information on risk factors that could affect our business can be found within our SEC filings. We will also refer to certain non-GAAP financial measures such as adjusted earnings and unit costs, excluding fuel. And as usual, we have provided a reconciliation between the most directly comparable GAAP and non-GAAP measures in today’s earnings release. Over to you, Ben. Ben Minicucci: Thanks, Ryan and good morning, everyone. Before getting to our results, I’d like to start by acknowledging the human aspect of the work we do. This past quarter, close to home, we saw wildfires bring devastation to the West Maui community. More recently, we have been horrified by the terrorist attacks in Israel and we mourn the innocent lives lost. I want to acknowledge that people are hurting and while we share in the privilege of connecting families and communities, we also share in the pain of seeing those around the world suffer. Now turning to our results. Our third quarter performance continues to demonstrate the underlying strength of our business model and our commitment to drive consistent, measured progress against our goals. During the quarter, we ran the best operation in the country, delivering a 99.7% completion rate and on-time rate of over 80%. On September 30th, we retired our last Airbus aircraft from service, marking our official return to single fleet. We drove unit costs down nearly 5% year-over-year, a strong performance that stands alone versus our peers in achieving year-over-year unit cost reductions. And our 11.4% adjusted pre-tax margin nearly led the industry despite our lower direct exposure to record international demand as well as significant fuel cost headwinds given our geographic exposure to the West Coast. Now moving to where we are today. Having been in this industry a long time, I know as well as anyone how volatile it can be and we are seeing this now. Crude oil has risen 12% from last quarter, while L.A. refining margins have increased 70% overall and 60% over Gulf Coast levels disproportionately increasing our economic fuel cost compared to peers, given the majority of our purchasing happens on the West Coast. While we expect this divergence to be temporary, it is nonetheless a near-term headwind. Absent this $50 million cost in Q3, we would have led the industry in adjusted pre-tax margin. Demand remains strong in peak periods, but shoulder periods are becoming more susceptible to lower demand without a full return of corporate travel. Despite these near-term headwinds that will likely make the next quarters more challenging, I continue to believe we have a strong fundamental long-term setup for several reasons. One, our teams continue to deliver reliability. We now have two solid quarters in a row of industry-leading performance, and I can confidently say we have our operational muscle back. I want to thank all our employees for their hard work and effort. They have done an amazing job prioritizing and delivering a safe and reliable operation for our guests. Our completion rate not only led the industry, but set 20-year company records in all 3 months of the quarter during peak summer flying continuing to surpass our planning expectations. Two, our relative cost advantage comes from decades of discipline and became a highlight in the third quarter. With visibility to another quarter of unit cost improvement year-over-year, we expect full year CASMex to be down 1% to 2%, likely the only carrier to achieve unit cost reductions for the year. Having retired our last Airbus aircraft in September, we brought our dual fleet chapter to a close and are poised to fully recognize the power of single fleet efficiencies as we move into 2024. Three, we have the most diversified revenue of domestic-focused airlines, generating 45% of our revenue outside the main cabin. Our investments in fleet and premium seating have given us a domestic product that rivals any in the industry, including first in premium class lounges and global partnerships that will continue to serve us well going forward. And four, our growth is rational and disciplined. Having closed out a strong summer operation, our teams are turning their focus to winter preparedness and continuing to deliver strong operational performance for our guests throughout the holidays. Capacity discipline is the most relevant lever our industry has and will be necessary to support off-peak periods going forward. We are focused on optimizing our flying and moderating growth as a prudent measure to deliver results. For 2024, we are actively discussing where within our long-term 4% to 8% target growth range as most optimal given the higher fuel environment. To close, we produced solid third quarter results. Without our refining margin headwind, we would have had the best results in the industry. Our product set competes with the best and as the international versus domestic demand mix and business travel ultimately normalize over time, we have the right business model to deliver strong results and outperform well into the future. Now more than ever, we are focused on extracting efficiencies from both sides of the profitability equation with all the elements in place to drive strong relative results within our evolving industry. And with that, I will turn it over to Andrew. Andrew Harrison: Thanks, Ben and good morning, everyone. Today, my comments will focus on third quarter results, recent trends and our outlook for the rest of the year. Third quarter revenues reached $2.8 billion, up 0.4% year-over-year on 13.7% more capacity, which was approximately 1 point below our revenue guidance midpoint. Unit revenues were down 11.7% versus 2022 and up 12.2% versus 2019. We had three sources of headwinds impacting third quarter revenue performance. First, the strong close-in revenue performance we saw from April through most of August moderated as we moved into September. Close-in demand for leisure looks to have normalized and without further return of business demand, shoulder periods are more challenged than they have been in the past couple of years. Second, we planned our network for relatively strong demand from summer into September as we experienced last year. However, that did not fully materialize. This led to modest load factor weaknesses in areas of our network where we deployed more capacity than we normally would during the shoulder. Third, the devastating Maui wildfires impacted third quarter revenue and therefore, profit by approximately $20 million. For reference, Hawaii represents nearly 12% of our capacity, with one-third of that deployed to Maui. Following the wildfires in early August, bookings turned negative with high rates of cancellation. This reversed at the end of August as bookings to Maui began recovering. However, September bookings were still down 45% versus last year. As we move into the fourth quarter, we are seeing continuing recovery in Maui. However, we expect revenues to be negatively impacted by approximately $18 million and anticipate it will be several quarters before demand returns to normalized levels. Having cut a full frequency from Seattle and trimmed capacity from other hubs, we will continue capacity adjustments to match supply with demand while serving the people of Maui during the recovery process. Lastly, although not a part of our baseline, we saw no upside benefit from corporate travel as revenue continues to hold at about 85% of 2019 levels. Having covered our headwinds though, there were several positive results in the quarter as well. With respect to product, our premium cabins continue to materially outperform the main cabin with first and premium class revenues up 10% and 6% year-over-year respectively. Alaska is the only primarily domestic carrier to have both first class and premium economy across 100% of our mainline and regional fleets. These premium seats represent 25% of our total seats and continue to be an area of opportunity for us in sustaining higher yields and other domestic focus competitors, especially as travel preferences continue to move in a more premium direction. Total premium paid load factor was up 3 points year-over-year, but has increased over 10 points on 12% more seats versus 2019. Today, premium revenue represents 31% of our total revenue, contributing to the 45% of total revenue we generate outside the main cabin. Putting aside premium for a moment, we have also seen success with more guests buying out from saver into our main cabin product. This buy up has occurred at 22% higher fares versus last year. Loyalty remains a strong driver of revenue performance as well. Bank cash remuneration was up 11% versus the third quarter of 2022, outpacing system revenue that was only up 0.4 point. We continue to make solid progress on our strategy of being able to directly sell our oneworld and other partners on We launched 13 partners this year, bringing our total to 18 partners with over 500 destinations worldwide now being sold direct on our website. These efforts will continue as we enable selling all cabins on our partners and continue to upgrade the digital guest experience on our website and within our native app. This is another area where we are clearly differentiated from other domestic focused carriers. We are the only primarily domestic carrier that offers access to a portfolio of global partners where we offer elite status recognition, accrual and redemption and airport lounge access. This capability, along with our premium cabin offerings, gives me confidence that we will have built the right commercial offerings to meet our guests’ preferences and drive long-term value to Air Group. As we shared on our last call, we have continued to see our guests take advantage of our global partner network with total accrual and redemptions on our long-haul partners, up 26% for the third quarter versus last year. Taking a step back, as illustrated in the supporting slides we published today, when comparing our unit revenue performance versus a 2019 baseline, it’s clear that the differentiation of our products including our premium offering and international connectivity is a very positive story, which has resulted in unit revenues, up 12% on capacity growth of 6%. This is a testament to the soundness of our business model and the success of changes we have made since 2019. Now turning to fourth quarter guidance. We expect revenue to be up 1% to 4% on capacity that is up 11% to 14% year-over-year. In terms of bookings, holidays are in line with our expectations with load factors up a couple of points and yield up double-digits versus 2019. As I mentioned, non-peak shoulders are weaker than 2022’s historic demand levels in part driven by a return to more normal seasonality and a continued, but we believe temporary demand shift towards international travel. Today, we have approximately 58% of November and 35% of December revenue booked. Given our fourth quarter outlook and current demand backdrop, we are narrowing our full year revenue guide to up 7% to 8%. Our guide implies that our unit revenue trajectory is improving sequentially in the fourth quarter versus 2022, up 3 points. And we believe the gap to legacy unit revenue performance is also closing sequentially. Our most significant step-up in capacity occurred during the third quarter as we work to restore our pre-pandemic network. However, in the fourth quarter and into the first quarter of 2024, our growth follows more in line with normal seasonal patterns. After growing 6% above 2019 levels in Q3, our growth moderates to less than 3% above 2019 levels from the fourth quarter through February of 2024, which we believe should better support supply and demand dynamics in our market versus the industry. Looking ahead, we remain confident in our commercial plan and cognizant of our environment. Our team has taken a hard look at our first quarter network amidst high fuel prices as part of our commitment to improving Q1 profitability. We are focused on managing capacity prudently, including capitalizing on leisure destinations, including 15 new routes such as Seattle and Los Angeles to Nassau, which will bring in new revenue while also constraining our total capacity growth to low levels, and reducing business heavy routes and frequencies. For example, we have trimmed our higher frequency Pacific Northwest and California business seats 22% versus January and February of last year. To wrap up, we have a solid commercial plan that is producing results. Our combination of premium products, valuable loyalty program and global offerings through our partnerships in oneworld allows us to provide guests with what they want while producing strong financial results. And we are looking forward to building on that moving forward. And with that, I’ll pass it over to Shane. Shane Tackett: Thanks, Andrew and good morning, everyone. As we discussed on previous calls, for the past year, we have prioritized returning Alaska to operational excellence. This is what our guests deserve and it allows us to have more predictability across the company, which we can ultimately leverage to improve efficiency and cost performance. It was encouraging to see during the quarter that as we have delivered the industry’s most reliable operation, our teams have begun to turn the corner on our cost profile as well. And while we acknowledge a more challenged near-term setup with temporary, but elevated West Coast jet fuel refining margin costs and a more typical demand profile in shoulder periods, we remain confident our business has the right configuration to deliver financial performance over the long-term. For the third quarter, adjusted EPS was $1.83 and we delivered an adjusted pre-tax margin of 11.4%. Unit costs were down 4.9% and economic fuel cost per gallon was $3.26, which was materially impacted by refining margins on the West Coast that averaged $0.30 higher than the rest of the country, which we believe will prove to be an anomaly, but materially impacted our performance relative to others. Absent this refining margin differential or the $20 million of lost profit due to the tragedy in Maui, Alaska would have led the industry in margin despite not enjoying the current surge in international demand or a further rebound of corporate traffic. Our balance sheet and liquidity, long-time pillars of strength for us through many cycles, remain stable and healthy. We generated approximately $270 million in cash flow from operations during the quarter while total liquidity inclusive of on-hand cash and undrawn lines of credit stood at a healthy $3 billion. Debt payments for the quarter were approximately $93 million and are expected to be $45 million in the fourth quarter. Our debt to cap remains at 48%, unchanged from last quarter, while net debt to EBITDAR finished the quarter at 1.1x, both within our target range. We have also revised our full year CapEx expectation to $1.7 billion for 2023 and fully expect 2024 to be below this amount as we are currently reshaping our near-term delivery stream with Boeing to accommodate a more conservative 2024 capacity plan. Our share repurchase program has, as intended, offset dilution year-to-date, with spend reaching $70 million, while our trailing 12-month return on invested capital ended at 10.7% this quarter. Moving to costs. The third quarter marked a turning point for us in terms of our performance. CASMex ended down 4.9% year-over-year, coming in below our guided range of down 1% to 2%. This result includes the impact of a larger than initially anticipated market rate adjustment for our pilots, which added approximately $20 million to the third quarter and will annualize at $90 million. Speaking of labor deals during the quarter, we also reached a tentative agreement with our aircraft technicians and we are in the process and looking forward to reaching the deal with our flight attendants. Our unit cost performance was the result of nearly every department of the company coming in on or below their plan, which has been no easy feat to do over the past 3 years as we have re-ramped our operation. We saw productivity improve 2% year-over-year and we will continue to work toward returning to 2019 levels. Other areas, we saw good performance relative to our plan included maintenance aircraft ownership and selling expenses. ASMs were slightly ahead of guidance on the continued outperformance in our completion rate, providing a small additional benefit to unit costs. And lastly, we have lowered our anticipated performance-based pay accruals given the tougher setup in Q4, which also benefited CASMex fuel this quarter. However, absent both of these last two impacts, unit costs would have still closed below our guide. As Ben mentioned, we crossed a significant milestone to end the third quarter as we retired our last Airbus from service. And in wrapping up our Airbus era, we announced this morning that we reached an agreement to sell the 10 A321s to our partner, American Airlines and expect deliveries to occur over the next two quarters. Lastly, as I mentioned, fuel became a significant headwind during the third quarter. L.A. refining margins diverged materially from Gulf Coast levels moving from less than $0.08 difference on average for the first half of the year to $0.30 during the third quarter and at times exceeding $0.90. While we have every expectation this divergence is temporary, it has created a material headwind to our near-term profitability. Our economic fuel costs increased from the midpoint of our original guide, adding approximately $110 million of total cost to the quarter with $50 million coming from refining margin disparity or an approximately 2 point margin headwind for the quarter. For the fourth quarter, we expect fuel price per gallon to be between $3.30 and $3.40 per gallon, which is an approximate 4-point impact to margin compared to our expectations back in July. Fuel, combined with pricing moderation, have led us to revise our full year adjusted pretax margin to 7% to 8%, approximately 3 points lower than the midpoint of our prior guide. We expect CASMex to be down 3% to 5% year-over-year in the fourth quarter, and our full year CASMex to now be down 1% to 2% on capacity, up 12% to 13%. To close, we have run an excellent operation for several quarters. Our pretax margin exceeded peers with greater international tailwinds despite a refining margin disadvantage and sizable impacts from the Maui wildfires. We delivered a strong unit cost result for the quarter and have visibility to another strong result next quarter. We remain focused on and very intentional about setting targets and ensuring we take the right steps to deliver against them. Our commercial offering with premium cabins and global access through our alliances is configured to compete in a way other domestically focused carriers cannot. Our operational strength has returned and our cost management is outperforming the industry, all of which are fundamental drivers of sustained long-term success. And with that, let’s go to your questions. See also Top Investors’ Stock Portfolio: 10 Small-Cap Stocks To Buy and 13 Best Video Surveillance and Private Security Stocks to Buy. Q&A Session Follow Alaska Air Group Inc. (NYSE:ALK) Follow Alaska Air Group Inc. (NYSE:ALK) We may use your email to send marketing emails about our services. Click here to read our privacy policy. Operator: [Operator Instructions] And our first question today comes from Duane Pfennigwerth with Evercore ISI. Duane Pfennigwerth: Hey, thanks. Good morning. So you gave an update, I think, a week or so into September. Can you just talk about what shifted over the latter part of the month? How that played out relative to kind of what you thought what, September 9? Andrew Harrison: Hi, Duane, it’s Andrew. Yes, I think there was like at the beginning of September, I think we had reiterated our guide. I think two things. We were still getting our hands around Hawaii, which was deeply negative bookings, and we’re trying to get clarity about where that was going to end up. And I think the other part was there was also right around that time with sort of that transition coming off the back end of a peak summer demand and also close in moving into the more traditional business season. And I think those couple of things combined. I think on $2.8 billion, it was probably like $15 million we’re off. So that’s the main reason. But fundamentally, the business was where we thought we were going to be. Duane Pfennigwerth: Okay. And then just segue to Hawaii. Can you maybe play back some history and talk about the current picture and maybe delineate between Maui and non-Maui bookings, that would be very helpful. Andrew Harrison: Yes. I think like Maui obviously stands out significantly different, and we’re making some of the capacity adjustments there. We did see during this horrible period of time, some bookings continue to move to other islands. But, as you know, Hawaii books well in advance. So essentially, pretty much the rest of the year Maui, we were sort of reset, but as we go into next year, we don’t see any reason that Maui won’t continue to recover, and we won’t see traditional good solid demand to our Hawaii franchise. Duane Pfennigwerth: Okay. Sorry to be deliberate there. Hawaii bookings ex Maui, would you characterize that as stable/normal? Andrew Harrison: They’re a little softer than historical, but we’ve seen that for some time. I think just as – just the capacity into the islands and, of course, some of the pricing presses in Hawaii, the cost of going to Hawaii. But overall, we feel pretty good about it being somewhat stable. Duane Pfennigwerth: Thank you very much. Operator: And our next question will come from Savi Syth with Raymond James. Savi Syth: Hey, good morning. I wonder if you could talk about the revenue trend where you are seeing kind of a better improvement of some of the – your peers that have reported. And you talked about some of the components like how your capacity is developing, but I was curious if you can kind of provide a little bit more color on the contributors of that sequential improvement and how we should think about it then as you go into the first quarter and you make more adjustments as well? Andrew Harrison: Yes, thanks, Savi, it’s very interesting. I think what’s really positive and some of the sequential improvement is you just look at our capacity in the third quarter and how much higher it was versus ‘19 versus the fourth quarter. And then some of the – as I shared in my prepared remarks, where we had pushed summer capacity out into the fall in some of these Mid-Con markets and some of these other key areas. We brought that capacity back down starting in October, and we’re already seeing the positive effects of doing that. Savi Syth: Got it. That’s the big driver. And if I might, on the growth plans that you kind of mentioned for next year, it sounds like you’re still kind of evaluating between 4% and 8%. The first half kind of maybe on the lower end of that 4%, it seems like? Or how should we think about maybe early indications? I know you’re probably not ready to give a full guide. Andrew Harrison: Yes. I mean that’s correct. And we’ve been clear as we go into the first quarter, we’re going to be around 3% or so over ‘19 levels. And again, we’ve looked really hard at our lowest demand period for Alaska at least in the January, February time period, and we feel like we’ve made some pretty good reductions there, and we made that well ahead of the bookings of those flight. So we feel really good about the setup as we go into the first quarter. Savi Syth: Helpful. Thank you. Andrew Harrison: Thanks, Savi. Operator: We will move next to Andrew Didora with BofA Global Research. Andrew Didora: Hey, good morning, everyone. Andrew, in your prepared remarks, you said your – it seems like you’re booked well ahead for November than another airline that reported earlier today is the 58% book sort of a normal cadence for you, or is it more of how you’re looking at close in trending today and just wanting to book more of that a little bit further out than usual. Andrew Harrison: I think our comments were a little bit related to when you compare it back to, say, 2019 sort of Thanksgiving sort of falls within the month. So – but if you average it out between Thanksgiving and Christmas sort of in November and December. We’re probably a little higher on the bookings, but not very much. And right now, we’re just making sure that we manage that coming in with good solid yield to close out the year. Andrew Didora: Okay. Understood. And then also, Andrew, on the last call, I thought you shared some good statistics on the shift you’re seeing to international bookings on your partners over the summer, curious if you’ve begun to see more of a normalization there and maybe share shift back to domestic, or do you continue to see that elevated international demand booking on your partners. Thanks. Andrew Harrison: Yes. Thanks. I think we’re seeing exactly actually what we saw on the domestic front, whereas last year pushed well into the shoulder season. I think that’s what we’re seeing, at least from our members on the international. So just to remind folks, in the summer, we reported in that we were up sort of 50% of our members year-over-year accruing and redeeming internationally. That number is only 26% for the fourth quarter. So we’re certainly seeing it coming down. And so of course, the question will be, will that get normalized by next year. What we’re seeing right now is it’s on its way to normalization. Andrew Didora: Great. Thank you. Ben Minicucci: Thanks, Andrew. Operator: And we will move next to Helane Becker with TD Cowen......»»

Category: topSource: insidermonkeyOct 20th, 2023

Allegiant Travel Company (NASDAQ:ALGT) Q2 2023 Earnings Call Transcript

Allegiant Travel Company (NASDAQ:ALGT) Q2 2023 Earnings Call Transcript August 2, 2023 Allegiant Travel Company misses on earnings expectations. Reported EPS is $0.62 EPS, expectations were $3.63. Operator: Good afternoon, and thank you for standing by. Welcome to the Second Quarter 2023 Allegiant Travel Company Earnings Conference Call. [Operator Instructions]. Please be advised that today’s […] Allegiant Travel Company (NASDAQ:ALGT) Q2 2023 Earnings Call Transcript August 2, 2023 Allegiant Travel Company misses on earnings expectations. Reported EPS is $0.62 EPS, expectations were $3.63. Operator: Good afternoon, and thank you for standing by. Welcome to the Second Quarter 2023 Allegiant Travel Company Earnings Conference Call. [Operator Instructions]. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Sherry Wilson, Managing Director of Investor Relations. Please go ahead. Sherry Wilson: Thank you, Michelle. Welcome to the Allegiant Travel Company’s Second Quarter 2023 Earnings Call. On the call with me today are John Redmond, the company’s Chief Executive Officer; Greg Anderson, President; Scott DeAngelo, our EVP and Chief Marketing Officer; Drew Wells, our SVP and Chief Revenue Officer; Robert Neal, SVP and Chief Financial Officer and a handful of others to help answer questions. We will start the call with commentary and then open it up to questions. We ask that you please limit yourself to one question and one follow-up. The company’s comments today will contain forward-looking statements concerning our future performance and strategic plans. Various risk factors could cause the underlying assumptions of these statements and our actual results to differ materially from those expressed or implied by our forward-looking statements. These risk factors and others are more fully disclosed in our filings with the SEC. Any forward-looking statements are based on information available to us today. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. The company cautions investors not to place undue reliance on forward-looking statements, which may be based on assumptions and events that do not materialize. To view this earnings release as well as the rebroadcast of the call, please feel free to visit the company’s Investor Relations site at And with that, I’ll turn it over to John. John Redmond: Thank you very much, Sherry, and good morning, everyone. I’m thrilled to report an 18% operating margin and 99.7% controllable completion for the second quarter, among the highest in the industry during the quarter, both operationally and financially. In the face of high demand and operational complexity, the team continues to deliver. It is their exceptional efforts that have allowed us to meet and exceed our customers’ expectations. Over the last year, we have increased our NPS scores by an average of 10 points and are now at the highest scores since the pandemic. I could not be prouder of the work our team members do each and every day. Thank you very much for your continued passion and dedication. Our commitment to enhancing the travel experience remains a key driver of our success. Over the years, we have invested in our services and our brand, ensuring we not only meet the evolving needs of our customers but also create new opportunities for growth and expansion. One area that continues to pay dividends is our co-branded credit card. With over 600,000 credit cards issued, the program continues to surpass expectations. Cardholder spend has increased by 220% since 2019 and shows no signs of slowing. We believe the opening of Sunseeker Resort later this year will provide further value propositions for our cardholders and guests and help drive cardholder sign us well into the future. Last quarter, I spoke about the key strategic initiatives of this management team. I’d like to provide a quick update on our progress. First and foremost, finalizing our outstanding labor contracts remains our top priority. Greg will provide additional detail around our status, but it is of the utmost importance that we continue making progress and deliver contracts that our teams are proud to support. Secondly, we are committed to continuing to deliver high operational performance. It is our obligation to our guests to strive for industry-leading performance as shown in our Q2 results. It is a necessary pillar in ensuring we protect the investments we’ve made over the years in our brand. Finally, I’m happy to report — we remain on track to open Sunseeker Resort in Port Charlotte, Florida, in mid-October. This has been a long time coming. The project full challenges and delays outside of our control, so to see the end insight is remarkable. Bookings for Sunseeker continue coming in from all corners of the country, 42 states, all total, which speaks volumes of the breadth of the database. To date, excluding group bookings, we have sold approximately 3,300 transient room nights at an average room rate of $410 per night. This transient room nights booked to date are impressive, in that most people book hotel rooms inside 50 days of arrival. Regarding group bookings, over 50 groups have contracted or in the process of contracting nearly 40,000 room nights. The team continues to bring in high-quality groups and I fully expect this group room nights booked number to grow to roughly 75,000 by year-end, covering all years booked. These are incredible group numbers for our property and brand that has never existed in the market. The team in Florida is in full hiring mode looking to onboard a targeted headcount of around 1,200 personnel. We received over 5,700 applications with over 70% of those applicants residing within a 50-mile radius of the resort, demonstrating our commitment to supporting the local economy. Underpinning this influx in applications is a unique retention bonus we announced in early July for our inaugural nonmanagement Sunseeker Resort team members. It provides an annual retention bonus of $10,000 for 10 years after completing 10 years of continuous full-time employment. Interestingly, we have received applications from people residing in 49 states. Given the early response, we would expect the application pool to exceed 7,000 people. With an application pool that continues to grow, this innovative program should help us attract and retain the very best hospitality professionals, and we already see evidence of this within the pool. From a financial perspective, the Sunseeker Resort budget remains at $695 million. As indicated in prior calls, costs will ramp in the third quarter due to preopening expenses. We estimate the total cost impact will be roughly $15 million this quarter. Consistent with last quarter, the full year impact to consolidated EPS remains at $1.25 loss. I continue to be encouraged by the long-term value creation of Sunseeker Resorts. Upon completion of the project, the team will shift focus to begin laying the groundwork for our asset-light growth trajectory. With the opening around the corner, some of you will continue to speculate about our future intentions regarding expansion plans or future projects requiring material capital outlays. We will not pursue any such projects without an equity partner. In closing, I could not be happier where we sit today. Our upward guidance revisions reflect our conviction about the balance of the year and to continue to deliver strong performance in the coming years. As such, I am pleased to announce that the Allegiant Travel Board of Directors has authorized an annual dividend of $2.40, payable in equal amounts quarterly, beginning September 1, through the second quarter 2023. We remain committed to growing profitably by enhancing our offerings, driving customer satisfaction and delivering increased value to our shareholders. With that, I’ll turn it over to Greg Anderson. Gregory Anderson: John, thank you. Over the past year, the industry has faced a uniquely challenging operating environment. Despite these many obstacles, Team Allegiant is delivering exceptional results. In our business, everything begins and ends with operations, and here at Allegiant, we are only days away from having the heaviest flying periods of the year behind us, March and summer. Through July, we are running an impressive 99.8% controllable completion factor and that’s year-to-date. In addition, during the month of June, we are amongst the industry leaders in on-time performance. The results we are seeing today represent a significant improvement over where we were a year ago. This improvement has driven our year-to-date irregular operation costs down by $80 million compared to the same period in 2022. Obviously, an unreliable operation is much more expensive to run. It also leads to unnecessary disruption and frustration for our guests and our frontline team members. Overly ambitious scheduling may lead to higher revenues, but when its results in excessive delays and cancellations, the juice isn’t worth the squeeze. We are committed to maintaining a balanced scheduling approach. This approach is executed jointly by our planning and operational teams as together, they expertly manage a schedule to meet the leisure demand environment while maintaining operational integrity. Our unique ability in adjusting capacity is differentiated by our low fixed cost structure. One of the interesting themes you are hearing from other carriers has been around leisure traffic. Moreover, some carriers are reshaping their network and adjusting their schedules accordingly by lowering off-peak capacity. This leisure focus and focused flying on peak days has been our approach for over 20 years. We are ideally suited for this leisure peak flying approach, and you can see this in our results. And going forward, we believe this approach will continue to pay dividends. In addition to our operational and financial performances, there is also an incredible amount of work being accomplished behind the scenes to strengthen our foundation and to be able to support a 200-plus aircraft airline in roughly 5 years. Our major system implementations are a key step in getting there, and I’m happy to report SAP went live on July 1, a major milestone along this journey. This once-in-a-generation system changeover will help drive internal efficiencies across our back office teams. Additionally, we plan to cut over to Navitaire in late August. We delayed its go-live date to move any potential operational disruption to outside of our peak summer travel period. Navitaire is expected to drive incremental ancillary revenue due to its dynamic pricing capabilities. In addition, system will support our expansion into Mexico with our joint venture partner, Viva Aerobus. However, due to recent actions undertaken by Mexico affecting U.S. carrier operations at Mexico City Airport, our ATI application with the DOT has been temporarily put on hold. We want to be clear though, that this does not affect the merits of our application. It’s also worth noting that we have readied the areas within our control to be able to launch once ATI is approved. The execution of the incredible team members at Allegiant truly amazes me. Not only do they continue to strengthen our foundation, but their efforts delivered industry-leading controllable completion and operating margins during the first half of 2023. This triggered a maximum profit share amount, paying out over 12 million to our airline team members. We could not be prouder of the work team Allegiant does and thank you. We believe we are incredibly well positioned for the future and are uniquely set up to be a destination airline for all of our team members. A key element of this is to ensure we maintain competitive labor contracts. Last quarter, our dispatchers, who are represented by the IBT, ratified a 2-year contract extension more than a year before the amendable date of their CBA, which included pay rate increases at the higher end of the industry. Similarly, we are happy to have reached a formal tentative agreement with mechanics, also represented by the IBT more than 3 years prior to their amendable date. This TA provides for significant increases in rates and as a 2-year extension to the current contract. The TA is subject to approval by the mechanics in the coming weeks. In June, we announced a tentative agreement with the TWU, which represent our flight attendants. While this initial TA was unfortunately voted down, we remain focused and committed to reaching a deal with our flight attendants and reengaging at the table with the TWU in short order. Regarding our pilot group, who are represented by the IBT, we remain in mediation and working towards pathways to a deal. Given the uncertainty around the timing of a deal, we felt it necessary to address pilot compensation outside of bargaining and recognize the importance our pilots play in our ongoing success. As such, in early June, we were pleased to announce a retention bonus for all pilots that remain with the company through ratification of the deal. We began banking a 35% increase to their current rates, except for first year first officers, which accrue at an even higher rate of 82%. These retention bonuses are intended to bring our pilot pay more in line with the industry, with the understanding final pay rates will continue to be negotiated through the mediation process. We are pleased the IBT supported this retention bonus as we continue to work with them towards a contract that our pilots deserve. In closing, I want to thank all of team Allegiant. You are the best in the business. We appreciate everything you do. With that, I’ll turn it over to Scott. Scott DeAngelo: Thanks, Greg. Our second quarter saw continued strong domestic leisure travel demand and capture that remain near our historic highs in 2022. Thanks to improved operations, a testament to the strong leadership of our Chief Operating Officer, Keny Wilper, along with his expert leadership team and the great work by all in the Allegiant family, this year’s controllable completion rate being far above last year’s level, means we’re keeping and recognizing a much greater portion of book revenue year-to-date. Looking forward, while there’s no shortage of opinions with regards to macroeconomic conditions and their impact on consumer domestic leisure travel behavior, we spend less time trying to predict the future and more time ensuring we’re prepared to succeed in it. It all starts with keeping our fingers on the pulse of customer sentiment and their leisure travel intention. Just as we did following the past 2 quarters, we surveyed a representative sample from both our most frequent flying repeat customers as well as those who flew us for the first time this past quarter. The results remain strong and unchanged from the past 2 quarters. Among both groups, about 50% said that economic conditions will have no impact on their flying behavior with Allegiant in the next 12 months and more than 30% said that economic considerations will actually make them more likely to fly with Allegiant in the next 12 months. The market is moving toward us. For our most frequent flying repeat customers, the rationale for their unchanged sentiment and intention stems from the fact that the vast majority of them are either flying to visit family or relatives more than 40% of the group or are flying between their primary residence and their vacation home, just under 40% of the group. These remain the most resilient forms of leisure travel during any macroeconomic environment. Quarter rewarding our most frequent flying repeat customers, along with engaging new customers and turning them into repeat customers, is our Allways Rewards loyalty program. Year-to-date, nearly 90% of our customer bookings have come from Allways Rewards members. The number of members with activity year-to-date is up nearly 30% versus last year, and the number of new members with their first activity is up nearly 15% versus last year. Ultimately, having such broad coverage with Allways Rewards enables us to reward the vast majority of our customers with points that can be easily used as currency, in any amount, at any time, for anything sold at Year-to-date, on average, Allways Rewards members are 1.5x more valuable than nonmembers. Most notably, this value was largely driven by them spending 60% more on air ancillary products than nonmembers do. Their take rates of core air ancillary products, seats and bags, are 10 to 20 percentage points higher than that of nonmembers. Our most loyal and engaged segment within the Allways Rewards program is, of course, our co-brand credit card holders who are 3x more valuable than nonmembers. Currently, about 2.5% of our total active customer database of 17 million has the card. As such, we believe there is significant growth potential. In 7 years, we have grown the program into a $100 million business unit, and we expect to double that in the next 3 years. To that end, I’m excited to announce an upcoming change to our program. Later this month, we will be transitioning our co-brand credit card network partner from Mastercard to Visa. Our Allegiant World MasterCard will be renamed and rebranded as the Allegiant Allways Rewards Visa Card. While Bank of America remains our issuing partner and no cardholder benefits will change. We made the decision to move to Visa, the nation’s leading brand in credit card issuance and acceptance because we believe it will enable us to drive higher levels of both new cardholders and cardholder spend, the 2 largest ways that we derive revenue from the program. We asked Allegiant customers who do not currently have our co-brand credit card, which card they would be most likely to apply for. 60% said Visa, while only 25% said MasterCard. In addition, one of the nation’s largest retailers, Costco only accepts Visa and more than 40% of our customers say they regularly shop there. What’s more? Visa will provide stronger financial, technical and analytic support for growing the Allegiant Allways Rewards Visa Card program and in providing additional benefits through their exclusive partnerships and proprietary capabilities. Wrapping up. Year-to-date, in as much as demand is slightly below last year’s historic high levels, we believe this simply represents a continued return to normalized pre-pandemic peak and nonpeak seasonal travel patterns. We continue to view domestic leisure travel in the cities and among the customers we serve as strong, but we remain close to our customers end as it’s been the hallmark of our company throughout its history, we stand ready to adapt to any changes in the demand environment. And with that, I’ll turn it over to our Chief Revenue Officer, Drew Wells. Drew Wells: Thank you, Scott, and thanks, everyone, for joining us this morning. I’m extremely pleased with the record second quarter performance of $684 million in total revenue, growth of nearly 9% on system ASM growth of 1.3%. This combination produced TRASM of which vested any previous second quarter by $0.005 and grew year-over-year by 7.5%. As Greg mentioned, we achieved remarkable operational results in the second quarter on top of financial results among the best in the industry. The current operating environment has proven challenging and we are not immune to this. Three months ago, we talked about trimming about 2.5 points of capacity from the summer schedule, and we believe it was absolutely worth it. I want to reiterate how impressed I am with the planning and operations teams coming together to do an incredible job aligning our schedule with available resources and anticipating risk areas to help mitigate potential issues, both controllable and uncontrollable alike. The buffer is added into our schedule enable better recovery options when faced with the regular operations, including ATC-related concerns, especially out of Florida. We’ve done the commercial piece as well or better than anyone else in the world as measured by margins and returns, but candidly, often at the expense of operational excellence. In first half of 2023, we showed that we could do the operational piece while maintaining that industry-leading financial position. Those 2 in harmony is an elite combination. We still have more work to do to continually improve, but this summer will serve as a great foundation going forward to ensure operational reliability in conjunction with the appropriate deployment of capacity. Diving into revenue a bit. The strength in the quarter was well balanced as yields and ancillary products each contributed roughly $5 incremental per passenger versus the second quarter in 2022. We exceeded $70 per passenger in ancillary revenue once again, in large part thanks to Allegiant Extra and continued success with our bundled ancillary products as well as the Allegiant co-brand program, which continues to thrive. Allegiant Extra is now featured on 14 aircraft and continues to exceed expectations. While we don’t expect any incremental aircraft with this layout in 2023, all Boeings coming in 2024 will have the Allegiant Extra option. Additionally, the strength of our operations and diligence from the charter team allowed us to capitalize on additional fixed fee business from both new and current clients to grow fixed fee revenue over 30%. As previously mentioned, we are still maintaining the expectation of TRASM over the last 9 months to be up mid-single digits, though now expected to narrow to the lower side of the mid-single-digit range. In addition to the continued story of incredible demand, the upside factors for Allegiant remain the same, continued operational stability and an expanded Allegiant Extra product we’ve talked about. Another upside factor is an historically mature network, but that doesn’t mean 0 routes in development. 5 new routes and 3 reintroduced routes started service this summer, including growth in Portland, Oregon, Provo, Utah and Denver, among other cities. I’m extremely happy that all 8 have their own with some even exceeding system average profitability from the start. Additionally, last month, we announced 6 new routes for the winter season, mainly focused on Florida with one added to our Mesa base. These announcements are booking above average compared to prior announcements, which is continued evidence of a strong leisure demand presence. Lastly, Navitaire should provide a lift to our ancillary program. However, given the integration delay, we will not see the previously anticipated upside in the third quarter, though we are still baking that lift into the fourth. Furthermore, we did see some yield compression through the heart of the summer booking curve, somewhat offset by atypical close-in demand. As you all know, Allegiant prides itself on matching capacity with demand. For more than 20 years, our daily and monthly levels of flying have fluctuated meaningfully. We have a great understanding of the leisure customer and when they most want to fly. The third quarter will be no different as roughly 80% of our ASMs will fall on our peak leisure days and September ASMs look to be roughly 55% of July’s flying, both generally in line with the third quarter of 2022. Scheduled service ASMs are expected to be very slightly negative in the quarter, while a full year guide remains intact at flat to up 3%. And with that, I’d like to turn it over to Robert. Robert Neal: Thanks, Drew, and thank you, everyone, for joining us on the call today. We’re pleased to report another quarter of strong financial results. Allegiant produced $76.9 million of consolidated adjusted net income for the second quarter, resulting in adjusted EPS of $4.35, in line with 2019 earnings. We recognized record total operating revenue in the quarter of $684 million, up 8.6% over the prior year on 1.3% higher capacity. Our nonfuel unit cost increased 12.9% year-over-year with 4 points of that increase attributable to pilot payroll accruals and other frontline labor cost increases, which, as Greg noted, we announced in June that were effective beginning May 1. Similar to our last call, unit costs were pressured in comparison to the same period last year by lower productivity, which accounts for about 3 points of the increase. Improved operational performance drove a nice tailwind by reducing a regular operations expense in the quarter, that was largely offset by inflationary cost pressure in stations. Variable team member compensation related to improved financial performance drove roughly 2.5 points of the increase over the second quarter last year and 2 points of CASM increase in the quarter came from some onetime nonrecurring costs which included the cancellation fee related to the transition of our co-brand credit card for Mastercard to Visa, and the remainder of our ex-fuel unit cost increase was related to various other items. Fuel costs came in below our expectations at $2.69 per gallon, helping to drive an airline operating margin of 18.6%. Shifting to full year guidance. We are increasing our estimated airline earnings per share by $0.75 at the midpoint to $11.75. The increase in expected full year EPS is fully attributable to a $0.10 decrease in our full year estimated fuel cost per gallon from $3 to $2.90. As John noted, we continue to expect a full year loss related to Sunseeker Resort of $1.25 per share. We expect preopening costs to ramp during the third quarter at approximately $15 million, ahead of opening the property early in the fourth quarter. When taken in conjunction and using the midpoint of our guide, we expect the consolidated full year adjusted earnings per share of roughly $10.50. Turning to the balance sheet. We ended the June quarter with $1.4 billion in available liquidity. That’s just over $1 billion in cash and investments and $356 million in capacity and undrawn revolvers and PDP financing facilities after a prepayment of $61 million in aircraft secured debt in late June. Net debt remained consistent with last quarter at $1.1 billion. Our net debt was down to 2.2 turns, a reduction from 3.7 at year-end driven by strong EBITDA production during the first 6 months of the year. We do expect to add some incremental debt leading up to delivery of our first 737 MAX aircraft late in the fourth quarter and would expect net leverage to be up just slightly above the current level at the end of the year. Second quarter capital expenditures included $147 million related to aircraft purchases, induction, predelivery deposits and other fleet-related costs. We spent an additional $29 million in other airline capital expenditures and deferred heavy maintenance CapEx came in at $21.7 million. CapEx for our Sunseeker Resort property was $92 million during the quarter. Moving to fleet. We inducted 2 Airbus A320 aircraft into operation and ended the quarter with 91 A320 and 35 A319 aircraft in service. We had one additional A320 aircraft owned and undergoing induction work as of the quarter end and expect to purchase 2 additional A320 aircraft during the remainder of 2023. And on the 737 fleet. Updates from Boeing indicate that our first 2 MAX aircraft, which were scheduled for delivery at the end of this year, will each be delayed by approximately 4 weeks, leaving one aircraft for delivery to us in 2023 and moving the second into 2024. While the follow-on effect on the remainder of our 2024 delivery schedule is still under discussion, our 2023 capacity plans are not impacted by this delay. As we’ve shared previously, we expect to begin operating our first 737 aircraft in the first quarter of next year and expect to take delivery of approximately 2 aircraft per month throughout 2024. Our updated full year CapEx guide today implies just under $500 million in aircraft engine and induction-related spend this year with the reduction from prior guidance related to timing of predelivery deposits and timing of aircraft deliveries. All in, we expect full year airline CapEx to be roughly $640 million. I’m very pleased with the financial trajectory we’ve seen in the past few quarters and excited for the earnings potential in our business. We can start to unlock the benefits of the infrastructure investments we’ve been making. EBITDA in the trailing 12 months is approximately $4.5 million per aircraft on a trailing 12-month fuel cost of $3.38 per gallon. Adjusting for fuel, we would be back to our 2019 level of $6 million in EBITDA per aircraft, notwithstanding some of the added cost pressures I mentioned earlier. While I recognize there are certainly many moving parts here, we expect continued improvement on this metric as our numerous initiatives come online. Running a reliable operation has been paramount to achieving the results that we’re sharing today. We’re extremely proud of our team members and the way that they have worked together to schedule and operate the airline during a time that remains challenging. I want to just end by thanking our 5,400 team members for all of their contributions during this busy peak summer travel season. Michelle, we’re ready to begin taking analyst questions. Q&A Session Follow Allegiant Travel Co (NASDAQ:ALGT) Follow Allegiant Travel Co (NASDAQ:ALGT) We may use your email to send marketing emails about our services. Click here to read our privacy policy. Operator: [Operator Instructions]. The first question comes from Duane Pfennigwerth with Evercore. Duane Pfennigwerth: John, what would you envision the segmentation mix for Sunseeker to be? I mean if you had to guess, how much would be group versus transient? And for the groups that you have contracted with, what do those rates look like relative to the transient rate that you cited? John Redmond: Duane, good questions. I think when you look at that, you have to kind of look at it by year. So in ’24, we’ll start with the full year of ’24, you’re probably looking at something in the range of, I’d say, maybe 12 to — it’s going to be a wide range just because we’ll be booking into the year, but probably in the range of like 12% to 18%, could get as high as 20%, but probably in that range of 12% to 18%. When you’re looking at the out years starting with ’25, you’re probably looking at 20% to 25% would be more normal as we move forward. Just to give you some color on that, when you look at the roughly 40,000 group room nights that have already been booked, about 26,300 of those fall into ’24. So that’s roughly more than 10% — slightly over 10% of the total room nights that we would have in a given year. So that kind of gives you a good barometer, and that’s why I think that’s where it’s going to fall. But again, we’re dealing with a brand and a property that hasn’t existed to run these percentages as we are is incredibly impressive, but I think that’s kind of like the 25% range would be where it starts to peak in ’25. Gregory Anderson: And John, on the group rates, there are 250 to 300 or thereabouts. John Redmond: Yes, they’ve been averaging around 290-ish when you look at all 40,000 room nights. And I would expect those to ramp up to as there’s a greater awareness of the property and we’re not selling into an unknown. So the rates we’re selling into — I mean, the rates we’re getting are more than we expected, again, selling into an unknown property, but those will continue to ramp up in the out years as we get into ’25, ’26. It’s just is another data point. So we have group room nights that have already been booked into ’27. Duane Pfennigwerth: Got it. Appreciate the thoughts. I know it’s somewhat hypothetical at this point. And then just on the OpEx run rate, can you give us a little help in the quarter? I know you got some insurance reimbursement. So what was kind of the OpEx run rate for Sunseeker in 2Q? And how do you see that kind of ramping into 3Q and 4Q? John Redmond: I think the 2Q number — I think 3Q, we’re talking about the $15 million, which was, of course, is all preopening as you’re talking about. The 2Q number, I don’t have off the top of my head what that was but obviously, it would be probably for sure, less than half that number. Robert Neal: Yes. I think we had… John Redmond: Go ahead, B.J. Robert Neal: Like $5 million to $7 million, I want to say, between the first and second quarter, per quarter. John Redmond: Yes. Duane Pfennigwerth: And sorry, that $15 million when you’re sort of up and running with the full fourth quarter, what does that look like? John Redmond: Once we’re up and operating, we haven’t put out any financial data from an operating standpoint. We intend to do that probably, at the same time, provide guidance for the airline, which should be historically we do after Q4. So we would provide operating guidance for the resort at that same time. So right now, we are only providing the OpEx, a piece before opening. So adjust just preopening numbers. There is public numbers that we put out there a few years ago. Obviously, they’re dated, and I would expect results to be significantly better because I think the ADR in those projections was something around the $250 range, $250 a night. And as you can see, we’re running much better even when you blend group and transient. Operator: [Operator Instructions]. The next question comes from Savi Syth with Raymond James. Savi Syth: Just if I could talk a little bit about the pilot bonus that you’re offering and has that improved kind of the attrition rates that you’re seeing there? And if you could talk a little bit about the retention and hiring capabilities today? Gregory Anderson: Savi, sure. It’s Greg. Thanks for the question. And the bonus in general, as we came up and moving forward with it, and just to hit on was the right thing to do. Now we have so many of our pilots that want to be at Allegiant that we were talking to and providing us feedback to say, how is it difficult to want to stay here when the rates are so low. I mean we want to be here, but the rates are low compared to the industry. We felt overall, this was the right thing to do for our pilots because they do want to be here, and they understand the unique setup that Allegiant has in terms of that out and back quality of life. Don’t get me wrong. This is one step. The contract is ultimately where we need to get, and we need to make a lot of improvements in certain areas, including quality of life, pay rates, retirement and so forth. In terms of staffing, maybe let’s just — I’ll break it down to 2 pieces. Let’s — the schoolhouse being one, Savi, and then I’ll talk about kind of the net pilots and the attrition that we’ve been seeing. But schoolhouse, as we’ve seen over the past couple of months, a terrific increase in the number of pilots coming through the physical house. I mean classes are full. I think beginning the last 3 or 4 classes have been full. So about 20 to 25 per class. Before that perspective in the first part of the year, we were seeing roughly 12 to 14 per class. So really encouraged by what we’re seeing there. Our team, led by Tyler Hollingsworth has really kind of turned that around and focused on a lot of — several different pathway programs and recruiting the right type of pilots that want to be at Allegiant that sees this, this unique quality of life set up. So — and as we look forward to the rest of the year, we still remain really encouraged about the classes, those that have signed up and continue to maintain kind of that full class status, if you will. But in terms of staffing, just to maybe put some guardrails around that and around the attrition or the notices that we were receiving. So I’d say like in April, May, it was roughly — we were receiving notice about nearly a pilot a day, I mean, just to put it into simple terms. And since June — since early June, that number has been cut down to 1/4 of that number. So we’ve certainly seen some encouraging trends along those lines. Some of that’s probably seasonal. Some of it hopefully is due not just to the retention bonus, but us, going out there and trying to make the improvements we can outside of collective bargaining. And also — but again, I want to reiterate the most important thing we could do in a big step of getting that deal done and then go from there to continue to make this a destination airline, not just for all of our pilots, but all of our team members. Savi Syth: That’s super helpful color. And if I might, on the MAX deliveries and just early thoughts on 2024 is, is 2024 going to be another year where capacity is somewhat constrained as you kind of make these investments to operate well and kind of the MAX uncertainty? Or how are you thinking about like what type of kind of capacity growth you could target in 2024, recognizing it’s still very early? Drew Wells: Savi, it’s Drew here. First and foremost, one of the biggest components will be timing of getting a CBA done with our flight crews above and beyond the MAX delivery. As we focus on the MAXs though and the constraints we have today, we’ll still have training requirements that will drive through all of ’24. So I would expect there to be a little bit of a ceiling relative to the fleet we’re bringing on in terms of what we’re able to produce ASM-wise until maybe the end of the year. I think we can start to get a lot closer to our historic run rate, but I might pull that back a little bit. John Redmond: Yes. Savi, the only other thing I would mention there is that we haven’t yet confirmed our retirement schedule on some of the A320s, we expect to take out of the fleet. And so that just gives us a little bit of flexibility. And so we haven’t come out with the 2024 fleet plan specifically as we want to wait and gain some certainty around the MAX delivery schedule. Gregory Anderson: And Savi, I’m just going to — this is Greg. I’m going to add one more quick comment. I mentioned in my remarks, over the next 5 years, we’re planning to be 200-plus aircraft. So I just want to reorient around that, and that’s what we’re doing. We’re building a strong foundation to support an airline of that size. We’re strengthening that foundation. We’re looking at long-term growth. We’re investing in all the right things and most importantly in our people. And we believe we’re going to — we have a path to get there. It may not be at this — we don’t know the exact cadence, but that’s what we’re planning on. And so a lot of the moves we’re seeing is us getting prepared for that. And we believe that we’re able to continue to grow and grow profitably as we hit that 200-plus aircraft number in the next 5 years. Operator: [Operator Instructions]. The next question comes from Andrew Didora with Bank of America. Andrew Didora: Just a couple of questions on CASM. I think you had been targeting kind of low double-digit growth this year. Where the new — were the pilot retention bonuses paid out in June, part of that number? And then I think you were including maybe about from the pilots in that outlook. Any change to that number given all the tentative agreements out there with others in the industry? Robert Neal: Andrew, it’s B.J. I’ll start, and Greg, if you want to jump in on the second part of that. But yes, no, we continue to think about it like around 1/3 of a cent. I will mention, in the second quarter, we only included 2 months of those accruals. And so moving throughout the rest of the year, you’ll burden through each of the 3 months in the quarter. But yes, you’re right, kind of low double-digit growth year-over-year on unit costs for the back half of the year. Gregory Anderson: And Andrew, just a couple of maybe clarifying points. It’s not paid out in June. It is actually a retention bonus and it’s paid out upon ratification of an agreement for those pilots that are still actively employed at that time. We’ve locked in the rates at that 35% for all pilots with the exceptions of the first year, first officers at . That’s locked in over that period. But we’ll continue to negotiate final rate through the mediation process, but this is a retention bonus. Andrew Didora: Right. Understood. And look, I know there are a lot of moving parts between timing a pilot deal, training requirements for the MAXs. But you mentioned in response to Savi’s question about maybe it’s suboptimal, lower than historical growth in 2024 in that type of scenario? How should we think about kind of CASM growth next year? Any puts and takes you can provide around that would be helpful? Gregory Anderson: Yes. Andrew, I’m sorry, I don’t have a lot in front of me, but I’ll just say it’s real early to give kind of CASM guidance on ’24. Just there’s a lot of moving parts, like you mentioned around the actual delivery schedule of the MAX, which will determine how many pilots are useful in producing ASM at each different period throughout the year? And then what are we doing on retirements of the 320s. I hope by the time of the next call, we’ve got a little bit more color to share with you. So apologies just a little early to give that kind of guidance. Andrew Didora: Got it. And maybe I could sneak one more housekeeping one in. I saw in your guidance, interest expense came down a little bit. I think, in your prepared remarks, you said that you’re going to take on a bit more debt through year-end as the MAXs were delivered. Just curious what was the driver of the lowest — lower interest expense there? John Redmond: The driver of the lower interest expense this year, yes. So a little bit of it is we prepaid $60 million — $61 million in some aircraft secured debt at the end of the second quarter, which gives us a bit of relief in the final 2 quarters of this year. And then my comment on opening remarks that just year-end leverage was — I just wanted to set expectations, we still will add a little bit of debt as we continue making PDP payments in the final 2 quarters of the year. And then there’s still 1 MAX delivery at the end of the year. Gregory Anderson: And Andrew, I’m just going to add just piggyback on that. The equity value in those 737 aircraft day 1 it’s meaningful, and it gives B.J. and the team the opportunity to put an effective and efficient financing. We’re very comfortable being able to go out and finance those aircraft. But something else that I just want to remind our investors in our Street is the opportunistic nature of the 737 deal and the timing and particularly around the tax law and bonus appreciation — depreciation, excuse me, that we received. I mean, in essence, we’re going to receive — we estimate roughly $250 million in interest free rate loan from the government by moving forward with this deal. So that will offset cash taxes in the future. Operator: [Operator Instructions]. The next question comes from Ravi Shanker with Morgan Stanley. Katherine Kallergis: This is Katherine Kallergis on for Ravi. I wanted to follow up on a previous comment, in which you said airlines have started to favor peak periods, and that Allegiant has done this for some time. But I was curious if you could provide some color around the competitive dynamics during these periods. And if what you consider peak might be different than industry peers? Also just curious if these dynamics might be different in Florida market specifically. Drew Wells: Yes. I mean, Drew here. When we refer to peak, we’re exclusively talking about domestic leisure peak, which is traditionally around school holidays, right? So your spring break, summer and holiday time frame, I think most would describe leisure peak as the same. And I think as — and I’m speculating a bit here, carriers are having a bit more leisure exposure. They’re kind of coming around to how those dynamics are working. One of the great things about peak — so if there is an excess of demand generally. And even in periods thinking pre-pandemic when capacity was quite elevated, particularly in the offpeak capacity — sorry, peak capacity could soak up that demand pretty well. I don’t anticipate competitive dynamics to change meaningfully. The peaks are a peak for a reason. And so in general, I believe it’s a good thing, but the demand patterns fit the Allegiant model just exceedingly well and something like we mentioned that we’ve cater to for 20-plus years. So we’re built for exactly this kind of dynamic. Katherine Kallergis: And just as a quick follow-up. Your stat about how 50% of those surveyed stated economic conditions will have no impact on flying was interesting. Just curious what inelastic do you think demand really is? And maybe how you’ve seen the — you all see it perform in past recessionary environments? Scott DeAngelo: No, thanks for that question. For those frequent flyers, the answer is it is pretty inelastic because they’re traveling to and from family where they’re staying and/or doing from their second and vacation homes. So in many of those instances, right, high interest rates, inflation, it’s not as meaningful as say, a family vacation to an Orlando theme park or a Las Vegas casino. So amongst our core customers, it’s fairly inelastic because they’re flying to and from family and/or a second home. Drew Wells: Yes. But more broadly, the customer that we serve is generally still a very price-sensitive customer. Less so in summer peaks or peaks in general, when we have a thicker demand pool to choose from. And certainly, in the off-peaks, you still see that. Just by way of example, we’re already pricing higher, closer in, taking advantage of relative inelasticity if you will, the ability to pass through more was a bit muted, right, especially in the face of $70 plus ancillary per passenger that we’re trying to balance as we build load. So there’s a pretty heavy mix on our aircraft that can be tricky to revenue manage. And I think it’s a place where a product like Allegiant Extra can really help differentiate between the customer segments that we have and find that right balance of Allegiant type premium experience versus the main cabin, that’s right for all of our customers. Operator: [Operator Instructions]. The next question comes from Helane Becker with TD Cowen. Unidentified Analyst: This is [indiscernible] on for Helane. Would you mind providing any color on what you’re seeing in Las Vegas, just given some of the runway challenges that have been happening there? And then just any — any of the drivers of the operational performance just beyond having more of a buffer, some learnings that you’re taking with you for next year, that would be great? Drew Wells: Yes. Yes, great question. And we called out 3 months ago that Vegas had kind of an outsized portion of that 2.5%. April and May still had pockets of struggles as there were some concentrated days and periods of impact. But that materially turned around in June and July and I think Vegas went exceedingly well — performed exceedingly well through the summer. So outside some heat-related concerns but there’s not a lot anybody can do there extremely happy with how Vegas panned out. Thinking more broadly, as we think about the schedule moving forward, reviewing things from firebreaks and adding some slack into the schedule that provides that recoverability, especially if you think about Florida and pretty routine thunder storms coming through at 3:30 every afternoon. We were better balanced about viewing that in its entirety, thinking about how a firebreak relates to extended churn times and where those minutes actually matter. But perhaps, at least to me, one of the most impactful things, think about the overnight touch time for our mechanics and crews in getting that plane to the gate on time every morning so we could start the airline correctly and give ourselves a chance to succeed. So both starting on time and think about how we could recover through the day when things start to go awry. I think we got close to the right answer this year, but there’s a lot more work for us to do to continue to refine and maintain our place towards the top of the industry. Gregory Anderson: Yes. And Drew, I just want to add just a quick comment here, too. And that’s where we sit today, we feel really confident about the second half of the year and moving on from the commentary that we talked about, the coordination between planning and ops and the , Keny Wilper heading up. But staffing levels are very solid. In fact, with the exception of pilot that’s the best we’ve seen since 2019. So we’re encouraged by that. As we get out of the — as we exit the gauntlet of the summer peak flying, the teams all come together and do a postmortem around a summer debrief and they look for process efficiencies and ways to get better, and that will be — that will be around the corner, and we’ll continue to step up our game in any way we can. Unidentified Analyst: If I could just squeeze one more in. Just you mentioned a little bit on the outlook for revenue in the rest of the year. I was just wondering if you can unpack that and any color on the cadence for base fares and ancillaries for what you can see from right now. John Redmond: Yes. I’ll probably disappoint you a little bit as we get into kind of cadence related, the 2 things I’ll point out. One, I would look towards last year’s comp set and kind of ASM cadence to help guide how you think about the third and fourth order. And the second, I’ll point out and maybe not one that I communicated well or maybe even appreciated enough as we talked about the last 9 months previously was the second quarter of ’22 cadence. And I think there was still a fair amount of recovery from the variant that we experienced in the first half of that quarter. Not to disparage the 2Q they probably helped bolster the relative TRASM year-over-year there a little bit. So I kind of think of those 2 pieces in concurrent as you think about the last 9 months in totality. Operator: [Operator Instructions]. The next question comes from Michael Linenberg with Deutsche Bank. Michael Linenberg: Just a few quick ones here. John, just in response to Duane’s question on you talking about Sunseeker where the numbers were better, and you were referring to the rates. How should we think about it just from with all the cost inflation there if we kind of go back to the original plan, I think the guide was EBITDA margins sort of in that 30% range. Is that still a reasonable sort of ballpark profit margin? John Redmond: Michael, I do. I think those EBITDA margins are still doable. It’s kind of like when you see even happen on the air side, right, with the CapEx — or CASM-X increasing. Well, revenue is outpacing the CASM-X growth. So you’re seeing the same thing happen on the — in the resort world, where the cost increases are way more than offset by the room rate increases in that market. So very encouraging. And Florida, in particular, it’s just been extremely strong. Obviously, the hotel industry throughout the U.S. has been, but Florida, it’s a shining star when it comes to what’s going on. So I think EBITDA margins that we were looking at early on and we’re out there under projections, I think there’s a potential for those to be even much stronger. Michael Linenberg: Very good. And then just a second one for you, John, and probably Greg as well and maybe the team. We’ve seen an announcement by Frontier to take up some of the assets of the JetBlue Spirit proposed merger assets that they would potentially divest at this point. It looks like it’s still slots. Obviously, there’s a lot more that they’ve already indicated that they would be willing to divest, maybe its runway timings at Newark, Gates in Fort Lauderdale, space in Boston. Is any of that of interest to Allegiant. Gregory Anderson: Michael, it’s Greg. Good to chat with you. As the team continue — Drew and his team continue to look at all opportunities in airports and certainly aware of the situation. But I think where we sit today, there’s nothing really to report on that front. Michael Linenberg: Very good. And then just if I could squeeze in one quick last one for Scott. We have heard other carriers talk about this traffic patterns where people are spending a lot more time this summer going to Europe rather than flying domestically and Scott, you do a lot of different surveys and other carriers have said that they’ve surveyed their own customer base and some percentage are electing to go to Europe. What are you seeing amongst your customer base, which I know you’re very close to? Are you seeing something similar where you’re just losing a lot of flow because they’re going maybe outside of the United States? Any color on that would be great. Scott DeAngelo: Absolutely. And thank you, Michael, because the last several weeks, we have asked exactly that. So I’m prepared to tell you. First, we ask our customer base to make sure they had the ability to travel internationally. Turns out that about 80% of Allegiant customers have a passport. But we’re seeing some very different than what Frontier and others have reported. When asked, do you plan to travel internationally in the next 6 months or have you traveled both internationally in the last 6 months? The answer is the same between like 16% and 19% say, yes. That means the vast majority of our customers, 80% have no plans and have not traveled internationally in 2023. John Redmond: And I think maybe, Scott, it’s worth elaborating on to the 16% to 19% you’re talking about hasn’t changed year-over-year. Scott DeAngelo: That’s right. It hasn’t been a zero-sum as much as now it’s open, and they’ve taken an additional trip. John Redmond: Yes. Great point. For us, it’s not a displacement argument at all. The percentages are consistent year in and year out. Operator: The next question comes from Conor Cunningham with Melius Research. Conor Cunningham: On the doubling of the Allways credit card contribution, just trying to understand the cadence there. I assume that’s both card growth and spend. But in your prepared remarks, you mentioned the potential of Sunseeker contributing. Just curious about the ramp there going forward. Scott DeAngelo: Absolutely. So the comment that in the next 3 years will, in effect, double from roughly where we ended last year at $97 million, going to post over $100 million. It’s largely based without Sunseeker assumed in it. So it is from the key things you mentioned. Increased cardholder growth, compounded cardholder spend right as that portfolio grows and we achieve at or above the same spend per cardholder. So I think John’s comments in the beginning represent upside that could even make it faster. My comments were not based on any additional goodness, which we’ll absolutely get from Sunseeker opening. John Redmond: Yes. I think — this is John. I think when you look at the — I think, a huge data point that Scott has pointed out is the channels that were in the past with a MasterCard program not available to a cardholder that are now or will be available to a cardholder, most notably Costco is significant. So that type of increase then doesn’t require necessarily an increase in the number of although we are planning on that. But just the channels of use are going to expand significantly with moving to Visa. Conor Cunningham: Okay. That’s helpful. And then on Sunseeker, great commentary on ADRs and bookings. But the question that I get, and maybe this is kind of the Mike’s point as well is, just around the inflection point on profitability, like I realize that you’re working towards opening. I’m just trying to get some color on your path to profitability there. When we could expect a potential contribution over? Again, I realized that it’s still early days, but just any thoughts there would be helpful. John Redmond: When you talk about a cash contribution or contribution of — you said turn, now you’re talking about EBITDA, we don’t intend to ever be negative on a quarterly basis, I mean there’s no time, we forecast any period that we would have a negative EBITDA. So I think from a cash standpoint, they’re going to be positive throughout the year with the added upside in the out years. So we purposely priced the product that you see out there for ’23 and ’24 below market. So even when you see these rates, believe it or not, we’re below market because we’re putting a new brand and a new property into that market. So when you look at after we’ve been open for a period of time, and I’m not talking years, I’m talking a month. You’re going to start to see that rate — that — those rates accelerate up. So we purposely have underpriced. And even with that purposeful underpricing, those ADRs are impressive, but you will see those ramp up significantly for sure, the 25.5%. Operator: I would like to turn the call back to John Redmond for closing remarks. John Redmond: Well, I appreciate everyone’s time. We’re very proud of our team and the management here and what we’ve been able to accomplish year-to-date. And we’re very excited about the balance of this year. An incredible amount of time and resources have gone into systems over last couple of years. You’re starting to see the rollout of all that time and effort will started to happen this year, which really sets the backbone for this company going forward. So we will have no restrictions, limitations what have you from a system standpoint as we move into the 20 aircraft — or 200 aircraft environment, I should say that Greg referred to, everything is allowing us to do everything we need to and want to do going forward. So absolutely, no restrictions. And our focus now is just finishing up the last labor agreements. We’re very encouraged by where we are today and where we’re going to end up tomorrow with those agreements. So again, very bullish about the out years for this company. Very exciting times ahead, and stay tuned. Thank you very much. Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect. Follow Allegiant Travel Co (NASDAQ:ALGT) Follow Allegiant Travel Co (NASDAQ:ALGT) We may use your email to send marketing emails about our services. Click here to read our privacy policy......»»

Category: topSource: insidermonkeyAug 4th, 2023

United Airlines Holdings, Inc. (NASDAQ:UAL) Q2 2023 Earnings Call Transcript

United Airlines Holdings, Inc. (NASDAQ:UAL) Q2 2023 Earnings Call Transcript July 20, 2023 Operator: Good morning and welcome to United Airlines Holdings Earnings Conference Call for the Second Quarter 2023. My name is Silas and I will be your conference facilitator today. Following the initial remarks from management, we will open the lines for questions. […] United Airlines Holdings, Inc. (NASDAQ:UAL) Q2 2023 Earnings Call Transcript July 20, 2023 Operator: Good morning and welcome to United Airlines Holdings Earnings Conference Call for the Second Quarter 2023. My name is Silas and I will be your conference facilitator today. Following the initial remarks from management, we will open the lines for questions. [Operator Instructions] This call is being recorded and is copyrighted. Please note that no portion of the call may be recorded, transcribed, or rebroadcast without the company’s permission. Your participation implies your consent to our recording of this call. If you do not agree with these terms, simply drop off the line. I will now turn the presentation over to your host for today’s call, Kristina Munoz, Director of Investor Relations. Please go ahead. Kristina Munoz: Thank you, Silas. Good morning, everyone, and welcome to United’s second quarter 2023 earnings conference call. Yesterday, we issued our earnings release, which is available on our website at Information in yesterday’s release and the remarks made during this conference call may contain forward-looking statements, which represent the company’s current expectations or beliefs concerning future events and financial performance. All forward-looking statements are based upon information currently available to the company. A number of factors could cause actual results to differ materially from our current expectations. Please refer to our earnings release, Form 10-K and 10-Q and other reports filed with the SEC by United Airlines Holdings and United Airlines for a more thorough description of these factors. Unless otherwise noted, we will be discussing our financial metrics on a non-GAAP basis on this call. Please refer to the related definitions and reconciliations in our press release. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please refer to the tables at the end of our earnings release. Joining us on the call today to discuss our results and outlook are Chief Executive Officer, Scott Kirby; President, Brett Hart; Executive Vice President and Chief Commercial Officer, Andrew Nocella; and Executive Vice President and Chief Financial Officer, Gerry Laderman. In addition, we have other members of the executive team on the line available to assist with the Q&A. And now, I’d like to turn the call over to Scott. Scott Kirby: Thank you, Kristina, and thanks to everyone for joining us this morning. Before I discuss our financial performance for the second quarter, I’d like to first address the operational challenges at Newark at the end of last month. I am extremely proud of the people of United for all they did to recover under very challenging circumstances. Our pilots, flight attendants, gate agents, contact center teams and others went above and beyond to inform and assist our customers in an extremely stressful situation. We are now doing more than ever to mitigate the impact of weather, congestion and other infrastructure constraints at Newark, and frankly, to build a schedule at Newark is more manageable given the frequency of weather events and the very real operating constraints that exist there even on blue sky day. Brett will highlight just a few of those changes shortly. But we have already put them in motion, we’ve already starting to improve the working experience for our people and travel experience for our customers. A bigger picture, this quarter was yet another proof point that our United Next strategy was correct and is working almost exactly as we expected. Over the past couple of years, I’ve talked a lot about three exogenous constraints facing the industry. But also the fact that those very constraints and challenges are going to set the table for improved financial results for the airline industry. One, pilot shortages; two, supply chain disruptions; and three, infrastructure limitations. At United, we have control over the first two constraints, pilot and supply chain, and we mostly got ahead of the curve and had minimal issues there. But we’re probably as exposed or the most exposed to the infrastructure constraint since our hubs are in some of the largest and most crowded airports in the country. So now we’re taking even more action to give us the ability to operate more reliably despite the infrastructure constraints. That means we’ve had to lower our capacity plans for the second half and therefore, raised our CASM-ex guidance. But the reality is that our CASM-ex will be better than it otherwise would have been because there’s nothing as expensive as running an off-schedule operation and these changes are designed to get our operations, particularly at Newark, working at a level that reflects the fact that it only has one set of parallel runway operating in the most crowded airspace in the world. The flip side of this coin, however, is that these exogenous constraints were also the basis of our United Next strategy, and it is off to an incredible even record setting start. This was an all-time record quarter for pretax earnings and EPS on an adjusted basis. This performance reflects our success in building a strategy to, one, aggressively hire pilots; two, grow our Mid-Con hubs; three, upgauge our domestic fleet; and four, expand our wide-body fleet and international exposure in response to the trends that we identified at the beginning of COVID. Importantly, we now expect to deliver earnings per share of $11 to $12, even with incremental conservatism in our cost in the back half of the year. The vision and strategic outlook that we first identified nearly three years ago is happening. Cost convergence is happening, which has changed our business dramatically on the domestic front. Long term, positive structural changes to the international markets are also apparent in our results. We continue to anticipate that the GDP relationship between airline revenues has been reset higher due to cost conversions and will continue to improve. The outlook for United and our United Next strategy is incredibly bright, as highlighted by our financial results this quarter. This quarter demonstrates that we’re ahead of our planned targets and the challenges to emphasize that the industry backdrop gives us a clear path to our 14% pretax margin in 2026. As we march towards that goal, we’re focused on setting the airline up for success. I’m also pleased that we’ve reached an agreement on an industry-leading contract with ALPA. The four-year agreement once ratified will deliver a meaningful pay raise and quality of life improvements for our pilots. Thanks to the team for getting this across the finish line. We are well on our way to being the best airline in the history of aviation. United Next gave us an unbeatable head start on that goal as long as we execute and execute we will. Thanks again to the United team. And with that, I’ll turn it over to Brett. Brett Hart: Thank you, Scott. Thank you to our United team for their hard work this quarter. As Scott mentioned, during the last week of June, we experienced one of the most challenging operational environments in United’s history, impacting primarily our largest international departure hub, Newark. Our hub locations make us disproportionately prone to weather and then in the second quarter, weather was particularly challenging, with 25 major irregular operation days accounting for 75% of our second quarter cancellations. Despite this, we are focused on setting United up for success, and being able to recover more quickly in the future. We are implementing a few new initiatives in Newark that will improve our operation. First, we are reducing the total flying in the peak hours to align better with the capabilities of today’s constrained operating environment. emiel-molenaar-JOrUKpuMOeU-unsplash Second, we expect to have additional gating as we bring the remaining six gates in Terminal A online, two of which are additional wide-body gates as well as make additional tactical changes at United. Third, we are adjusting our schedules to increase our out-and-back flying to limit the downline system impact of any cancellations or delays. Fourth, we are increasing our resources and crew scheduling and accelerating the timeline of our technology enhancements and automation. Lastly and importantly, our partnerships with the FAA and Port Authority are essential to the airline’s success. Collaboration and communication amongst these groups has never been stronger. To that end, Scott and our government affairs team continue to remain actively engaged in working with the administration and leaders in Congress to pass an FAA reauthorization bill. Legislation that equips the FAA with the resources, tools and funding they need isn’t just essential to the success of our industry, it’s among the best investments that we could make for the traveling public in the U.S. economy right now. And we’re committed to continuing to advocate for a smart FAA reauthorization bill and to get it passed quickly. These are only a few of the initiatives underway, but combined with lower capacity, these adjustments add approximately 1 to 2 points of incremental year-over-year pressure to our 2023 CASM-ex. Gerry will go into more detail. But running a successful and efficient airline is critical and United is laser-focused on getting our customers to their destinations safely and on time. As we work to respond to these challenges, we are also investing in our customer experience. Recently, we announced new mobile app features that support our customers during travel disruptions. These first-of-their-kind tools will allow customers to rebook, track their bags and get meal and hotel vouchers when eligible on their personal device. It is important for us to provide our customers the resources they need for flight or their flight at their fingertips, especially when things don’t go as planned. As Scott mentioned, over the weekend, we reached a tentative agreement with our pilots represented by ALPA. We’re thankful for the hard work our pilots put in every day, and this agreement is a representation of that. We are still in active negotiations with our flight attendants represented by the AFA, and have new agreements in place for all other work groups. The United team continues to be resilient. We’re making real-time changes that directly impact the travel experience for our customers and for our employees, day-to-day. Proud to be a member of this team. I want to thank everyone for their unwavering hard work. And with that, I’ll pass it over to Andrew to discuss the revenue graph. Andrew Nocella: Thanks, Brett. I’d like to start off today by thanking the entire United team for their hard work and dedication in taking care of our customers, particularly during the final week of the quarter. Our financial results provide proof that our United Next plans are working and that the demand environment remains robust. United finished the second quarter with top line record quarterly revenues of [$14.2 billion]. Total revenues in the quarter were up 17%, ahead of our guidance of 14% to 16%. June was exceptionally strong and was our best revenue month ever. Since the start of June, we’ve had 13 of our 16 highest flown gross revenue days. TRASM in the quarter was down 0.4% and PRASM was up 2.2% with capacity up 17.5%. International results were exceptionally strong with passenger revenues up 44% year-over-year. International PRASM increased 13.3% year-over-year. Year-over-year PRASM results were strongest in the Pacific followed by the Atlantic and then Latin America. The resurgence of the United Pacific entity has been the most transformative. Margins for our global long-haul flying continued to outpace domestic margins. Our second quarter capacity deployment plans leaned in international flying with 27% more capacity year-over-year, which proved advantageous. International ASMs represent 45.4% of United’s 2Q capacity, up 2 points from 2019. Domestic passenger revenues were up 7.8% on 10.5% more capacity year-over-year, largely in line with our expectations at the start of the quarter. Domestic PRASM was down 2.4%, but that was a fantastic outcome as it compares to an exceptionally strong Q2 of ’22. We expect similar or slightly better results for domestic PRASM in the third quarter. Our RM setup for the quarter proved to be the right one. We held back seats early in the booking curve, saving them for higher yields and closing bookings, and we ended the quarter with record top line results. The business recovery remained stable. Revenue from international travelers flying for business grew 40% year-over-year, with 10% growth in the — on domestic business travelers. On a ticketed basis, business travel revenue continues to trend roughly flat to 2019. Cargo revenues have normalized post pandemic. Yields were down 38% versus 2022, but do remain up 29% versus ’19. We expect yields in the third quarter to be consistent with Q2. Healthy cargo revenues and yields are helping drive incremental profitability to our global long-haul flying. MileagePlus had another strong quarter with revenue up 11% year-over-year. We broke records this quarter for all key measurements from new card acquisitions to new member enrollment. Ancillary revenue from bags and seats hit a record $1 billion in Q2, up 19% year-over-year. Per passenger ancillary revenue increased 8% to $23.79. Replacement of single class RJs with mainline aircraft with multiple types of seat upgrade opportunities is a key driver of our revenue growth. Premium leisure demand remains very strong across the board. Our domestic first class capacity is up 4% from 2019, but RASM growth in that cabin is 12 points stronger than the main cabin even with corporate traffic not fully recovered. Our global long-haul Polaris product is also offsetting the loss of corporate business revenue with premium leisure demand and validates the size of our Polaris cabins post-pandemic are correct for United hubs. For Q3, we expect the total revenue will be up 10% to 13% year-over-year with capacity up approximately 16%. The demand environment remains strong, and September and October looked particularly strong relative to both 2019 and July and August. Another sign that seasonality has changed in the summer peak period is more spread out relative to the past. Once again, Q3 capacity deployment focuses on international markets with capacity expected to be up 23% versus 13% for domestic. We believe international revenue will continue to outperform domestic revenue in the third quarter across the globe other than Latin America. Overall, our domestic margins are now back to 2019 levels while our international margins are trending well above where they were in ’19. Earlier this week, we announced an expansion of our Pacific flying this fall with new nonstop service from Manila to San Francisco. We also announced a second daily flight from San Francisco to Taipei, a new daily nonstop flight from Los Angeles to Hong Kong and will resume our service between Los Angeles and Narita as planned. These additions to our key Pacific destinations are in addition to our previously announced expansion plan to the South Pacific. While international flying remains our focus, we also have plans to improve domestic margins by rebuilding and enhancing connectivity versus 2019, grow and engage faster than any other carrier and staying focus on our existing set of hubs. Domestic connectivity fell materially in the pandemic because we decided to retire about 300 regional jets. But our connectivity is growing every month as we take United Next deliveries, and that will continue to drive PRASM higher each month. Like the period from 2017 to 2019 when we grew RASM and margins by growing connectivity, we’ll do it once again but this time with large mainland jets preferred by our customers. Gauge has also been a key gap and opportunity for United, larger gauge narrow-bodies with 190 or more seats operate with the best single line aisle margins in North America. The introduction of the A321 and MAX 10 were always a key enabler of our United Next age growth and margin growth. The potential of these larger jets is proven and further upside to United Airlines when we finally enter the fleet. I also want to add to Scott and Brett’s comments about Newark and our United Next plans. United Next always contemplated that the only way to grow Newark was upgauging from regional to mainline flying. We expected that to lead to higher growth in seats and ASM at Newark even though the total number of flights would not be growing. Our growth in Newark has always been contingent upon larger aircraft, not more aircraft. While we need to cut departures — while, may need a couple departures more than planned, we don’t believe these changes will impact our long-term capacity from Newark due to the use of larger gauge aircraft. And with that, I will turn it over to Gerry to talk about our financial results. Gerry? Gerry Laderman: Thanks, Andrew, and good morning, everyone. I am pleased to report that for the second quarter, we delivered the highest quarterly pretax earnings in the United’s history of $2.2 billion. Our earnings per share of $5.03 was also an all-time record. And in addition, we produced a record second quarter pretax margin of 15.3%, 3 points higher than second quarter of 2019 and ahead of our expectations. This exceptional performance was driven by stronger-than-expected revenue and lower-than-expected fuel prices. The severe weather at the end of June, which drove multiple consecutive days of strained operations, did lead to a 1 point reduction in capacity for the quarter. We also incurred incremental disruption related costs that weren’t anticipated at the time of our guidance. The capacity loss and added costs led to a CASM-ex impact of approximately 1.5 points for the quarter. Excluding this impact, until June 24, we were trending below the midpoint of our CASM-ex range for the quarter, an indication that our core costs remain under control. And for the rest of the year, the operational and scheduling changes that Brett discussed have reduced our full year capacity plans from our prior expectations, and we now expect full year capacity to be up approximately 18% versus 2022. Additionally, our CASM-ex guidance now incorporates an expectation of additional incremental costs in order to address the operational challenges. Specifically, for the third quarter, we expect CASM-ex to be up 2% to 3% with capacity up approximately 16%, both versus the third quarter of last year. When combined with our results for the second quarter and our expectations for the fourth quarter, we now anticipate our full-year CASM-ex to be up approximately 1% to 2% versus last year. However, just like the second quarter, outside of the revisions I discussed, our core costs for the rest of the year are trending as expected. Furthermore, our CASM-ex expectation for the year continues to include the impact of our recently announced agreement with our pilots. Turning to earnings. The strong revenue environment and moderate fuel prices continue to provide strength to our bottom line. For the third quarter, we expect earnings per share to be $3.85 to $4.35, with a fuel price of $2.50 to $2.80. More importantly, given our second quarter performance and third quarter outlook, we are raising our full year earnings per share expectation to the top half of our previous guidance range of $10 to $12. On fleet, we took delivery of 20 Boeing 737 MAX aircraft in the second quarter and paid for 10 of those aircraft with cash. We expect to take delivery of 28 737 MAX aircraft in the third quarter and also look forward to our first Airbus A321neo later this fall. We continue to expect our full year adjusted capital expenditures to be approximately $8.5 billion. Turning to the balance sheet. We ended the quarter with $21 billion in liquidity, including our undrawn revolver. We are comfortable with our current level of liquidity, particularly given the uncertain macroeconomic backdrop. In the second quarter, we opportunistically issued $1.3 billion of enhanced equipment trust certificates secured by a pool of recently delivered Boeing MAX aircraft with an interest rate of 5.8% which was attractive in the current interest rate environment. Additionally, we prepaid $1 billion of floating rate debt, which carried a current coupon of over 9%. Our adjusted net debt is now down almost $3 billion since the end of 2022 and $6 billion since the end of 2021. With the reduction in debt and the improvement in earnings, at the end of the second quarter, our trailing 12-month adjusted net debt-to-EBITDAR ratio improved by a full turn to 2.4x versus the end of the first quarter, putting us back to where we were prior to the pandemic and ahead of pace to achieve our target of less than 3x by the end of 2023. We also continue to expect to generate positive free cash flow for the full year, including the impact of our new pilot agreement. In conclusion, we are encouraged by the trends we are seeing and believe we’re adequately mitigated against additional operational risk in the back half of the year. I’m extremely proud of the United team for delivering our strong financial results. Six months ago, when we first announced our full year EPS guidance, we were met with skepticism from some of you listening. Now more than halfway through the year, as we increase our EPS guidance, I hope all of you are as comfortable as we are with the value of the United Next plan, where we continue to march towards meeting our long-term path target in delivering for our customers, employees and shareholders. And with that, I will turn it over to Kristina to start the Q&A. A – Kristina Munoz: Thank you, Gerry. We will now take questions from the analyst community. Please limit yourself to one question and if needed, one follow-up question. Silas, please describe the procedure to ask a question. See also 20 Countries With The Highest Rate Of Diabetes and 6 Most Flirtatious Zodiac Signs. Q&A Session Follow United Airlines Holdings Inc. (NYSE:UAL) Follow United Airlines Holdings Inc. (NYSE:UAL) We may use your email to send marketing emails about our services. Click here to read our privacy policy. Operator: [Operator Instructions] The first question comes from Dave Vernon from Bernstein. David Vernon : So Scott and Gerry, maybe a bigger picture level question for you. We’re kind of coming up to $11 to $12 in earnings this year, can you help point out the two or three things that are unique to your strategy that are going to make it possible to kind of grow from that level? And there’s a lot of concern about domestic slowing down. There’s a concern about peak earnings. I’m just wondering how do we think about sustaining this level of earnings power or even building on it on a one or two-year view, conceptually? Not trying to get guidance for ’24. Just trying to think about conceptually what’s going to help us kind of build from these record levels of profitability. Scott Kirby : I guess I’ll start and maybe let Andrew give you some details to follow. But at its core, two to three years ago, we started describing United Next, we started describing the intellectual framework for United Next, what we thought was going to change in the industry. And in particular, we thought that the international market was going to be really, really good because we thought demand would recover. And we were literally the only large airline in the world that decided to keep all our airplanes and actually took more airplanes during the pandemic and grow. That has, in fact, happened. Domestically, we thought that the cost convergence was likely to happen. One, because of inflation, we probably think that two or three years ago, about 18 months ago, we thought that, that inflation was going to drive cost convergence and that the expectations for capacity were going to be unfulfilled because supply chain constraints, pilot shortages and infrastructure constraints. And to fix that particular issue, all three of those things have to come together. It’s not enough if you get the supply chain remedied. It’s not enough to get pilots remedied. All three of them have to happen. And so kind of from a big picture level, like this is playing out exactly like we thought it would. And it’s a fair question. We get the question we’ve gotten into at least six or seven quarters in a row. And the results just keep getting better because the industry backdrop is getting better, particularly for large airlines that have international exposure and they are at the top of the food chain for hiring pilots and for supply chain issue, which is where United sits. And you further that with United — so that’s the industry backdrop. But United specifically thought this was going to happen, and we made a really big bet on this happening. And the truth is we’re the only ones in the world to do that. While everyone else was shrinking and retiring airplanes, we started betting on the growth and getting ready for United Next. And we thought it would play out like this. It is playing out like this. I really am confident that our margins are set to grow 1 to 2 points a year for each of the next — at least through 2026, and that this is the new normal. Andrew?.....»»

Category: topSource: insidermonkeyJul 23rd, 2023

12 Best Meme Stocks To Buy Now

In this article we present the list of 12 Best Meme Stocks To Buy Now. To skip our detailed discussion of the history of meme stocks, click to go straight to the 5 Best Meme Stocks To Buy Now. GitLab Inc. (NASDAQ:GTLB), Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY), and Palantir Technologies Inc. (NYSE:PLTR) are some of […] In this article we present the list of 12 Best Meme Stocks To Buy Now. To skip our detailed discussion of the history of meme stocks, click to go straight to the 5 Best Meme Stocks To Buy Now. GitLab Inc. (NASDAQ:GTLB), Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY), and Palantir Technologies Inc. (NYSE:PLTR) are some of the best meme stocks 2023 has to offer retail investors according to the current interest levels in those stocks among retail investors. While there were a few scattered instances in the past of retail traders banding together to collectively drive up the price of a particular security, the meme stock craze didn’t really take off until the height of the pandemic in late 2020 and early 2021. With millions of people stuck inside their homes, many of whom were now without work, they increasingly turned to investing (and more specifically, day trading) as a way to spend their free time and attempt to make money. Their first major target was the meme stock Gamestop, which skyrocketed more than 20x in value between 2020 and 2021, reaching a market cap of over $22 billion. Those early meme pioneers, who often found their next meme stock on Reddit, caught the market completely by surprise and were wildly successful as a result. As we reported in 11 Best Meme Stocks To Buy Now, a September 2021 report from Acuitas Investments found that meme stocks significantly outperformed the broader market in early 2021, gaining 110%, and that success carried on throughout the year for several of the best meme stocks, as there were 10 Meme Stocks that More than Doubled in 2021. That meme stock success coincided with retail investors accounting for a much greater percentage of the overall volume of equities trading in the U.S., as their share rose from about 15% in 2018 to nearly 20% by the end of 2020. By late 2021, that figure has risen even higher, to nearly 25%. Those figures receded somewhat in 2022 as the best meme stocks struggled to duplicate their success from the year prior, though there was “A Sudden Resurrection”: 10 Rebounding Meme Stocks to Buy in August. As we noted in Reddit’s 10 Meme Stocks Ranked From Best to Worst According to Hedge Funds, retail investors have been flexing their muscles again in 2023, with JPMorgan reporting in February that day trading accounted for 23% of all trading activity in January. Meanwhile, Vanda Research also reported earlier this year that retail investors were pouring a record $1.5 billion per day into the market at the same time that institutional investors have become more bearish, giving retail investors more sway over the market than they’ve had since the height of the meme stock craze. That makes now the perfect time for retail investors to hunt for a meme stocks list today and uncover the next meme stock to buy. We’ve compiled just such a list for you here. Photo by Stephanie Klepacki on Unsplash Our Methodology The following list of the best meme stocks has been compiled primarily from two sources: the number of stock mentions over the past week on the r/WallStreetBets Reddit forum, which has 13 million active users as of January of this year, and the holdings of the Roundhill MEME ETF, which tracks the performance of meme stocks and which has gained 35% this year. While several massive companies like Apple, AMD, and Tesla are popular among retail investors, we have focused on smaller companies that retail investors are more likely to move the needle on. We have then ranked those popular meme stocks based on the number of hedge fund shareholders of each (ties are broken by the amount of money hedge funds have invested in each stock). We follow a select group of hedge funds because Insider Monkey’s research has uncovered that their consensus stock picks can deliver outstanding returns. All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q1 2023 reporting period. 12 Best Meme Stocks To Buy Now 12. The Beachbody Company, Inc. (NYSE:BODY) Number of Hedge Fund Shareholders: 7   Palantir Technologies Inc. (NYSE:PLTR), GitLab Inc. (NASDAQ:GTLB), and Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) are three of the best meme stocks that have captured the attention of both retail investors and hedge funds. A stock that retail investors alone are far more bullish on is The Beachbody Company, Inc. (NYSE:BODY), which has lost more than half its former smart money shareholders in the past year. Joseph Ravitch and Jeffrey Sine’s Raine Capital is the only fund with a noteworthy long position in BODY as of March 31, owning 37.5 million shares. The Beachbody Company, Inc. (NYSE:BODY), a microcap health and wellness company, topped its first quarter guidance but experienced a sales decline across all three of its segments, with overall sales plunging by $54 million to $144.9 million. The company’s total subscriptions also fell by 29% year-over-year to 1.96 million. Baird analyst Jonathan Komp noted back in March that The Beachbody Company, Inc. (NYSE:BODY)’s guidance came in below expectations and lowered his price target on the stock to $0.50 from $1.25, while maintaining a ‘Neutral’ rating. 11. Virgin Galactic Holdings, Inc. (NYSE:SPCE) Number of Hedge Fund Shareholders: 12   Virgin Galactic Holdings, Inc. (NYSE:SPCE) has fallen to a new all-time low in hedge fund ownership as of Q1, with just 12 funds long SPCE, down from more than 40 less than four years earlier. John Overdeck and David Siegel’s Two Sigma Advisors own the largest stake in Richard Branson’s company, owning 727,200 shares on March 31, up by 89% quarter-over-quarter. Virgin Galactic Holdings, Inc. (NYSE:SPCE) is a long-term bet on the future of commercial space travel, which the company has slowly made a reality, having recently conducted its final test flight. Commercial flights will soon follow, though these will be limited to once-a-month instances in the beginning while Virgin Galactic continues to build out its next generation of ships. With Virgin Galactic Holdings, Inc. (NYSE:SPCE) currently burning through cash and profitability a distant dream, the company just announced that it raised $300 million and indicated that it would seek to raise another $400 million in short order. Those financial pressures will likely continue to weigh on the stock in the near-term, which is already down over 90% from its peak. Once revenue from space flights begins rolling in however, there could be an appreciable rebound in the stock, which appears to be what retail investors are betting on. 10. Hawaiian Holdings, Inc. (NASDAQ:HA) Number of Hedge Fund Shareholders: 16   Airline carriers have frequently popped up on retail investors’ radars over the past three years, with Hawaiian Holdings, Inc. (NASDAQ:HA) being one of their current airlines of interest. Hedge fund ownership of HA crashed at the height of the pandemic, but has rebounded somewhat since, though it remains well off 2017 levels. Despite that, overall institutional ownership of Hawaiian Holdings, Inc. (NASDAQ:HA) is quite high, at 84%, which doesn’t give retail investors a ton of wiggle room to influence the stock price. Hawaiian is enjoying a surge in demand that has led to the company increasing capacity, which seems to have retail investors excited for what’s to come. Hawaiian Holdings, Inc. (NASDAQ:HA) beat top and bottom line estimates in Q1, with revenue of $613 million and an adjusted earnings loss per share of $2.17. The company’s profitability has been dragged down by sky-high fuel costs, though it did lower its FY23 economic fuel price per gallon outlook to $2.70 from $2.92. 9., Inc. (NYSE:AI) Number of Hedge Fund Shareholders: 21, Inc. (NYSE:AI) is currently one of the hottest stocks among retail investors, having posted gains of 200% this year. A few different hedge funds were also adding AI to their portfolios in Q1, including Phillippe Laffont’s tech-focused Coatue Management, which bought 1.5 million shares. AI shares were down by 91% lifetime entering the year. Other than having the coveted AI ticker, it’s unclear what’s attracting retail investors to, Inc. (NYSE:AI), as there are numerous red flags in the company’s results. Incredibly, the AI solutions provider lost more money in its fiscal 2023 ($269 million) than it generated in revenue ($267 million), with growth of expenses outpacing revenue growth, so the situation doesn’t appear to be bound for a turnaround any time soon. And despite shares still being down by over 70% from their peak, they nonetheless trade at 17x sales, which is by no means cheap. Kerrisdale Capital is taking on retail traders when it comes to, Inc. (NYSE:AI), as the firm revealed its short position in the stock and penned a damning thesis on the company’s operations in its March 2023 investor letter: “We are short shares of, Inc. (NYSE:AI), a $4 billion market capitalization enterprise software company that has risen from the ashes of its busted IPO based on the misconception that its self-proclaimed “AI leadership” somehow positions it to benefit from Silicon Valley’s current tech theme du jour: generative AI as represented by media obsession ChatGPT. We believe these speculative flames won’t burn bright much longer, as the realities of C3’s poor customer traction, failing sales partnerships, and financial pressures will catalyze what is likely to be a painful reality check. This isn’t the first time C3 has sought to ride a hot investment theme. The company was originally founded as C3 Energy to develop analytics solutions for public utilities preparing for the emergence of cap-and-trade and smart grids. C3 pivoted in 2016, renaming the company C3 IoT to capitalize on that buzzy opportunity. But management’s master stroke was rebranding operations as in 2019 and going public with the “AI” stock ticker, thus securing its place as the default artificial intelligence stock play for the undiscriminating investor despite the bulk of its business coming from relatively dated analytics models built for a very small number of utility, energy, and government customers. C3 is a minor, cash-burning consulting and services business masquerading as a software company, and its true value is a fraction of its current market capitalization…” (Click here to read the full text) 8. Carnival Corporation & plc (NYSE:CCL) Number of Hedge Fund Shareholders: 25   In addition to airlines, retail investors have also shown a keen interest in cruise ship operators over the past few years, with Carnival Corporation & plc (NYSE:CCL) being one such stock they’re currently high on. Hedge funds on the other hand aren’t nearly as bullish, with CCL dropping to an all-time low in smart money ownership at the end of 2022 before a slight rebound in the first quarter of this year. Carnival Corporation & plc (NYSE:CCL), the world’s largest cruise line operator, reports its Q2 results on Monday and analysts are expecting strong results, with revenue expected to nearly double year-over-year. That trend is only expected to grow in the second half of this year, with Carnival appearing poised to end its run of unprofitable quarters for the first time in four years. The Aristotle Global Equity Strategy believes one of Carnival Corporation & plc (NYSE:CCL)’s main competitors is better positioned for growth in the coming years, as it revealed in its Q4 2022 investor letter: “We first purchased shares of Carnival Corporation & plc (NYSE:CCL), the world’s largest cruise line, during the second quarter of 2019. At the time, we believed the company was improving in quality, as the industry (and shipyards) had consolidated to a point where returns on capital could increase systematically over time. In addition, cruising is underpenetrated when compared to land-based alternatives. Despite the difficulties faced by the cruise industry during the pandemic, in our opinion, consumer appetite for cruising remains high, with cumulative advanced bookings at the upper end of historical ranges. As discussed below, we believe Carnival’s peer Norwegian Cruise Line is more optimally positioned for the coming years.” 7. SoFi Technologies, Inc. (NASDAQ:SOFI) Number of Hedge Fund Shareholders: 26   There’s been very little hedge fund movement in SoFi Technologies, Inc. (NASDAQ:SOFI) over the past six quarters, with funds largely maintaining their existing positions in the company. Jim Davidson, Dave Roux and Glenn Hutchins’ Silver Lake Partners has been SOFI’s biggest shareholder throughout much of that period and owned 31.2 million shares on March 31. SoFi Technologies, Inc. (NASDAQ:SOFI) is another stock that’s had a big 2023, at least partially on the back of strong retail investor sentiment. The digital bank has also been growing at an impressive rate, with its member count hitting 5.7 million at the end of March, a greater than five-fold increase in the past three years. Analysts are also bullish on SoFi Technologies, Inc. (NASDAQ:SOFI)’s opportunity to capture a larger piece of the student loan refinancing pie now that the Fed has ended the student loan freeze. SoFi had just $2.2 billion in student loan volume last year, about 1% of the overall market opportunity. 6. Robinhood Markets, Inc. (NASDAQ:HOOD) Number of Hedge Fund Shareholders: 27   Robinhood Markets, Inc. (NASDAQ:HOOD) closes out the first part of our list of the best meme stocks to buy now. It’s not surprising to see retail investors back HOOD given their affinity for the free stock trading platform coupled with the stock’s 73% tumble since its went public in the summer of 2021. Hedge funds have alternated being buying and selling the stock in recent quarters, with their overall ownership of Robinhood gradually ticking up throughout that time. Robinhood Markets, Inc. (NASDAQ:HOOD) shares are up 18% this year despite the company’s crypto trading volumes cratering 68% year-over-year in May to just $2.1 billion. Still, crypto represents just a small portion of the overall activity on the platform and Robinhood has done a good job of avoiding the SEC’s gaze by limiting how many cryptocurrencies it allows users to trade. Robinhood Markets, Inc. (NASDAQ:HOOD) recently purchased no-fee credit card startup X1 for $95 million in a deal that looks to further strengthen its base of product offerings for its customers and help spur additional activity on the platform, which has stumbled of late. Robinhood’s monthly active users fell by 28% year-over-year in May, and despite the surge in retail investor money in the market this year, equities trading volumes on Robinhood were down 15%.   See where meme stocks Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY), Palantir Technologies Inc. (NYSE:PLTR), and GitLab Inc. (NASDAQ:GTLB) rank among hedge funds by clicking the link below.   Click to continue reading and see the 5 Best Meme Stocks To Buy Now.   Suggested articles: 30 Smartest Countries with Highest Average IQ Top 15 Best Selling Online Products 15 Most Profitable Airbnb Cities in the World Disclosure: None. 12 Best Meme Stocks To Buy Now is originally published at Insider Monkey......»»

Category: topSource: insidermonkeyJun 23rd, 2023

12 Most Profitable Airports in the World

This article will look at the 12 most profitable airports in the world while exploring their global trends, industry outlook, and key players. If you want to skip our detailed analysis, you can head straight to the 5 Most Profitable Airports in the World. In today’s interconnected global economy, airports play a pivotal role in facilitating seamless travel […] This article will look at the 12 most profitable airports in the world while exploring their global trends, industry outlook, and key players. If you want to skip our detailed analysis, you can head straight to the 5 Most Profitable Airports in the World. In today’s interconnected global economy, airports play a pivotal role in facilitating seamless travel and trade. These gateways to the world have evolved into multifaceted entities, catering to a wide array of services beyond mere transit hubs. From bustling terminals to state-of-the-art infrastructure and innovative revenue streams, airports have become crucial economic engines in their own right. The Revenue Generation and Outlook Airports generate revenue through a combination of aeronautical and non-aeronautical sources. Aeronautical revenue comes from charges imposed on airlines and aircraft operations, including landing fees, aircraft parking fees, passenger fees, and fuel sales—non-aeronautical revenue from terminal concessions, including retail shops, restaurants, and duty-free stores. Car parking fees also contribute significantly to airport revenue, with charges based on the duration of parking and the type of vehicle. Moreover, airports earn from advertising and sponsorship agreements, rental income from commercial spaces, ground transportation fees, and revenue-sharing agreements with service providers. These diverse revenue streams allow airports to finance their operations, infrastructure development, and maintenance while providing essential services to passengers and airlines. According to International Airport Review, as of March 2019, the global airport industry experienced a notable revenue increase of $172.2 billion. This growth, totaling 6.2%, indicates airports’ financial success and profitability worldwide. As for 2023, the aviation industry has been prosperous and highly profitable overall. Despite rising fuel costs and global economic uncertainty, there is an overall consensus that air travel demand has remained strong. Airlines with optimized operating models and resilient balance sheets have adapted well to market challenges and maintained high demand. For example, Copa Holdings SA (NYSE:CPA) Airlines expects a significant growth in passenger numbers, projecting an 11% increase. This can be attributed to the introduction of three new routes and the expansion of flight frequencies to various destinations. By the end of 2023, the airline aims to operate 328 daily flights and transport 16.1 million passengers, surpassing pre-pandemic levels. On the other hand, airport operators play an equally significant role in the global industry of air transit. Fraport AG, with its extensive portfolio of 28 airports worldwide, and Heathrow Airport Holdings (formerly BAA Ltd.), operating six British airports and Naples Airport, exemplify this scale and influence of airport operators. Concerning Airfares Apart from the otherwise positive patterns in the industry, airfares have seen a significant increase recently, with a rise of nearly 43% from September 2021 to September 2022, according to the US Bureau of Labor Statistics’ Consumer Price Index. The price increase was predicted to vary depending on the origin and destination. GBC predicted a 2.0% rise in economy ticket prices from Europe to the Middle East, while travelers flying from Australia to Asia could expect a steep 24.9% increase in economy seat fares. One key factor contributing to the rising airfares is the high demand outweighing the available supply. Increased leisure travel and reduced capacity due to labor shortages at airlines and airports have allowed carriers to raise fares and implement more restrictive inventory management strategies. Another factor is the escalating cost of fuel, which is the largest operational expense for airlines, accounting for a significant portion of their expenditure. As of October 2022, jet fuel costs have surged by 64.7% compared to the previous year, reaching $155.77 per barrel. Key Trends for Air Travel to Note In 2023 “Bleisure” travel, a combination of business and leisure travel, gained popularity during the pandemic when remote work became more prevalent. This trend is expected to continue in 2023 as passengers seek to explore new destinations and add vacation time to their business trips. Some airlines have responded by reconfiguring their cabins to offer more business-class seating and enhancing the overall travel experience for this segment of travelers. For example, Delta Airlines Inc (NYSE:DAL) is set to revolutionize customer experience (CX) with its Delta Sync initiative. The airline plans to offer free Wi-Fi to all passengers, granting access to its personalization and loyalty program, Delta Sync. Partnering with brands like Paramount+ and New York Times, Delta Airlines Inc (NYSE:DAL) aims to provide personalized recommendations and rewards to enhance CX. Moreover, Delta Airlines Inc (NYSE:DAL) equips its in-flight attendants with handheld devices and an application that provides real-time customer data and video chat capabilities. These developments aim to build trust, improve customer loyalty, and enable attendants to deliver exceptional experiences. For this reason, Delta Airlines Inc (NYSE:DAL) also appeared in our article on the Top 20 Most Profitable Airlines in the World. Accessibility and inclusion will be a priority in 2023. Airlines and airports collaborate with disability groups to improve the travel experience for individuals with disabilities. Efforts include introducing autonomous wheelchairs and larger restrooms to accommodate mobility devices. This focus on inclusion is expected to continue to evolve throughout the year. Amsterdam Airport Schiphol (AMS) conducted a one-week trial of autonomous wheelchairs that could replace or supplement staff passenger push services. The trial, in collaboration with Axxicom Airport Caddy, aimed to assess the viability of WHILL’s Autonomous Vehicles Service that is already in use at Japanese airports. The touch-panel-operated wheelchairs provide convenient transportation for passengers with reduced mobility, older adults, and those who require wheelchair assistance. The power of data in the aviation industry must also not be neglected. Airlines, airports, and ground handlers leverage data to drive operational improvements. The Internet of Things (IoT) and AI-driven algorithms enable more efficient data management, enhancing resource planning and real-time decision-making. Qatar Airways is partnering with Alphabet Inc (NASDAQ:GOOG) ‘s Cloud to leverage its data analytics, AI, and machine learning solutions to gain valuable insights from the vast amount of structured and unstructured data generated by the airline’s 18.5 million passengers across 150 destinations. By utilizing Alphabet Inc (NASDAQ:GOOG) Cloud technologies, such as BigQuery and Vertex AI, Qatar Airways aims to unlock deeper meaning from customer data and enhance the travel experience. The collaboration will enable the airline to provide personalized offerings tailored to individual needs, travel trends, and past travel history, ultimately improving customer satisfaction. In the aviation industry, airports and airlines often form strategic partnerships to optimize operations, improve the passenger experience, and achieve financial success. As primary users of airport facilities, airlines rely on airports to provide efficient services and infrastructure. On the other hand, airport management companies like Atlas Air Worldwide Holdings Inc (NASDAQ:AAWW) oversee airport operations, develop infrastructure, and attract new airlines and routes. This collaboration ensures smooth operations and may also facilitate the transport of essential aid during humanitarian crises. For instance, Atlas Air Worldwide Holdings Inc (NASDAQ:AAWW) recently organized a humanitarian flight from Washington Dulles International Airport, delivering relief supplies via a Boeing 747-8F to assist earthquake victims in Turkey and Syria, showcasing its commitment to supporting global relief efforts. Sustainability is another prominent theme for 2023. With the travel sector accounting for a significant portion of global carbon emissions, airlines and airports are actively taking steps to reduce their environmental impact. Initiatives include the introduction of sustainable aircraft, the developing of sustainable fuels, carbon capture projects, and green certifications. This trend was notably observed by Atlas Air Worldwide Holdings (NASDAQ:AAWW) airlines that have tried to improve their fuel efficiency and reduce noise. In 2022, they integrated three new 747-8 and one new 777 aircraft. Also, they invested in hybrid and electric vehicles and equipment, with 13% of their vehicle fleet and 20% of their equipment being electric or hybrid. Two Green Globes certificates recognized their efforts for resource efficiency and environmental impact mitigation. Methodology To compile our list of the most profitable airports in the world, we used data from the Swedish firm WESTCOAST DIGITAL AB’s FlightsForum to highlight the airports with the highest number of flights per day. We’ve used this metric as proxy to gain insights on the most successful airports in the world. Therefore, the greater the number of flights, the higher the profitability. This is because airports generate revenue through various sources, such as landing fees, terminal fees, and passenger charges. An increase in flights per day suggests a higher volume of aircraft operations, which directly translates to increased revenue opportunities for the airport. More flights attract airlines, passengers, and businesses, increasing airport service and facility demand. Moreover, a higher frequency of flights indicates improved connectivity and accessibility, which can attract more airlines and stimulate passenger traffic. Here is a list of the 12 most profitable airports in the world: 12. Shanghai Pudong International Airport (PVG) Flights Per Day: 530 Shanghai Pudong International Airport (PVG) is a highly significant airport for its strategic location in Shanghai, one of the world’s largest economic and financial centers. As China’s primary international gateway, PVG is a crucial hub connecting Asia with the rest of the world. It is vital in facilitating global trade, attracting foreign investment, and promoting tourism. PVG handles massive passenger and cargo traffic, offering extensive flight connections to numerous destinations. The airport’s importance is further accentuated by Shanghai’s status as a major manufacturing and business hub, making PVG a critical transportation hub for passengers and freight, promoting economic growth and global connectivity and making it one of the most profitable airports in the world. 11. Amsterdam Airport Schiphol (AMS) Flights Per Day: 536 Amsterdam Airport Schiphol, or Schiphol Airport (AMS), is one of the most important airports in Europe and serves as the primary international gateway to the Netherlands. It holds significant importance due to its excellent connectivity to various global destinations. Schiphol Airport consistently ranks among the busiest airports in Europe in terms of passenger traffic and cargo volume. It is a major hub for numerous airlines and offers a wide range of flight connections worldwide. Schiphol’s efficient operations, modern facilities, and commitment to passenger experience contribute to its reputation as a key player in the global aviation industry. In the first half of 2022, Amsterdam Airport Schiphol saw a 120% rise in air traffic movements. 10. Delhi Airport (DEL) Flights Per Day: 558 Delhi Airport, also known as Indira Gandhi International Airport (IGIA), is a vital transportation hub in India. It is a key connection point for domestic and international flights, facilitating travel to and from Delhi. With its multiple terminals and diverse amenities, the airport caters to the varied needs of passengers from around the world. The airport is set to undergo a massive expansion, aiming to become the world’s largest airport. According to Jyotiraditya Scindia, India’s Minister of Civil Aviation, the ongoing development will propel IGIA to become one of the largest airports globally, surpassing Atlanta Airport in passenger capacity. It is already among the airports that generate the most profit. 9. Istanbul Airport (IST) Flights Per Day: 577 Istanbul Airport is highly profitable because of its location at the intersection of Europe, Asia, and the Middle East, enabling it to cater to diverse travelers. With its state-of-the-art facilities and efficient operations, the airport can accommodate many passengers, driving revenue from various sources such as airline fees and concessions. The airport’s popularity as a tourist destination, along with Istanbul’s growing prominence as an economic and cultural hub, contributes to increased air traffic and commercial opportunities, ultimately enhancing its profitability. Recently, the airport experienced a 12% increase in daily traffic as football fans departed after attending the 2023 Champions League Final held in Istanbul. According to Eurocontrol, Istanbul Airport recorded 1,684 flights on a single Sunday, surpassing Frankfurt Airport’s previous record of 1,624 flights set in 2019. 8. John F. Kennedy International Airport (JFK) Flights per Day: 581 Situated near the New York City, JFK benefits from the high demand of travelers to and from one of the world’s most prominent metropolitan areas. It is a major transportation hub, offering a phenomenal range of domestic and international flight options. The airport’s extensive network of airlines, coupled with its modern infrastructure and facilities, attracts a large volume of passengers, leading to its increased revenue. JFK was ranked as the most profitable airport in the US in 2015 based on its total operating revenue. It generated an operating income of $452,214,911, representing a 17% growth over five years. JFK showcased strong financial standing with an operating income per employee and per flight of $1,059,051 and $1,030, respectively. 7. Tokyo International Airport (HND) Flights per Day: 613 Also known as Haneda Airport, it is one of the busiest airports in the world, serving as a major hub for domestic and international flights. The Airport has experienced significant growth in recent years, with a high volume of passenger traffic and airlines operating there. Its profitability can be attributed to its strategic location, efficient operations, extensive passenger amenities, and strong connectivity to major cities worldwide. 6. Los Angeles International Airport (LAX) Flights per Day: 659 LAX is a sprawling aviation hub renowned for its size and importance. As one of the most profitable airports in the world, LAX features extensive facilities and serves as a vital link for domestic and international travel. With its diverse network of airlines and connections, LAX plays a crucial role in enabling worldwide travel and supporting the region’s tourism, business, and commercial endeavors. The modern infrastructure and ongoing development projects like the terminal 4/5 modernization project demonstrate LAX’s dedication to providing millions of passengers with a seamless and enjoyable travel experience each year. Click here to check the 5 Most Profitable Airports in the World. Suggested Articles: 21 Biggest Airports in the World 20 Best Airlines in the World in 2023 Top 20 Most Profitable Airlines in the World Disclosure: None. 12 Most Profitable Airports in the World is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyJun 21st, 2023

United Airlines Holdings, Inc. (NASDAQ:UAL) Q1 2023 Earnings Call Transcript

United Airlines Holdings, Inc. (NASDAQ:UAL) Q1 2023 Earnings Call Transcript April 19, 2023 United Airlines Holdings, Inc. beats earnings expectations. Reported EPS is $-0.63, expectations were $-0.73. Operator Good morning and welcome to the United Airlines Holdings Earnings Conference Call for the First Quarter 2023. My name is Silas and I will be your conference […] United Airlines Holdings, Inc. (NASDAQ:UAL) Q1 2023 Earnings Call Transcript April 19, 2023 United Airlines Holdings, Inc. beats earnings expectations. Reported EPS is $-0.63, expectations were $-0.73. Operator Good morning and welcome to the United Airlines Holdings Earnings Conference Call for the First Quarter 2023. My name is Silas and I will be your conference facilitator today. Following the initial remarks from management, we will open the lines for questions. [Operator Instructions] This call is being recorded and is copyrighted. Please note that no portion of the call maybe recorded, transcribed or rebroadcast without the company’s permission. Your participation implies your consent to the recording of this call. If you do not agree with these terms, simply drop off the line.I will now turn the presentation over to your host for today’s call, Kristina Munoz, Director of Investor Relations. Please go ahead.Kristina Munoz Thank you, Silas. Good morning, everyone and welcome to United’s first quarter 2023 earnings conference call. Yesterday, we issued our earnings release and investor update, which is available on our website, Information in yesterday’s release and the remarks made during this conference call may contain forward-looking statements, which represent the company’s current expectations or beliefs concerning future events and financial performance. All forward-looking statements are based upon information currently available to the company.A number of factors could cause actual results to differ materially from our current expectations. Please refer to our earnings release, Form 10-K and 10-Q and other reports filed with the SEC by United Airlines Holdings and United Airlines for a more thorough description of these factors. Unless otherwise noted, we will be discussing our financial metrics on a non-GAAP basis on this call. Please refer to the related definitions and reconciliations in our press release. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please refer to the tables at the end of our earnings release.Joining us on the call today to discuss our results and outlook are Chief Executive Officer, Scott Kirby; President, Brett Hart; Executive Vice President and Chief Commercial Officer, Andrew Nocella; and Executive Vice President and Chief Financial Officer, Gerry Laderman. In addition, we have other members of the executive team on the line available to assist with Q&A.And now I’d like to turn the call over to Scott.Scott Kirby Thanks, Kristina and good morning, everyone. I want to start by thanking the entire United team for delivering exceptional operation this quarter. Given our hub geography United almost all has the most flights impacted by weather, air traffic control delays of any U.S. airline. But despite this in Q1, we had the lowest mainline flight and seat cancellation rates of any airline in the country. That’s important, not just for the obvious customer and brand impact, but it’s also the key to hitting our planned capacity and CASM-ex target. I am going to leave the detailed quarterly results and guidance to Gerry and Andrew.But today, I will take a few minutes to talk about four emerging themes that have come to the foreground that I think are important to the United investment case. One, there appears to be a clear change in seasonality that is causing peak leisure demand months, March through October to be even stronger, while months that were historically reliant on business demand are weaker, that particularly impacts January, February, and the first half of November and December. We believe demand is just structurally different than it was pre-pandemic and we are still figuring out that new normal.Second, as we have expected all along, long-haul international is moving into the lead over domestic. Andrew will give more details, but this is a multi-year structural change based on aircraft retirements and pilot downgrades as essentially all long-haul U.S. airlines around the world except United. But my third theme is an appropriately cautionary point. Our guidance and everything we are discussing today is our base case scenario based on what we are seeing right now. And what we are seeing right now is still strong demand. At airlines, the macroeconomic weakness is being offset with a counter trend of consumer spending continuing to rebalance back to services. And by the way, we still remain below our historical GDP relationship arguably indicating more room to run in the revenue recovery. However, it seems clear that the macro risks are higher to-date than they were even a few months ago as demonstrated by the banking scare of Silicon Valley Bank. We saw an immediate drop in [closing] (ph) business demand that lasted for about 2 weeks, but now appears to have recovered.Our base case therefore remains a mild recession or soft landing which is consistent with what we are currently seeing in our bookings. But we agree that the tail risk is higher than normal. While we feel good about our 10 to 12 full year EPS, if the economy softens further we have prepared for it by a) having a lot of flexibility in the business line capacity if needed, b) improving our balance sheet to withstand the near-term issue with approximately $19 billion in liquidity and having reduced our total debt including pension by $4.6 billion over the past 12 months, and c) is actually my fourth theme which is controlling what we can and hitting our CASM-ex target in this new, different and more challenging operating environment. We can’t control what happens with the macro economy, but we can and are doing a great job of controlling our cost. We can’t run your airline like it’s 2019, it’s different and harder now.Cancellation rates are the leading indicator of forward capacity and therefore CASM-ex and United is leading the way on this front. Gerry will discuss some of the year-over-year tailwinds that will drive lower CASM-ex in the back half of this year, but we only need CASM-ex to be approximately 1 point better in the second half of the year to hit our full year target. We remain solidly on track.To wrap up, over the last 3 years, our industry has confronted a rapidly changing environment. United hasn’t been perfect, but we have got a lot more right than normal. In the big picture, we have got it right and took the steps in the last 3 years to thrive in exactly this environment. International is stronger, the operating environment is more challenging, which means reliability is harder, but also had a premium for producing bottom line results and we had confidence that our gauge growth and execution are keeping United uniquely on track for our near and long-term CASM-ex trajectory, that not to say that there aren’t real near-term risk, because we all know there are, but we feel really good about the strategic setup and tactical execution here at United.I want to again thank the entire United team for their hard work this quarter. We had a busy summer season ahead and I look forward to achieving even more operational and financial records.With that, I will turn it over to Brett.Brett Hart Thank you, Scott, and thank you to our United team for their hard work this quarter. As Scott mentioned, we continue to see the benefits of running a strong operation. In the first quarter, United led the industry with the lowest seat cancellation rate despite around 20% of our flights being impacted by weather, the most out of any of our competitors. This was the first time since 2012 that we led on this metric.Additionally, United was first or second in the quarter for on-time departures at nearly all of our hub locations, including those heavily impacted by winter weather like O’Hare and Denver. Our airline is built to run well and recover fast and we expect our operation to reflect that in the peak summer season. We continue to navigate the challenges in the current operating environment. Specifically, constrained industry infrastructure, United is working with the U.S. Department of Transportation and FAA regarding operational disruptions and air traffic staffing challenges. Photo by Toa heftiba on Unsplash The FAA’s decision to consider commercial air traffic with managing the growing number of space launches combined with the FAA’s recent move to give carriers more flexibility in how we all fly in and out of New York area airports shows that the FAA is listening to feedback and finding ways we can all work together.In March, we took steps to reduce our schedule in the New York region and DCA by around 30 daily departures over the summer period to provide the air space relief requested by the FAA. The scheduled reductions are largely regional jet focused and will be redeployed at our other hubs minimizing the capacity impact to the system. It is our hope that this will drive improved customer experience, while flying United in the New York area and throughout our network.We are excited to announce that we reached a tentative agreement with our nearly 30,000 employees represented by the International Association of Machinists. With volume on the agreement expected to be completed by May 1, we are very proud of the work that our team does daily to support our operation and create a positive travel experience for our customers.Regarding other labor agreements, a new contract with our technicians represented by the IBT was ratified in January and we are still in active negotiations with our flight attendants represented by the AFA and our pilots represented by ALPA. As a reminder, we reached an agreement with our Dispatchers represented by PAFCA last year. We look forward to sharing further updates in the future. I once again want to thank our team for being the best in the industry. We remain confident in our outlook as we leverage our industry leading operational performance and network advantages.And with that, I will hand it over to Andrew to discuss the revenue graph.Andrew Nocella Thanks, Brett. First quarter top line revenues of $11.4 billion finished consistent with our updated guidance of up 51% versus 2022. TRASM was up 22.5% year-over-year. While we were below our initial guidance, we expect that our TRASM performance in the first quarter will be top tier. As expected, other revenues in the quarter while strong are growing at a slower rate than passenger revenues, the opposite trend we saw last year and over the course of the pandemic. While cargo revenue declined 37% year-over-year, it remains 39% above the same period in 2019.MileagePlus other revenue had yet another strong quarter and was up 25% year-over-year, driven by our strategic partnership with Chase. United’s credit card continue to set records in Q1, including the highest first quarter ever per card spends, new accounts up over 30% year-over-year and account attrition near historic lows. We also welcome Richard Nunn to the United team as the new CEO of MileagePlus.As Scott indicated, we believe we are seeing different revenue seasonality for the United network post-pandemic and that change should impact our relative margin in Q1. New seasonality positively impacted March through October 2022, where new remote work schedule simulated business, particularly premium leisure. Ultimately, if these trends continue, we expect to be able to operate a more consistent level of capacity between March and October in future years.However, we believe the new seasonality negatively impacted Q1 in January or February, along with the first halves of November and December. With United’s relatively small presence in the Caribbean and Florida, where demand is usually strong in Q1 and over the winter months, the United network is more reliant on business traffic that is not fully recovered to pre-pandemic volumes in these periods. United’s global network and East West trends were simply better align to March through October post-pandemic where leisure and premium leisure business compensates for less traditional business traffic.As we head into Q2 2023, we are tracking ahead of 2022 in all the ways that we measure business traffic, a really good sign for revenue momentum. While it’s still early on, we do see corporate business for May and June tracking well ahead of their previous months at this time. The business traffic rebound we are seeing is strongest in global long-haul markets, where videoconference is not a substitute for an in-person meeting.The recent banking scare did initiate a slowdown in demand across multiple customer types in the quarter. Impacts on business demand for domestic flying was the most significant, impact on domestic leisure was smaller and impact over on overall international demand was actually minimal. In the weeks after the scare, we saw business demand relative to the same period of 2019 decline by 8 points after steady progress experience to the quarter to that point. This trend has since reversed back to pre-banking scare levels.In Q2, we expect total revenue to be up 14% to 16% versus the second quarter of 2022, with capacity, up approximately 18.5%. Our expectations for revenue in the second quarter continue to show strength with approximately 8% to 10% growth in domestic revenues and almost 30% for international. Second quarter bookings and revenues do look good versus the same point in 2022, with book deals up 13% and 31% above 2019 respectively. For 2023, we expect to expand international flying by approximately twice the rate of domestic leaning into the favorable supply demand balance that we expect. We will be focused on extending United’s leading position across the Atlantic and to Asia and the South Pacific. We believe this capacity deployment plan will set us up to meet our financial objectives given the stronger revenue outlook we are seeing for international flying and the rebound in Polaris cabin.We will also pass two critical milestones by this summer, with all United international wide-body jets having the latest generation Polaris seat and a premium plus cabin. While further return to corporate business will help profitability in all quarters, we are not assuming that will occur in our 2023 revenue outlook. United scheduled capacity this summer is up 39% in the Atlantic, but industry capacity, excluding United, is estimated to be down about 1%. United will operate an average of 207 daily flights across the Atlantic this summer. Across the Pacific, United plans to be up 14%, excluding China, with industry capacity down about 7% both versus 2019. Overall, international ASMs will be 46% of United’s capacity this summer versus 43% in 2019.Yesterday, we announced another set of capacity increases to the South Pacific ideally timed for the Southern summer later this year. These include the first-ever nonstop service from San Francisco to Christchurch, a new service from Los Angeles to Auckland in partnership with Air New Zealand and to Los Angeles to Brisbane, where we will connect to our new partner, Virgin Australia. Rebuilding connectivity back to our original 2019 standards in our Mid-Con hubs and Dallas will also be a long-term focus for our domestic volume. The loss of regional jets turned the pandemic without mainline jets to backfill them cause connectivity to suffer. Peak bank sizes at our high flow hubs are down 10% to 20% versus 2019.We were able to build connectivity and margins in 2018 and 2019 when we increase bank size connectivity and we expect to execute a similar strategy in 2023 and 2024. However, this time around, we will do it with the appropriately sized 737 jets instead of single-class regional jets. As requested by the FAA, we have reduced our planned flights from Newark City this summer, including to and from Newark. We believe this will be the first time in years that Newark will operate within the airport’s capacity abilities in most hours and consistent with the slot allocations. We are optimistic that between the new terminals and capacity consistent with the runway’s capabilities, the customer experience will improve dramatically and we appreciate the partnership with the FAA to make this happen.EMEA will gain up to 17 new mainline gates in Terminal A and Newark this summer versus 2022 which will improve Newark’s reliability and customer experience. Along with the new Newark gates, we will open a new United Club in Terminal A and in Terminal C later this year, adding 38,000 square feet and will be up 161% in club space relative to 2019.As impressive as that club space measurement is in Newark, our club members in Denver will experience an opening of 3 United clubs over the next year that include a total of 97,000 square feet, a 149% increase versus 2019. Construction of our new gates in Denver is also almost complete and will have 90 gates, up from 66 we had in 2019, which we expect will allow us to dramatically increase bank sizes and connectivity in 2024 and 2025.At United, we remain focused on our high ground, structural strengths focused on global long-haul, correcting connectivity issues in our Mid-Con hubs that surface during the pandemic and of course, gauge, increases that are consistent with our large hub markets. Our capacity plan for this year remains in place without adjustment as we operate with strong operational results.With that, I wanted to say thanks to the entire United team. And I will turn it over to Gerry.Gerry Laderman Thanks, Andrew and good morning to everyone. Let’s start with our first quarter results. Our pre-tax loss of $256 million was in line with expectations and at the better end of our updated guidance issued last month. We saw losses in January and February due to seasonal weakness, but March turned solidly profitable. Our first quarter fuel price of $3.33 came in at the lower end of our revised guidance range. This was still about $0.14 higher than our expectation at the start of the quarter due to a spike in jet fuel prices in late January and early February.Turning to non-fuel costs, our first quarter CASM-ex came in slightly better than our revised guidance range at down 0.1% versus the first quarter last year. Our operational performance in the first quarter was truly exceptional and our CASM-ex fee is largely due to the cost benefit of a reliable operation. On the balance sheet, we ended the quarter with approximately $19 billion in liquidity. We continue to leverage the flexibility provided by our cash with financing opportunities and paying down debt. We generated over $3 billion in operating cash flow in the first quarter, the highest for any quarter in United’s history and we produced free cash flow of over $1 billion. Over the last 12 months, our total debt, including pension liability, has declined by approximately $4.6 billion and we remain on track to meet our 2023 target of adjusted net debt to adjusted EBITDAR of less than 3x.Looking ahead, we expect second quarter CASM-ex to be flat to up 2%, with capacity up approximately 18.5% both versus the second quarter of last year. Strong cost performance underpins our confidence in the earnings trajectory of the business in the second quarter we expect adjusted diluted earnings per share of $3.50 to $4, with a fuel price of $2.80 to $3. As noted in our investor update, this fuel price is based on prices as of April 12.As others mentioned, our strong operational performance in the first quarter sets the tone for the remainder of the year and is key to our conviction in achieving our CASM-ex targets. For the full year, we continue to be on track to keep CASM-ex approximately flat versus 2022 with non-fuel unit costs in the second half of this year declining versus the second half of last year. To give context as to why we expect CASM-ex in the second half of this year to improve on a year-over-year basis versus the first half of this year, it’s helpful to consider the 2022 cost baseline.With COVID still significantly impacting the business in the first half of last year, we have certain unique headwinds in the first half of this year when comparing costs on a year-over-year basis. Here are two notable examples. Revenue in the first half of 2022 was much lower than the second half of 2022, which meant that distribution costs were also much lower in the first half of last year versus the second half. This drives the year-over-year comparisons for the first half of this year to be commensurately higher than the second half of this year. A similar phenomenon exists with maintenance expense. As Omicron abated and the recovery took hold, we ramped up our maintenance activity in the back half of ‘22 to more normalized levels. Again, the difference in year-over-year costs are much more muted in the second half of this year versus the first half.So simply put, the two items represent a 1 to 2 point CASM-ex headwind in the first half of this year, which won’t exist in the second half. These drivers, along with strategic cost management, gauge growth and running a reliable operation support our expectation that we will hit our flat CASM-ex target for the year. When combined with our revenue outlook, we remain confident in our trajectory towards $10 to $12 in adjusted diluted EPS for the full year whether we face a mild recession or soft landing.As we have left the starting gate for our United Next plan, I am encouraged by the progress we’ve made not only financially but in our operation and across the entire organization. While we continue to live in uncertain times, I know that we will successfully manage everything under our control as we continue on a path to reach our full year financial objectives.And with that, I will turn it over to Kristina for the Q&A.Kristina Munoz Thank you, Gerry. We will now take questions from the analyst community. Please limit yourself to one question and if needed, one follow-up question.Silas, please describe the procedure to ask a question. See also 16 Best Utility Stocks to Buy Now and 15 Biggest SaaS Companies in the World. Question-and-Answer Session Operator Thank you. [Operator Instructions] The first question comes from Catherine O’Brien from Goldman Sachs. Your line is unmuted. Please go ahead.Catherine O’Brien Good morning, everyone. Thanks for the time. So there has been a lot of investor concern recently around the domestic slowdown. So I think I’ll just get right to that. I know United is built to win in the international strength. But can you just help us think about what’s driving the domestic unit revenue performance to underperform international, at least based on first quarter versus ‘19. Is there a shift in leisure demand to international from domestic that might be exaggerated right now post pandemic? That international business is stronger, as you know prepared remarks, something else? And then I saw you had another record first quarter build in the air traffic liability. Would also be helpful just to talk through how much you have on the books, domestic versus international first quarter. Thanks so much.Scott Kirby Sure, Catherine. We’re getting this question about domestic strength a lot and we should really address it. The way when we go back thinking about it, how to describe the conditions of this Q2, we have to recall Q2 of last year, Q2 of 2022 was the best domestic TRASM quarter ever for United with TRASM up 25% versus Q2 of 2019, which, by the way, was a prior record holder. We simply sent a really hard comp for Q2 2023 and also last year at this time, international markets were not widely open to travelers, in my view, selected domestic trips out of caution, just creating unprecedented demand relative to the number of seats available to sell. This year’s conditions are different. International travel is more or less completely open, and we see customers clearly excited about taking a long-haul trip. Domestic capacity is also now comparable to 2019 levels.So here are the facts, domestic ASMs at United will be up about 10% in Q2 2023 year-over-year. And our TRASM outlook for domestic will be negative low single digits from what I’ve said today. Total domestic revenue should finish well above 2022, given our TRASM outlook on capacity growth of about 10%. We’re currently booked about 10% ahead in gross revenue at this point compared to last year, and we’re about 54% into the booking curve for the quarter. I just don’t see these facts as weak when revenue is on target to again break the record and TRASM is likely to be just a bit behind an amazingly strong 2022. In summary, when Q2 2023 is in the books, we will likely be our second biggest best domestic TRASM quarter ever with record total domestic revenues. The only thing negative, I think I can say is that as good as domestic looks, it’s just not matching global long-haul revenue outlook, which is very strong and where United has focused a majority of capacity.Catherine O’Brien On the ATL…Scott Kirby On the ATL, I think it’s seasonally moving in a normal way. I don’t know, Gerry wants to add anything else on the ATL question.Gerry Laderman Okay. Your question about international versus domestic, you’re actually the first person to ask us that question. So we will follow-up with you.Catherine O’Brien Okay, thank you.Operator The next question comes from Jamie Baker from JPMorgan. Your line is unmuted. Please go ahead.Jamie Baker Hey. Good morning, everybody. Just chuckling it Gerry’s response to Katie there, on the ATL, Gerry, the build obviously helped with free cash flow generation in the quarter, presumably, the ATL will incrementally moderate in the second half as it often does. Do you still think you can cover this year’s $9 billion in CapEx and generate positive free cash flow?Gerry Laderman Yes, Jamie, I think we can.Jamie Baker Okay. Fair enough. Second to Andrew, relative to the international component, you have got a lot of new route activity. Could you speak to sort of like same-store sales or same-store RASM or revenue, I guess, relative to those new routes? And how does the ramp to profitability in all of these new markets compare to that in the past? I mean, are new markets maturing much faster? Or does it take about the same amount of time as it ever did? I’m just trying to think about the read-through as some of these trends normalize next year.Andrew Nocella There is – for global long haul, there is virtually no [spool] (ph) up right now, Jamie. It gives us – the supply-demand equation is just not what it’s ever been in the past. While United supply across the Atlantic and Pacific is dramatically up and we’re happy it is dramatically up, obviously, industry supply is down. So what I would tell you is that the new routes come in very quickly with very strong profitability, which is why we keep adding them. That being said, in terms of same-store sales, I will say that London Heathrow is probably our weakest at this point because there is just – that there is a large amount of capacity in London Heathrow relative to the rest of the world, and we’ve grown there. And our connections within Europe in our key hubs are – have not fully recovered, just like they haven’t domestically. And so we actually do see some relative weakness in certain parts of the global network off of a strong base. But the new routes to your question are just coming in with home runs on day 1.Jamie Baker Thank you, gentlemen. Speedy answers. Take care. Operator The next question comes from Conor Cunningham from Melius Research. Your line is unmuted. Please go ahead.Conor Cunningham Hi, everyone. Thank you. Just the 2023 CASM-ex rate seems pretty encouraging. I know you mentioned maintenance and distribution as being a main driver from the first half to second half, but it still seems to me that you’re holding incremental cost. I mean, that may be the cost of doing business right now. But just curious if you could talk about what potentially rolls off next year as we start to think about CASM-ex there? Thank you.Gerry Laderman So I’m not sure I would call it rolling off. But keep in mind, next year, one of the benefits we’re really going to start seeing is that growth in mainline gauge, as the aircraft continue to come in. That process is really just starting this year. So next year, we get the full run rate of the larger gauge aircraft and take even more next year. So when you’re looking sort of where the tailwinds are next year, gauge is one. And the comps year-over-year are going to be better. Think of this year is really finally getting to the run rate of the post-COVID sort of full operation. So I think as an industry, we’re done with a lot of the surprises we all kind of saw coming out of COVID with some of the cost pressures. So I think from the cost side, the business has become more stable and a little more predictable.Conor Cunningham Okay. Okay. That’s helpful. And then just on the evolving booking curve and seasonality that you’ve been talking about. Just curious how going to combat those challenges going forward? I mean Delta has mentioned they are talking about looking at like overbooking and like tinkering with the inventory. Just curious what the strategy is at United, if there is one to combat those changes in the booking curve. Thank you.Scott Kirby Sure. Well, we think we clearly have the best RM system in the world, by the way. That’s what I’ll start off with. While there has been a small change in the number of tickets not flown in the quarter, due to the increased flexibility created when United eliminated change fees it’s our view that it’s not really material and it’s fully accounted for by our RM systems. And I’ll add on to that, our no-show rate is lower as well, and we will not be changing our overbooking levels at this point.Conor Cunningham Okay, thank you.Operator The next question comes from Savi Syth from Raymond James......»»

Category: topSource: insidermonkeyApr 27th, 2023

Airline Stock Roundup: UAL"s Environment-Friendly Deal, ALK, HA in Focus

In line with the approach of reducing carbon emissions, United Airlines (UAL) and Hawaiian Holdings (HA) ink deals. In the past week, United Airlines UAL announced plans to invest $15 million in carbon capture technology firm, Svante. The deal is in line with the objective to reduce carbon emissions. In yet another show of the environmentally friendly attitude of airlines, Hawaiian Holdings’ HA subsidiary, Hawaiian Airlines, entered into a sustainable aviation fuel (SAF) sales agreement with biofuel company, Gevo.Hawaiian Airlines was also in the news recently, courtesy of its decision to adjust its schedule to match the anticipated demand swell during summer. That story was covered in details in the previous write-up.Meanwhile, Spirit Airlines SAVE also hogged the limelight in the past week owing to its plan to significantly boost its workforce during the current year.Recap of the Latest Top Stories1 United Airlines’ decision to invest $15 million in Svante is in line with its plan to go 100% green by 2050. This is the latest environmentally friendly investment from the United Airlines Ventures Sustainable Flight Fund. Svante provides materials and technology as part of the value chain that has the ability to transform CO2 removed from the atmosphere and industrial emission sources into SAF.UAL’s investment will fund and support Svante’s commercial-scale filter manufacturing facility in Vancouver.This move is in line with the airline’s aim to go 100% green by reducing its greenhouse gas emissions by 2050, without relying on traditional carbon offsets. UAL, currently carrying a Zacks Rank #3 (Hold), has so far invested in the future production of more than three billion gallons of SAF, the most by any airline in the world.United Airlines was also in the news when it reportedly reached two-year tentative agreements with the International Association of Machinists and Aerospace Workers, the union representing nearly 30,000 ground workers.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here2. Per Hawaiian Airlines’ environmentally-friendly deal with Gevo, the former will purchase 50 million gallons of SAF over five years. Gevo is anticipated to supply SAF from a facility to be constructed in the Midwestern United States and start deliveries to Hawaiian Holdings’ gateway cities in California in 2029. This deal is subject to certain conditions, which include Gevo developing, financing and constructing the facility to produce SAF.3. Spirit Airlines intends to hire 4000 plus employees across various roles (pilots, flight attendants, aviation maintenance technicians and other support center staff) in 2023. Per Linde Grindle, senior vice president and chief human resources officer at Spirit Airlines, "We're welcoming thousands of new Spirit Family Members across our network this year and have a broad range of positions available for people with all different interests, talents and experience levels." Given the carrier’s plans to expand its fleet and buoyant air-travel demand, the decision to go on a hiring spree seems to be a prudent one.PerformanceThe following table shows the price movement of the major airline players over the past week and during the last six months.Image Source: Zacks Investment ResearchThe table above shows that all airline stocks have traded in the green over the past five trading days. The NYSE ARCA Airline Index has increased 7.5% to $58.57. Over the course of the past six months, the NYSE ARCA Airline Index has gained 13.2%.What's Next in the Airline Space?Stay tuned for the usual news updates on the space.  Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Airlines Holdings Inc (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis ReportTo read this article on click here.Zacks Investment Research.....»»

Category: topSource: zacksMar 31st, 2023

How To Protect Airline Passengers With Life-Threatening Allergies

How to Protect Airline Passengers With Life-Threatening Allergies; Use Simple Tactics Which Worked For Smoke-Sensitive Passengers Protecting Airline Passengers  WASHINGTON, D.C. (January 16, 2023) – Millions of airline passengers who have serious life-threatening allergies to foods served or sometimes brought onto airplane flights are regularly being denied the protection to which they are legally entitled, […] How to Protect Airline Passengers With Life-Threatening Allergies; Use Simple Tactics Which Worked For Smoke-Sensitive Passengers Protecting Airline Passengers  WASHINGTON, D.C. (January 16, 2023) – Millions of airline passengers who have serious life-threatening allergies to foods served or sometimes brought onto airplane flights are regularly being denied the protection to which they are legally entitled, according to the Wall Street Journal and other sources. But a tactic which protected passengers with allergies and/or special sensitivities to secondhand tobacco smoke might help to solve the problem and perhaps save lives, says public interest law professor John Banzhaf. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q4 2022 hedge fund letters, conferences and more   More than 30 million Americans, including 6 million children, have food allergies, primarily to milk, peanuts, and tree nuts. While some conditions may not be very serious, a few passengers are so sensitive that merely touching a surface on which nuts or other foods have rested can trigger a life-threatening condition called anaphylaxis. Which causes swelling, hives, lowered blood pressure, medical shock, and most importantly construction of the airways - which can cause death in less than 15 minutes, or at very least may require hospitalization. That's why those who can suffer a severe allergic reaction from certain foods need to be able to preboard flights in order to clean their seats (including arm rests) and tray tables (usually with antibacterial wipes), says the Journal, citing a case where such a passenger found his tray table covered in food crumbs. The Department of Transportation [DOT] ruled in 2019 that: "Section 382.93 states that carriers 'must offer preboarding to passengers with a disability who selfidentify at the gate as needing additional time or assistance to board, stow accessibility equipment, or be seated.' Passengers with severe nut allergies are passengers with disabilities for purposes of Part 382.5." But, according to the Journal and other sources, airlines have conflicting policies regarding preboarding for passengers with allergies, and even those policies which could help passengers with life-threatening allergies might not always be followed because those in charge of boarding may not be familiar with them, or overlook them because of time pressures or for other reasons. The same types of problems occurred when I filed a formal legal petition to protect sensitive airline passengers from secondhand tobacco smoke long before there were reports that it caused lung cancer and heart attacks among even healthy nonsmokers, says Banzhaf. The result was a federal requirement for no-smoking sections aboard commercial airline flights. Also, during the time when federal regulations required that nonsmokers who arrived on time were entitled to be seated in the no-smoking section, even if it mean shrinking the smoking section to accommodate them, this legal requirement was all too frequently violated. To protect sensitive passengers, my antismoking organization and I adopted a two-pronged approach. First, we printed up wallet-sized cards containing the actual text of the federal regulation, along with instructions to show it to flight attendants and others in charge of seating arrangements, and if necessary to ask that the card be brought to the cockpit. This guaranteed that there would be no misunderstanding or misinterpretation of the applicable law. Second, the card told airline employees that I as a lawyer would file formal complaints of any violations, and provided information for nonsmoking passengers whose rights were violated to send me the information so that I could file legal complaints on their behalf. This resulted in many hundreds-of-thousands of dollars worth of fines against many major carriers and, for the first time, forced airlines to take steps to insure compliance. The DOT Ruling Banzhaf suggests that nonprofit organizations concerned about passengers with allergies, and perhaps even large HMOs and other medical organizations, print a simple wallet-size card containing the formal text of the DOT ruling which can be shown by passengers with serious food allergies to those in charge of preboarding. A simpler and even less expensive alternative would be to produce a document - which could be downloaded and stored in a cellphone - which provided the text of the federal preboarding ruling articulating the right to which severely allergic passengers are entitled. Along with warnings about formal legal complaints to the DOT as well as suits in civil courts for life-endangering violations even in no injuries actually result (e.g. for intentional infliction of severe emotional distress if the severely allergic passenger is a young child).   Such a document could also provide links so that passengers whose preboarding rights are being violated could post the situation to appropriate social media sites; a tactic which can often provide a very prompt response by carriers which monitor such sites to head off various embarrassing problems. However, to prevent passengers increasingly desperate to board early in order to assure space overhead for their carry-on luggage and/or for other reasons, it might be useful to require that passengers do more than verbally claim (i.e., self identify) their legal entitlement for preboarding by presenting a doctor's letter attesting that they meet the DOT's stringent requirements. As the DOT has explained: "an allergy may or may not rise to the level of a disability, depending on severity. Part 382 Preamble, 73 FR 27459, 27660 ('remember that not all allergies rise to the level of a disability. The fact that someone may have a stuffy nose or sneeze when exposed to dog or cat dander does not necessarily mean that the individual has a disability.') In contrast, an allergy that 'produces shock or respiratory distress that could require emergency or significant medical treatment' would rise to the level of a disability." Indeed, D.O.T. considers severe allergies a disability under the act if they impact a passenger’s ability to breathe or “substantially impact another major life activity.” Banzhaf notes that, just like many passengers would like to be able to preboard, many if not most college students would like to be granted more time to finish writing their exams. However, colleges and universities do not simply allow students to self identify that they have learning disabilities which require them to have increased time to complete their exams. Instead, they require detailed individualized medical certification which meets stringent criteria for any student to be entitled to this valuable perk. Arguably, something more than mere self identification or certification of an allergy so serious that it "produces shock or respiratory distress" should be required, the law professor suggests. Banzhaf says he is considering filing another formal legal petition with the DOT to clarity and perhaps increase protections for passengers with serious food allergies, just as he was so successful in doing for passengers who were allergic or especially sensitive to tobacco smoke......»»

Category: blogSource: valuewalkJan 16th, 2023

I flew on a $75 million Bombardier Global 7500 private jet from Miami to New Jersey and saw why the ultra-wealthy love the plane

The Global 7500 is the world's largest purpose-built private jet, complete with a bedroom, and is owned by celebrities like Kylie Jenner. Flying on VistaJet's Bombardier Global 7500.Taylor Rains/Insider The Bombardier Global 7500 is the world's largest and longest-ranged purpose-built private jet. Private charter company VistaJet owns 15 of the type, making up the largest fleet of Global 7500s. I flew on the luxurious plane from Miami to New Jersey to see how the ultra-wealthy travel. VistaJet is the world's largest private charter company, sporting the largest fleet of Bombardier Global 7500 aircraft.VistaJet's 10th Bombardier Global 7500.Taylor Rains/InsiderBombardier just delivered its 100th Global 7500 business jet built for the ultra-wealthy that features a private bedroom — see inside the 'Ferrari of the Skies'The Global 7500 is the largest purpose-built private jet in existence and will cost buyers a whopping $75 million.Inside a Bombardier Global 7500 demonstration aircraft.Thomas Pallini/InsiderI flew on a $50 million Bombardier Global 5000 private jet from Montreal to New Jersey and saw why those who can afford it are flocking to private aviationAlso being the world's longest-ranged private aircraft, the jet can fly up to 14 hours across 7,700 nautical miles on routes like New York to Tel Aviv and Los Angeles to Sydney, per Bombardier.Inside a Bombardier Global 7500 demonstration aircraft.Thomas Pallini/InsiderWhile it can't quite break the speed of sound, the jet flies at .925 Mach and can fly between New York and Los Angeles in as little as three and a half hours.Taylor Rains/InsiderThe plane was recently popularized by Louis Vuitton CEO Bernard Arnault when he sold it to avoid jet-tracking Twitter accounts.LVMH CEO Bernard Arnault on board his private jet between Beijing and Shanghai. in Shanghai, China on October 11, 2004.Marc DEVILLE/Gamma-Rapho via Getty ImagesThe world's 2nd-richest man, Louis Vuitton's CEO, sold his private jet after people started tracking it on Twitter: 'No one can see where I go'A handful of other high-profile people also own the jet, like Kylie Jenner and Australian billionaire Andrew Forest.Kylie Jenner.Axelle/Bauer-Griffin/FilmMagicFrom Elon Musk and Donald Trump to Taylor Swift and Tim Cook, here's how celebrities are dodging jet-tracking Twitter accountsIn March, VistaJet took on its 10th Global 7500 and has since received five more for a total of 15. Overall, the company has invested $4 billion in new planes, VistaJet US president Leona Qi told Insider.VistaJet CEO Thomas Flohr at the ribbon cutting ceremony in Montreal in March for the 10th Global 7500.Taylor Rains/InsiderThe additions come as private aviation continues to boom post-pandemic, with Qi saying the company has seen a huge increase in demand, particularly to places like the Caribbean and Aspen.Danielle BauterA travel planner for the ultrawealthy shares what goes into organizing $800,000 trips to exclusive locations"The U.S. remains the company's strongest and fastest-growing region," she said. "In the last quarter alone, 70% of US hours sold were attributable to new VistaJet Program Members."Courtesy of VistaJetBut the luxury isn't cheap. A VistaJet Global 7500 flight will run customers between $12,000 and $20,000 per hour, though the company doesn't publish its rates.The cabin of the Bombardier Global 7500.BombardierThe ultra-wealthy opt for the convenience of flying private because they don't have to clear security or traverse crowded airports as the aircraft typically depart out of fixed-based operators.FBOs, like Three Wing Aviation in Connecticut, are aircraft service stations that provide things like fueling, cleaning, and maintenance, with many offering free VIP amenities like food and coffee.Taylor Rains/InsiderI flew out of a general aviation airport to see how the rich travel. I didn't miss the hassle, lines, and frustration of commercial flying.While the lack of screening could seem concerning to some people, the Transportation Security Administration does not have as strict of oversight for private jets because "the passengers choose to travel together."TSA Automated Screening Lanes at LAX.Brady MacDonald/InsiderSource: TSA"They may be related to one another in some way, such as being employed by the same company or on the same sports team, and so the risk that one passenger would endanger the others appeared to be low," the agency said in a 2002 final rule.A TSA agent at LAX.Brady MacDonald/InsiderSource: TSATo see how the ultra-wealthy travel, I took a demo flight on VistaJet's Global 7500 from Miami to New Jersey — here's what it was like.Flying on VistaJet's Bombardier Global 7500.Taylor Rains/InsiderI arrived at Signature Flight Support at 1 p.m. for a 1:30 p.m. departure. Media took a one-minute bus ride from curb to plane, and, as mentioned, I didn't have to scan any luggage or walk through a metal detector.Taylor Rains/InsiderOnce on the aircraft, I was immediately blown away by the size. I could see myself easily spending 14 hours onboard.Taylor Rains/InsiderQi took us on a tour of the jet, saying the aircraft has an extra living section not available on competitor planes, like the Gulfstream 650ER.Interior of the Gulfstream G650ER.Taylor Rains/InsiderI toured a $65 million Gulfstream G650ER private jet like the ones owned by billionaires like Elon Musk and Jeff Bezos and saw how the ultra-rich travelThis makes the aircraft the largest of any business jet on the market. The four spaces include a meeting space, which has two sets of seats facing each other...Taylor Rains/Insider…a six-person dining room…Taylor Rains/Insider…a theater room that can double as a conference room...Taylor Rains/Insider….and a master suite, complete with a double bed, lounger, and bookcase.Taylor Rains/InsiderQi explained the design is VistaJet-specific, saying the flooring has been the same since the company's founding 18 years ago.The dining table lowers and rises — pictured is in its standard position, the cabin hostess will raise it when customers are ready to eat.Taylor Rains/InsiderI loved the design of the interior. It was elegant, and easy on the eyes. I think the theater room and bedroom truly make the plane feel like home, which is one of the goals of VistaJet.Taylor Rains/InsiderIn total, the plane can seat 14 people and sleep eight.Taylor Rains/InsiderThere are five beds total, including three double beds — one each in the bedroom, theater/conference room, and dining area — and two singles made from converting the loungers in the front living space.The loungers convert into la=ie-flat beds.Taylor Rains/InsiderThe single beds are similar to what is seen on other private jets, like a Gulfstream G280.Taylor Rains/InsiderI flew on a $25 million Gulfstream G280 that private aviation company Volato will charter for $6,550 starting in 2024 — see insideTo have eight people sleep, six travelers would have to be in couples or be family members. Otherwise, five people could sleep comfortably — one in each double bed and two in the singles.Pajamas are provided onboard.Taylor Rains/InsiderThe seats and beds feature soft Egyptian cotton blankets and pillows, Qi told Insider.Taylor Rains/InsiderShortly after boarding, we were given hot towels for our hands and glasses of champagne and fresh hors d'oeuvres, which were nice luxury touches.Taylor Rains/InsiderVenturing around the jet, I found that there was a lavatory in both the front and back of the plane...The forward lavatory. The aft one was nearly identical, but was slightly larger.Taylor Rains/Insider…and a galley in the front, complete with glassware, a coffee maker, and convection ovens.The convection oven.Taylor Rains/InsiderThis is where the cabin attendants prepare meals and drinks. The Global 7500 has the largest galley in private aviation, Qi said.Taylor Rains/InsiderThere is also a crew rest couch located beside the galley that is large enough for three people to relax.Taylor Rains/InsiderVistaJet staffs all of its aircraft with cabin hostesses who must go through rigorous training to meet the standard of the company. One cabin hostess told Insider she loves the clients and destinations she flies to.One of the two cabin hostesses on our flight.Taylor Rains/InsiderThe company also hires pilots with years of experience flying, ensuring a high standard of safety is maintained throughout the fleet.Taylor Rains/InsiderTwo to three pilots will sit in the cockpit, which is complete with next-generation technology. The VistaJet pilots told Insider the layout was great for managing duties, particularly with the help of the large screens.Taylor Rains/InsiderMoreover, one pilot who used to fly commercially said flying private keeps the job interesting because he flies so many different routes: "I flew so many years of just back and forth with the airlines, which got boring."Taylor Rains/InsiderBetween it's onboard staff and company employees, VistaJet has over 60 nationalities represented in its company, per Qi.VistaJet's VP of private dining, Diego Sabino (pictured), is from Italy. Our pilots were from the Netherlands, while one cabin hostess was from Spain.Taylor Rains/InsiderVistaJet's Global 7500 separates its living spaces with sliding doors, minus the meeting and dining room, with Qi telling Insider it is a big plus for clients because there can be three different meetings going on at once.The closes door leads to the far aft lavatory.Taylor Rains/InsiderOther amenities fit for royalty are power ports and WiFi…Taylor Rains/Insider…adjustable windows…The window shades can fully open and close.Taylor Rains/Insider…Bombardier's signature Soleil mood lighting system and low altitude cabin pressure, which can help reduce jet lag…Taylor Rains/Insider…fold out tables in front of the seats…One of the tables filled with champagne, flowers, and hors d'oeuvres.Taylor Rains/Insider…and plenty of storage.Taylor Rains/InsiderOnboard, the media was treated to a delicious meal from Nobu, which is an award-winning restaurant with locations all over the world, including Miami.People waiting in line for Nobu in London.Mark Robert Milan/Getty ImagesWe enjoyed dishes like sashimi salad…Taylor Rains/Insider…prime beef tenderloin…Taylor Rains/Insider…shrimp tempura, spicy tuna, and house special rolls…Taylor Rains/Insider…the restaurant's signature black cod with miso...Taylor Rains/Insider...and special Nobu TK40 Sake.Taylor Rains/InsiderWhile we enjoyed sake and caviar, Qi said some customers just want simple things onboard, like KFC or Shake Shack, or need vegan options, and the company can cater that.One of the vegan meals: tofu steak.Taylor Rains/InsiderI loved the layout of the dining table. With enough space for six people to comfortably dine is a game changer for private aviation, and something that customers I'm sure will favor.A leaf connected the two sides to create one long table.Taylor Rains/InsiderThough, my only concern would be the leaf in the middle blocking access from the front of the jet to the back. Fortunately, there are bathrooms on each side, but it could be an inconvenience.Taylor Rains/InsiderAfter filling up on Nobu, we landed at Teterboro Airport in New Jersey, enjoying the views of the fall foliage as we flew over the Northeast.Taylor Rains/InsiderAs expected, the flight was fantastic. The food was delicious and the service was exactly what I'd expect a private flight to be.Taylor Rains/InsiderI can easily see why deep-pocket travelers fork out tens of thousands of dollars for private jet charters, particularly the Global 7500 for its range and private bedroom.Taylor Rains/InsiderRead the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 6th, 2022

Airline Chaos Could Persist Until 2024, Despite Efforts To Cure Woes

Airline Chaos Could Persist Until 2024, Despite Efforts To Cure Woes Authored by Janice Hisle via The Epoch Times (emphasis ours), After a record-breaking summer of angst, aggravation, and anger at America’s airports, little relief may be in sight. The problem came into sharper focus during the past few weeks with airline complaints in May and June soaring 270 percent above pre-pandemic levels. Passengers make their way through a security line Thursday, June 30, 2022, at the Pittsburgh International Airport in Moon Township, Pa. The airport saw an influx of travelers departing Pittsburgh before the Fourth of July holiday weekend. (Morgan Timms/Pittsburgh Post-Gazette via AP) While airlines and federal officials recently announced improved customer service and information-sharing practices with travelers, critics say those measures amount to baby steps. They advocate bigger, more meaningful strides to alleviate the chaos and restore order. “When we look at the misery that we’ve seen this last summer, the thought is: How long could it last?” Jay Ratliff, an aviation expert, told The Epoch Times on Sept. 9. Ratliff said that the problems predate the COVID-19 pandemic, are more complex than many people realize, and may persist until 2024. A sign alerts travelers to the danger of COVID-19 at LaGuardia Airport, during the outbreak of the coronavirus disease (COVID-19), in New York, on June 29, 2020. (Brendan McDermid/Reuters) Pandemic Exposed Flaws In System While the COVID-19 pandemic was in full swing and air travel slowed to a trickle, consumer complaints and demands for refunds and other compensation burgeoned. From January 2020 to June 2021, the the Department of Transportation received 124,823 airline complaints; 83 percent involved refunds. In contrast, the agency received just 15,324 airline complaints in 2019, a DOT analysis says; only about 10 percent of that year’s disputes focused on refunds. The number of DOT complaints is especially remarkable because, airline passengers would customarily lodge complaints directly with airlines and were unaware that they could escalate their concerns to the DOT, Ratliff said. However, the federal agency’s ability to intervene is somewhat limited because there currently is “no requirement for an airline or a ticket agent to compensate passengers holding non-refundable tickets if they cancel air travel,” the DOT says. When the pandemic hit, airlines’ systems were overwhelmed with an unprecedented influx of refund requests. The air carriers also didn’t have enough money to make good on those requests quickly. “Passengers entitled to refunds who normally would have received them promptly were left waiting or, in other cases, denied refunds and offered vouchers or travel credits instead,” the DOT said. Some customers faced circumstances that prevented them from taking advantage of the vouchers or travel credits. They ended up with “no compensation at all,” the DOT said. Ripple effects of the refund requests spread as the federal government, ticket agents, and credit card companies mediated disputes with disgruntled airline customers. Pilots talk after exiting a Delta Airlines flight at the Ronald Reagan National Airport, in Arlington, Va., on July 22, 2020. (Michael A. McCoy/Getty Images) Staff Shortage Woes Meanwhile, even though the federal government provided emergency funding to keep airlines afloat, the companies were forced to cut costs. They furloughed and laid off tens of thousands of employees. As of last year, U.S. airlines employed 4.8 million full-time employees, compared to the pre-pandemic staffing level of almost 5.4 million employees. Many highly-compensated employees fell off the rosters because they were offered early retirement packages or quit due to stressful conditions. Airline professionals such as pilots and flight attendants require extensive training; replacing them is therefore time-consuming and challenging, Ratliff said. Some people theorize that airlines fired large numbers of pilots for refusing to take the government- and airline-mandated COVID-19 inoculations. But industry sources doubt that. They say solid statistics are hard to come by. But they told The Epoch Times that many pilots remained employed because they either got the jab or avoided it via a religious exemption. Medical conditions are probably responsible for grounding more pilots than vaccine-mandate firings ever did, the sources said. They blame long-term illnesses, some possibly caused by side effects of the shots or consequences of COVID-19. In addition, the commercial aviation industry was already facing a pilot shortage several years before the pandemic. That’s because recruiting of pilots from the military, a primary feeder system for commercial airlines, has declined. Read more here... Tyler Durden Tue, 09/13/2022 - 18:10.....»»

Category: smallbizSource: nytSep 13th, 2022

I toured a private jet for the first time — it had 7 beds and 2 bathrooms but didn"t seem worth the $65 million price tag

I got the opportunity to tour a private jet during Britain's hottest day on record. See inside the Qatar Executive Gulfstream G650ER. The Gulfstream G650ER is one of 12 owned and chartered by Qatar Executive.Stephen Jones / Insider I toured a private jet for the first time at Farnborough International Airshow.  The Gulfstream G650ER is a popular model among billionaires, including Elon Musk and Jeff Bezos.  The cabin was impressive, but I'm not convinced the cost will ever be worth it.  I've never been on a private jet. I typically fly economy, usually low-cost regional carriers like Ryanair and easyJet where the idea of cabin luggage, or even guaranteeing sitting next to your friend comes with a fee.People board an easyJet flight at Gatwick AirportGareth Fuller/PA Images via Getty ImagesThe idea of an exclusive, $65 million private jet with its own private bedroom and bathroom is a luxury. When I was given the chance to take a look at this year's Farnborough International Airshow, I had to take a look.The Gulfstream G650ER is one of 12 owned and chartered by Qatar Executive.Stephen Jones / InsiderQatar Executive is a subsidiary of Qatar Airways, and is among a small number of commercial airlines to have a division dedicated to letting wealthy people charter private jets.The Qatar Executive plane was on display alongside two other Qatar Airways jets, a Boeing 787-9 Dreamliner and a Boeing 777-300.Stephen Jones / InsiderQatar Airways' little-known private jet division is finding success by acquiring some of the world's most expensive business aircraft.The airline has 12 Gulfstream G650ER jets, and has three set to be delivered by the end of 2022.The Gulfstream G650ER on display at Farnborough International Airshow.Stephen Jones / InsiderThe jet is a favorite among wealthy business executives. Elon Musk purchased the model in 2016 for $70 million. Jeff Bezos and Bill Gates also use the jet.Elon Musk and the Gulfstream G550 jet.Sean Zanni / Contributor/Getty Images; Courtesy of JetcraftTake a look inside Elon Musk's $70 million private jet, which he says is the only exception to his disdain of luxuries like yachts and vacationsI flew on a $65 million Gulfstream G650ER private jet and saw why it's a favorite of tech billionaires like Elon Musk and Jeff Bezos The 14.27-meter long by 2.49 meter-wide cabin was configured to carry up to 13 passengers, as well as two pilots and one flight attendant. If passengers plan to fly overnight there's room for seven to sleep.The Gulfstream G650 can carry 16 people in total.Stephen Jones / InsiderAfter boarding the plane there's an entrance to a crew rest area used on long-haul flights.The crew rest area would usually be tidier than this, but was being used by crew to store their bags during the airshow.Stephen Jones / InsiderIt was being used by the Qatar crew on duty to store their bags.Flight attendants use the room to rest during long-haul flights.Stephen Jones / InsiderOpposite this was a restroom with its own sink and fold-down leather toilet seat.The lavatory on a Gulfstream G650ER private jet.Stephen Jones / InsiderThe galley kitchen felt very similar to those on certain types of yacht.Passengers walk through the galley to enter the main cabin.Stephen Jones / InsiderIt had a coffee machine...A business trip essential, the coffee machine.Stephen Jones / Insider... and a coverable sink and space to prepare food.The sink can be covered during take-off and landing.Stephen Jones / InsiderWe visited at a time when there were other tours on the flight. There were six people on the jet when I toured. With a cabin width of just 2.59 m, it felt cramped and did lead to a few moments of awkward shuffles as we all tried to navigate our way around the plane.It took some navigating and patience to get a relatively person-free shot.Stephen Jones / InsiderI can imagine this is less of a problem if everyone is in their seats during the flight.The plane has a lounge area with four seats, arranged around a table. There was plenty of leg room.Stephen Jones / InsiderA door at the back of the cabin led through to a private bedroom. It contains and sofa and two individual seats that fold into a double and a single bed.The private cabin towards the aft of the plane leads through to a bathroom and cargo area.Stephen Jones / InsiderThe bedroom had its own private seating area and automatic table that was released at the push of a button.It takes around 35 minutes to convert all of the seating into beds, according to the flight attendant. Passengers have to wait in the available seats while the private bedroom towards the rear of the plane is sorted first.Passengers have to wait in the available seats while the private bedroom towards the rear of the plane is sorted first, the flight attendant told Insider.Stephen Jones / GettyA screen aboard the Gulfstream, G650ER.Stephen Jones / InsiderThe private bedroom has its own bathroom with a lavatory and a sink. There is no shower however.The private bedroom has its own bathroom, which is also connected to the cargo area at the aft of the plane.Stephen Jones / InsiderThere's a compartment for bags located at the aft of the plane, which can be accessed through a door in the private bathroom.The cargo bay is spacious and can also be accessed from a hatch outside the plane.Stephen Jones / InsiderQatar installed an air conditioning unit to keep the jet cool while it was parked on the tarmac, which is another reason the jet may have appeared cramped.The airshow took place amid record UK temperatures.Stephen Jones / InsiderThe airshow was held during a time when temperatures in the UK reached their highest on record, reaching a 40.3 degrees Celsius (104.5 degrees Fahrenheit) in some areas of the country. Temperatures were so hot, Luton Airport, just 53 miles from Farnborough had to halt flights because part of the runway melted during the hot spell.The entrance to London Luton Airport.Richard Heathcote/Getty ImagesLondon Luton airport and the UK's largest air force base have halted flights amid extreme temperatures:  'The runway has melted'Maybe it's my average UK salary talking, but given the context in which I'm touring the plane, I find it hard to see private jets as anything but a monumental waste of money. Private jets are up to 14 times more polluting per passenger than commercial flights.The total impact depends on the distance flown.Picture alliance / Contributor / GettySource:Transport & EnvironmentThe aviation sector has pledged to collectively cut its total carbon emissions to net zero by 2050. Carbon offsetting, investing in sustainable fuels, or switching electrically powered planes are some of the ways the industry plans to do so.The aviation industry used the Farnborough International airshow to talk up its green intentions.Richard Baker / Contributor / GettySource: IATABut many argue that is not enough, and what will really make a difference is fewer flights.British Airways planes at Heathrow airport.Jonathan Brady/Getty ImagesI can see why super busy millionaires pay for the convenience and privacy offered by a private jet, and I'll admit the cabin was impressive. Whether that can ever be worth it is something I'm yet to be convinced of.The Qatar plane was not the only Gulfstream on display at Farnborough.Stephen Jones / InsiderRead the original article on Business Insider.....»»

Category: topSource: businessinsiderJul 27th, 2022

Delta Air Lines Announces June Quarter 2022 Profit

Good progress in restoring operational reliability to Delta's leading standards in July Generated double digit June quarter operating margin Expect double digit operating margin in September quarter and meaningful full year profitability On track to achieve 2024 targets of over $7 adj. EPS and $4 billion of free cash flow ATLANTA, July 13, 2022 /PRNewswire/ -- Delta Air Lines (NYSE:DAL) today reported financial results for the June quarter 2022 and provided its outlook for the September quarter 2022.  Highlights of the June quarter 2022 results, including both GAAP and adjusted metrics, are on page five and are incorporated here. "I would like to thank our entire team for their outstanding work during a challenging operating environment for the industry as we work to restore our best-in-class reliability.  Their performance coupled with strong demand drove nearly $2 billion of free cash flow as well as profitability in the first half of the year, and we are accruing profit sharing, marking a great milestone for our people," said Ed Bastian, Delta's chief executive officer.  "For the September quarter, we expect an adjusted operating margin of 11 to 13 percent, supporting our outlook for meaningful full year profitability." June Quarter 2022 GAAP Financial Results  Operating revenue of $13.8 billion Operating income of $1.5 billion with operating margin of 11.0 percent Earnings per share of $1.15 Operating cash flow of $2.5 billion Total debt and finance lease obligations of $24.8 billion June Quarter 2022 Adjusted Financial Results  Operating revenue of $12.3 billion, 99 percent recovered versus June quarter 2019 on 82 percent capacity restoration Operating income of $1.4 billion with operating margin of 11.7 percent, the first quarter of double-digit margin since 2019 Earnings per share of $1.44 Free cash flow of $1.6 billion after investing $864 million into the business Payments on debt and finance lease obligations of $1.0 billion $13.6 billion in liquidity* and adjusted net debt of $19.6 billion *Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities September Quarter Outlook1 3Q22 Forecast Capacity2 Down 15% - 17% Total Revenue2 Up 1% - 5% CASM-Ex2 Up ~22% Fuel Price ($/gal) $3.45 - $3.60 Operating Margin 11% - 13% Gross Capital Expenditures ~$1.8 billion Adjusted Net Debt ~$20 billion 1 Non-GAAP measures, except for Capacity; Refer to Non-GAAP reconciliations for 3Q19 comparison figures   2 Compared to September quarter 2019 Fuel price guidance is based on prices as of July 8th, including Brent at $107 per barrel, cracks at $41 per barrel and $0.27 per gallon refinery contribution.  Additional metrics for financial modeling can be found in the Supplemental Information section under Quarterly Results on June Quarter Revenue Environment and Outlook "With growing demand across our network in the June quarter, we recaptured higher fuel prices and delivered adjusted revenue recovery of 99 percent with unit revenues up 20.5 percent versus 2019.  We also delivered another record quarter of American Express co-brand remuneration, up 35 percent from the June quarter 2019, reflecting growing brand preference and further diversification of our revenue base," said Glen Hauenstein, Delta's president.  "With sustained strength in bookings, we expect September quarter revenue to be up 1 to 5 percent compared to 2019 with total unit revenue growth improving sequentially." Domestic continues to lead recovery with international accelerating: Domestic passenger revenue was 3 percent higher and international passenger revenue was 81 percent recovered compared to the June quarter 2019. Revenue in Latin America and Transatlantic both exceeded 2019 levels in the month of June and the pace of recovery in the Pacific saw meaningful improvement, driven by Korea and Australia re-openings and the easing of restrictions in Japan. Business recovery progressing: Domestic corporate sales* for the quarter were ~80 percent recovered versus 2019, up 25 points compared to the March quarter. International corporate sales* for the quarter were ~65 percent recovered versus 2019, up 30 points compared to the March quarter, driven by outsized improvement in Transatlantic. Recent corporate survey results show positive expectations for business travel in the September quarter, including optimism around international travel given the elimination in June of the pre-departure test requirement for flights to the U.S. Premium products outperforming Main Cabin: Premium product revenue recovery outpaced Main Cabin across all markets. Premium and other diversified revenue streams, including Loyalty, Cargo and MRO, comprised 54 percent of total revenues. Strong American Express remuneration: Received $1.4 billion in the quarter, up 35 percent compared to the June quarter 2019 and on track to surpass $5 billion for the full year. Co-brand spend was up 43 percent and co-brand card acquisitions were up 15 percent compared to the June quarter 2019. Cargo records best ever June quarter performance; MRO approaches 2019 levels: Cargo revenue was $272 million, a 46 percent increase compared to the same period in 2019. MRO revenue in the June quarter was $178 million, restored to 85 percent of 2019 levels. *Corporate sales include tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period June Quarter Cost Performance and Outlook "Our June quarter non-fuel unit cost performance of up 22 percent compared to 2019 was impacted by lower capacity, higher selling-related expenses and investments in operational reliability," said Dan Janki, Delta's chief financial officer.  "We remain confident in our ability to meaningfully improve our unit costs as we fully scale the network and return our operations to Delta's high standards. In the near-term, as we prioritize restoring reliability, our full year non-fuel unit cost will remain higher than our previous plan by approximately 8 points on 5 points less capacity." Operating expense of $12.3 billion and total adjusted operating expense of $10.9 billion in the June quarter, both increased 21 percent sequentially Adjusted non-fuel costs of $7.5 billion were up 10 percent sequentially, primarily driven by higher capacity Compared to the June quarter 2019, adjusted non-fuel CASM was 22 percent higher on 18 percent less capacity Adjusted fuel price of $3.82 per gallon was up 37 percent sequentially. Compared to the June quarter 2019, market prices were up 94 percent Refinery operating income of $269 million resulted in a 31¢ per gallon benefit to our adjusted fuel price per gallon Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.6, a 4.2 percent improvement versus 2019 June Quarter Balance Sheet, Cash and Liquidity "In the June quarter, we repaid $1 billion of gross debt after delivering strong profitability and generating free cash flow ahead of our expectations," Janki said.  "We remain committed to achieving investment-grade metrics and a return on invested capital in the mid-teens over the next 3 years." Adjusted net debt of $19.6 billion; Weighted average interest rate of 4.3 percent with 84 percent fixed rate debt and 16 percent variable rate debt Payments on debt and finance lease obligations of $1.0 billion, bringing the first half total to $2.4 billion Free cash flow of $1.6 billion with operating cash flow of $2.5 billion and gross capital expenditures of $864 million Air Traffic Liability ended June at $9.9 billion, up $805 million compared to March Liquidity of $13.6 billion, including $2.8 billion in undrawn revolver capacity Other June Quarter Highlights Operational Reliability Took decisive action to improve resilience and restore operational reliability for our customers and employees, including schedule adjustments for the remainder of the year, implementation of earlier boarding procedures and addition of operational buffers July performance is off to a good start, with an average month-to-date completion factor of 99.2 percent and 84 percent of flights arriving within 14 minutes of scheduled arrival time Updated airport procedures, including earlier domestic boarding and schedule modifications at the company's largest hubs to help drive more on-time departures and successful connections Reactivated Peach Corps, providing employees from the corporate offices the opportunity to step away from daily work routines to assist frontline colleagues while supporting Delta's operation and customers Culture and People To reward Delta people for their dedication and excellence, implemented a 4 percent base pay increase for eligible scale and merit employees globally on May 1 Recorded a profit-sharing accrual, which is expected to pay out to Delta employees in February 2023 to recognize their commitment to serving our people, customers and communities Introduced industry-only boarding premium pay for flight attendants, marking continued investment in our operational performance Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the fifth consecutive year Resumed The Delta Air Lines Foundation Matching Gifts to Education program, matching Delta employee and retiree donations to accredited, eligible educational institutions Customer Experience and Loyalty Welcomed record number of new SkyMiles and American Express co-brand cardholders to our programs Celebrated the openings of Delta's Terminal 3 at LAX in April followed by Terminal C at LGA in June, featuring the company's two largest Delta Sky Clubs in the system, part of Delta's $12 billion investment in multi-year transformation projects at airport hubs across the country In partnership with American Express, launched a first-of-its-kind, limited-edition Reserve credit card made with airplane metal of a retired Boeing 747 Welcomed the first A321neo into service while taking delivery of two additional A321neos, one A220-300, one A330-900 and five gently used 737-900ERs Enhanced premium offering with new domestic First Class seat on the A321neo, with larger, improved privacy space, more stowage for personal items and enhanced memory-foam seat cushions in all cabins In partnership with Misapplied Sciences, launched PARALLEL REALITY™ beta experience at DTW, a groundbreaking technology allowing customers to simultaneously see personalized content tailored to their unique journey on a single digital screen As part of Delta's commitment to create a values-led experience, added onboard snack and beverage options from small businesses, global suppliers, and woman- and LGBTQ+-led brands Introduced new in-flight entertainment from MasterClass, a streaming platform offering exclusive access to select classes, alongside hit movies, bingeable TV shows and curated audio playlists Environmental, Social and Governance Published our 2021 Environmental, Social and Governance (ESG) Report, sharing the latest data and insight into the company's efforts to advance its purpose of connecting people with opportunity while expanding the understanding of the planet and the people within it Leveraged existing infrastructure to accept a batch of sustainable aviation fuel for a Delta flight from New York's LGA and support the scaling of lower carbon intensity fuels Participated in the SkyTeam Alliance's Sustainable Flight Challenge, an initiative where partner airlines share learnings and innovations with the common goal of reducing the industry's carbon footprint Launched new skills-first career development program establishing a long-term goal of filling 25 percent of corporate management roles with talent in frontline roles and removing career barriers of four-year degrees, supporting economic equity through access to higher-earning jobs across the company Joined forces with the Responsible Business Initiative for Justice (RBIJ) to launch Unlock Potential, a program that helps drive economic and social mobility for young people disconnected from education or employment, to create meaningful career opportunities for at-risk young adults June Quarter Results June quarter results have been adjusted primarily for the unrealized losses on investments, loss on extinguishment of debt and third-party refinery sales as described in the reconciliations in Note A. GAAP $ Change % Change ($ in millions except per share and unit costs) 2Q22 2Q19 Operating income 1,519 2,128 (609) (29) % Pre-tax income 1,033 1,907 (874) (46) % Net income 735 1,443 (708) (49) % Diluted earnings per share 1.15 2.21 (1.06) (48) % Operating margin 11.0 % 17.0 %        (6.0) pts (35) % Operating revenue 13,824 12,536 1,288 10 % Total revenue per available seat mile (TRASM) (cents) 23.47 17.47 6.00 34 % Operating expense 12,305 10,408 1,897 18 % Operating cash flow 2,535 3,268 (733) (22) % Capital expenditures 958 1,559 (601) (39) % Cost per available seat mile (CASM) (cents) 20.89 14.51 6.38 44 % Fuel expense 3,223 2,291 932 41 % Average fuel price per gallon 3.74 2.08 1.66 80 % Total debt and finance lease obligations 24,839 9,990 14,849 NM Adjusted $ Change % Change ($ in millions except per share and unit costs) 2Q22 2Q19 Operating income 1,445 2,140 (695) (32) % Pre-tax income 1,222 1,998 (776) (39) % Net income 921 1,533 (612) (40) % Diluted earnings per share 1.44 2.35 (0.91) (39) % Operating margin 11.7 % 17.2 %        (5.5) pts (32) % Operating revenue 12,311 12,448 (137) (1) % TRASM (cents) 20.90 17.35 3.55 20 % Operating expense 10,866 10,308 558 5 % Free cash flow 1,608 2,175 (567) (26) % Gross capital expenditures 864 1,618 (754) (47) % Non-fuel cost 7,516 7,516 — — % Non-fuel unit cost (CASM-Ex) (cents) 12.76 10.47 2.29 22 % Fuel expense 3,296 2,274 1,022 45 % Average fuel price per gallon 3.82 2.07 1.75 85 % Adjusted net debt 19,578 9,347 10,231 NM About Delta Air Lines  More than 4,000 Delta Air Lines (NYSE:DAL) flights take off every day, connecting people across more than 275 destinations on six continents with a commitment to industry-leading customer service, safety and innovation. As the leading global airline, Delta's mission is to create opportunities, foster understanding and expand horizons by connecting people and communities to each other and their potential. Delta's more than 80,000 employees believe our customers should not have to choose between seeing the world and saving the planet. Delta is working toward more sustainable aviation by leveraging existing solutions and technologies, investing in the future of sustainable aviation fuel and actively engaging with next-generation solutions. Our people lead the way in delivering a world-class customer experience, and we're continuing to ensure the future of travel is personalized, enjoyable and stress-free. Our people's genuine and enduring motivation is to make every customer feel welcomed and respected across every point of their journey with us. Forward Looking StatementsStatements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the material adverse effect that the COVID-19 pandemic has had on our business; the impact of incurring significant debt in response to the pandemic; failure to comply with the financial and other covenants in our financing agreements; the possible effects of accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems on which we rely and of the data stored within them, as well as compliance with ever-evolving global privacy and security regulatory obligations; disruptions in our information technology infrastructure; our dependence on technology in our operations; our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to realize the full value of intangible or long-lived assets; labor issues; the effects of weather, natural disasters and seasonality on our business; changes in the cost of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), a wholly-owned subsidiary of Delta; failure or inability of insurance to cover a significant liability at Monroe's Trainer refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including costs related to compliance with renewable fuel standard regulations; our ability to retain senior management and other key employees, and to maintain our company culture; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports at which we operate or significant problems associated with types of aircraft or engines we operate; the effects of extensive government regulation we are subject to; the impact of environmental regulation, including but not limited to increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates. Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law. DELTA AIR LINES, INC. Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions, except per share data) 2022 2019 $ Change % Change 2022 2019 $ Change % Change Operating Revenue: Passenger $      10,958 $      11,368 $          (410) (4) % $     17,865 $     20,622 $      (2,757) (13) % Cargo 272 186 86 46 % 561 378 183 48 % Other 2,594 982 1,612 NM 4,747 2,008 2,739 NM   Total operating revenue 13,824 12,536 1,288 10 % 23,173 23,008 165 1 % Operating Expense: Salaries and related costs 2,955 2,847 108 4 % 5,782 5,579 203 4 % Aircraft fuel and related taxes 3,223 2,291 932 41 % 5,315 4,269 1,046 25 % Ancillary businesses and refinery 1,718 316 1,402 NM 3,100 667 2,433 NM Contracted services 791 731 60 8 % 1,544 1,440 104 7 % Depreciation and amortization 510 713 (203) (28) % 1,016 1,328 (312) (23) % Landing fees and other rents 546 548 (2) — % 1,050 1,072 (22) (2) % Regional carrier expense 528 542 (14) (3) % 1,018 1,079 (61) (6) % Aircraft maintenance materials and outside repairs 522 434 88 20 % 988 910 78 9 % Passenger commissions and other selling expenses 526 597 (71) (12) % 838 1,071 (233) (22) % Passenger service 369 340 29 9 % 644 628 16 3 % Aircraft rent 127 107 20 19 % 249 209 40 19 % Profit sharing 54 518 (464) (90) % 54 739 (685) (93) % Other 436 424 12 3 % 840 869 (29) (3) %      Total operating expense 12,305 10,408 1,897 18 % 22,438 19,860 2,578 13 % Operating Income 1,519 2,128 (609) (29) % 735 3,148 (2,413) (77) % Non-Operating Expense: Interest expense, net (269) (75) (194) NM (543) (158) (385) NM Equity method results (12) (17) 5 (29) % (12) (71) 59 (83) % Gain/(loss) on investments, net (221) (82) (139) NM (368) 18 (386) NM Loss on extinguishment of debt (41) — (41) NM (66) — (66) NM Pension and related benefit/(expense) 73 (17) 90 NM 145 (32) 177 NM Miscellaneous, net (16) (30) 14 (47) % (58) (52) (6) 12 %      Total non-operating expense, net (486) (221) (265) NM (902) (295) (607) NM Income/(Loss) Before Income Taxes 1,033 1,907.....»»

Category: earningsSource: benzingaJul 13th, 2022

Over 50% of flights by India"s biggest airline were delayed after staff called in sick to attend a rival airline"s hiring fair, reports say

Airlines all over the world are struggling to recruit staff as they look to meet rising travel demand as the world opens up after two years of COVID. An IndiGo airlines plane on the runway at Kathmandu Tribhuvan International Airport.Nicolas Economou/NurPhoto via Getty Images. India's largest airline faced major delays Saturday as cabin crew flocked to a rival's job fair, local media reports. Less than half of IndiGo's flights ran on time on Saturday, aviation ministry data showed. The disruption comes amid ongoing travel chaos, as airlines battle COVID staff shortages. Over 50% of flights operated by budget Indian airline, IndiGo, were delayed on Saturday after a substantial number of staff called in sick to attend a rival airline's job fair, local outlets reported.Just 45% of IndiGo's flights ran on time on Saturday, the ANI news agency reported, citing Ministry of Civil Aviation data.Citing industry sources, ANI reported that many of IndiGo's staff, particularly cabin crew, took sick leave Saturday to attend a hiring fair held by Air India, the country's flagship airline."The second phase of Air India's recruitment process was scheduled for Saturday and most of the cabin crew members of IndiGo who took leave had gone for it," ANI cited an unnamed industry source as saying.One IndiGo pilot who turned up for work said he waited in the aircraft for two hours for flight attendants to turn up, The Times of London reported.IndiGo is currently India's largest airline by passenger numbers but Air India — which reportedly ran the recruitment fair — is hiring new staff and plans to buy new planes after it was purchased by the Tata Group last year.Air India and IndiGo did not immediately respond to Insider's requests for comment made outside normal working hours.One aviation expert told the Times of London that while the lack of crew likely played a role in the delays, it is unlikely the only reason so many flights were late."To have your operational integrity challenged in this way, to my mind, those going for walk-in interviews that day and not reporting for work would have some impact but that can't be the total picture," Kapil Kaul, chief executive of the CAPA Centre for Aviation said.Saturday's delays come amid ongoing flight disruption across the aviation industry as airlines struggle to recruit enough staff to meet surging demand for travel.Thousands of flights were canceled over the Fourth of July weekend in the US. European carrier, Scandinavian Airlines, was forced to cancel hundreds of flights on Monday after pilots went on strike.Meanwhile, British Airways, Britain's flagship carrier cancelled 1,000 more flights for the summer period on Tuesday.Heathrow, the UK's largest airport, asked airlines to cut flights on Thursday amid fears it did not have the capacity to handle surging passenger numbers. Piles of suitcases mounted at the airport in the wake of cancellations.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJul 5th, 2022

CDC Says Public Transportation Mask Mandate No Longer In Effect

CDC Says Public Transportation Mask Mandate No Longer In Effect Update (2000ET): Bloomberg reports that the CDC says the national mask requirement on public transportation is no longer in effect, citing a Florida court ruling against the measure. The CDC says it will not enforce the mask order but continues to recommend that people wear masks in indoor public transportation settings. As a reminder, the U.S. Senate voted 57-40 last month to overturn the public health order requiring masks on airplanes and other forms of public transportation, drawing a veto threat from President Joe Biden. The liberal dissonance is palpable... Meme by @TimRunsHisMouth and @grandoldmemes — The Right To Bear Memes (@grandoldmemes) April 18, 2022 Additionally, it appears the Biden administration has conceded the judge's ruling that the mask mandate was unlawful: "TSA (Transportation Security Administration) will not enforce its Security Directives and Emergency Amendment requiring mask use on public transportation and transportation hubs at this time," the official said. "TSA (Transportation Security Administration) will not enforce its Security Directives and Emergency Amendment requiring mask use on public transportation and transportation hubs at this time," — zerohedge (@zerohedge) April 18, 2022 Brace for the blue-check backlash at this 'anti-science' decision. Unleash the virtue-signaling... Hi @united. When I bought my tickets for me, my wife (who is pregnant), and our unvaccinated 4-year-old, I assumed you would continue to have a mask mandate. Now you cancel it and we will have to board our return flight under your new no mask required policy?! Thanks so much. — Jeremy Faust MD MS (ER physician) (@jeremyfaust) April 18, 2022 Nothing stops you wearing mask if you want to... As @FrancoB411 explained in simple 'sciencey' terms... "you are free to wear masks if you like... if they work, they will protect you, if they don't why mandate them?" The CDC first issued a public health order requiring masks in interstate transportation in February 2021. The TSA issued a security directive to enforce the CDC order. Since January 2021, there have been a record 7,060 unruly passenger incidents reported, 70 per cent involving masking rules, according to the FAA. Flight attendants will be pleased (well some of them)... After the ruling, Sara Nelson, president of the Association of Flight Attendants, urged "calm and consistency in the airports and on planes. The last thing we need for workers on the front lines or passengers traveling today is confusion and chaos." Common Sense 1 - 0 Political Science What happens next? Will airlines beg all those people they fired for not getting vaxxed to come back to work? *  *  * Update (1845ET): United Airlines just lifted its mask mandate for Domestic flights: Effective immediately, masks are no longer required at United on domestic flights, select international flights (dependent upon the arrival country’s mask requirements) or at U.S. airports. While this means that our employees are no longer required to wear a mask - and no longer have to enforce a mask requirement for most of the flying public - they will be able to wear masks if they choose to do so, as the CDC continues to strongly recommend wearing a mask on public transit. We will continue to closely monitor the situation in the event of changes. Shortly after the United headline, Alaska Air also lifted their mandate: of today, masks are optional in airports and onboard aircraft, effective immediately.  Due to a judicial decision in our federal court system, the mask mandate has been overturned, which means our guests and employees have the option to wear a mask while traveling in the U.S. and at work.  While we are glad this means many of us get to see your smiling faces, we understand some might have mixed feelings. Please remember to be kind to one another and that wearing a mask while traveling is still an option. *  *  * Update (1620ET): Having already seen Twitter's leftists question the fact that the Federal judge who rejected the CDC's 2-week mask mandate extensions is a) too Trump-appointed, b) too white, and c) too young (she's 35)... White House spokesperson Jen Psaki dropped the "s" word in explaining why the administration is "disappointed" with the judge's decision and recommends you keep wearing your masks... all of them... Jen Psaki on Judge Mizelle striking down the Biden administration's mask mandate on planes and public transit: "[T]his is obviously a disappointing decision. The CDC continues recommending wearing a mask in public transit...[DOJ] would make any determinations about litigation." — Curtis Houck (@CurtisHouck) April 18, 2022 Why would they be disappointed? Unless medical tyranny is the goal? *  *  * Is this the beginning of the end of biomedical tyranny in the US? As Forbes reports, a federal judge in Florida threw out the federal government’s mask mandate for airports, airplanes and other public transportation Monday, ruling the Centers for Disease Control and Prevention exceeded its authority by imposing the mask requirement days after the agency extended it another two weeks. U.S. District Judge Kathryn Kimball Mizelle, who was appointed by former President Donald Trump, issued a ruling that declared the mask mandate unlawful and blocked it by vacating the order and sending it back to the CDC “for further proceedings.” And before the blue-checks erupt in uproar at this 'dangerous' act by a clearly biased Trump judge, there is nothing stopping you from continuing to wear you three masks...this ruling just means the rest of us are not mandated to do just to protect your feelings. Just this morning, Delta CEO Ed Bastian told WaPo that: "I think lifting the mask mandate will be one step towards reestablishing and normal behavioral patterns on board the aircraft as well as in the airports." Ed Bastian of @Delta on mask mandates: “I think lifting the mask mandate will be one step towards reestablishing and normal behavioral patterns on board the aircraft as well as in the airports.” #PostLive — Washington Post Live (@PostLive) April 18, 2022 *  *  * Full ruling below: Tyler Durden Tue, 04/19/2022 - 05:55.....»»

Category: blogSource: zerohedgeApr 19th, 2022

I went behind the scenes with Singapore Airlines to see how it"s massively upgrading the onboard experience on the world"s longest flights

Singapore Airlines has teamed up with a spa where a week-long stay will set a visitor back $10,000 to make its 19-hour flights more enjoyable. Inside the Golden Door spa.Thomas Pallini/Insider Singapore Airlines has turned to the Golden Door Spa to give its ultra-long-haul flights an upgrade. Golden Door chef Greg Frey Jr is crafting a brand-new menu based on items served at the spa.  Singapore Airlines currently flies three of the top 10 longest flights in the world.  Singapore Airlines is a recognized leader in aviation when it comes to flying the longest commercial flights in the world.Soos Jozsef/Shutterstock.comWhile an airline might have one or two routes than rank in the top 10 longest in the world, Singapore Airlines has three. In 2018, the airline took its place on the throne with the relaunch of non-stop flights between Singapore and Newark, in addition to non-stop flights to Los Angeles and San Francisco.Onboard a Singapore Airlines Airbus A350-900ULR.Thomas Pallini/InsiderSome changes were made during the pandemic, including limiting US flights to a single route between Singapore and Los Angeles. Slowly but surely, though, routes that were lost were added back and others were amended, with Newark being temporarily replaced with New York.Onboard a Singapore Airlines Airbus A350-900ULR.Thomas Pallini/InsiderInside the new world's longest flight: What it's like to fly on Singapore Airlines' new route between Singapore and New YorkSingapore is reopening to the world with its new "vaccinated travel lane" program and travelers booking non-stop flights from the US will be able to skip quarantine if they meet the requirements. And waiting for them onboard will be an entirely new offering come January.Onboard a Singapore Airlines Airbus A350-900ULR.Thomas Pallini/InsiderSingapore Airlines is now partnering with the Golden Door Spa in San Marcos, California to craft a new onboard wellness and dining offering, comparable to what the wealthy experience during their visits to the spa.Inside the Golden Door spa.Thomas Pallini/InsiderSingapore Airlines is partnering with the ultra-exclusive Golden Door spa to redefine luxury on the world's longest commercial flightsInsider went behind the scenes with Singapore Airlines in Golden Door's California kitchen to see how airline and spa chefs are working together for a brand-new culinary experience onboard the world's longest air journeys.Inside the Golden Door spa.Thomas Pallini/InsiderInside the Golden Door Spa, the California retreat loved by the wealthy that's $9,950 for a week's stayChef Greg Frey Jr is the executive chef at Golden Door. His job is to ensure that spa-goers not only enjoy their meals but that the food being served contributes to the overall wellbeing of the guests.Inside the Golden Door spa.Thomas Pallini/InsiderIt's a delicate balance between controlling portions and crafting a meal that will satiate enough so that guests aren't asking for more. He jokes that his job is to ensure that patrons aren't sneaking off to the local In-N-Out Burger amidst a wellness retreat.Inside the Golden Door spa.Thomas Pallini/Insider"The food is not meant to be very overarching, very high-end, and very fancy," Frey told Insider. "I'm here to feed you not to starve you."Inside the Golden Door spa.Thomas Pallini/InsiderHelping bring Frey's creations to the airline world is Antony McNeil, Singapore Airlines' global food & beverage director, along with the executive chefs of the airline's contracted catering facilities.Inside the Golden Door spa.Thomas Pallini/InsiderAwaiting us in the Golden Door kitchen were around 20 menu items that Frey had crafted under the partnership. Some of the dishes can be found on the Golden Door menu during one of its week-long programs while others were crafted specifically for Singapore Airlines.Inside the Golden Door spa.Thomas Pallini/Insider"There are some dishes that are on here that are created solely for our partnership, but there are many of these that are big favorites for our guests," Frey said.Inside the Golden Door spa.Thomas Pallini/InsiderThe Golden Door's signature dish, served like clockwork every Sunday, is the miso-glazed black cod. For the spa-goers, it provides energy for the next morning to take on the day's activities while for airline passengers, it could give them the energy to take on the day after a long flight to the US or Singapore.Inside the Golden Door spa.Thomas Pallini/InsiderMeal choices are very deliberate in that each ingredient serves a purpose. It's a skill that Frey has spent the better part of the last decade honing while at Golden Door.Inside the Golden Door spa.Thomas Pallini/InsiderSome of the other dishes that Golden Door spa-goers will enjoy over the course of the week that may soon find their way onboard Singapore Airlines planes include the portobello meatballs in an heirloom tomato sauce with risotto…Inside the Golden Door spa.Thomas Pallini/InsiderSmoked fennel duck with chow-chow sauce…Inside the Golden Door spa.Thomas Pallini/InsiderCitrus grilled shrimp salad with ginger balsamic dressing...Inside the Golden Door spa.Thomas Pallini/InsiderAnd blue crab tower with wheatberry salad.Inside the Golden Door spa.Thomas Pallini/InsiderTravelers on the non-stop flights between Singapore and the US spend as much as 19 hours on the plane, giving them ample time to try a variety of the menu items across the three meal services.Inside the Golden Door spa.Thomas Pallini/InsiderFrey sources the ingredients for his meals from the Golden Door's multi-acre garden just beyond the main resort area. Insider toured the garden, as well, and found a cornucopia of produce intended to feed the 40 weekly Golden Door visitors.Inside the Golden Door Spa and Resort.Thomas Pallini/Insider"I want to go out and see what are the ingredients and then those formulate and percolate into an idea," Frey said. "Until I have that plate in my hand and I'm actually putting these things together, I really have no idea what it's going to look like."Inside the Golden Door Spa and Resort.Thomas Pallini/InsiderFrey's journey to learn the ins and outs of airline food required visiting one of Singapore Airlines' contracted catering facilities and go onboard the Airbus A350-900 ULR being used for the flights. Luckily, aviation runs in the chef's blood as Frey's father worked as a pilot and mother as a flight attendant, both for Trans World Airlines.Inside the Golden Door spa.Thomas Pallini/InsiderBut even with the differences in cooking, Frey says that cooking for an airline isn't much different than cooking for a clientele paying $10,000 per week for a spa visit.Inside the Golden Door Spa and Resort.Thomas Pallini/Insider"How much did I have to really change from what I'm doing here at the Golden Door? Very, very little," Frey said. "This is taking what we do here at the Door and curating it for the airline."Inside the Golden Door spa.Thomas Pallini/InsiderA focus on nutrition also doesn't rule out desserts and sweets, it just means they'll be healthier than, say, an ice cream sundae.Inside the Golden Door spa.Thomas Pallini/InsiderChocolate chip mint cookies, spiced apple cake, persimmon pudding cake, and ginger snap cookies are just some of what passengers will soon enjoy.Inside the Golden Door spa.Thomas Pallini/InsiderSingapore Airlines stressed that the food items on display were still technically in development, even though they looked ready to serve onboard.Inside the Golden Door spa.Thomas Pallini/InsiderTo that point, two of Singapore Airlines' own executives had concerns that the sauce for one of the dishes was too sweet, and questioned whether it could be toned down or balanced out with the accompaniments.Inside the Golden Door spa.Thomas Pallini/InsiderBut that's all part of the process to ensure guests will have the best culinary experience possible.Inside the Golden Door spa.Thomas Pallini/InsiderThe investment in food and wellness gives passengers another reason to pay the premium attached to the non-stop services, most of which only offer business class and premium economy class seating.Inside the Golden Door spa.Thomas Pallini/InsiderCountless airlines fly between the US and Singapore, but not all are offering the level of wellness that Singapore Airlines hopes to.Inside the Golden Door spa.Thomas Pallini/InsiderThe difference between the Golden Door and Singapore Airlines' previous wellness partner, Canyon Ranch, is that Frey's methods aren't as calculated.Inside the Golden Door spa.Thomas Pallini/Insider"We're not focusing so much on calories and calorie count, we just want you to eat well," McNeil said, noting that traditional Singapore Airlines fare will still be offered through pre-order programs like "book the cook."Inside the Golden Door spa.Thomas Pallini/InsiderGiving travelers the freedom to choose their own preferences on the ultra-long-haul flights is paramount to Singapore Airlines' executives.Inside the Golden Door spa.Thomas Pallini/Insider"The purpose of this relationship is to develop a robust and a very flexible wellness program," Betty Wong, Singapore Airlines' division vice president of in-flight services and design, told Insider. "We want to make sure that these options are available, but at the end of the day, the choice is yours."Inside the Golden Door spa.Thomas Pallini/InsiderPicky eaters can rejoice as that flexibility means there will be no shortage of options onboard. "If you want [to eat] a burger, eat a burger," McNeil said.Inside the Golden Door spa.Thomas Pallini/InsiderFrey and McNeil worked in tandem during our visit, complementing each other's actions as they moved around the kitchen, resulting in beautifully plated dishes that tasted as wonderful as they looked.Inside the Golden Door spa.Thomas Pallini/InsiderThe challenge for both chefs is making sure that the items look and taste the same at 35,000 feet as do on the ground in San Marcos.Inside the Golden Door spa.Thomas Pallini/Insider"The only thing I did keep in mind was just in the challenges of [airline] catering versus [at the Golden Door]," Frey said. Airline food is cooked to a certain point prior to a flight and then finished off on the airplane, spending time in cold storage in between.Inside the Golden Door spa.Thomas Pallini/InsiderIf Frey gets it right, Singapore Airlines might find itself with a similar return rate to that of the Golden Door. "65% of the clients that come once here come back another 10 times in their life," Frey said. "I see most people at least once more."Inside the Golden Door spa.Thomas Pallini/InsiderInsider had the opportunity to try some of the menu items and found each was bursting with flavor and perfect for in-flight cuisine.Inside the Golden Door spa.Thomas Pallini/InsiderThe new Singapore Airlines and Golden Door collaboration will take flight in January 2022 on the Singapore-Los Angeles route before being expanded to San Francisco and New York flights.Inside the Golden Door spa.Thomas Pallini/InsiderRead the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 24th, 2021

I flew Delta as an elite status holder and saw how difficult it is to get coveted first class upgrades as travel returns

Upgrades that were once incredibly common for even the lowliest of elite frequent flyers are now harder to attain. But elite status still has its perks. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider More travelers have been returning to the skies amid the vaccine rollout and returning to work. Travelers with airline elite status, as a result, are starting to see their top perk of complimentary first class upgrades becoming less attainable. Elite status still has perks like complimentary checked baggage and priority access to check-in lanes and while boarding. There's often no better way to travel than in first class, and the only thing better than flying in first class is not having to pay for it. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider Complimentary upgrades to first class are a perk of having elite frequent flyer status with an airline. Just one upgrade can increase the value of a ticket by more than double the original purchase price. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider As a Silver Medallion status holder with Delta Air Lines, I've had luck earning in scoring free upgrades to premium cabins during the pandemic. A trip I took on Delta in February yielded more than $800 in upgrades while a trip in May yielded more than $500. Flying Delta One on a Delta Air Lines Boeing 767-400. Thomas Pallini/Insider Here's how I've managed to score hundreds of dollars worth of first class upgrades during the pandemic.  But as more travelers return to the skies for business and leisure, first class cabins are filling up and complimentary upgrades are becoming harder and harder to come by. Some airlines are also dropping prices on paid upgrades to first class to entice economy class flyers to make the jump. A first class seat on a Delta Air Lines Boeing 757-200. Thomas Pallini/Business Insider With summer over and Americans more at ease with flying, I wanted to see how hard it was to land a coveted first class upgrade on a recent trip. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider I booked Delta on a recent flight from New York to Mexico City, Mexico to see how I'd fare as an elite status holder. Here's what I found. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider One thing I've learned when booking flights with the hope of getting an upgrade is that it helps to be strategic. When searching flights to Mexico City, for example, I opted for a flight on a wide-body aircraft as those aircraft often have a great number of first class seats than single-aisle aircraft. Flying Delta One on a Delta Air Lines Boeing 767-400. Thomas Pallini/Insider I booked Delta's Boeing 767-300ER aircraft for the five-hour flight to Mexico's capital. That aircraft has a total of 26 first class seats available and 12 were open at the time I booked, just three weeks before the flight. A Delta Air Lines Boeing 767. Nicolas Economou/NurPhoto/Getty Delta clearly wasn't having an easy time selling first class seats given the fact that so many seats were open and an upgrade from economy class was only selling for $138.68. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider Part of me was tempted to just pay the upgrade fee and guarantee a first class seat. But I wanted to leave it to chance, even if it meant risking a long flight in economy class. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider My chances of securing an upgrade seemed great but then the number of open seats started to dwindle as the flight's departure approached. The 12 seats went down to eight the week before the flight, and then eventually to three the day before the flight. Flying Delta Air Lines from New York to Mexico City. Thomas Pallini/Insider As a Silver Medallion, my upgrade would be processed no sooner than 24 hours before departure. And there's no telling how soon before the flight it would clear. So I headed to the airport with no upgrade. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider My hope started to fade as I fell further and further down the upgrade list. It was par for the course as I held the lowest tier of frequent flyer status and only booked the flight three weeks prior. Flying Delta Air Lines from New York to Mexico City. Thomas Pallini/Insider I eventually settled to the ninth spot on the upgrade list and it was becoming certain that I wouldn't be in first class on this flight. I was, however, first in line for an upgrade to Delta's Comfort+ cabin which features extra legroom seats. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider Delta was also selling an upgrade to those seats, but for far cheaper. Flying Delta Air Lines from New York to Mexico City. Thomas Pallini/Insider And while I'd normally take a seat in Comfort+ without issue, the only availability was for aisle and middle seats. I preferred to sit in a window seat for the long flight so I opted against the upgrade. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider It was becoming clear that I would go without any upgrade on this flight. And that was fine with me as I'm no stranger to economy class and preferred a window seat over an upgrade. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider But having elite status isn't just about upgrades. At check-in, for example, I was able to use the exclusive Sky Priority check-in area and didn't have to wait too long in line to get a boarding pass. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider Just that perk alone made having the elite status worthwhile since it saved me at least 15 minutes of standing in line, from my estimation. After that, Mexico was just a flight away. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider I scanned my boarding pass, however, and was given a slip of paper with a new seat assignment in the Comfort+ cabin. The downside was that it was for an aisle seat. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider I didn't get to ask the gate agent why I was given the aisle seat when I opted against it but I wasn't all too happy with the upgrade. As ungrateful as it may sound, I truly valued the window seat more over the upgrade. Flying Delta Air Lines from New York to Mexico City. Thomas Pallini/Insider My new seat for the flight was 14F, an aisle seat on the far side of the cabin. At the very least, I wouldn't be on the side of the aircraft that the sun was going to hit on the way down to Mexico. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider The seat had all the standard economy class amenities but did offer 35 inches of legroom, between two to three inches more than in regular economy. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider Source: SeatGuru I sat down and got comfortable for the long flight ahead. The seat also offered a decent-sized in-flight entertainment screen, USB charging port, and 110v AC power outlet. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider And to my luck, the window seat never filled up. I quickly moved over to occupy it once the boarding door closed. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider The flight was delayed by around a half-hour due to maintenance troubles on the aircraft. But we were soon on our way and bound for Mexico. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider The in-flight service began shortly after takeoff with the beverage offering. Alcohol is complimentary for Comfort+ passengers but I went with soda water as it was much too early to begin drinking. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider Next came the snack service, which consisted of a snack basket being passed around with more premium offerings than what is served in regular economy class. Selections included chocolate chip cookies, potato chips, Kind bars, Biscoff cookies, and more. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider This was the first time during the pandemic that I got to pick from a snack basket that was being passed around. Snacks are very clearly back on Delta. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider I was surprised, though, when flight attendants said that this would be the first and last time that snacks would be distributed, and I made sure to grab extras on their advice. I know Mexico isn't classified as a true international destination when it comes to the in-flight service but it was still a five-hour flight. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider And it didn't seem like I was missing too much in first class. Cold boxed lunches were served and they didn't seem overly appealing. Flying first class on a Delta Air Lines Boeing 737-800. Thomas Pallini/Insider With the in-flight service out of the way, I turned to my laptop to help pass the time. The extra legroom offered by the Comfort+ seat made working on the computer far easier than a standard economy seat. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider The rest of the flight continued uneventfully as we made our way across the Southeast and over the Gulf of Mexico. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider A second drink service began around an hour before landing, and it was late enough in the day where I felt comfortable imbibing. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider I choose a Miller Lite from Delta's beer selection that also included Heineken, SweetWater 420, and SweetWater IPA. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider The descent into Mexico City was perhaps one of the most enjoyable of my flying career. This was my first time landing in Mexico City and I couldn't believe how expansive and colorful the city was while surrounded by mountains. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider Touchdown at Mexico City International Airport marked the end of the flight and it was a great experience. The small touches of Comfort+ made for an enjoyable flight down without costing a penny extra. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider I said goodbye to my Comfort+ seat and headed off of the plane. The total value of my $376.20 ticket was $402. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider Looking back, I should have purchased the upgrade for the bargain price of $138.68. But first class upgrades will truly be worthwhile once Delta restores hot meals to the cabin. Flying Delta Air Lines from New York to Mexico City, Mexico. Thomas Pallini/Insider This was my sixth Delta flight of September and I did manage to score upgrades on two flights between Seattle and Fairbanks, Alaska. But other flights I took elsewhere in the Delta network similarly yielded poor upgrade results. Flying first class on a Delta Air Lines Boeing 737-800. Thomas Pallini/Insider So while flying Delta might not yield a first class upgrade every time, there's still additional value for an elite status holder. Flying first class on a Delta Air Lines Boeing 737-800. Thomas Pallini/Insider Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 23rd, 2021

Some airline pilots carry plane trading cards — here"s how to get one

A viral TikTok introduced many travelers to Delta's trading cards. Here's where you get them and what they look like. Delta Air Lines pilots have aircraft trading cards to hand out to passengers who ask.Taylor Rains/Business InsiderMany people have learned through viral social media posts that Delta Air Lines and Frontier Airlines' aircraft trading cards.Delta told Business Insider the program was created to share a passion for aviation with customers.Wider knowledge of the program could cause issues for flight crew.Many people are finding out about aircraft trading cards from viral social media posts, but some enthusiasts have collected them for years.A viral TikTok from Monday showed a man securing his first trading card from a Delta Air Lines pilot, and many of the 14.5 million viewers were surprised to learn of their existence. @sarowarrr Got my first trading card!!! Ask your pilot for one before or after your flight! #delta #tradingcards #collectibles ♬ original sound - SAROWAR A Delta spokesperson told Business Insider that the trading cards are exclusive to its pilots and are a way for them to inspire a passion for aviation and loyalty to the airline.Delta has created six total trading card collections since the program started over 20 years ago with each featuring a different aircraft in the company's fleet corresponding to the type of plane each pilot flies, the spokesperson said.The generations of Delta's trading cards date back over 20 years. The sets include planes Delta no longer flies, like the MD-90 and the Boeing 747.Courtesy of Delta Air LinesThe cards are redesigned every five years to give them a refreshed look, a spokesperson told BI. The pilot group even voted on the current collection's final look, which went live with 11 unique cards in October 2022.The back of a Delta E175 trading card.Taylor Rains/Business InsiderThe cards handed out to intrigued children for free are worth some money, with individual cards selling on Ebay for varying amounts.If you're looking to begin collecting these unique cards, all you have to do is ask the pilot next time you're boarding a Delta flight. The card you receive should have fun facts about the aircraft model you're taking to your destination."When they're not busy preparing for flight or flying our customers to their next adventure, our pilots carrying these fan-favorite cards are more than happy to hand one out to any customer that asks nicely; as they look to add to, or begin, their newest favorite collection," a Delta spokesperson told BI.Given the recent spike in popularity of the cards, passengers should remember to give grace to pilots who may have run out and be sure not to distract the crew while they're performing their flight duties.Frontier has its own trading cards and wants you to "collect them all"Frontier's trading cards feature facts about animals and the aircraft they're depicted on. Pictured is an example of a standard card.FrontierFrontier Airlines passengers can also join in on collecting trading cards. Frontier flyers can ask the crew for a card featuring the animal displayed on the tail of the aircraft.Although not all aircraft in its fleet have a trading card, there are standard cards and endangered species cards, a Frontier spokesperson told Business Insider."You can tell the difference by the artwork, and the endangered ones are true baseball card size," the spokesperson said.The animals even have names like, "Virginia the wolf" and "Grizwala the bear". Passengers are encouraged to "collect them all"."They were brought back about 7 years ago," a spokesperson told BI. "Trading cards are a great way for us to inform the public about our brand and communicate about our animals in a fun way that kids (and adults too) would enjoy."An example of Frontier's endangered species trading card.Frontier AirlinesBI also reached out to JetBlue Airways, United Airlines, Spirit Airlines, American Airlines, and Southwest Airlines, for details about the trading cards, but the latter two airlines didn't immediately respond.JetBlue confirmed to BI that they no longer offer trading cards today, but the airline released a set of 15 different aircraft cards in 2011.United also released a limited-edition trading card set in June 2023 to celebrate its 100th Instagram follower. One hundred packs were given away."Our pilots don't carry trading cards on hand," a United spokesperson told BI. "They do, however, usually carry plastic wings or collectible 'challenge' coins to give out on special circumstances."Spirit has a set of digital trading cards "that show off our fleet" which are viewable on social media.Read the original article on Business Insider.....»»

Category: personnelSource: nyt17 hr. 13 min. ago

Flight attendants "hot bed" to deal with sporadic shifts – but an insider says the practice is in a legal gray zone

A flight attendant says airline crew can elect to rent a bed at "crash pads," which are similar to a "sorority house" and not always the cleanest. Flight attendants often stay at "crash pads" to handle sporadic work schedules.Johner Images/Getty ImagesFlight attendants sometimes stay in temporary housing called "crash pads."An airline worker says crew can "hot bed" at a crash pad if they bring their own bedding with them.While common across the aviation industry, the practice is in a legal gray zone, the insider said.For those not in the aviation industry, it might be easy to assume the life of a flight attendant is glamorous with constant travel.But when it comes to housing, that isn't always the case, according to Lea, an American Airlines flight attendant who goes by @flightattendantbaelee on TikTok and Instagram. Lea, 28, would not disclose her last name for privacy reasons, but Business Insider has verified her employment.At the start of their careers, Lea said flight attendants are typically kept on "reserve," meaning they have little say over their schedule."You don't know what you're working, where you're going on the days that you work, you just know that you're on call that day," she said.In Lea's six years of working in the aviation industry, she said she's rarely come across early-career flight attendants who live close to the base they get assigned to after training. More often than not, they commute from other cities or even other states, she said."There are people that live in Puerto Rico or Hawaii, that come all the way to DC, New York, wherever," she said.When you are on reserve and get called in to work a flight, the airline typically gives flight attendants two to three hours to get to the airport.For that reason, flight attendants on reserve sometimes resort to staying in shared housing, commonly known as a "crash pad."Lea is a flight attendant at American Airlines.@flightattendantbaelee/TikTokDepending on the city, crash pads are houses or apartments that are usually owned by flight attendants, pilots, or former airline crew.Shared rooms and bunk beds are common, Lea — who has stayed in several crash pads before — added."It reminds me of like a sorority house," she said. People find crash pads through word of mouth or on social media pages, Lea added.What's more, flight attendants have two options to choose from within the crash pad: a "hot bed" or "cold bed."Hot bedding requires flight attendants to take whatever bed is available at that time, and there's not always a guarantee one will be free, she said."It's very temporary," Lea said. "You bring your own linens, you take them off when you leave."The other option is cold bedding where a flight attendant can rent a specific bed on a more permanent basis. They also don't take turns using it with anyone else.Renting a cold bed can cost between $260 to $700 while hot bedding is much cheaper — typically half the price, according to Lea.Crash pads aren't always clean — or legalAccording to Lea, the cleanliness of crash pads and the different bedding options they offer can vary wildly."I've had all kinds of experiences," she said. For example, the first crash pad she stayed in "smelled like dog" because there were also eight French Bulldogs living there.Besides a lot of dog hair, Lea said the home was otherwise decently clean.But Lea said there are no guarantees when it comes to how clean a crash pad is."What you get is always a mystery," she said. "It depends on the people that are occupying the space and the person that runs the crash pad."Besides cleanliness, Lea said that crash pads and hot- and cold-bed systems wade into murky legal territory.Crash pads can feature bunk beds.Amelia Hanron/Getty Images"That's a huge thing that people don't realize," she said, adding that the number of airline crew occupying crash pads could be considered dangerous."Even in your regular house that you live in, you can't legally have 15 people living in a three-bedroom home. It's a fire hazard," she said.It is possible for crash pads to be shut down, particularly in New York City, where most airlines have a base, she added."The issue is if that crash pad ever gets shut down and you're on a trip, your stuff will just be on the sidewalk," she said. In some cases, crash pad owners will take special measures to avoid being discovered, she added.At a crash pad in NYC Lea used to rent, she said the owner discouraged flight attendants lingering outside of the apartment while waiting for taxis or ordering packages to the apartment to avoid unwanted attention that could lead to it being shut down.That said, Lea's rarely heard of a crash pad being shut down from her experience, it mostly has happened when a flight attendant reports the crash pad to authorities themselves."It's like a petty revenge type of thing," Lea said. "You typically see that it's like the crash pad owner sucks or something, and someone feels the crash pad owner wronged them."Outside of crash pads run by current or former airline crewmembers, flight attendants also have the option to rent beds with officially registered companies like The Hotel Crash Pad Network, which offers shared living spaces in several states. The company has a variety of subscription options and advertises different accommodations, depending on location and membership type, in the range of $60 to $475.Cierra, a flight attendant who spoke to Business Insider's Monica Humphries about what it's like to stay at The Hotel Crash Pad Network in New York City back in 2021 said there were some downsides, including dealing with people snoring and noises from late-night partying.But she maintained she still enjoyed the experience overall, which cost her $350 a month at the time."I can come into this hotel and it feels like a family," Cierra said. "It really is like the 'Suite Life of Zach and Cody.' I love being here."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 27th, 2023

Emirates is spending over $1 billion to continue flying its A380s, a mammoth jet famous for its onboard shower and bar. See inside the superjumbo.

Emirates will fly the Airbus A380 for decades to come and lucky passengers will get to experience the epitome of luxury travel while onboard. Emirates A380.Emirates Emirates is upgrading 67 of its Airbus A380s with cabin enhancements and the addition of a premium economy product.  The new cabin launched on Emirates' A380s in August 2022 and debuted in the US in May 2023. Emirates is the first Middle Eastern mega carrier to introduce a premium economy cabin.  Emirates is giving the world's largest passenger jet a new lease on life.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderAirlines have been torn about what to do with the Airbus A380 as the COVID-19 pandemic and a shift towards sustainability in the sky has forever changed how people travel.Emirates Airbus A380kamilpetran/ShutterstockWhile some airlines, like Air France, Malaysia Airlines, and Thai Airways, have opted to retire the A380...AirbusLufthansa is bringing back its beloved A380 jet next year, reversing a pandemic-era decision. Here are the airlines that have resumed flying the plane since 2020.…others, like Emirates, Lufthansa, and Qantas, have decided to embrace it.Lufthansa's Airbus A380.Lufthansa.Lufthansa is bringing its Airbus A380 super-jumbos out of retirement as travel demand soars. Take a look inside.As the world's largest operator of the A380, Emirates has unsurprisingly held onto the aircraft and plans to fly its fleet of 123 superjumbos for years to come.Emirates took delivery of the last-ever A380 in November 2021.Airbus - Bockfilm / Michael LindnerAirbus delivered the final Airbus A380 ever to be built just as airlines learn to love the world's largest passenger jet againTo further cement its commitment to the A380, Emirates announced at the Dubai Airshow in mid-November a series of investments worth over $1 billion that will keep the quad-jets flying for years to come.Emirates Airbus A380Emirates"The A380 will remain core to our network and customer proposition for the next decade, and we want to ensure our fleet is in tip-top shape," Emirates president Sir Tim Clark said in a press release.Emirates A380.EmiratesSource: EmiratesThis is the latest example of Emirates' loyalty to the A380.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderIn 2020, the airline announced a new premium economy class product for the mammoth double-deckers to make long journeys more comfortable.An Emirates Airbus A380.Arnold Aaron/Shutterstock.comEmirates is also upgrading its first class product with larger doors that fully enclose the suites, offering more privacy. The cabin has also been refreshed with new colors and finishes, as has its business class.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderSo far, the carrier has upgraded many of its A380s with premium economy, initially deploying them on routes between its home base of Dubai and London, Paris, and Sydney, Australia.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderSource: EmiratesDue to customer feedback that had been "overwhelmingly positive with demand exceeding expectations," Emirates introduced its enhanced A380 cabin to even more markets, including the US.An Emirates Airbus A380 and an American Airlines A321.Philip Pilosian / Shutterstock.comSource: EmiratesThe first premium economy-equipped Emirates A380 touched down in the US on May 1, trekking from Dubai to New York's John F. Kennedy International Airport.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderSource: EmiratesWith 16 A380s now fully refurbished and back in service, here's what customers can expect in Emirates' new premium economy and upgraded first and business class cabins.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderThe first thing that passengers boarding on the lower deck of the A380 will encounter is the Emirates' first-ever premium economy cabin.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderEmirates is also the first of the Middle Eastern mega carriers to include a premium economy cabin on any aircraft.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderA total of 56 premium economy seats replace the 88 economy seats that formerly occupied the space.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderThe 2-4-2 configuration of the cabin is typical for wide-body aircraft such as the A380.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderNoticeably larger than economy class seats, premium economy seats offer up to 40 inches of legroom and 19.5 inches of width.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderThe cream-colored seats feature anti-stain leather with stitching and wood panel finishing comparable to those found upstairs in business class. Premium economy class, after all, is a compromise between economy class and business class.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderPaired seats along the cabin wall are ideal for couples traveling together and those who prefer the window seat.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderSeats in the center aisle, alternatively, are better suited for larger groups of travelers.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderEach seat offers standard amenities including a 110v AC power outlet, USB charging port, coat hook, and drink counter.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderIn-flight entertainment in the cabin is provided through seat-back entertainment screens measuring 13.3 inches. Emirates' ICE system offers movies, music, television shows, games, moving maps, and even the ability to view the aircraft's external cameras.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderPremium economy seats offer a deeper recline than economy class seats, with footrests and calf rests available for additional comfort.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderEach seat also comes standard with a six-way adjustable headrest and an oversize pillow, and flight attendants distribute blanket kits on long-haul flights.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderAdditional storage compartments can also be found at each seat to hold items including small devices, water bottles, and amenity kits.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/Insider"Our Premium Economy product was carefully developed in keeping with Emirates' brand positioning as a full-service airline of the highest quality," Tim Clark, president of Emirates, said in a statement.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderAnd looking over the cabin is the ghaf tree, the national tree of the UAE.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderMoving back in the aircraft, economy class takes up the rest of the lower deck with 338 seats in total.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderSeats are configured in the standard 10-abreast layout in a 3-4-3 configuration. But the A380 is so massive that there are still gaps between the window seats and the sidewalls.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderNew "ergonomically designed" seats have been installed that include adjustable leather headrests.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderWhile nearly identical at first glance, the new seats are noticeably less cluttered than their predecessors.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderTray tables are solid pieces and are not built with attached cupholders, as is the case with previous-generation seats.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderIn-flight entertainment screens, however, remain the same size at 13.3 inches.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderEmirates' A380 economy seats typically feature 32 inches of pitch and 18 inches of width.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderWood finishing can still be found surrounding the windows but the cabin design has generally remained the same.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderThe one exception is that ghaf trees now similarly watch over the economy class cabin.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderA half spiral staircase at the back of the plane leads to the upper deck of the aircraft, which is off-limits to those seated in the premium economy class and economy class cabins on the lower deck. It too features a ghaf tree design.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderBusiness class still takes up the majority of the upper deck with 76 seats in total.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderA 1-2-1 seat configuration offers each passenger direct aisle access.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderAll seats have been reupholstered in champagne-colored leather covers accompanied by wood finishing on the hard surfaces.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderWood paneling covers the countertops at each seat as well as portions of the sidewall.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderSome seats are more private than others, namely the true window seats away from the aisle.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderCenter-aisle seats are ideal for couples or travel companions looking to stay close to each other. Known as honeymoon seats, only a few inches separate the two.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderBut a partition can be raised if the person in the adjacent seat is a stranger.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderOther center-aisle seats, however, are located closer to the aisle for additional separation if traveling alone.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderStandard seat amenities in business class include a 110v AC power outlet, USB charging port, adjustable headrest, personal reading lamp, personal mini bar, and an entertainment tablet in addition to a 23-inch in-flight entertainment screen.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderThe personal mini bar is a rare amenity for business class and Emirates stocks still and sparkling water, as well as a plastic cup.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderA blanket and oversized pillow are also placed at each seat for when it's time to rest as seats have fully flat capabilities.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderJust ahead of business class is the most luxurious cabin on the aircraft — first class.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderA total of 14 first class suites offer one of the most comfortable and expensive experiences in the sky, made even better by the new enhancements.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderThe upgraded first class suites are wider with taller doors that offer additional privacy. Flyers can retreat into the cabin and feel like they are the only passengers onboard the aircraft thanks to closeable doors.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderAwaiting passengers inside the suite is an oversized recliner chair opposite a massive 32-inch entertainment screen.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderAn assortment of snacks and cold drinks, including Evian water and Perrier sparkling water, can also be found in the suite as well as fresh flowers.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderButtons throughout the suite control its functionality, including opening and closing the doors as well as seat recline.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderHidden compartments hide luxurious amenities including Byredo toiletries. Travelers also receive an amenity kit containing Bulgari products.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderCaviar and fine champagne continue to be served in Emirates' first class cabin with high ticket prices to match the luxurious experience.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderOne flight attendant told Business Insider at the Dubai Airshow in 2021 that a first class ticket from New York to Dubai is "the price of a small car."Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderWhen it's time to sleep, travelers can close their doors and recline their seats into a fully flat bed.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderAnd when it's time to refresh, the A380's famous "shower spas" are also receiving touch-ups of their own.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderThe same color palette has been extended into the private spas with ghaf trees replacing the mural of Dubai that previously lined the wall.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderFirst class travelers can reserve appointment slots to use the shower while inflight and typically have 15-20 minutes of hot water time.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderVoya products including shampoo, conditioner, body wash, and body moisturizer are available for passengers to use in the shower. Once they're finished, Bulgari cologne and perfume provide the finishing touch.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderBusiness and first class cabin passengers also have access to the redesigned bar at the back of the A380's upper deck. Another staple of the A380, the in-flight bar serves beer, wine, and cocktails as well as light fare.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderTravelers can retreat to the social area and enjoy their drinks in the newly installed seating areas, just as if in an upscale bar.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderEmirates isn't alone in offering the bar on its A380s but the setup is becoming a rarity as more airlines retire their double-decker aircraft.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderWith Emirates receiving its final A380 from Airbus in 2021, the planemaker has ended production of the aircraft.The final Airbus A380 bound for Emirates.Lutz Borck/AirbusAirbus just drew a heart in the sky with the last Airbus A380 ever to be built as the superjumbo jet era comes to a ceremonious endThe future of Emirates now lies with twin-engine aircraft including the Boeing 777X and Airbus A350 XWB. But even Clark admits that the A380's size allowed it to offer products that can't be directly matched on a smaller aircraft.The Boeing 777X at Dubai Airshow 2021.Thomas Pallini/InsiderSee inside Boeing's first-ever 777X aircraft testing tech like the jet's revolutionary folding wingtips"How could it be as good as the A380 on the upper deck, or as good as it is in economy with 10-abreast seating on the main deck," Clark said of the Boeing 777X in an interview with Business Insider.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderBut travelers will still be able to book for decades to come, and some may even be lucky enough to find one of the 67 aircraft in the new configuration.Emirates' refurbished Airbus A380 at Dubai Airshow 2021.Thomas Pallini/InsiderRead the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 24th, 2023

25 Easiest Islands To Get To In the Caribbean

In this article, we shall discuss the 25 easiest islands to get to in the Caribbean. To skip our detailed analysis of the global aviation and aerospace industry in 2024, go directly and see 10 Easiest Islands To Get To In the Caribbean. As per numerous accounts, the rebound of the global aviation industry post […] In this article, we shall discuss the 25 easiest islands to get to in the Caribbean. To skip our detailed analysis of the global aviation and aerospace industry in 2024, go directly and see 10 Easiest Islands To Get To In the Caribbean. As per numerous accounts, the rebound of the global aviation industry post the COVID-19 pandemic was not as impressive as was initially projected, with travelers complaining of exhaustive queues, delayed flights, and lost bags owing to severe labor shortages within the entire aviation ecosystem. As of November 2023 however, the aviation industry has regained much of its lost glory, with average operational profitability of the airline sector (EBIT) expected to recover to 2.8% by the end of the year, and net profits rising north of 1.2% to $9.8 billion. According to the International Air Transport Association (IATA), operating profits are expected to reach $22.4 billion by January 2024, with total revenues expected to grow 9.7% year-on-year to $803 billion as of November 2023. This is the first time that the industry will post revenues north of $800 billion since the offset of the pandemic. According to the Director General of the IATA Willie Walsh: “Airline financial performance in 2023 is beating expectations. Stronger profitability is supported by several positive developments. China lifted COVID-19 restrictions earlier in the year than anticipated. Cargo revenues remain above pre-pandemic levels even though volumes have not. And, on the cost side, there is some relief. Jet fuel prices, although still high, have moderated over the first half of the year. Economic uncertainties have not dampened the desire to travel, even as ticket prices absorbed elevated fuel costs. After deep COVID-19 losses, even a net profit margin of 1.2% is something to celebrate! But with airlines just making $2.25 per passenger on average, repairing damaged balance sheets and providing investors with sustainable returns on their capital will continue to be a challenge for many airlines.” Global Aviation in 2024: Challenges and Trends Before the onset of the pandemic in 2019, the aviation value chain tended to generate an annual financial loss of more than $5 billion between 2012 to 2019, according to McKinsey. This was primarily due to the fact that airlines were considered to be the weakest link in the aviation value chain, consistently leaking losses of more than $18 billion annually on average. The sub-par performance of airlines was usually attributed to certain entrenched challenges like low entry barriers, high exit barriers, sensitivity to external turbulence, the fragmented outlook of the industry at large, and an incredibly concentrated supplier terrain. This complicated atmosphere led to an uneven distribution of profits across the value chain, even with respect to some of the easiest islands to get to in the Caribbean.  These losses only exacerbated during the lockdowns of 2020 and 2021, as airlines lost more than $279 billion in two years of global lockdowns and flight suspensions. However, the industry was kept afloat by the air cargo segment where supply-demand imbalances directly led to unprecedented value creation. Some of the most prominent players in the aviation industry are American Airlines Group Inc. (NASDAQ:AAL), The Boeing Company (NYSE:BA), and Honeywell International Inc. (NYSE:HON). To read more on the aviation industry, check out our coverage of the 15 Most Luxurious Airlines in the World. According to Forbes, there are certain key trends which are likely to drive the continued rebound of the global aviation industry in 2024, the first being the facilitation of frictionless travel through the integration and implementation of biometric mechanisms. Some of the top players within the industry have ramped up investments in fingerprint and facial recognition technology, with much of it being tested in areas such as check-in, security lounge access, and boarding. According to multiple Reddit threads, exhaustive queues for security checks or at the baggage carousel continue to be one of the most popularly cited pain points for travelers. Furthermore, the frequent need to produce passports, identification documents, and boarding passes multiple times during the process is a further addition to the frustrations of the passengers. Hence, aviation companies are increasingly opting for biometric solutions to address these issues and streamline processes for an optimized travel experience. As of November 2023, the TSA has already unveiled plans to install fingerprint identification mechanisms across thirty airports in the United States to better facilitate passengers. In many of the easiest islands to get to in the Caribbean, similar actions have taken place to better facilitate passengers for a seamless travel experience. Additionally, top aviation companies like American Airlines Group Inc. (NASDAQ:AAL), The Boeing Company (NYSE:BA), and Honeywell International Inc. (NYSE:HON) are increasing investments in the development of gen AI to humanize and customize experiences for travelers, especially in some of the easiest islands to get to in the Caribbean. The market for artificial intelligence within the aviation industry is expected to be valued at $2.2 billion by 2025. Although different use cases for AI integration into the aviation space are still taking shape, one of the most obvious uses for AI is with chatbots. The resultant sophistication boost for chatbots can aid in resolving consumer queries much more efficiently. Companies can also make use of advanced AI to timestamp much of the hardware that goes into the plane. This can result in enhanced safety, more effective inspections, optimized inventories, and an improved operational efficiency. This is likely to be complemented by another prevalent trend which is the increased integration of advance robotics in the aviation industry. Automation of workflows is a great antidote to the labor pool shortages currently afflicting the aviation sector post the pandemic. Robotics and automation can also aid in the streamlining of operational processes.  Improving Airline Retailing: An Analysis According to a report by McKinsey, airline retailing could value up to $40 billion by 2030. Since payments make for an important link between the consumer and the airline, they constitute an indispensable component of retailing. The report outlines that each year, more than 3 billion airline booking payment transactions are conducted across the world, generating more than $1 trillion. And despite the fact that these transactions make up for important value creation, they also result in more than $20 billion in payment costs which accounts for nearly three percent of the industry’s cumulative revenue. Much of this can be attributed to the increased use of credit cards by consumers, especially in many of the easiest islands to get to in the Caribbean. Different intermediaries consisting of booking platforms and digital travel agencies have realized that payments present enormous potential for differentiation, with larger players like American Airlines Group Inc. (NASDAQ:AAL), The Boeing Company (NYSE:BA), and Honeywell International Inc. (NYSE:HON) ramping up investments in fintech solutions in order to streamline the end-to-end payment trajectory. As airlines rise to the value in airline retailing, they have begun to make a strategic retreat to improve payments in order to restrict disintermediation. Experts within the aviation industry have realized that retailing may lead to a $14 billion opportunity through the strategic management of payments. Moreover, an additional $2 billion in value rests upon the timely reduction of payment cost, especially for B2B transactions and corporate sales. In the face of shifting consumer expectations, the popularity of credit cards, the emergence of innovative point-of-sale devices, governmental support and incentivization, and evolution of the payment value chain, companies have begun to unlock unprecedented revenue opportunities in many of the easiest islands to get to in the Caribbean. To read more on trends affecting the aviation industry in 2024, check out our article on the 20 Most Popular Airlines in the World. Pixabay/Public Domain Our Methodology To compile our list of the 25 easiest islands to get to in the Caribbean, we decided to undertake a consensus-based approach using a diverse variety of credible sources to determine some of the most popular tourist destinations in the Caribbean (1, 2, 3, 4, 5, 6). Out of the 700 islands located in the Caribbean, we used our consensus-based approach to shortlist 100 islands which appeared most frequently during our research as the most visited locations in the region. Since accessibility is incredibly multifaceted and complex to quantify, we established a three-pronged criteria to measure the accessibility of each island; the criteria is premised on the flight availability at each island (20 points), flight frequency to and from each island (15 points), and airport infrastructure at each island (10 points). For flight-related information, we used data from a variety of different sources (1, 2, 3, 4). We then proceeded to award each island a cumulative score according to the aforementioned criteria and selected 25 islands which scored the highest points. Subsequently, we ranked each entry based on the total points scored, from lowest to highest. Where there was a tie, we broke it based on flight availability at each island. Many of the locations which appear in our list of the easiest islands to get to in the Caribbean also featured during our coverage of the 15 Best Places to Retire in the Caribbean.  25 Easiest Islands To Get To In the Caribbean 25. Curaçao Total Score: 12 Curaçao is a popular destination for divers. In addition to that, it is home to various attractions including the inlet Kenepa Beach and Curaçao Underwater Marine Park. Curaçao has one international airport, which has direct flights to a total of 24 destinations in 14 different countries.  24. Martinique Total Score: 13 Martinique is known to be a combination of French and West Indian culture and traditions. It has a total of 83 attractions, including various black sand beaches. The airport in Martinique is known to have an ideal location and a seamless aviation infrastructure that encourages tourists to visit the island, making Martinique one of the easiest islands to get to in the Caribbean.  23. Trinidad and Tobago  Total Score: 13 Trinidad and Tobago is home to around 107 attractions and activities, including wildlife reserves and horseback riding. The major mode of public transportation in Trinidad and Tobago is the bus system, which allows the tourists to travel to their desired destination conveniently. 22. Montserrat Total Score: 14 Montserrat is one of the most affordable islands in the Caribbean. It offers a multitude of attractions and activities to visitors, including numerous active volcanoes and beaches. There are multiple flights that operate regularly to and from the airport, making it easy for tourists to visit the island. 21. Guadeloupe Total Score: 16 Botanical gardens of Deshaies and the coral reefs of Pointes des Chateaux are some of the main tourist attractions in Guadeloupe. The international airport in Guadeloupe is known for its extensive and modern infrastructure, which successfully facilitates its tourists, making Guadeloupe one of the easiest islands to get to in the Caribbean.  20. Anguilla  Total Score: 16 With 24 tourist attractions, Anguilla welcomed more than 72,000 tourists in 2022. One of its most popular sites is the Shoal Bay. The transportation infrastructure in Anguilla includes taxis and rental cars, which makes it convenient for tourists to travel to and from the airport. 19. Grenada  Total Score: 18 Grenada has a total of three airports, one of which is an international airport. The Maurice Bishop International Airport offers direct flights to and from the island from major airlines including Delta, Air Canada, and British Airways. 18. Dominican Republic  Total Score: 20 Being a few hours away from New York City, the Dominican Republic is one of the most accessible and affordable islands in the Caribbean. The island is known to have large and well-built airports. One of the airports, the Punta Cana International Airport, includes seven boarding gates and seven air bridges, making the Dominican Republic one of the easiest islands to get to in the Caribbean.  17. Haiti  Total Score: 22 Haiti is one of the most prominent Caribbean islands in the world, primarily because of its various historic and scenic attractions. Haiti has two main international airports and welcomes direct flights from many airlines including JetBlue, Air Canada, and Air France.  16. Bermuda   Total Score: 25 Bermuda offers various attractions to its tourists, including the Crystal and Fantasy Caves, Gibb’s Hill Lighthouse, and Royal Naval Dockyard. The transportation infrastructure in Bermuda is extremely efficient as it offers its visitors public buses and taxis to and from the airport. 15. Puerto Rico  Total Score: 26 Puerto Rico is one of the easiest islands to get to in the Caribbean. The island is home to 348 attractions including the Spanish colonial district and rainforests’ ziplining parks. Luis Munoz Marin International Airport is the largest airport on the island and facilitates more than 21,000 passengers in and out of the island per day.  14. Cuba  Total Score: 28 With 259 tourist attractions, Cuba is one of the top destinations in the Caribbean. The island is well-known for its scenery, rich culture, and vibrant nightlife. The public transport system in Cuba includes bici-taxis and rental cars, making it convenient for tourists to travel to and from the airport. 13. St. Martin Total Score: 29 The culture in St. Martin is a combination of French and Dutch traditions, which allows tourists to experience diversity. St. Martin has a total of two airports, one of which is called the Princess Juliana International Airport. The international airport receives multiple direct flights from different parts of the world.  12. Antigua and Barbuda  Total Score: 31 The Stingray City, Valley Church Beach, and Galley Bay Beach are just some of the tourist attractions in Antigua and Barbuda. The V.C. Bird International Airport in Antigua is one of the most well-equipped airports in the world, offering a variety of advantages to its visitors, including an executive lounge and a fast track service.  11. St. Kitts and Nevis  Total Score: 31 St. Kitts and Nevis are known as sister-islands and have a total of around 71 tourist attractions. One of the largest airports in the island is Robert L. Bradshaw International Airport, which welcomes numerous connecting and direct flights daily. St. Kitts and Nevis is number 11 on our list of the easiest islands to get to in the Caribbean.    Click here to continue reading and see 10 Easiest Islands To Get To In the Caribbean.   Suggested Articles: Top 20 Countries that Owe the US Money Warren Buffett and Jim Cramer Love These Stocks 20 Healthiest States in the US in 2023   Disclosure: None. 25 Easiest Islands To Get To In the Caribbean is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyNov 24th, 2023