CHICAGO, Jan. 20, 2021 /PRNewswire/ — United Airlines (NASDAQ: UAL) today announced fourth-quarter and full-year 2020 financial results. The company continues its efforts to lead the industry as it manages the most disruptive crisis in aviation history.
Since the beginning of the COVID-19 crisis, United has raised over $26 billion in liquidity and made important progress in reducing core cash burn (see detailed chart below) to ensure the company’s survival. Over the last three quarters, the company has identified $1.4 billion of annual cost savings and has a path to achieve at least $2.0 billion in structural reductions moving forward. United ended 2020 with $19.7 billion in available liquidity1, including an undrawn revolver capacity and funds available under the CARES Act loan program from the U.S. Treasury.
Having stabilized its financial foundation, the company expects 2021 to be a transition year that’s focused on preparing for a recovery. United has resumed heavy maintenance and engine overhauls, investments that are essential to recovery when demand returns. The combination of structural cost reduction and timely investments will help set up United to exceed its 2019 adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin in 2023. The company expressed high confidence that it would achieve this target by 2023 – and said its ongoing recovery planning would help ensure the company was equipped to reach this level even sooner, if demand returns more quickly.
“Aggressively managing the challenges of 2020 depended on our innovation and fast-paced decision making. But, the truth is that COVID-19 has changed United Airlines forever,” said United Airlines CEO Scott Kirby. “The passion, teamwork and perseverance that the United team showed in 2020 is exactly what will help us build a new United Airlines that’s better, stronger and more profitable than ever. I could not be prouder of – and more grateful to – this team, which is going to lead us there.”
Click the link below to see the full press release!
Garmin International Inc., a unit of Garmin Ltd. (NASDAQ: GRMN), today announced it has received a 2020 On-Time Delivery Award from Airbus Helicopters, Inc. for its efficient performance related to product delivery. Garmin avionics are available as standard on select Airbus Helicopters, including the H125, H130, H135 and H145.
Each year, Airbus Helicopters, Inc. recognizes suppliers who stand out in performance, competitiveness and reliability. This is the second year in a row Garmin has won the On-Time Delivery Award for commitment and timeliness in delivering avionics to fulfill Airbus Helicopters Inc. production lines and customer orders.
“We are once again very proud to be recognized by Airbus with this prestigious award for our commitment to serve them and our mutual customers with the on-time delivery of our products,” said Carl Wolf, Garmin vice president aviation sales and marketing. “To again receive this award is truly humbling and ultimately would not be possible without the dedication of our entire Garmin team, in addition to the gratifying strategic relationship with Airbus Helicopters.”
Garmin avionics are available as standard on the Airbus H125, including the G500H TXi flight display, GTN™ 650 touchscreen navigator, GNC 255 nav/comm, GMA™ 350c audio panel and the GTX™ 335R remote-mount ADS-B Out transponder. The GTN 750, GNC 255 and GTX 335R are also available as standard on the H130, while the H135/H145 feature the GTN 750 and Flight Stream 510 as standard equipment.
This marks the third consecutive year Garmin has received an award from Airbus Helicopters, Inc. In 2018, Garmin was also recognized by Airbus Helicopters, Inc. as the Supplier of Excellence for its unmatched responsiveness and competitiveness in its support of the UH-72A Lakota helicopter program, and for its overall support at the Airbus Helicopters Inc. final assembly and completion center in Columbus, Miss.
This week the U.S. Air Force awarded Boeing [NYSE: BA] a $1.7 billion contract for 12 KC-46A tanker aircraft. With this sixth production lot, Boeing is now on contract for 79 KC-46A tankers.
The company delivered the first KC-46A to the Air Force in January 2019. Since then, Boeing has delivered 42 tankers to four different bases. The next-generation KC-46 brings new capabilities and operational flexibility to the U.S. Air Force and international customers.
“The investments Boeing is making in the KC-46 today will benefit generations of service members,” said Jamie Burgess, Boeing KC-46 tanker vice president and program manager. “I believe the partnership between Boeing and the Air Force will also produce additional KC-46 innovations that will carry the warfighter well into the future.”
Boeing received its first two production lots from the U.S. Air Force, for seven and 12 aircraft, in August 2016. The third lot, for 15 aircraft, was awarded in January 2017; the fourth lot for 18 aircraft in September 2018 and the fifth lot for 15 aircraft in September 2019.
The KC-46A is a multirole tanker designed to refuel allied and coalition military aircraft compatible with international aerial refueling procedures. It’s also equipped to carry passengers, cargo and patients on any mission at any time.
Boeing is assembling KC-46A aircraft at its Everett, Wash. facility where it also continues production of the KC-46 tanker for Japan.
For more information on Defense, Space & Security, visit www.boeing.com
Saab has today received a follow on contract with the United Arab Emirates regarding the sale of two GlobalEye systems, Saab’s advanced airborne surveillance system. The order value is USD 1.018 billion and the contract period is 2020-2025.
The original contract with the United Arab Emirates for GlobalEye was signed in 2015. This contract is an amendment to that signed in 2015.
“We are proud that the United Arab Emirates continues to show great trust in Saab and our solutions. It shows that Saab remains on the cutting edge regarding advanced technology. The GlobalEye program is running according to plan and we have an efficient cooperation with the customer”, says Micael Johansson, President and CEO Saab.
The work will be carried out in Gothenburg, Linköping, Arboga, Järfälla and Luleå in Sweden and in Centurion, South Africa.
The contract was signed by the customer on the 30th of December 2020, hence the order was booked during the fourth quarter 2020.
GlobalEye provides simultaneous air, maritime and ground surveillance. It combines sophisticated radar technology with the ultra-long range Global 6000 aircraft from Bombardier.
Myanmar Airways International’s (MAI) first E190 commenced operations from Yangon yesterday, operating four flights throughout the day. In addition, MAI’s second E190 is due to arrive in the country on 23 December 2020 and the airline will expand its E190 routes to include nine destinations across the country, upgauging from the turboprops used by its sister airline Air KBZ.
MAI has also signed on for Embraer’s Pool Program – a program enrolled by all E-Jet operators in Asia Pacific. There are now four new E-Jet operators in Asia Pacific (ex. China) since the start of 2020.
“Our pilots, cabin crew, maintenance crew and our staff are proud to take MAI’s E190 to the skies and to serve our passengers with an enhanced flying experience,” said Saravanan Ramasamy, Chief Executive Officer of MAI. “We look forward to a productive partnership with Embraer. The operation of the E190 marks yet another important milestone in MAI’s fleet expansion strategy and domestic jet network growth. As the demand grows, we plan to scale up the frequency of our E190 operations to eight flights a day.”
“The commencement of Myanmar Airways International’s E190 flights will enhance connectivity in Myanmar,” said Raul Villaron, Asia Pacific Vice President for Embraer Commercial Aviation. “The airline will benefit from the performance and efficiency of the aircraft and generous cargo capacity. Passengers will appreciate the comfort in the cabin. Myanmar Airways International can operate with full confidence that our excellent service and support team are here to support them.”
In preparation for the E190 operations, eight MAI pilots underwent the month-long Initial Pilot Training in September 2020 in Zhuhai, China. Separately, Embraer conducted the license-engineer type course for MAI’s engineers. Embraer’s Pool Program, which MAI has enrolled in offers full repair coverage for components and parts, airframe maintenance, and unlimited access to a large stock of components at the company’s distribution centers. Operators benefit from significant savings on repair and inventory costs, reduction in required warehousing space and resources required for repair management, while ultimately providing guaranteed performance levels. Singapore is the base for Embraer’s warehouse in the Asia Pacific region.
Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers from all over the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,600 aircraft have been delivered. Today, E-Jets are flying in the fleet of more than 80 customers in some 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.
Boeing [NYSE: BA] and Alaska Airlines [NYSE: ALK] announced that the carrier is buying 23 more 737-9 airplanes, building on its original order and an agreement last month to acquire new 737-9s through lease. The new deal brings Alaska Airlines’ total 737 MAX orders and options to 120 airplanes, which will give the fifth largest U.S. carrier the scale, efficiency and flexibility to expand as air travel recovers.
“We are extremely proud to be announcing this transformative agreement with Boeing,” said Brad Tilden, CEO of Alaska Air Group. “We believe in this airplane, we believe in our strong partnership with Boeing, and we believe in the future of Alaska Airlines and the incredible opportunities ahead as we climb our way out of this pandemic.”
Alaska Airlines, a longtime Boeing 737 operator, placed an order for 32 737-9 jets in 2012 as part of its fleet modernization program. The 737-9 is a member of the 737 MAX family that is designed to offer more fuel efficiency, reliability and flexibility in the single-aisle airplane market. Last month, Alaska Airlines announced it is expanding its commitment to the 737 MAX program by leasing 13 new 737-9s while selling some A320 jets it had taken on through its acquisition of Virgin America.
The new agreement announced today will add 23 firm orders for the 737-9 and more options for future purchases. In all, Alaska will have 52 options which, if fully exercised, would take the carrier to as many as 120 737 MAX airplanes. The airline said the deal moves it toward a more efficient, all-Boeing mainline fleet that will “enhance the guest experience, improve operational performance and support the company’s growth.”
“We could not ask for a better partner than Boeing and we are delighted to be standing side by side with them as we work together to get our economy back on its feet,” said Tilden.
Alaska Airlines and Boeing leaders announced the agreement during a signing ceremony at Boeing’s delivery facility in Seattle, flanked by a new 737-9 that will be among the first such jets to be operated by Alaska Airlines. In observance of COVID-19 restrictions, both companies limited attendance at the event and addressed the pandemic that has severely affected air travel, expressing confidence in the fundamental strength of the industry and long-term passenger demand.
“Alaska Airlines has done a tremendous job of weathering the impacts from the COVID-19 pandemic, and is well positioned to return to its growth trajectory and strengthen its standing as one of the top U.S. airlines. With Alaska’s industry-leading reputation for safety, sustainability and customer service, we are honored they have chosen to invest in their future with a significant purchase of additional Boeing 737 airplanes,” said Stan Deal, president and CEO of Boeing Commercial Airplanes. “We are grateful for Alaska’s trust and partnership. Our team is focused on delivering their first 737 MAX jets and helping ensure a safe and seamless entry into service.”
Alaska Airlines says the 737 – equipped with new, more fuel-efficient engines and improved aerodynamics – will use 20% less fuel and reduce emissions by 20% per seat compared to airplanes it replaces. The airline will configure the jet with 178 seats in a three-class configuration. The plane can fly 3,550 nautical miles, about 600 miles more than its predecessor. This additional capability will allow airlines to offer new and more direct routes to passengers. Every airplane will feature the new Boeing Sky Interior, highlighted by modern sculpted sidewalls and window reveals, LED lighting that enhances the sense of spaciousness and larger pivoting overhead storage bins.
Learn more about Alaska’s confidence in the safety and certification of the MAX at alaskaair.com/737MAX.
Qantas has today announced a major expansion to its regional network, adding seven new routes across New South Wales, South Australia and Victoria, in response to customer demand.
The announcement means Qantas will be flying to five more destinations across Australia than it was pre-COVID (up from 57 to 62). The airline also today begins flying direct from Sydney to Merimbula on the New South Wales Sapphire Coast for the first time.
NEW ROUTES
Route
Start date
Frequency (return flights per week)
Sydney – Griffith
1 Feb 2021
Daily
Melbourne – Newcastle
1 Feb 2021
Twelve
Melbourne – Merimbula
1 Feb 2021
Four
Melbourne – Mount Gambier
28 March 2021
Five
Melbourne – Wagga Wagga
28 March 2021
Four
Melbourne – Albury
28 March 2021
Four
Adelaide – Mount Gambier
28 March 2021
Five
Qantas is offering special fares for flights on the new routes from $125 one-way, available at qantas.com or through Travel Agents, until 20 December 2020, unless sold out prior.
The flights will largely be operated by the airline’s 50-seat Q300 turboprop aircraft, with upgraded cabin interiors, adding more than 320,000 seats to these regional destinations each year.
Qantas has already introduced a number of initiatives to encourage customers to book with greater flexibility, as well as to improve safety and peace-of-mind when travelling domestically through its Fly Well program.
ADDITIONAL FLIGHTS
– Melbourne-Gold Coast weekly flights will double – from daily to twice daily – from April 2021 with the new schedule to cater for both corporate and leisure travellers.
– Sydney-Orange flights will increase from three days per week to daily from February 2021.
– Melbourne-Launceston flights will be upgraded from a Q400 aircraft to a larger Boeing 717, adding more than 400 seats on the route each week.
– A number of seasonal routes originally scheduled for the summer have been extended to operate year-round, including Perth-Hobart, Canberra-Hobart, Sydney-Merimbula and Brisbane-Port Macquarie.
QantasLink CEO John Gissing said these new routes were a great opportunity for travellers to explore the best of regional Australia.
“As the national carrier, we have an important role to play in driving tourism and supporting the industry’s recovery,” said Mr Gissing.
“Before COVID, more than 11 million Australians travelled overseas each year, so these flights will help convert some of these international trips into domestic holidays instead.
“We know there is significant pent up demand for travel. These new flights will help more Australians explore some of the incredible places in their own backyard and drive tourism, which is so vital to the local economies of regional areas.
“We’ll be promoting these new flights to millions of our frequent flyers across the country in the lead up to the flights commencing next year.
“We’re also pleased to be able to offer locals more choice and competitive fares on these routes, most of which have been monopolies for years.”
Since domestic border restrictions started to ease in July, Qantas has announced or commenced flying on 13 new routes across Australia. Today’s announcement brings that number to 20.
Qantas has been progressively “waking up” its domestic and regional aircraft to support this new flying, with the vast majority of the airline’s regional fleet expected to be operational by early 2021.
“All our aircraft carry fixed costs, regardless of whether they’re grounded or not. We’d rather get as many aircraft back in the air as we can because it’s better for our business, our customers and gets more of our people back to work,” added Mr Gissing.
Qantas flights continue to have complimentary baggage and food and drink included with every seat. The airline has now opened 30 of its 35 domestic and regional lounges across its network.
Today is the last day to register for Qantas’ Status Fast Track initiative that has seen thousands of members from other airlines switching to Qantas Frequent Flyer to take advantage of the national carrier’s extensive lounge and flying network.
Qantas is also offering customers the opportunity to join its Frequent Flyer program for free until 31 January 2021 via qantas.com/freejoin. Travellers will be able to earn Qantas Points and Status Credits on the new routes as well as using their points to book flights.
Twinjet, s-duct, winglets, contra-rotating propellers: the aviation industry has developed numerous configurations over the last five decades that have enabled aircraft to fly higher, faster and longer. Now, Airbus engineers are unveiling a new configuration as part of the ZEROe programme that could enable a passenger aircraft to fly farther than ever without emissions.
The innovative approach consists of six, eight-bladed “pods” mounted beneath the aircraft wing. While the “podded” engine is not a new concept in aviation, these “pods” are not designed to be driven by any ordinary propulsion system: hydrogen fuel cells are among the key components.
“The ‘pod’ configuration is essentially a distributed fuel cell propulsion system that delivers thrust to the aircraft via six propulsors arranged along the wing,” explains Matthieu Thomas, ZEROe Aircraft Lead Architect. “Hydrogen fuel cells have very different design considerations, so we knew we had to come up with a unique approach.”
Indeed, hydrogen fuel cell technology has yet to be scaled up to a passenger-size large commercial aircraft. Smaller experimental hydrogen aircraft, comprising up to 20 seats, can rely on a traditional fixed-wing configuration with two propellers. But more passenger capacity and longer range require another solution. This is why Airbus is studying a variety of configurations, including “pods,” to determine which option has the potential to scale up to larger aircraft.
Mesa Air Group, Inc. (NASDAQ: MESA) today reported fourth quarter and full-year fiscal 2020 financial and operating results.
Mesa’s Q4 2020 results reflect net income of $11.4 million, or $0.32 per diluted share, compared to net income of $12.2 million, or $0.35 per diluted share for Q4 2019. Mesa Q4 2020 results include, per GAAP, the deferral of $7.8 million of revenue, all of which was billed and paid by American and United during the quarter and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 for Q4 2020 was $44.6 million, compared to $50.8 million in Q4 2019, and Adjusted EBITDAR1 was $54.2 million for Q4 2020, compared to $61.9 million in Q4 2019. For Q4 2020 revenue was $108.0 million, a reduction of $79.8 million (42%) from $187.8 for Q4 2019 primarily due to the reduced flying as a result of COVID-19. During the quarter Mesa recognized $40.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees.
Operationally, the Company ran a 99.8% controllable completion factor, compared to 99.0% in Q4 2019, and a total completion factor of 98.2%, which primarily includes weather, close-in capacity reductions driven by reduced demand, and other uncontrollable cancellations, compared to 96.9% in Q4 2019.
Full Year
Mesa reported net income of $27.5 million, or $0.78 per diluted share for the 2020 fiscal year, compared to net income of $47.6 million, or $1.36 per diluted share for the 2019 fiscal year. Excluding special items for both periods, adjusted net income1 was $27.5 million or $0.78 per diluted share for the 2020 fiscal year, compared to $57.5 million or $1.64 per diluted share for the 2019 fiscal year. Mesa fiscal 2020 results include, per GAAP, the deferral of $23.8 million of revenue, all of which was billed and paid by American and United during the year and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA1 was $163.3 million in fiscal year 2020, compared to $208.7 million in fiscal year 2019 and Adjusted EBITDAR was $212.1 million in fiscal year 2020, compared to $260.9 million in fiscal year 2019. For fiscal year 2020, revenue was $545.1 million, a reduction of $178.3 million (25%) from $723.4 million for fiscal year 2019, primarily due to the reduced flying as a result of COVID-19. During the year, Mesa recognized $83.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees as of April 20, 2020.
_______________ 1 See Reconciliation of non-GAAP financial measures
Fiscal 2020 Q4 Highlights
– EPS of $0.32, Full Year $0.78
– Year-end cash increased by $34.5 million to $99.4 million
Recent Updates
– Amended capacity purchase agreement with American to operate 40 CRJ-900s for a five-year term
– Commenced cargo operations for DHL with two Boeing 737-400F
– Added 10 new E175 aircraft to our United fleet in November and December
– Entered into a $195 million loan under the CARES Act with the U.S. Treasury
Union Pacific today named Craig Richardson executive vice president, chief legal officer and corporate secretary. Richardson is responsible for overseeing all aspects of the company’s legal affairs, including commercial transactions and litigation, regulatory matters, labor and employment. Richardson also supervises the railroad’s compliance and ethics program, and risk management initiatives, including Union Pacific’s police department. He succeeds Rhonda Ferguson, who served as executive vice president, chief legal officer and corporate secretary.
Richardson most recently served as vice president of commercial and regulatory law. He’s also held the position of associate general counsel.
“Craig has provided critical leadership, guiding us through sensitive and complex legal matters with insight, sound judgment and clarity,” said Chairman, President and CEO Lance Fritz. “He is a superior partner and counselor and has the expertise we need during this time of unprecedented change within our nation and company.”
Richardson’s experience spans commercial and regulatory litigation, including oil and gas, environmental, and antitrust law, as well as all aspects of multi-jurisdictional permitting of global energy infrastructure. For nearly a decade, he served as the Chief Legal Officer of El Paso Corporation’s Pipeline Group, the largest network of interstate natural gas pipelines in North America, delivering over 30% of the natural gas consumed in the United States. He was responsible for all legal matters nationwide, waging successful litigation in executing El Paso’s $8 billion portfolio of crucial additions to national energy infrastructure from California to New York.
