SkyWest Airlines saw continued improvement in Q2 2021, and expects to reach pre-pandemic flying levels by the first part of 2022. The St. George, Utah-based regional airline posted a Q2 profit of $62m, compared to a loss of $26m in the same quarter a year ago as the industry was hit by the global health crisis. Operating revenue was $657m, up from $350m in the same period in 2020, the airline tells analysts on its quarterly earnings call on 29 July. But that figure is still 12% lower than revenue posted in the pre-pandemic Q2 of 2019. “We are pleased to see continued demand improvement and look forward to returning to pre-Covid levels by the beginning of 2022,” says CE Chip Childs. “We are excited to resume new aircraft deliveries in the third quarter, with 29 new E175 aircraft by the first half of 2023.” SkyWest, which operates aircraft under fixed contracts for United Airlines, Delta Air Lines, American Airlines and Alaska Airlines, had 478 aircraft in operation on 30 June, up from 452 at the end of 2020. Completed block hours during the second quarter of 2021 were 13% lower than in the second quarter of 2019. “SkyWest also provided temporary rate reductions to its major airline partners under its flying contracts during Q2 2021 and Q2 2020 in response to the Covid-19 demand disruption impact to its partners,” the airline says.<br/>
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Spirit Airlines says Q2 2021 was “challenging” as the industry slowly bounces back, and that it faces a “choppy recovery”. The Miramar, Florida-headquartered ultra low-cost carrier lost $288m during the three months ending 30 June, Spirit says on 29 July. But June was the first month since the beginning of the Covid-19 pandemic that the airline actually made money, executives say. “This summer has proven to be operationally challenging and very busy, with full aircraft and full airports,” CE Ted Christie says. “There is still much to be done to attain sustained profitability, but the stage is set and we like how we are positioned.” “Demand trends in domestic and international markets saw significant improvement as the quarter progressed,” adds the airline’s chief commercial officer Matt Klein. The airline expects to be profitable in both remaining quarters this year, Christie adds. Revenue for Q2 came in at $859m, up from $139m in pandemic-plagued 2020, but still shy of the $1b it posted in the same period in 2019. The airline has yet to fully deploy its fleet; average per-aircraft daily utilisation is about 9.9h – 25% less than normal, Christie says. “Until we can get the airline back to full utilisation, it will be a margin drag… That’s not going to happen until the middle of next year,” Christie adds. “As the airline continues to ramp utilisation, unit costs will come down, so that’s a tailwind heading to the third and fourth quarter.”<br/>
Sun Country Airlines is prepared to buy aircraft – even if it does not yet need them – to meet its goal of having 50 passenger aircraft by the end of 2023. Speaking on the company’s Q2 2021 earnings call on 29 July, Sun Country CFO Dave Davis says the airline continues seeking used aircraft for acquisition. Sun Country has a “strong lead on…some interesting multi-aircraft deals”, he says. “If there were some really attractive deals out there, particularly multi-aircraft opportunities, or really economic aircraft opportunities, we probably would bring those in – even if we didn’t have an immediate need for them,” Davis adds. Values of some used jets have plummeted in recent years. Cirium estimates a 737-800 manufactured in 2008 is now worth about $12m, down from $19.6m two years ago. Minneapolis, Minnesota-headquartered Sun Country operates 34 Boeing 737NG passenger aircraft, three more than at the end of the first quarter of 2021. The airline serves primarily leisure markets in the USA, Mexico, Central America and the Caribbean. It also operates charters, and cargo flights with 12 Amazon Prime Air-branded freighters. Executives say the carrier could acquire about one aircraft monthly for the next two years to reach its target of 50 aircraft.<br/>
Brazil’s Gol saw increased customer demand in the second quarter amid continued roll out of Covid-19 vaccinations in the vast Latin American country. In the three months ending 30 June, Sao Paulo-based Gol achieved R$1b ($197m) in revenue, almost three times that of the same quarter last year, Gol reports on 29 July. That figure is still 67% less than in the same period of pre-pandemic 2019. The airline reported a Q2 loss of R$1.2b. CE Paulo Kakinoff expresses confidence in the resilience of the Brazilian market, as more people are vaccinated. He expects the trend of passengers returning to air travel will continue through the year, with business customers joining the upswing. “This progress on vaccinations is promising for the continued recovery of Brazil’s economy and a ramp-up in travel demand as Brazilians feel safe to return to their normal routines,” he says. “A traditionally weak quarter proved to be a period of recovery for the industry, which resumed growth in line with the downtrend in cases of Covid-19.” During Q2, Gol carried 2.9m customers, nearly five times the number it transported in Q2 2020, when the coronavirus tore around the world and numerous countries imposed travel restrictions.<br/>
German leisure airline Condor is acquiring 16 Airbus A330neo jets to replace a wide-bodied fleet of Boeing 767 aircraft, accounting for almost half of a backlog of planes whose debt-strapped buyers were unable to take delivery. "The first aircraft is expected in autumn 2022, whilst the replacement of the entire long-haul fleet is scheduled to be completed by mid-2024," Condor said on its website. Airbus CEO Guillaume Faury told reporters seven of the jets would be supplied directly by the planemaker, with the rest to be provided by leasing companies. The deal was announced late on Wednesday, a day after EU regulators approved E525.3m in German aid for Condor that will help it restructure after an earlier decision was annulled by a European court. Condor has a mixed fleet of planes from Airbus and Boeing, but relies solely on its ageing 767s for long-haul needs. The A330neo is an upgraded version of the A330 passenger plane with recent Rolls-Royce (RR.L) engines. Its closest competitor in typical airline competitions is seen as the 787-10 variant of the newer Boeing 787 Dreamliner family. The Condor deal provides homes for A330neo jets earmarked for airlines whose finances have worsened during the pandemic. That means they are likely to have been sold at a steeper than usual discounts, industry sources said, mirroring recent moves by Boeing to find homes for some unsold 737 MAX jets.<br/>