Mesa Air Group is planning to launch its European Union-based subsidiary, a joint venture with UK-based Gramercy Associates, in 2022 and not by the end of 2021 as previously announced. "We continue to make progress on the project, and we are expecting to start operations in the calendar year 2022. Due to EU regulations, Mesa will be a minority partner in the JV, but Mesa will be providing technical support and expertise to help with the startup," Senior VP (Finance) Torque Zubek said during the carrier's quarterly earnings call. President and CFO Michael Lotz clarified that the launch would most likely happen in Q1 2022. Although the airline previously said that the still-unnamed start-up would operate CRJ900s, it has yet to determine the source of the aircraft. "We are just really looking closely at the cost-benefit analysis of taking a Mesa Airlines aircraft, reconfiguring it to all coach, getting it certified versus just potentially leasing an aircraft that may already be over in Europe in that configuration... We’re still in the evaluation phases. So we’re not sure which way we’re going to go," Lotz said.<br/>
unaligned
Brazilian airline Azul says business picked up markedly toward the end of the second quarter, and the airline remains positive that the country’s air transport recovery will continue in the coming months. The Sao Paulo-based airline on 12 August reports a R$1.07b ($204m) profit for the second quarter of 2021, driven by foreign exchange gains. Without those gains, the airline would have posted a loss of R$1.17b for the three months that ended on 30 June. Revenue for the quarter came in at R$1.7b, more than four times the R$402m the airline posted in the same quarter a year ago, but still 35% lower than in 2019. Azul says that while Q2 began slow amid a second wave of Covid-19 infections, business picked up, with its domestic load factor rising to 83% in July. Fares, too, are rising, the airline says. “Since [April], the vaccination effort in Brazil has accelerated, leading to a decrease in cases, hospitalisations and daily casualties,” says the airline’s CE John Rodgerson. “The economy has safely started to reopen. Restrictions on businesses, restaurants and other public places have been removed. Schools are back to in-person learning and our corporate customers are returning to the office,” he adds.<br/>
TUI AG stopped burning cash as holiday bookings surged following European government moves to relax travel restrictions. The world’s biggest tour operator reported cash inflows during the three months through June of E320m, excluding financing costs, the first time it’s recorded a positive number since the onset of the Covid-19 pandemic. That’s after revenue surged to E650m in the quarter from E72m a year ago. “Especially in Germany and in the continental European markets, the current booking figures show a high pent-up demand,” TUI CEO Fritz Joussen said Thursday. A further easing of UK travel rules should lead to another booking spree in the three months through September, he said. Despite the positive free cash flow, TUI still posted a loss of E940m as travel remained significantly below pre-pandemic levels. While the company has added 1.5m summer bookings since May, capacity for the high season remains at about 60% of 2019 levels. Still, the company’s liquidity position is “very safe,” with E3b available, Joussen said. While the winter season remain uncertain, revenue should be boosted by existing reservations and short-term bookings yet to come, he said.<br/>