ARC NEWS
​Ryanair slashes first-half loss
November 02, 2021
Ryanair Group saw load factors and revenues surge through its first half, as the low-cost carrier approached breakeven for the period and raised its guidance for full-year passenger numbers. The company carried 39.1 million customers during the six months to end-September, a 128% increase on the corresponding period of 2020. Load factors rose from 72% to 79%, although the group acknowledges that the ongoing recovery will require "continuing price stimulation" as booking windows remain tight. "This, coupled with rising costs for the small unhedged balance of our fuel needs, means that visibility for the remainder of FY22 is very limited. It is therefore difficult to provide meaningful FY22 guidance," it states. Briefing investors, chief executive Michael O'Leary added that capacity in the second half to end-March would be around 90% of pre-Covid levels, with load factors "in the low 80s compared to the low 90s" prior to the first quarter of 2020. He says that while costs rose 63% as the airline ramped back up capacity, this was below the 83% gain in revenues, demonstrating that Ryanair had been able to enact permanent efficiency improvements amid the crisis. The carrier is hedged for the majority of its fuel requirements until March 2023 at around $60 barrel, O'Leary highlights. He is bullish on prospects for next summer, noting "materially" reduced short-haul capacity across Europe as some carriers have shrunk while others have disappeared altogether. In contrast, Ryanair has planned 14 new bases for next year, to be serviced by 29 aircraft, "but more important than this is that we have much more aircraft going into existing bases", says O'Leary, citing an additional 20 allocated to Italy alone. In total, the carrier has launched over 560 new routes, aided by lower airport costs and the extension of many low-cost airport growth deals. "The growth opportunity has never been so exciting," O'Leary asserts, describing it as "the most in my 30 years in the business" amid little competitive pushback. Nevertheless, the group has pencilled in an overall full-year loss of €100-200 million, dependent on the continuing vaccine rollout and the development of Covid-19. O'Leary also broached the subject of a delisting from the London Stock Exchange, something he expects within six months. As a result of Brexit the carrier has, in common with several European carriers, found itself in danger of contravening EU rules about national ownership under which European airlines must be majority held by the bloc's nationals. Ryanair Group is roughly 40% owned by US stockholders, with the remainder mostly held by UK and EU investors. With the EU's share being below 50%, "the European Commission wants action", notes O'Leary, adding that trading of Ryanair shares in London has diminished sharply since Brexit. Ryanair Group had already forced some investors to sell their shares in September to abide by the rules, but expects the delisting to further boost its European ownership stake. In a note to clients following the results announcement, investment firm Davy comments that Ryanair "is clearly prioritising volume growth" over short-term profits "and has the balance sheet [and] airport/aircraft/employee base to expand market share and grab opportunities in what we believe will be a rapid recovery into summer 2022 and beyond".
It notes that net debt is set to fall below €2 billion by year end and that 90% of the carrier's fleet is unencumbered.


'One of the worst' cases of unruly behaviour ever: American chief
November 01, 2021
American Airlines' chief executive Doug Parker has called for "aggressive, criminal prosecution" of passengers who commit violent acts in airports or aboard aircraft, adding that 2021's uptick in unruly behaviour "will not just end" with travel bans. Parker discussed the wave of unruly behaviour in a video posted on Instagram on 28 October, a day after a passenger had attacked a flight attendant during an American flight from New York JFK to John Wayne airport in Orange County, California. "On Wednesday evening we had one of the worst displays of unruly behaviour we've ever witnessed, when a passenger violently, physically assaulted an American Airlines flight attendant." CBS News reported that a passenger on the 27 October American flight left his seat, approached the aircraft's galley and punched a flight attendant in the face at least twice, breaking bones in her nose and face. Afterward, the aircraft was diverted to Denver. American immediately engaged local law enforcement and the FBI, and the individual was arrested soon after landing, Parker says. "As to this individual, I can guarantee you he will never be allowed to fly American Airlines again," Parker says. "But that is not enough. This type of behaviour has to stop… We're doing everything we can to ensure he is prosecuted to the fullest extent possible." The Fort Worth-based carrier is "working with" the US Federal Aviation Administration, which has the authority to levy fines of more than $50,000 to disruptive passengers, to find ways to stem the tide of unruly behaviour. There have been nearly 5,000 unruly behaviour incidents recorded by the FAA during 2021. The FAA has so far in 2021 initiated 923 investigations of unruly-passenger incidents, up from 146 similar investigations in pre-pandemic 2019. During the previous 15 years, the highest number of official investigations into unruly passenger behaviour was 183 in 2012, according to the federal agency's own data. Parker in the Instagram video cites a "very disturbing downside" to the revival of domestic travel demand in the USA amid a pandemic lengthened in part by entrenched vaccine refusal among a segment of the population. "We've all seen the reports of unruly behaviour," he says. "People showing extreme disrespect, anger and impatience toward each other. This is happening far too often." While grateful to the crew aboard the 27 October flight for its quick, calm reaction to the assault, Parker expresses awareness that US carriers' crewmembers and gate agents are working in an increasingly violent environment. "I am very sorry that was needed of them," he says of the crew on the Orange County flight. "This should not be part of their job."


​Airbus conducts A319neo flight test using SAF
November 01, 2021
Airbus on 28 October completed a test flight of an A319neo aircraft using unblended sustainable aviation fuel (SAF). During the flight test conducted over the Toulouse region in France, one CFM International LEAP-1A engine of the aircraft operated on 100% SAF, the European airframer says. The test flight is part of an in-flight study of a single-aisle aircraft running on unblended SAF. The project has been launched in partnership with Dassault Aviation, ONERA, the French Ministry of Transports and Safran. The unblended SAF provided by Total Energies is made from hydroprocessed esters and fatty acids, which primarily consists of used cooking oil, as well as other waste fats. Approximately 57 tonnes of SAF will be used for the entire test campaign. Initial results from the ground and flight tests are expected in 2022. Under this project, Airbus, in collaboration with German Aerospace Center DLR, is responsible for characterising and analysing the impact of 100% SAF on ground and in-flight emissions. Safran focuses on compatibility studies related to the fuel system and engine adaptation for commercial and helicopter aircraft. ONERA is supporting Airbus and Safran in analysing the compatibility of the fuel with aircraft systems and will be in charge of preparing, analysing and interpreting test results for the impact of SAF on emissions and contrail formation. Dassault Aviation will contribute to the material and equipment compatibility studies and verify SAF biocontamination susceptibility.


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