Russian carrier Aeroflot saw quarter-on-quarter rises in passenger demand and revenue during the three months ended 30 September, underpinned by strong domestic demand. Although third-quarter revenue was down 67% on last year's, at Rb55.2 billion ($695 million), the carrier notes that load factors and yields were at "comparable levels". Still, its third-quarter net loss of Rb23.3 billion compares with a Rb21.4 billion profit in the same period of 2019. "In Q3 2020 Aeroflot Group carried 10.1 million passengers, 3.8 million of whom flew with Aeroflot airline," it notes. "Taking into consideration all the operational and economic challenges currently facing the aviation sector, our gradual restoration of passenger traffic, driven primarily by the domestic market, is being achieved in a financially prudent manner." Passenger numbers were four times higher in July-September compared with April-June, cutting the year-on-year decrease to 64% in the third quarter from 91% in the second. Aeroflot highlights IATA data showing that the Russian domestic market "was the only major market worldwide where operating volumes were fully restored as early as August". It adds that "the market has continued to outstrip other markets in terms of its speed of recovery".

Source: Cirium

Paul Jacobson has resigned as chief financial officer of Delta Air Lines, and is moving on to a similar position at General Motors. Jacobson's resignation from Delta is effective 15 November. In April, Jacobson rescinded his decision to retire from Delta at chief executive Ed Bastian's request. Jacobson at that time was leading Delta's pursuit of liquidity amid the cratering of demand caused by the coronavirus pandemic. The Atlanta-based airline had stated on 28 February that Jacobson, who joined Delta in 1997, would retire "later this year". Delta ended the third quarter with $21.6 billion in liquidity and expects to close out the year with more than $16 billion."With our cash-burn trajectory on track to achieve breakeven by spring, and a solid liquidity position, our balance-sheet work has already begun," Jacobson had said during Delta's 13 October earnings call. "Paul delayed his decision to retire from Delta to help address the financial impact of the pandemic," Bastian said in a 30 October memo to Delta employees. "Since then he has led the team that has, among other things, raised nearly $30 billion in liquidity – a cushion that is essential to weathering the storm and positioning Delta to lead the industry in the recovery from the pandemic." Gary Chase, Delta’s senior vice-president, business development and financial planning, and Bill Carroll, senior vice-president, finance and controller, will serve as interim co-finance chiefs while the carrier searches for a permanent replacement for Jacobson.


Source: Cirium

Delta Air Lines has reached a tentative deal with its pilot union to avoid furloughs at the Atlanta-based carrier until 2022.
The airline’s 13,000 cockpit crew, represented by the Air Line Pilots Association, International (ALPA) must now vote on the preliminary agreement that would keep 1,941 of them from losing their jobs after US government aid to the airlines ran out earlier this month. “Today we agreed on a path forward with ALPA’s Negotiating Committee that, if approved, can ultimately protect pilots from furlough through January 1, 2022,” Delta’s chief of operations John Laughter writes in a memo to the airline’s flight operations employees on 29 October. “While this agreement is still subject to approval…we are confident this can help Delta to be better positioned through the long and choppy Covid-19 pandemic recovery,” he adds. Attempts to reach ALPA for comment were unsuccessful. The airline says that it will push back the date the pilots were to be furloughed, until 28 November, in order to give them an opportunity to ratify the deal. Unlike most other major US carriers, Delta did not furlough any employees after US government aid to airlines, made available through the so-called CARES Act, expired on 1 October. The airline was able to avoid staff cuts after about 40,000 employees chose to take either early retirements or voluntary leave programmes. During the airline’s third-quarter results call earlier this month, chief executive Ed Bastian said the carrier had reached agreements with most work groups and was still negotiating with the pilot union to avoid furloughs in that work group as well. Delta reported a $5.4 billion loss for the quarter that ended on 30 September. Laughter now says the agreement ”contains several quality of life improvements while allowing Delta to generate much needed savings”, without going into further detail. Late last month, rival United Airlines’ pilots agreed to belt-tightening measures, including reduced flight hours, that avoided 2,850 furloughs that had been scheduled to begin on 1 October. The Chicago-based carrier said the planned pilot furloughs for 2020 and 2021, which would have amounted to 3,900 jobs, or about one third of the airline’s total pilots, were now off the table until June 2021 That agreement reduces the number of hours individual pilots fly every month, effectively spreading fewer hours across the pilot population. More-junior pilots give up more hours than those higher on the seniority list and more-senior pilots would be eligible for another early-exit programme.

Source: Cirium