AIRLINES: NORTH AMERICA What You Need to Know August 2021
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Research and Innovation REPORT: AIRLINES: NORTH AMERICA What you need to know August 2021 This report presents a roundup of what’s been happening to airlines in Canada and the U.S. over the last month. Major network airlines American Airlines Chilean partnership forged Subject to regulatory approval, American Airlines is planning a codeshare partnership with JetSmart, which could see the U.S. airline take a minority stake in the Chilean low-cost carrier. The codeshare would give American’s customers access to JetSmart’s 33 destinations in South America. Delta Air Lines More London routes resuming As the U.K. reopens to non-essential travel by fully-vaccinated travelers arriving from the U.S., Delta is planning to restore more routes to London Heathrow. From October 7, thrice-weekly Seattle flights resume, followed on October 11 by four-times weekly service from Detroit. Frequencies will also be increased from New York JFK (to twice daily), while Atlanta will remain daily. JetBlue Airways Return of profits JetBlue reported a $147 million operating profit in the second quarter of 2021, reversing a $410 million loss from the same quarter in 2020. However, the profit is still 41% lower than that reported in the second quarter of 2019. Revenues improved significantly year-over-year to $1.5 billion, but they were still 29% lower than in 2019. Transatlantic services start JetBlue started operating its first transatlantic service between New York JFK and London Heathrow during August. Initially served daily, frequency will drop to four per week during September. JFK-London Gatwick services are due to begin on September 29. Boston-London services will follow in summer 2022. Southwest Airlines Bookings weaken Southwest Airlines has noted a recent deceleration in the pace of bookings and an acceleration in the rate of trip cancellations, as COVID-19 cases rise in the U.S. Expecting cases to remain elevated for some time, the airline has scaled back its third quarter revenue expectations, from 12-17% below 2019 levels to 15- 20% below. United Airlines More routes resuming During August, United increased London Heathrow frequency to six flights per day, adding extra services Page 1 from Washington DC and Houston. It’s also planning to add a non-stop Boston-London service. From September, United will add 74 new flights in the U.S., including 52 new direct flights to college towns and professional football markets to capitalize on returning demand for sporting events. New services include Lincoln-Lansing and Austin-Bentonville. During the month, United aims to operate 88% of its September 2019 schedule. Other airlines Avelo Airlines More routes from Los Angeles Startup airline Avelo Airlines will add four new destinations in September, as it commences operations from Los Angeles’ Hollywood-Burbank airport to Monterey, Fort Collins-Loveland and the Utah cities of Provo and St George. It’s using capacity freed up by the October end of services to Bozeman, Mesa and Grand Junction to launch the new flights. Avelo will be the only airline linking Los Angeles with Provo and Fort Collins-Loveland. Avelo plans to expand to the U.S. East Coast in the third quarter, operating from Tweed New Haven airport in Connecticut. New Haven hub planned for November Avelo will open its first hub on the U.S. East Coast in November when it starts flying from Tweed New Haven in Connecticut. It will initially focus on serving Florida, with flights to Fort Lauderdale, Fort Myers, Orlando and Tampa. Canada Jetlines Preparations for startup continue Canadian startup low-cost carrier Canada Jetlines is building up its management team as it prepares to start operations. The airline plans to begin operations in the first quarter of 2022, flying to sun destinations in Mexico and the U.S. Connect Airlines New airline for Toronto Billy Bishop Incumbent carrier Porter Airlines faces the prospect of new competition at Toronto’s downtown Billy Bishop airport, with Waltzing Matilda Aviation planning to launch Connect Airlines. Due to begin operations in October 2021, the new airline will target “day-tripping business travelers,” operating aircraft with a range capable of reaching half of the U.S. ExpressJet Relaunch planned Former United Airlines partner ExpressJet Airlines plans to relaunch services under its own brand having suspended flights for 11 months. The Atlanta-based carrier plans to resume flights during the third quarter of 2021. It will focus on markets that have seen service reduced as a result of airline consolidation and a shift to operating larger aircraft. ExpressJet will initially target small to midsized communities on routes with an average stage length of 540 miles. Airlines – North America | August 31, 2021 | Page 2 Flair Airlines New U.S. routes on the way Ultra-low-cost carrier Flair Airlines will expand its U.S. network to ten destinations from December 16, when it launches new services from Edmonton to Burbank, Las Vegas, Palm Springs and Phoenix. Frontier Airlines 20 new routes for the winter Between October 25 and December 17, 2021, Frontier Airlines plans to add 20 new domestic and international routes. Antigua, Belize City, Liberia and Providenciales will join its network as new international destinations, while New Windsor becomes its seventh destinations in New York state. WestJet More U.S. routes Through subsidiary WestJet Encore, the Canadian low-cost carrier is planning to resume service between Calgary and Seattle from November 4. It will also resume Calgary-Anaheim services, while increasing frequency on the Calgary-San Francisco route, which the airline has also converted from seasonal to year- round operation. During December, WestJet will expand its offering to Hawaii with new flights from Calgary to Kona and Lihue. It aims to announce more connections to U.S. destinations. Note The information presented in this report represents the latest view as at August 31, 2021. We have carefully researched and checked the information contained. However, we do not guarantee or warrant the correctness, completeness or topicality of this article and do not accept any liability for any damage or loss as a result of the use of the information contained within this article. Do you have questions or comments regarding this report? 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