Aviation Industry Updates: September 6, 2022

United & Delta Pilots Picket At Multiple US Airports

• US Air Line Pilots Association (ALPA) decided to call for a nationwide informational picket of pilots’ unions having difficulties negotiating contracts with management. The picket was of off-duty pilots at 13 major airports across America, with multiple airlines' off-duty pilots participating.

• For ALPA President Capt. Joe DePete, the informational pickets were intended to demand that management at US airlines’ "prioritize passengers and pilots – and invest in the people who keep our country moving” instead of "squandering the opportunity to adequately plan for post-pandemic flying," the result of which, Capt. DePete says, has been unprecedented flight delays and cancellations.

• To the surprise of a few, it was Delta Air Lines' pilots leading this informational picketing. Delta ALPA Master Executive Council (MEC) chair, Capt. Jason Ambrosi, commented.

• Contemplating a strike is not something we take lightly, and we can achieve the industry-leading contract that we’ve waited more than three years to achieve. The ball is in Delta management’s court right now. Management must deliver our pilots a contract we have earned or face continued labor uncertainty as we exercise our rights under the law.

• This explains the clear messaging of “Labor Risk” on some signs. But the number one issue for the Delta ALPA MEC was scheduling.

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Republic Airways Tops List of Airlines With Most Canceled Flights

KEY POINTS:

• More than 100,000 flights have been canceled in the U.S. so far in the first half of this year, according to statistics from flight tracker FlightAware (via Travel and Leisure).

• Specifically, a total of 128,934 flights were canceled in the U.S. between January and July. This is an 11% increase compared to the same period three years ago.

• According to DoT data, Republic Airways canceled 10,270 flights in the first half of the year, or 6% of its planned itinerary.

• According to DoT, flights from Allegiant Air were the most likely to experience delays, with 38.37% of them arriving at least 15 minutes late, being canceled, or being diverted. Per Business Insider, only 59% of the airline's domestic flights arrived on time in June.

• Following Allegiant Air in terms of scheduled flight arrivals on time in the first half of 2022 were JetBlue Airways (62.08%) and Frontier Airlines (64.50%).

iTechPost

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Europe’s Airlines Face Rising Bankruptcy Risk This Winter

KEY POINTS:

• Europe’s weaker airlines face a heightened risk of collapse this winter as nations that rescued carriers during the Covid crisis focus support elsewhere amid rising inflation, according to analysts at Sanford C. Bernstein.

• While the pandemic brought few airline failures in the region amid a deluge of aid payments, carriers now face a squeeze from higher fuel and labor costs combined with a seasonal decline in travel, Bernstein said in an investor note Monday. That’s just as governments struggle to respond to soaring household bills.

• Smaller carriers in Central and Eastern Europe will be most vulnerable, Bernstein analysts Alex Irving and Clementine Flinois said, citing a new model for assessing bankruptcy risk according to levels of competition and capacity, route networks and likely costs from leasing and replacing planes.

• Europe’s top six airlines face negligible risk, Bernstein said, with low-cost specialists Ryanair Holdings Plc, EasyJet Plc and Wizz Air Holdings Plc retaining investment-grade credit ratings and legacy groups Air France-KLM, IAG SA and Deutsche Lufthansa AG still able to rely on government help if required.

Bloomberg

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Hundreds Of Flights Delayed Or Canceled Over Labor Day Weekend

KEY POINTS:

• Flight disruptions across the US plagued this year's Labor Day weekend. Saturday alone suffered 3,600 delays and 145 cancelations. Early Sunday morning, hundreds of international flights to and from the US had already been delayed, with dozens canceled. Hundreds of additional international and domestic flights would be disrupted throughout the day.

• Today through the rest of this week will likely see more flight disruptions as holiday travel continues. The weekend has been the busiest Labor Day weekend for air travel in history, with nearly one-third of the US population predicted to travel. Delta Air Lines announced last week that it anticipated it would carry 2.9 million passengers over the weekend. Other airlines also announced that they planned to carry enormous numbers of passengers.

• This is the busiest Labor Day weekend the travel industry has ever seen. Of Delta's 2.9 million passengers it planned to fly this weekend, most were traveling within or to/from the US. It is one of several airlines that both predicted and saw a massive surge in demand this Labor Day. Last year it carried 2.5 million passengers over Labor Day weekend, and in 2019 it carried 3.1 million.

• This weekend has set many of these airlines back to the same state they were in at the start of the summer. Delay numbers have continued to grow day after day this weekend. This domino effect may push the airlines back months before they can get back to the low delay rates they reached last week. If travel demand slows this fall like it historically has, airlines will have the opportunity to reestablish balance before the storm of Thanksgiving travel. However, this may be the busiest slow season the airlines have ever seen.

Simple Flying

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