Business
American and Southwest rethink summer flight adds as demand stalls
(Reuters) – American Airlines (AAL.O) and Southwest Airlines (LUV.N) are rethinking the number of flights they had planned to add to their schedules for August and September as COVID-19 cases accelerated in the United States, passing 4 million on Thursday.
Both airlines had added capacity more aggressively than competitors Delta Air Lines (DAL.N) and United Airlines (UAL.O) when demand started to pick up in May and June, but now optimism has waned as some states scale back reopening plans and expand quarantines. Demand is not forecast to fully recover before a vaccine.
American, the world’s largest carrier, expects third-quarter capacity to be down about 60% from a year ago, lower than previously forecast, and is reviewing plans for the fourth quarter.
“We’ll add back only what makes sense,” American Chief Executive said on an investor call.
Shares in American rose 3% while Southwest stock was flat.
Southwest, which analysts have forecast to weather the coronavirus pandemic better than larger U.S. carriers thanks to its domestic focus and lower-cost structure, said weakening revenues was increasing its daily cash burn rate to $18 million in July from $16 million in June.
Its average daily cash burn is seen stalling at $23 million per day over the third quarter.
American, Delta and United each expect an improvement in their burn rates over the rest of the year, but say halting the cash bleed entirely will depend on demand.
American burned about $55 million a day in the second quarter, which it ended with $10.2 billion in liquidity.
Southwest had $15.5 billion liquidity at the end of June.
Both airlines had warned of job reductions in the fall, though Southwest said it does not plan to pursue furloughs or layoffs this year thanks to strong employee take-up for extended leaves or early retirements that will generate $400 million in cost savings in the fourth quarter.
U.S. airlines received a $25 billion government bailout to cover payroll through September, and unions are lobbying for a second package to help keep workers employed through March.
To reassure passengers on the safety of air travel during the pandemic, large U.S. airlines have recently toughened their policies on face masks, with Southwest telling customers on Wednesday that if they can’t wear a mask for any reason, they should not fly. Only children under the age of two are exempt.
Southwest swung to a $1.5 billion net loss, or $2.67 per share, in the second quarter, as total operating revenue fell 82.9% to $1.01 billion.
At American, the net loss excluding items was $3.4 billion, or $7.82 per share, while operating revenue plunged 86.4% to $1.62 billion.
Alaska Air Group (ALK.N), which reported a second-quarter net loss of $214 million on Thursday, said it expected its capacity to be down about 35% in the fourth quarter, forcing it to cut about 7,000 of its 23,000 employees.
Meanwhile, budget carrier Spirit Airlines (SAVE.N) is scheduling big capacity adds in August and September, stoking analyst concerns of a price war given weakening demand and bookings.
Reporting and photo: Reuters
Events
Italian and Spanish media experience Maldivian paradise on exclusive journey with Atmosphere Core
From September 28th to October 4th, 2024, Atmosphere Core hosted an exclusive media trip to the Maldives for ten prominent journalists and PR professionals from Spain and Italy. The group experienced the serene and captivating lifestyle of two stunning private islands—OBLU XPERIENCE Ailafushi and RAAYA by Atmosphere—both renowned for their distinctive hospitality, thoughtfully curated holiday plans, and the unique “Joy of Giving” philosophy.
“At Atmosphere Core, we believe in a more creative approach to media trips,” said Euan Blake, Assistant Vice President of Communications. “The Italian and Spanish markets have been expanding for the Maldives, with a notable increase in room nights and revenue compared to last year. Over the past two years, we’ve been building strong relationships in these regions, and this journey through our islands aims to leave journalists with not only cherished memories but also lifelong friendships.”
The trip began at OBLU XPERIENCE Ailafushi, a lively four-star resort just 15 minutes by speedboat from Velana International Airport. Journalists were welcomed with breathtaking lagoon views and vibrant social gatherings at the X360 Bar. A standout experience was the customised Martín Códax Wine Masterclass at the Element X restaurant, led by Ms. Celina, a representative of Bodegas Martín Códax, and Nicolas Laguette, Director of Wines at Atmosphere Core. Representing 600 winemaking families from northern Spain, Ms. Celina guided the group through an exquisite multi-course wine tasting, featuring a selection of wines perfectly suited for the tropical climate and fresh seafood.
This was followed by an unforgettable underwater dining experience at the Only BLU restaurant and a visit to the neighbouring “island of love,” OBLU SELECT Lobigili, where they enjoyed a chic lunch at Ylang Ylang. The island’s lively, party atmosphere provided the journalists with a full immersion into the vibrant and relaxing resort lifestyle.
Next, a scenic seaplane journey transported the group to RAAYA by Atmosphere—a picturesque escape offering a blend of fairytale island charm and authentic Maldivian experiences. The 45-minute flight over the stunning atolls’ turquoise waters set the stage for their arrival in paradise, presenting the perfect introduction to the Maldives’ breathtaking beauty.
At RAAYA, the journalists experienced an ideal mix of energy and tranquility. A private dinner atop a secluded watchtower, inspired by the legendary sailor Seb, captured the essence of the resort’s castaway theme. The group explored the island’s natural wonders, took part in customised activities, and dined at RAAYA’s signature restaurants, including Seb’s Shack, Ampers&nd, and the Italian-inspired The Village.
Throughout their stay at both islands, the media guests were treated to rejuvenating spa therapies and wellness sessions at ELE|NA Ayur, Atmosphere Core’s signature spa and wellness brand. This immersive journey offered the journalists a true taste of tropical luxury, intertwining indulgence and adventure into every experience. Their stories are sure to inspire countless Spanish and Italian travellers to discover the hidden treasures of OBLU XPERIENCE Ailafushi and RAAYA by Atmosphere firsthand.
Business
Minor Hotels to open NH Collection Maldives Reethi Resort in Baa Atoll in 2025
Minor Hotels, in partnership with a private equity fund managed by Ares Management, has announced the upcoming rebrand of Reethi Beach Resort as NH Collection Maldives Reethi Resort, set to re-open in Q4 2025 after an extensive renovation.
The 129-key property is set on a lush island in Hanifaru Bay within the Baa Atoll. Just a 35-minute seaplane flight from Velana International Airport in Male, the resort offers easy access to the atoll’s unspoiled beauty, home to manta rays, whale sharks, turtles, and an abundance of vibrant marine life.
Reethi Beach Resort will remain open until 25th April 2025, after which it will close for six months to undergo its transformation into NH Collection. The renovation, the most significant in the resort’s 25-year history, will include upgrades to the villas, dining outlets, and leisure facilities while preserving the lush island’s natural beauty.
NH Collection Maldives Reethi Resort will offer a mix of on-land and overwater villas that cater to the needs of a wide range of travellers. With 10 distinctive food and beverage outlets, including all-day dining venues, specialty restaurants, and bars, the resort will offer something for every taste. The resort offers diverse water activities in the Baa Atoll and its house reefs, including diving, snorkelling, fishing, and water sports. On land, guests can unwind at the spa, lounge by the pools, or stay active with tennis, badminton and squash courts plus a fully equipped fitness centre.
“We are excited to partner with Ares Management to introduce a fresh chapter for Reethi Beach Resort under the NH Collection brand. Renowned for its breathtaking marine life, this iconic destination will offer guests an unparalleled Maldivian experience, with enhanced offerings and sustainability at the forefront. We look forward to unveiling the reimagined NH Collection Maldives Reethi Resort in late 2025,” Puneet Dhawan, Head of Asia at Minor Hotels, said.
“For over 25 years, Reethi Beach Resort has been a sanctuary of tranquillity in the Baa Atoll, offering guests a truly authentic Maldivian retreat. We believe our collaboration with Minor Hotels will redefine this legacy, elevating the resort’s appeal while preserving the essence of its natural beauty and heritage. We are excited about our shared future and what we will accomplish together,” Kieran Bestall, Managing Director in Ares Asia at Ares Management, added.
The premium brand property will join Minor Hotels’ two resorts in the Baa Atoll – Anantara Kihavah Maldives Villas and Avani+ Maldives Fares Resort – offering guests a more accessible way to experience one of the Maldives’ richest marine ecosystems. NH Collection Maldives Reethi Resort will be Minor Hotels’ ninth property in the Maldives and the second NH Collection property, alongside NH Collection Maldives Havodda Resort, which opened in 2023 in Ghaafu Dhaalu Atoll.
Business
BBM, Vismark bring Southeast Asian culinary mastery to Maldives resorts
BBM’s recent collaboration with Vismark Food Industries brought Southeast Asian culinary innovation to the Maldives, with a series of successful live cooking demonstrations across 11 resorts. Vismark, known for its commitment to high-quality food solutions, specializes in developing premium ingredients and ready-made culinary products.
Led by Chef Samson Lin (Head of Culinary Development) and Chef Kent Lim – at Vismark lead the demos that showcased dishes like Dumplings, Pau, and Satay capturing the imagination of resort chefs eager to integrate these flavors into their menus.
“The response from the chefs was phenomenal,” remarked Chef Samson Lin. “Their passion for learning and embracing new flavors truly stood out.”
BBM’s Resort Sales team facilitated the sessions, ensuring seamless engagement between the chefs and the culinary experts. Each resort’s participants were eager to adapt these Southeast Asian flavours into their own kitchens, with practical takeaways and a renewed sense of culinary creativity.
Reflecting on the event’s success, AVS Subrahmanyam, Chief Operating Officer of BBM, said: “This partnership with Vismark is a testament to our commitment to bringing world-class culinary experiences to the Maldives. The level of engagement from the resort chefs exceeded our expectations, and we’re excited to see how these new flavours will enhance guest dining experiences moving forward.”
Chef Kent Lim shared his thoughts, adding, “The interaction and feedback from the chefs were invaluable. They were not only open to new ideas but also committed to perfecting them for their guests.”
The demonstrations, held from September 8 to 19, 2024, provided participants with fresh inspiration. The overwhelmingly positive feedback from the chefs has set the stage for these Southeast Asian flavours to become a standout feature in resort dining across the Maldives.
BBM’s continued efforts to collaborate with global culinary experts like Vismark reflect their dedication to pushing the boundaries of fine dining in the Maldives, elevating resort experiences one dish at a time.
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