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EXTrader
NAS 05.12.2019 kl 11:31 803

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Norwegian's traffic figures for November shows an increased unit revenue for the eighth consecutive month and was up 18 percent compared to the same month previous year. At the same time, the capacity was reduced, which is in line with the company's strategy. The load factor was 83 percent, up by 4.2 percentage points.

A total of 2,283,821 passengers chose to fly with Norwegian in November. The company operated 99.8 percent of the scheduled flights this month, 86.2 percent of which departed on time, up 3.7 percentage points.

'We are pleased that our unit revenue continued to increase in November. Our load factor is higher and the on-time performance has improved. In line with our strategy of moving from growth to profitability, the planned capacity reduction has improved the figures. We have adjusted our route portfolio and capacity for the coming winter season and summer season to ensure that we are well positioned to meet the actual demand. The figures show that we continue to deliver on our strategy of moving from growth to profitability,' said Acting CEO and CFO of Norwegian, Geir Karlsen.

The total traffic (RPK) was down 23 percent and the capacity growth (ASK) was down 27 percent, in line with the strategy.

The company continued to reduce its CO2 emissions in November with 73 grams per passenger kilometre, a reduction of 6 percent compared to the same period last year. This is despite the grounding of the MAX aircraft which has forced the company to wetlease older aircraft. With an average age of 3.8 years, Norwegian has one of the world's most environmentally friendly fleets. Thanks to this, the company has reduced its per passenger emissions by 30 percent since 2008.

Please find more information in the attached traffic report.

Norwegian is a listed company on the Oslo Stock Exchange and is the world's fifth largest low-cost airline operating 500 routes to 150 destinations in Europe, North Africa, Middle East, Thailand, Caribbean, the U.S and South America. In 2018, Norwegian carried around 37 million passengers. Norwegian has almost 11,000 employees and a modern, more environmentally friendly fleet of more than 170 aircraft with an average age of 3.8 years. Norwegian has been voted 'Europe's best low-cost carrier' by passengers for six consecutive years from 2013-2018, along with being awarded the 'World's best low-cost long-haul airline' for five consecutive years from 2015-2019 at SkyTrax World Airline Awards. The company has been named the most fuel-efficient airline on transatlantic routes for the second time by the International Council on Clean Transportation (ICCT).
EXTrader
05.12.2019 kl 12:02 740

Fewer flights help Norwegian Air improve profitability
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12/05/2019 | 09:48 am
November traffic figures show Norwegian Air's drive to slash flights is helping to improve profitability, sending the debt-laden airline's shares up 6% in early Thursday trading.
The cut-backs helped the budget carrier fill remaining flights, increasing the number of seats sold on each aircraft as well as income per passenger.

Overall capacity, a measure of distance flown and the number of seats available (ASK), fell 27% year on year in November. Analysts in a Reuters poll had on average expected a 23% drop.

But the airline's yield - income per passenger carried and kilometre flown - rose 12% to 0.37 Norwegian crown ($0.04), beating a 0.35 crown forecast.

Norwegian has shaken up the transatlantic travel market with low fares, but breakneck expansion also brought mounting debts and losses. The company raised cash from its owners in November for a third time in 20 months.

Overcapacity and cut-throat competition in Europe's airline market are adding challenges to Norwegian's recover efforts. Scandinavian peer SAS said on Thursday it expected losses to deepen in the first quarter of next year.

Norwegian on average filled 83.0% of seats in November, up from a so-called load factor of 78.8% last year and beating an average forecast of 82.3%.

"The planned capacity reduction has improved the figures ... we continue to deliver on our strategy of moving from growth to profitability," acting Chief Executive Geir Karlsen said.

Danske Bank analyst Martin Stenshall, who has a "buy" rating on Norwegian's shares, said the numbers justified the rise in the stock, which was up 5.3% to 39.40 crowns at 0820 GMT.

Prior to October, when Norwegian's capacity fell 5% from the same month of 2018, the airline's year-on-year ASK had risen every month since it went public in 2003.

The company is targeting a 10% cut in ASK for 2020 from 2019, it said in October.

"We have adjusted our route portfolio and capacity for the coming winter season and summer seasons to ensure that we are well positioned to meet the actual demand," Karlsen said.

As temporary CEO since July, Karlsen has postponed debt payments, raised cash, brought in a Chinese leasing firm to take stakes in its fleet and partnered with U.S. carrier JetBlue to strengthen the business.

The company announced on Wednesday the sale of its domestic network in Argentina, launched 14 months ago, to JetSMART.

Karlsen, who is also chief financial officer (CFO), returns to being CFO and deputy CEO when industry outsider Jacob Schram takes the helm next year.

Schram, a former management consultant and petrol retail executive, will replace Bjoern Kjos, the company's founder who stepped down in July having built Norwegian into Europe's third-largest budget airline.
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05.12.2019 kl 12:39 650

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