As part of a cost-cutting program announced in December last year with the intention of reducing running costs by US$234 million, Low-cost carrier Norwegian has announced it is to axe a number of routes and bases, starting April this year. Palma de Mallorca (PMI), Gran Canaria (LPA), Tenerife (TCI), Rome-Fiumicino (FCO), Stewart (SWF) and Providence (PVD). The last 18 months has seen Norwegian aggressively and rapidly penetrate a number of competitive markets, but this now appears to have come at a cost.
According to Helga Bollmann Leknes, Norwegian Air’s Chief Commercial Officer (CCO), the airline “has reached a point where it needs to make necessary adjustments to its route portfolio in order to improve the sustainability and financial performance in this very competitive environment.”
The summer of 2019 will see Norwegian also cut its Edinburgh (Scotland) base and terminate transatlantic flights from both Edinburgh and Belfast. Norwegian is planning to only axe its regional, intra-European flights operated by its fleet of Boeing 737-800 and MAX 8 aircraft. The airline clarified: “these aircraft are primarily used on European routes, but also some longer routes between Europe and the U.S. and Europe and the Middle East.”
Last week, Norwegian announced that it had logged its “highest ever passenger figures in a single year” in 2018, moving 37.34 million passengers—an increase of 13% on 2017 numbers, though the carrier added that 2018 “was characterized by major investments, strong competition, and a high oil price.” In 2018 Norwegian took delivery of 25 new planes and launched up to 35 new routes, which were mainly between Europe and the U.S..