Norwegian reports first-half net loss of NOK 5.3 billion

©Norwegian

Norwegian has reported its results for the first half year of 2020. The figures are, as expected, heavily impacted by the COVID-19 pandemic with a net loss of NOK 5.3 billion. During the first half of 2020, 5.31 million customers travelled with the company; a decrease of 71% compared to the same period last year. Norwegian successfully converted debt, gained access to state guaranteed loans of NOK 3 billion and conducted a public offering, in addition to implementing a series of cost-reduction measures. Still, Norwegian is facing challenging times ahead.

Before COVID-19, Norwegian had guided the market of a profitable 2020 and the best summer ever. Strict government travel advice and the following drop in customer demand forced Norwegian to ground 140 aircraft and furlough or lay off approximately 8,000 employees. In the second quarter, Norwegian only operated 7-8 aircraft on domestic routes in Norway. Following a successful restructuring process, the company gained access to the Norwegian government’s loan guarantee of NOK 3 billion and an additional NOK 0.3 billion from commercial banks.

During the first six months of 2020, 5.3 million customers travelled with Norwegian, compared to 18.1 million during the same period previous year. Production (ASK) was down by 69% and passenger traffic (RPK) decreased by 72%. The load factor was 78.2%, a decrease of 6.5 percentage points compared to the first half of 2019. Both load factor and production are adjusted according to the government mandatory blocking of middle seats on domestic routes in Norway in the second quarter of 2020. (US$1.00 = NOK8.79 at time of publication.)

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