Norwegian struggles with fuel prices to limit losses, but protects cash position

©Norwegian Air

Low-cost carrier Norwegian has released its first-quarter results of 2022 in what is a seasonally weakened quarter. Combined with the impact of the Omicron variant of the COVID-19 virus and the effects of the war in Ukraine on the aviation industry the result was an operating loss (EBIT) of NOK849 million, though the company was able to keep its cash level robustly high at NOK7.5 billion. The carrier booked a net loss of NOK1 billion, compared to a net loss of NOK1.2 billion for the same period in 2021.

Norwegian carried 2.2 million passengers during the quarter, a significant increase on the 200,000 for the same period last year. Production (ASK) was 3.9 billion seat kilometres, while passenger traffic (RPK) was 3.0 billion seat kilometres. The load factor increased to 76.9%, up from 38.5% in the same period last year. In April passenger numbers rose 50% compared to the month of March.

During the quarter, Norwegian announced an agreement to lease 10 new and fuel-efficient 737 MAX 8 aircraft with delivery in the spring of 2023. In addition, Norwegian is in the process of leasing an additional five 737 MAX 8 aircraft, which will bring the fleet to 85 aircraft by the summer 2023 season.

“We have adapted to fluctuations in demand quickly and efficiently, and we have managed to protect our strong liquidity position even through a challenging period. The increase in bookings ahead of the summer season is significant and we look forward to welcoming our customers on board the close to 280 routes we have for sale. I am pleased to note that our corporate travellers are starting to return to air travel. We know they place high value on our attractive route network and strong on-time performance record,” said Geir Karlsen, CEO of Norwegian. (£1.00 = NOK11.99 at time of publication).

Email Post to a Friend Email Post to a Friend