Norwegian Air Shuttle ASA ("Norwegian" or the "Company") announces that it has
reached an agreement in principle with Boeing for a recommitment to purchase 50
Boeing 737 MAX 8 aircraft. The agreement also includes options for an additional
30 aircraft. The 50 aircraft are due to be delivered between 2025 and 2028, at a
schedule closely corresponding to current aircraft lease expirations. This
entails a limited net increase of the Company's current fleet. The parties'
agreement in principle is subject to various closing conditions, which are
targeted to be concluded by the end of June 2022.
The Company intends to finance the outstanding balance of pre-delivery payments
through positive cash flow from operating activities. A significant share of the
aircraft will be owned by the Company, ensuring an optimised and balanced
aircraft financing structure. Subsequent to the conclusion of these agreements,
Norwegian estimates to record a net gain of approximately NOK 2 billion.
"This is a landmark deal that sets out a path whereby Norwegian will own a large
share of its fleet. This will result in lower all-in costs and increased
financial robustness, enabling us to further solidify our Nordic stronghold. The
deal also allows us to serve our customers with state-of-the-art aircraft that
can run increasingly on sustainable aviation fuel," says Svein Harald Øygard,
Chair of the Board of Norwegian.
The purchase agreement demonstrates Norwegian's continuously strong commitment
to operate a modern and fuel-efficient fleet. The Boeing 737 MAX 8 is
approximately 14 percent more fuel-efficient compared to the previous-generation
aircraft, putting the Company on strong footing to achieve its target of
reducing emissions by 45 percent by 2030.
"The overall terms achieved are attractive for Norwegian, and the deal fits well
with our long-term fleet strategy and route program. It will enable us to serve
our customers with modern fuel-efficient aircraft with the latest technology,
significantly reducing our carbon footprint. The deal will also strengthen the
Company's equity considerably, further solidifying Norwegian's financial
position," concludes CEO Geir Karlsen.
For further information, please contact:
Jesper M. Hatletveit, Investor Relations at Norwegian Air Shuttle ASA: +47 906
64 401
Esben Tuman, Media Relations at Norwegian Air Shuttle ASA: +47 905 08 400
Fornebu, 30 May 2022
Norwegian Air Shuttle ASA
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
announcement was published by Jesper M. Hatletveit, VP Investor Relations at
Norwegian Air Shuttle ASA, on 30 May 2022 at 08:00 CEST.