Norwegian today reported its results for the second quarter and first half of
2022, characterised by increasing demand for air travel, higher fuel prices and
gain from aircraft order. The figures demonstrate Norwegian's ability to
increase capacity for the busy summer travel season and deliver robust
operational performance. Amidst capacity constraints at European airports and
aircraft technician strike, close to all scheduled flights were operated.
Profit before tax (EBT) in the second quarter amounted to NOK 1,248 million,
impacted both by the reinstatement of aircraft order prepayments and the high
fuel price this quarter. Cash and cash equivalents was unchanged from the
previous quarter at NOK 7.5 billion. At quarter-end, Norwegian's total
operational fleet comprised 65 aircraft.
"This quarter has demonstrated our ability to rapidly ramp up capacity and
effectively meet the strong demand for air travel. The results have been made
possible thanks to our dedicated colleagues that put our customers at the heart
of our operations. I am particularly pleased that we deliver market-leading
regularity in times with capacity constraints across European airports and a
technician strike in Norway," said Geir Karlsen, CEO of Norwegian.
The summer program has been well received among customers across markets. Many
customers have longed to travel to Norwegian's key destinations, creating strong
pent-up demand with increasing traffic and bookings through the quarter and into
the busy summer season. Production (ASK) was close to double from the previous
quarter, while the number of passengers increased with 124 percent. Load factor
improved through the quarter to 85 percent in June and increased further into
July.
This quarter, Norwegian announced a landmark deal with the purchase of 50 Boeing
737 MAX 8 aircraft, due to be delivered between 2025 and 2028. The delivery
schedule closely corresponds to current aircraft lease expirations, entailing a
limited net increase of the current fleet. The agreement also includes options
for an additional 30 aircraft. Following the conclusion of the agreement, on 22
June, Norwegian reinstated a previously impaired pre-delivery payments (PDP) of
NOK 2,099 million in the quarter.
"The aircraft deal with Boeing is key for the Norwegian's next chapter. It will
enable us to serve our customers with modern fuel-efficient aircraft,
significantly reducing our carbon footprint. In addition, it sets the stage for
us to own a large share of our fleet, enabling us to solidify our Nordic
stronghold," said Karlsen.
In June, aircraft technicians went on strike after the Federation of Norwegian
Aviation Industries (NHO Luftfart) and the Norwegian Aircraft Technician
Organisation (NFO) failed to reach an agreement. Strong dedication and effort
from the Norwegian organisation ensured that disruptions and cancellations were
kept to a minimum. The strike was concluded after ten days on 28 June through
forced arbitration.
In the second quarter of 2022, Norwegian had 5.0 million passengers, up from 0.4
million in the same period last year and 2.2 million passengers in the previous
quarter. Production (ASK) was 7.6 billion, while passenger traffic (RPK) was 6.2
billion. The load factor increased to 81.2 percent, up from 57.4 percent in the
same period last year and 76.9 percent in the previous quarter.
Punctuality was heavily impacted by capacity constraints at European airports
this quarter. Share of flights departing on schedule was 78.8 percent, compared
to 95.4 percent in the same period last year and 88.1 percent in the previous
quarter. Regularity, share of flights taking place, was however 99.4 percent.
"Looking ahead, Norwegian is well positioned to solidify the position as a
leading Nordic airline. Our customers assign high value on Norwegians offering,
including the attractive route network, the award-winning Norwegian Reward
loyalty programme, and market-leading operational performance. Agreements
entered into with Widerøe and Norse Atlantic Airways in July will serve to
further increase the attractiveness of our offering," said Geir Karlsen.
Current booking trends are encouraging with many customers booking their autumn
holidays. For the upcoming winter, Norwegian will utilise the fleet flexibility
made possible through power-by-the-hour agreements to optimise production to
fluctuations in demand. For the current year, Norwegian is increasing its fleet
to 70 aircraft. For the summer of 2023, 15 additional aircraft will be added,
bringing the total fleet to 85 aircraft.
For detailed information, please see attached report and presentation.
For further information, please contact:
Jesper M. Hatletveit, Investor Relations at Norwegian Air Shuttle ASA Tel: +47
906 64 401
Fornebu, 25 August 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 25 August 2022 at 07:00 CEST.