Norwegian’s 1Q net loss narrows but a pilots strike looms

Norwegian Air Shuttle ( (Oslo) narrowed its first quarter net loss to $49.9 million, down from a loss of $51.2 million in the same quarter a year ago.

Here is the full report from the carrier:

“Norwegian (NAS) reported its first quarter results. The company’s total revenue was 2.36 BNOK, up 25 percent compared to the same quarter previous year. The company’s net profit of – 286 MNOK was strongly influenced by high oil prices. In spite of 15 percent higher fuel prices than the same quarter previous year, the company’s continuous introduction of brand new and more efficient aircraft contributed to considerable fuel savings.

Norwegian carried more than 3.6 million passengers in the first quarter, an increase of 19 percent compared with the first quarter last year. The load factor increased by 3 percentage points to 77 percent.

”It’s been a challenging quarter, mostly due to soaring oil prices. In addition, the first quarter is seasonally weak. Considerable non-recurring cost has incurred due to the phasing out of older aircraft from the fleet However, our fleet renewal program is an investment that will benefit the company in many years to come. On the positive side, our passenger growth continues and our load factor increases,” said CEO Bjørn Kjos.

“The introduction of brand new, more fuel efficient (Boeing 737-800) aircraft will make us even more robust against high fuel prices,” said Kjos. In the first quarter alone, more efficient aircraft contributed to fuel savings of 25 MNOK compared to first quarter previous year.

Key Figures First Quarter 2012 (Q1 2011)

Passengers: 3.65 million (3.1 million)

Revenue: 2.36 BNOK (1.9 BNOK)

Load Factor: 77 percent (74 percent)

EBITDAR: -252 MNOK (-230 MNOK)

EBITDA: – 497 MNOK (-430 MNOK)

EBIT: – 575 MNOK (- 495 MNOK)

EBT: – 398 MNOK (-406 MNOK)

Net Result: – 286 MNOK (-293 MNOK)”

Norwegian is being threatened by its first-ever strike. The 570 pilots of Norwegian are unhappy about an resolved contractual issue and are threatening to strike. Norwegian offers short-term contracts (rather than full time employment) to pilots when it expands into new areas. The pilots are demanding full-time employment.

Read the full report from Views and News from Norway: CLICK HERE

Top Copyright Photo: Ton Jochems. The older Boeing 737-300s are rapidly being replaced by new Boeing 737-800s.

Norwegian Slide Show: CLICK HERE

Bottom Copyright Photo: Norwegian Air Shuttle. The Boeing fleet gathers at the Oslo hub.