Norwegian produces a profit before taxes in the third quarter

Norwegian Air Shuttle issued this financial statement:

Norwegian reported its results for the third quarter of 2021. The figures show continued positive progress following the successful completion in May of the respective reconstruction processes. Passenger demand is returning across all our markets and forward bookings remain strong leading into our summer 2022 season.

“The third quarter results clearly demonstrate that the actions taken across the organization to safeguard the future of Norwegian by lowering debt and liabilities, while focusing on cost efficiencies, have succeeded. We are now in a strong financial position going into the traditionally more challenging winter months. We have seen a positive trend in forward bookings month on month and an increasing number of passengers are choosing to fly Norwegian across our European network,” said Geir Karlsen, CEO of Norwegian.

Profit before tax (EBT) showed a net profit of NOK 169 million compared to a loss of NOK 980 million in the same period in 2020. During the third quarter, close to 2.5 million passengers travelled with Norwegian, compared with approximately one million during the same period last year. Production (ASK) increased by 130 percent and passenger traffic (RPK) increased by 177 percent compared with the third quarter in 2020. The load factor was 73.1 percent, an increase of 12.5 percentage points. Average sector length increased by 20 percent. At the end of the third quarter of 2021, the total fleet comprised 51 aircraft.

Continued cost control throughout the company combined with low cash burn has resulted in a strong financial position entering into the winter period with NOK 7.6 billion in cash and equivalents.

The stringent focus on costs and expenditure places Norwegian in a far stronger position over the winter months than previous years. Booking curves continue to show a positive trend well into 2022 as an increasing number of passengers choose to fly with Norwegian. Our passengers appreciate our modern fuel-efficient aircraft, welcoming service and extensive European network. We are especially pleased to be able to fully reopen our award-winning Norwegian Reward program which is a much valued part of the passenger experience.