Category Archives: Flyr

Flyr fails to raise new equity it wanted, now aims for a smaller cash infusion

Flyr (Oslo) failed to raise the amount of capital it said it needed to survive the winter season and for its ramp-up for the coming summer season according to Reuters.

According to Reuters, “under the revised plan, Flyr will initially raise 250 million Norwegian crowns ($24.4 million) in a private placement and up to 100 million from a subsequent offering to current shareholders, less than the 530 million crowns it had aimed for”.

Here is the offering:

https://flyr.com/en/media

Top Copyright Photo: Flyr Boeing 737-8 MAX 8 LN-FGJ (msn 65903) BFI (Brian Worthington). Image: 959345.

Flyr aircraft photo gallery:

Flyr experienced strong demand in October with a load factor of 81.3% and 186,600 guests

Flyr (Oslo) made this announcement:

A total of 186,600 guests travelled with Flyr this month. The load factor was 81.3 percent and the punctuality was 85 percent. Demand for flights to European holiday destinations remained solid and the unit revenue increased.  However, demand for domestic flights in Norway continued to be lower than expected.

“We are pleased to see that the overall strong demand for flights to our European destinations continued in October with many full flights and a load factor of 87 percent. This demonstrates that Flyr is the preferred choice for many leisure travelers in Norway. As previously reported, the demand for domestic flights in Norway is still lower than expected, with a load factor of 63.7 percent, and we expect this to continue going forward, said CEO Tonje Wikstrøm Frislid.

Going into the winter, discretionary consumer spending is expected to decrease significantly following interest rate spikes, high general cost inflation and record high energy prices. This is hard-hitting to the airline industry and Flyr, as it will result in reduced demand for air travel. This, together with the high jet-fuel prices, Flyr has decided to adjust its winter schedule to reduce cash burn.

From November to March, Flyr will operate 5-6 aircraft on routes to several popular European destinations, including Alicante, Malaga, Las Palmas, Barcelona, Roma, Paris, Nice, Berlin and Brussels. The Company will also offer flights from Oslo to Bergen and Trondheim, as well as “Christmas Routes” between several cities in Norway in December.

Flyr had an average of 11 aircraft in operation in October. The yield was NOK 0.63, and the unit revenue (PASK) was NOK 0.54.

Flyr operated 99.2% of its scheduled flights this month and the punctuality was 85 percent.

Route Map:

Top Copyright Photo: Flyr Boeing 737-8 MAX 8 LN-FGJ (msn 65903) BFI (Nick Dean). Image: 958678.

Flyr aircraft photo gallery:

Flyr takes forceful action to reduce cash burn and adjusts its winter schedule

Flyr made this announcement:

Flyr is taking important steps to reduce cash burn to prepare the company for the challenging winter season ahead. Several popular European destinations will remain on offer, while domestic routes in Norway will be reduced to a minimum. The Company will gradually increase its route offering during the spring and summer of 2023.

“We are entering a demanding winter season where discretionary consumer spending is expected to decrease significantly following the recent interest rate hikes, high general cost inflation and record high energy prices. This is hard-hitting to the airline industry and Flyr as a Company, and will result in reduced demand for air travel. This, together with the lasting high jet-fuel prices, leaves us with no other option than to adjust our route offering for the coming winter season. Unfortunately, this also forces us to furlough several of our dear colleagues. However, our goal is to put in place voluntary arrangements to retain as many as possible. By implementing these measures, we will be well positioned to ramp-up with full force for the coming spring and summer,” said CEO Tonje Wikstrøm Frislid of Flyr.

The Company is targeting a temporary cost reduction of up to 50 percent this winter, with an estimated reduction in cash burn through the winter of approximately NOK 400 million.

From November to March, Flyr will operate routes to several popular European destinations, including Alicante, Malaga, Las Palmas, Barcelona, Roma, Paris, Nice, Berlin and Brussels. The Company will also offer flights from Oslo to Bergen and Trondheim, as well as “Christmas Routes” between several cities in Norway in December.

“We have experienced satisfactory demand on our routes to European holiday destinations and will maintain a selection of popular destinations for the coming winter. At the same time, we must admit that it has taken longer than expected to build loyalty among business travellers on domestic routes in Norway, where the incumbent carriers maintain large market shares. Development of solutions for distribution through travel agencies, where the majority of business travellers book their flights, has also taken too long. Moreover, it has not been to our advantage that the government in Norway has contributed billions of NOK in covid-19 related financial aid to our main competitors,” said Wikstrøm Frislid.

Guests who have purchased tickets on cancelled flights will be contacted directly. All routes currently on sale from April 2023 and onwards will be operated as planned.

“We fully understand the frustration that our guests may be experiencing as a result of potentially changing travel plans. All affected guests will be contacted directly to be re-booked to another flight, or to be refunded,” said Wikstrøm Frislid.

Voluntary arrangements

In order to reduce cash burn, Flyr will put non-profitable routes on hold, and maintain sufficient personnel to operate 5-6 aircraft during the winter. Our decision to make use of furloughs is based on thorough assessments and in dialogue with union representatives. We will arrange town hall meetings, department meetings and follow-ups with all employees over the coming days. Employees may be furloughed full-time or part-time in several stages, depending on how the situation develops. The Company aims to put in place voluntary arrangements to reduce the extent of furloughs.

Back in full force for summer season 2023

In the coming months, Flyr will continuously evaluate the demand for air travel. In a situation where demand picks up faster than anticipated, Flyr will be able to ramp-up and increase its route offering. This entails that employees may be brought back to work on short notice.

“Feedback provided by our guests thus far has been overwhelmingly positive, proving that we represent something new to the industry. We have achieved this by utilizing technology that simplifies booking through mobile platforms; by offering direct and permanent employment in the actual airline in Norway; by being available to our guests when they need assistance; and by prioritizing our guests, for example by offering complimentary water, coffee, and tea on all flights. We look forward to welcoming our guests on board this winter, as well as the coming spring and summer,” said Wikstrøm Frislid.

Current Route Map:

Top Copyright Photo: Flyr Boeing 737-8KN WL LN-FGC (msn 40261) PMI (Ton Jochems). Image: 958110.

Flyr aircraft slide show:

Flyr is coming to Hamburg

Delivered on April 28, 2022

Flyr (Oslo) has announced it will begin flying the Oslo – Hamburg route starting on August 15.

The new route will be operated four days a week.

In other news, the new airline flew a total of 149,100 guests travelled with Flyr in May, an increase of 22% compared to April. The loyalty program Flyr + which was introduced in March is now counting 160,000 members. Sales are continuing to increase with 1.2 million tickets sold so far, and the last days have been averaging over 10,000 sold tickets per day.

The airline continued;

Production was 270.4 million ASK in the month, with on average nine aircraft in operation. Load factor was 62.1%, with Yield in the month of NOK 0.52.

Flyr had a regularity in operations during May of 99.4 % and punctuality of 89.7%.

  • Sale of tickets for the summer season continues to increase, and for June we expect a load factor up towards 80%. What we are most proud of and give us most motivation, is all the positive feedback we have received from all those who have chosen to fly with us so far, says Tonje Wikstrøm Frislid, CEO of Flyr.

Unit revenue (PASK) in May was NOK 0.34, while the average PASK from first flight in June 2021 was NOK 0.30.

Currently Flyr has a fleet of 10 aircraft, and 2 additional aircraft will be delivered during the summer. At the end of May, Flyr has 41 FTE’s per aircraft, which is in line with the planned progression to reach the targeted cost level.

Besides domestic routes in Norway, the airline flies to popular sunny destinations in southern Europe:

Top Copyright Photo: Flyr has joined the Boeing 737 MAX club. Flyr Boeing 737-8 MAX 8 LN-FGH (msn 43354) OSL (Jay Selman). Image: 404170.

Flyr aircraft photo gallery:

Flyr takes delivery of its first Boeing 737-8 MAX 8 via ALC

Air Lease Corporation (ALC) delivered the first Boeing 737-8 MAX 8 (LN-FGF) to Flyr on February 22, 2022.

Flyr is to deliver a total of six new Boeing 737-8 aircraft to the Norwegian carrier. The aircraft are being delivered in the first half of 2022.

Photo below: LN-FGF over Seattle prior to the delivery.

Fly also has an option for four additional aircraft in 2023.

On the economic side, the new airline issued this statement:

Fourth quarter 2021 was characterized by the Omicron wave of the Covid-19 pandemic impacting demand for air travel significantly. Despite the challenging market conditions, Flyr continued the building and development of the company to become an efficient and flexible low-cost carrier.

Highlights

  • Operations developing according to plan
  • Two new aircraft received, increasing the fleet to 5 aircraft in operation by end of the quarter
  • Load factor strongly impacted by Covid Omicron wave and government-imposed restrictions.
  • Adjusting route offering to adapt to market development and minimizing financial effects of the pandemic
  • Proven concept with robust and flexible operations and high customer satisfaction
  • Signed aircraft order for 6 new 737-8 aircraft to be delivered during 2022, with option for further 4 aircraft. Positioned for building an environmentally efficient fleet
  • Raised NOK 250 million in new equity, re-establishing financial buffer
  • Improving load factor into 2022 and preparing operations for market recovery
  • 44 routes to 38 destinations planned for the summer program

Entering 2022, all administrative and organizational functions are in place, the fully integrated booking-system is delivering on promises, the company’s brand name recognition is growing, and the company’s on-time performance has been excellent.

Commenting on the fourth quarter, CEO Tonje Wikstrøm Frislid says:

“Flyr is progressing according to plan, and we have been very well received in the market. We are very happy with the development and after a period heavily influenced by Omicron and government- imposed restrictions, we are now prepared for the summer season where we will offer 44 routes to 38 destinations.”

Adapting to the volatile market conditions, the company has swiftly adjusted production and offering, proving the organizations inherent flexibility.

The company’s strategy of demand driven growth remains, targeting domestic routes and selected European leisure destinations. Since commencement of first flights on June 30th, 2021, Flyr expanded its fleet with four aircraft, utilizing favorable terms securing capacity to fulfill the company’s long-term ambitions.

Flyr continues to expand its route map

Airline Color Scheme - Introduced 2021

Flyr (Oslo) will add new routes to Billund, Edinburgh, Pisa, Prague and Stockholm (Arlanda).

The new airline also issued a traffic report for January:

Market strongly affected by the Omicron situation and government restrictions.

Flyr had a total of 30.042 guests travelling to 13 destinations in January. Flyr’s total production was adjusted in line with the reduced demand for airline travels caused by the increase in the spread of Omicron and the restrictions implemented by the government in December.

Total capacity in January, with on average 3 aircraft in operation, was 53.5 mill ASK (available seat kilometers), with a load factor of 53.7%.

  • The recommendation of home office and the newly implemented social restrictions immediately affected the aviation industry and led to a substantial reduction in customer bookings, in particular for January. Considering this situation, we are very satisfied with the load factor we achieved during the month, says Tonje Wikstrøm Frislid, CEO of Flyr.

Unit revenue (PASK) in January was NOK 0.24, equal to average PASK from first flight in June 2021.

Flyr had a regularity in operations of 97.6 % and punctuality of 72.0 %. The development in punctuality is influenced by the winter storms during the month.

Flyr was established during the Covid-19 pandemic with the aim to build a sustainable and profitable business model by adapting and scaling production to meet the needs of the market. Expansion plans and the route network will be adjusted continuously depending on the pandemic situation.

The airline is currently operating five aircraft on domestic routes in Norway and to European destinations. The company plans to have 12 to 18 aircraft in operation by the end of 2022.

Top Copyright Photo: Flyr Boeing 737-8JP WL LN-DYI (msn 40866) GVA (Corentin Altherr). Image: 956747.

Flyr aircraft slide show:

Flyr aircraft photo gallery:

Flyr adds service to Geneva

Fly (Oslo) is adding the Oslo – Geneva route today with Boeing 737-800 LN-DYS.

The airline announced on social media:

We enjoy the beautiful view of the Alps on our first trip to Geneva today.

In other news, the new airline issued this traffic report for January:

In January, Flyr had a total of 30,042 travelers in 13 destinations. Flyr’s production in January was adapted to the reduced demand in the market, which has led to increased omicron infection and stricter infection control measures. Flyr’s total capacity in January, with three operational aircraft, amounted to 53.5 million seat kilometers (ASK), with a filling rate of 53.7 per cent. The average filling level since start-up is 47.6 percent. – The recommendation for a home office and the new measures that were introduced in December immediately affected aviation and led to a sharp reduction in bookings also for travel in January, says Tonje Wikstrøm Frislid, CEO of Flyr.

Considering the situation, we are satisfied with the degree of filling we achieved during the month, says Wikstrøm Frislid. The unit income (PASK) for January was NOK 0.24, corresponding to the average PASK since start-up. The traffic figures for the month show that Flyr achieved a regularity of 97.6 percent and an arrival punctuality of 72 percent. The development in punctuality is affected by the winter storms we experienced in January.

Flyr had its first flight on June 30, 2021 and has since then had a total of 305,924 passengers on board. The airline was established during the Covid-19 pandemic with the goal of building a sustainable and profitable business model, adapted to market demand. Expansion plans and the grid will be adjusted continuously depending on the pandemic situation.

Flyr currently operates five aircraft on domestic routes in Norway and to European destinations. The ambition is to increase the production capacity of 12-18 aircraft by the end of 2022.

Route Map:

Flyr to add flights to Barcelona, Berlin, Brussels and Gran Canaria

Flyr (Oslo) continues to expand internationally. The new airline has announced new routes from Oslo to Berlin, Barcelona, Brussels and Gran Canaria with this announcement:

Photo: NewYard 25

Our route map continues to expand and this week we welcomed Gran Canaria and three big city favorites.

Weekly departures to Gran Canaria will begin on December 14, increasing to three in early 2022. Our routes to Barcelona and Berlin will start on March 27, 2022, and we will start service to Brussels on May 6, 2022.

Barcelona, Berlin and Brussels go on sale on flyr.com and in the Flyr app from November 4, 2021.

Flyr’s destinations:

In Norway, Flyr already has routes to Tromsø, Bodø, Evenes, Trondheim, Bergen, and Stavanger.

Flyr’s first international routes went to Nice, Alicante and Malaga on August 21, 2021.

Then Paris, Copenhagen, and Rome entered the route map.

Recently, Flyr launched the following attractive ski destinations and cities in Europe; Salzburg, Milan (Bergamo), Geneva, and Grenoble.

Thus, Norwegian travelers and ski enthusiasts will have access to direct routes to several popular destinations this winter.

Flyr is also open for booking with new direct flights from Trondheim to Tromsø, as well as from Trondheim and Bergen to Alicante.

On November 3, 2021, Las Palmas, Gran Canaria came on the route map.

Route Map:


Flyr to lease six Boeing 737-8 MAX 8 aircraft from ALC + 4 options

Flyr has made this announcement:

Flyr is taking a new and important step towards a more sustainable operation by phasing in the very latest aircraft technology with the lowest carbon footprint and fuel costs. On average, the Boeing 737-8 MAX 8 emits up to 14 percent less emissions than previous models.

The company has signed a letter of intent with Air Lease Corporation (ALC) for six brand-new Boeing 737-8 MAX 8 aircraft.

The aircraft will be delivered directly from the Boeing factory to Flyr during the first half of 2022. There is also an option in the agreement for four more aircraft with delivery in 2023.

Sustainability is an essential part of Flyr’s strategy. Always choosing the most climate-friendly solutions is crucial. So is the company’s approach to employees and unions.

As a newly established airline, Flyr is the only airline in Norway that pays for 100% of its emissions under the EU Emissions Trading System (ETS), in contrast to other domestic airlines that receive large exemptions in the form of free allocation of emission allowances.

Unions positive about new aircraft

Both Flyr Cabin Association and Flyr Pilot Association are positive about the company’s choice of new aircraft type.

Aircraft manufacturer Boeing and the leasing company Air Lease Corporation (ALC) are pleased about Flyr’s decision to transition to the most environmentally friendly option.

The plan is that the first aircraft will arrive in early 2022 and arrive continuously towards the summer.

Current Route Map: