Category Archives: Norwegian Air International

Norwegian’s financial turnaround moves in the right direction: Increased revenue and reduced cost

Norwegian has made this announcement:

Norwegian’s second quarter results are characterized by reduced growth and improved profitability, in line with the company’s strategy. Despite the reduced production growth and grounding of the Boeing 737 MAX aircraft, the underlying operating result before ownership costs more than doubled from the same quarter in 2018.

The underlying operating result before ownership costs was more than 2.3 billion Norwegian kroner (NOK), the highest ever in a second quarter and NOK 1.2 billion higher than last year.The unit revenue (RASK) increased by 13 percent, and the revenue per passenger per kilometer (yield) increased by 11 percent. For the second quarter, the total revenue was more than NOK 12 billion, an increase of 19 percent from the same period last year, primarily driven by intercontinental growth. Almost 10 million passengers flew with Norwegian this quarter, on par with the same quarter in 2018. The load factor was 88 percent, up 1.2 percentage points from last year.

Norwegian’s key priority is returning to profitability through a series of measures, including an optimized route portfolio and an extensive cost-reduction program. The production growth (ASK) in the second quarter was six percent, down from the peak growth of 48 percent in the second quarter of 2018. The company’s internal cost reduction program #Focus2019 continues with full effect and achieved cost reductions this quarter were NOK 554 million, consequently reaching the goal of NOK 1 billion so far in 2019.

“Norwegian’s Q2 results show that we are delivering on our strategy of moving from growth to profitability. Despite operational issues outside of our control, like the grounding of our 737 MAX fleet, we are delivering the highest second quarter operating revenue in the history of Norwegian. I am also pleased with the booking figures for the coming months, especially on long-haul,” said CEO of Norwegian, Bjørn Kjos.

During the second quarter, Norwegian has introduced four Boeing 787-9 Dreamliners to its fleet. With an average age of only 3.8 years, Norwegian’s fleet is one of the most fuel efficient and most modern in the world.

MAX update
In March, Norwegian temporarily suspended operation of 18 Boeing MAX 8 aircraft. The company has combined flights, booked customers to other departures within Norwegian’s own network, consequently reducing the impact on passengers. The company will continue to limit passenger disruptions by also offering flights with wetlease companies whenever necessary.

The 737 MAX grounding has affected both demand, operating expenses and production negatively. Norwegian expects the negative impact on the 2019 results to be approximately NOK 700 million.

In other news, CEO Bjorn Kjos (above) has stepped down.

The airline made this announcement:

After 17 years as the CEO of Norwegian Air Shuttle, Bjørn Kjos will leave the position and continue in a new role as an advisor to the Chairman, with effect from July 11th. Until Norwegian appoints a new CEO, CFO Geir Karlsen will act as interim CEO, while Chairman Niels Smedegaard will take on a more active role in the management.

“I am very pleased Bjørn will remain at the company as an advisor to the Board and the Chair. As Norwegian moves from growth to profitability, it will be an advantage for the company to benefit from Bjørn’s extensive network, in-depth knowledge of and experience with global aviation. We have already started the process of recruiting a permanent new CEO,” said Niels Smedegaard, Chairman of the Board of Directors at Norwegian.

“I am confident that the Board of Directors will find the best qualified successor to lead the next chapters of the Norwegian story together with the top management team. Leaving the exciting future tasks to a new CEO and taking on a new challenge as an advisor, is a set-up I am very happy with. I look forward to spending more time working on specific strategic projects that are crucial to the future success of Norwegian,” said Bjørn Kjos.

Bjørn Kjos is one of the founders of Norwegian Air Shuttle. During his tenure as CEO, the company has developed from a small domestic operation with 130 employees and four aircraft to a global and award-winning low-cost airline with more than 11,000 employees and 162 aircraft.

“Bjørn has played an unprecedented role in Norwegian’s success. His vision of offering affordable fares for all, combined with his enthusiasm and innovating spirit, has revolutionized the way people travel for pleasure and for business, not least between the continents. Bjørn is definitely one of the most influential European entrepreneurs of our time,” Smedegaard said.

Following a demanding period of financial and operational challenges, fueled by significant investments, Norwegian changed its strategy from growth to profitability in 2018. Going forward, the company will harvest from its rapid global growth and investments. Running a profitable business and boosting company value to the benefit of shareholders, customers and employees will be key for the CEO going forward.

“We have to ensure that Norwegian is well prepared and positioned to handle volatile markets and unexpected events. It is crucial that we continue to deliver on our cost reduction initiatives and that we constantly ensure that we have a route portfolio that yields profit. It is also important that the new CEO develops an organization that embraces continued improvement and operational excellence,” Smedegaard added.

Top Copyright Photo (all others by the airline): Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul) Boeing 787-9 Dreamliner LN-LNR (msn 38784) (Freddie Mercury, British Rock Legend) LAX (Michael B. Ing). Image: 946965.

Norwegian aircraft slide show:

Norwegian delays deliveries, reports increased revenues and reduced costs in the first quarter

Norwegian Air has come to an agreement with both Airbus and Boeing to reschedule the delivery of its aircraft to reduce its capital spending.

Norwegian has also reported its first quarter results. The quarter was characterised by reduced costs, increased revenue and significantly improved on-time performance. The net loss was NOK 1,489 million ($171.7 million), while the company’s unit cost excluding fuel decreased by 8 percent during the same period. The total revenue was NOK 8 billion, up 14 percent.

The airline continued;

Norwegian’s key priority is returning to profitability through a series of measures, including an extensive cost-reduction program, an optimized route portfolio and sale of aircraft. The company’s internal cost reduction program #Focus2019 has been implemented, achieved cost reductions were NOK 467 million this quarter. The company has also strengthened its balance sheet through a fully underwritten rights issue of NOK 3 billion, which secures a stronger financial position. The company is well positioned to continue to attract new customers, not least in the long-haul market, where the development is stronger than in the short-haul market.

For the first quarter, the total revenue was NOK 8 billion, an increase of 14 percent from the same period last year, primarily driven by intercontinental growth and increased traffic in the Nordics. More than 8 million passengers flew with Norwegian this quarter, a growth of 9 percent. The load factor was 81 percent. The company’s unit cost excluding fuel, decreased by 8 per cent compared to the first quarter in 2018. The punctuality increased significantly this quarter, from 73 to 81.3 percent. The regularity was unchanged at 98.7 percent.

“I’m pleased with the positive developments this quarter, despite the 737 MAX issues. We have taken a series of initiatives to improve profitability by reducing costs and increasing revenue. We are optimising our base structure and route network to streamline the operation as well as divesting aircraft, postponing aircraft deliveries and not least implementing our internal cost reduction program, which will boost our financials. I am also pleased that booking figures and overall demand for the coming months look promising,” said CEO of Norwegian, Bjørn Kjos.

Productive meetings with Boeing

In March, Norwegian temporarily suspended operation of 18 Boeing MAX 8 aircraft. The company combined flights and booked customers to other departures within Norwegian’s own network, consequently reducing the impact on passengers. The company will continue to limit passenger disruptions by also offering flights with wetlease companies whenever necessary. The number one goal is to operate its schedule according to plan.

“Our dedicated colleagues at Norwegian have been working day and night to find solutions for our customers. They will continue to do their utmost to ensure that all flights continue to depart as planned, regardless of how long the MAX stays out of service,” Kjos continued.

“We have had some productive meetings with Boeing where we have discussed how we can maneuver through the difficulties the MAX situation is causing Norwegian,” Kjos added.

Norwegian aircraft slide show:

Norwegian to launch a new route from Dublin to Hamilton, Canada

Norwegian has made this announcement:

Norwegian has announced it will commence its first-ever route between Europe and Canada this weekend.

From March 31, 2019 Norwegian will commence a new service from Dublin to Hamilton John C. Munro International Airport.

Above Photo: Chris Futcher.

Norwegian’s new route is the airline’s first-ever transatlantic service to Canada and the only direct flights between Ireland and Hamilton in Ontario. This summer, Hamilton will join Norwegian’s existing services to New York and Providence.

Norwegian will operate flights to Hamilton on Monday, Wednesday, Friday and Sunday using a Boeing 737-800 aircraft.

Top Copyright Photo: Norwegian.com (Norwegian Air International) (Ireland) Boeing 737-8Q8 WL EI-FHC (msn 37159) (6000th 737) LGW (Robbie Shaw). Image: 946105.

Norwegian aircraft slide show:

Norwegian is forced to schedule a Boeing 787-9 to replace a Boeing 737 MAX from Dublin to Stewart Airport

Norwegian has made this announcement:

In response to the instruction by the European aviation regulatory bodies to suspend operations of the Boeing 737 MAX, Norwegian will temporarily deploy a Boeing 787-9 Dreamliner to operate US flights from Dublin Airport to support affected customers.

Norwegian is continuing to minimise inconvenience caused by the temporary grounding of the Boeing 737 MAX by providing customers with SMS and web updates and care and assistance while re-routing passengers within its network.

Customers booked on affected transatlantic routes to and from Ireland serviced by the 737 MAX will be rebooked onto flights using the 787-9 Dreamliner. The 787 Dreamliner, registered G-CKWF with Charles Lindbergh on the aircraft tail, will operate the Dublin-New York Stewart (SWF) route daily.

The first flight will be operated today on flight D81763 from Dublin Airport to New York Stewart International Airport (SWF) at 15:20 local time. Arrangements are being made to accommodate passengers booked to travel from Dublin to Stewart and Providence on the new Dreamliner service with plans to bus passengers to Providence upon arrival in New York.

Norwegian will position the 787-9 Dreamliner aircraft and crew from London Gatwick to Dublin Airport this afternoon at 13:30 local time.

The Boeing 787-9 Dreamliner has 338 seats configured with a Premium cabin offering 56 seats and 282 seats in economy.

We would like to apologise to affected customers and we remain committed to ensuring that customers can continue to travel on Norwegian’s network.

Norwegian suspends flights with Boeing 737 MAX aircraft, following recommendations by European aviation authorities

Norwegian has issued this statement:

Following the decision by the relevant aviation regulatory bodies to temporarily suspend operations of Boeing 737 MAX, Norwegian will not operate any flights with this aircraft type until further notice. We remain in close dialogue with the aviation authorities and Boeing, and follow their instructions and recommendations.

Norwegian has more than 110 Boeing 737–800 aircraft in its fleet, which are not affected by this temporary suspension.

We would like to apologize to customers who will be affected by temporary cancellations and delays, but the safety and security of our customers and colleagues will never be compromised, and once authorities advise to cease operations we will of course comply.

Tomas Hesthammer, Norwegian’s acting Chief Operating Officer said:: “In response to the temporary suspension of Being 737 MAX operations by multiple aviation authorities we have taken the decision to not operate flights using this aircraft type, until advised otherwise by the relevant aviation authorities. We would like to apologize to customers for any inconvenienced caused, however, safety will always remain our top priority.”

Norwegian has 18 Boeing 737 MAX 8 in its fleet today. The total order of these aircraft is 110.

Norwegian followed-up with the additional statement:

All aircraft that are currently airborne will continue to destination or return to home base. We are now working on re-allocating our fleet options with other aircraft types, re-bookings to other flights and combining flights to minimise inconvenience caused for our passengers. We would like to apologise to customers who are affected, but the safety and security of our customers and colleagues will never be compromised. Affected passengers will be informed via SMS and our web pages.

Top Copyright Photo: Norwegian.com (Norwegian Air International) (Ireland) Boeing 737-8 MAX 8 EI-FYI (msn 42834) (Arthur Collins, American radio communications pioneer) LGW (Antony J. Best). Image: 943737.

Norwegian (Ireland) aircraft slide show:

Norwegian sells two Airbus A320neo aircraft, launches an upgraded WiFi service on European flights

Norwegian has made this announcement:

Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle ASA, has signed an agreement for sale of two Airbus 320neo aircraft.

The aircraft are currently leased out and thus not operated by the Company. Delivery will take place during February 2019. The transaction is expected to increase the Company’s liquidity by $26 million after repayment of debt and have a positive equity effect. Sale proceeds will be used to repay debt and to increase the Company’s liquidity.

The sale is in line with the Company’s strategy of capitalizing on the scale built up over the last few years and the changed focus from growth to profitability. This announcement is an extension of the information provided in the stock exchange announcement “Norwegian strengthens its balance sheet through a fully underwritten rights issue of NOK 3 billion” on 29 January, where sale of aircraft was highlighted as a measure to reduce capital expenditures, in addition to postponement of aircraft deliveries.

In other news, Norwegian is continuing to enhance the passenger experience by commencing the rollout of new and improved inflight WiFi connectivity onboard the airline’s Boeing 737-800 fleet.

Norwegian, named Europe’s Best Low-Cost Airline by SkyTrax, was the first airline to offer passengers free in-flight WiFi on all European flights in 2011. The airline became the first to introduce live television over the skies of Europe in 2015 and in 2018 it took delivery of its first Boeing 787-9 Dreamliner equipped with inflight WiFi. Norwegian became the first low-cost airline to offer customers free WiFi for the full duration of intercontinental flights.

Today, Norwegian has launched an upgraded WiFi experience on its Boeing 737-800 aircraft as part of improving the customer experience. Norwegian operates Boeing 737-800 aircraft on intra-European routes, routes connecting Europe with North Africa, Middle East and on flights between the USA and French Caribbean.

Norwegian will gradually roll out the new Premium WiFi service across its Boeing 737-800 fleet and expects to complete the rollout in mid-February 2019.

Three Wi-Fi packages available

Customers travelling on a Boeing 737-800 aircraft with the new Premium Wi-Fi service available will have a selection of three packages – SURF, the free option and two paid options, SOCIAL+SURF and STREAM+SURF, both offering faster speeds.

SURF – Available for free, delivers web browsing, email and text-based messaging

SOCIAL+SURF – Provides faster web browsing, access to email and all social media. Available for €5 per device. (Pricing may be subject to change.)
STREAM+SURF – Offers faster web browsing, email access and social media in addition to the ability to stream TV shows, movies and music content on services such as Netflix, YouTube and Spotify among others. Available for €12 per device. (Pricing may be subject to change.)

Norwegian recently started introducing WiFi to its Boeing 787-9 Dreamliner and Boeing 737 MAX fleet. Here, customers have two choices – Basic free Wi-Fi for the full duration of long-haul flights and a premium high-speed option, fast enough to stream television shows and movies.

Norwegian expects to have the rollout of WiFi completed on 50 percent of its Boeing 787-9 Dreamliner aircraft by 2020.

Norwegian operates a young fleet of more than 160 aircraft with an average age of 3.7 years.

Top Copyright Photo (all others by the airline): Norwegian Air Shuttle (Norwegian.com) Boeing 737-8JP WL LN-DYP (msn 39047) (Aksel Sandemose, Norwegian author) ARN (Stefan Sjogren). Image: 945580.

Norwegian aircraft slide show:

Norwegian adds Miami and San Francisco; expands Boston routes

Norwegian will add two more European nonstop routes out of Boston’s Logan International Airport next summer, as well as move its existing London service from Fort Lauderdale-Hollywood International Airport to Miami International Airport and from Oakland International Airport to San Francisco International Airport.

Norwegian offers the most nonstop routes from both California and Florida to Europe, and these moves will strengthen the airline’s operations in both states.

The new service from Boston to Rome will commence on March 31, 2019, and operate four times per week.

The new Madrid service will launch on May 2, 2019, and operate three times per week.

Both new routes will be summer seasonal only. Norwegian currently operates nonstop flights from Boston to London and Paris.

Additionally, the airline will move two of its existing London nonstop routes starting March 31, 2019. Service to London currently operated from Fort Lauderdale/Hollywood will move to Miami and from Oakland to San Francisco. Miami to London will be a daily service, while San Francisco to London service will be five times weekly.

Norwegian is also increasing frequencies on some of its Madrid, Paris and Rome service from other U.S. gateways for the summer 2019 schedule:

Denver to Paris will increase to three weekly flights, up from twice weekly.
Fort Lauderdale/Hollywood to Paris will increase to three weekly flights, up from twice weekly.
Los Angeles to Paris will increase to daily service, up from six weekly.
Los Angeles to Madrid will increase to four weekly flights, up from three weekly.
Los Angeles to Rome will increase to four weekly flights, up from three weekly.
New York to Madrid will increase to daily service, up from four weekly.
Oakland to Rome will increase to three weekly flights, up from twice weekly.
Orlando to Paris will increase to twice weekly service, up from once weekly.

Norwegian will now operate from 17 airports in the United States, and offers more than 50 nonstop routes to Europe, as well as four routes from the U.S. to Guadeloupe and Martinique in the French Caribbean, and three routes out of Canada.

Top Copyright Photo: Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul) Boeing 787-8 Dreamliner LN-LNE (msn 34796) (Roald Amundsen) LAX (Michael B. Ing). Image: 944579.

Norwegian aircraft slide show:

Norwegian to increase number of transatlantic flights from Ireland by over 35% next summer

Norwegian continues its growth in Ireland by announcing its new expanded 2019 summer schedule with 37% more weekly departures to the USA and Canada.

Norwegian currently operates flights from Dublin, Shannon and Cork airports to New York-Stewart International Airport and Providence TF Green Airport on the US East Coast. Flights are operated using brand new Boeing 737 MAX aircraft.

Norwegian’s increased 2019 summer schedule from Ireland has 40 weekly transatlantic departures and is now available to book for travel from March 31, 2019, as follows:

From Dublin

Hamilton-Toronto – The brand-new daily service to Canada commences on March 31, 2019 and will mark the first direct flight between Hamilton and Dublin. The new route provides passengers with greater choice and flexibility for travel to Toronto and nearby Niagara Falls. Fares from €189 one way.
Providence – Norwegian will increase flights to Providence, Rhode Island to a daily service next summer, up from five flights per week. One of America’s oldest cities, Providence provides good access to Boston and other ideal summer destinations in New England such as Nantucket and Martha’s Vineyard. Fares from €129 one way.
Stewart – Consumers will continue to benefit from twice-daily flights on Norwegian’s popular Dublin-New York-Stewart route following the introduction of a daily morning departure in April.

From Shannon

Stewart – Norwegian will increase its summer service to New York Stewart International Airport from three to five flights per week due to strong passenger demand. Fares from €129 one way.
Providence – Business travellers and holidaymakers will continue to benefit from four flights per week to the heart of New England next summer. Fares from €129 one way.

From Cork

Providence – Norwegian will continue its seasonal service to Providence with three flights per week. The airport’s only flights to the US will continue to offer Cork residents a direct transatlantic link during the busier summer season. Fares from €129 one way.

Norwegian also serves the European cities of Oslo, Stockholm, Copenhagen and Helsinki direct from the Irish capital with fares from €33.51 one way.

Copyright Photo (all others by Norwegian): Norwegian.com (Norwegian Air International) (Ireland) Boeing 737-8 MAX 8 EI-FYG (msn 42831) (Maria Zambrano, Spanish philosopher) PMI (Ton Jochems). Image: 942552.

Norwegian aircraft slide show:

Norwegian continues expansion in Ireland with first route to Canada

Norwegian has announced it is continuing its Irish expansion with the launch of the carrier’s first route to Canada. Commencing on March 31, 2019, the new daily service between Dublin and Hamilton (near Toronto) will mark the first direct flight between the two cities, providing passengers with greater choice and flexibility at an affordable price.

Norwegian’s daily nonstop flights from Dublin to Hamilton will be operated using brand new Boeing 737-8 MAX 8 aircraft offering 189 seats in a high quality, modern single class cabin.

Norwegian will continue its growth at Dublin by continuing its summer 2018 schedule into the winter. Irish customers will continue to benefit from a double daily service to Stewart, New York and daily flights to Providence, which offers passengers more affordable access to the tourist centers of New York City, Boston and the New England area.

Flight schedule – all times local

Dublin Airport to John C. Munro Hamilton International Airport

Daily – Flight D81840 Departs 14.40 Arrives 17.25

John C. Munro Hamilton International Airport to Dublin Airport –

Daily – Flight D81841 Departs 19.45 Arrives 07.30 (+1)

Copyright Photo: Norwegian.com (Norwegian Air International) (Ireland) Boeing 737-8 MAX 8 EI-FYC (msn 42825) (Jonathan Swift, Irish writer) ARN (Stefan Sjogren). Image: 940376.

Norwegian (Norway) aircraft slide show:

The newest tail from Norwegian

From Norwegian Air Shuttle:

Today is 46 years of the death of Clara Campoamor (1888 – 1972), writer, politics and feminist Spanish, and one of the main drivers of female suffrage in Spain, achieved in 1931.