Category Archives: Norwegian Air Shuttle

Norwegian reports a positive passenger traffic trend in June

Fridtjof Nansen, Norwegian explorer

Norwegian’s traffic figures for June continue to be heavily influenced by travel restrictions and therefore low demand. However, forward bookings and demand continue to show a positive increase as a greater number of markets unlock and ease restrictions. In July, the number of aircraft and routes will gradually increase.

In June, 225 509 passengers flew with Norwegian, which is approx. 100 percent more than at the same time last year. Compared with June 2020, the total capacity (ASK) has increased by 182 percent and passenger traffic (RPK) up 102 percent. The load factor in June was 62.9 percent, a decrease of 25 percentage points compared with last year.

“June traffic results still show the impact of low demand due to reduced flying schedules and government imposed travel restrictions. However, we have seen a continued month on month increase in bookings as countries ease restrictions. As a result, we have resumed flights to a number of key European destinations, we will continue to adjust and increase our network and schedules as demand rises.” Said Geir Karlsen, CEO of Norwegian.

Norwegian operated 15 aircraft in June. During the month the company operated 99.9 percent of its scheduled flights, with 94.1 percent departing on time.

Top Copyright Photo: Norwegian.com (Norwegian Air Sweden) Boeing 737-8JP WL SE-RRF (msn 39004) (Fridtjof Nansen, Norwegian explorer) ARN (Stefan Sjogren). Image: 954104.

Norwegian: Traffic results for May show signs of positive trend

Norwegian’s traffic figures for May continue to be affected by international travel restrictions and therefore low demand. However, passenger numbers have shown a noticeable increase in volume in line with vaccination roll outs and changes to entry restrictions and quarantine regulations.

In May, 96,909 customers flew with Norwegian, which is approx. 23,000 more than at the same time last year. Compared with May 2020, the total capacity (ASK) has increased by 41 percent and passenger traffic (RPK) up 97 percent. Furthermore, the load factor in May was 54.8 percent, an increase of 16 percentage points compared with last year.

“Despite low volumes, we are experiencing an increasingly positive trend in the number of bookings for the summer and autumn period. This is especially noticeable in the Scandinavian market. The increase in the number of bookings demonstrates a clear connection with the announced and gradual opening of society and the relaxing of travel restrictions by government authorities. We are prepared and ready to increase our route network to meet future customer demand.” Said Jacob Schram, CEO of Norwegian.

Norwegian operated ten aircraft in May, mainly on Norwegian domestic routes. The company operated 99.1 percent of its scheduled flights in May, whereof 95.9 percent departed on time.

Norwegian resumes flights from Sweden, exits bankruptcy protection

Norwegian.com (Norwegian Air International) (Ireland) Boeing 737-8Q8 WL EI-FHE (msn 35280) (Sonja Henie) PMI (Ton Jochems). Image: 952170.

Norwegian Air Shuttle made this announcement:

As of today, May 31,2021 Norwegian will resume flights in Sweden and expand to 33 destinations during the spring and summer.

Today Norwegian starts flying domestically to Umeå and Luleå from Stockholm as well as international to Oslo and Malaga. In June, more direct routes will start and during the summer the company offers 31 destinations from Stockholm and two destinations from Gothenburg.

In June, Norwegian will begin flying to Visby, Copenhagen, Helsinki, Nice, Palma, Alicante, Barcelona, Faro, Athens, Berlin, Burgas, Dubrovnik, Split, Chania, London, Riga and Sarajevo from Stockholm.

Direct flights to Malaga and Alicante from Gothenburg will also start in June.

In July, the route network will be further expanded with direct flights to Kiruna, Vilnius, Palermo, Rome, Rhodes, Prague, Larnaca, Krakow, Budapest and Belgrade from Stockholm.

In other news, the company exited bankruptcy protection on May 26, 2021.

Restructuring saw the company shed a large part of its fleet (156 to 51 aircraft) and a reduction of its debt. The number of employees has dropped to around 3,300.

Norwegian is out of the long-haul business and will concentrate on flights in Europe.

The restructuring plan has now been approved in both Ireland and Norway where the aircraft are registered.

Top Copyright Photo: Norwegian.com (Norwegian Air International) (Ireland) Boeing 737-8Q8 WL EI-FHE (msn 35280) (Sonja Henie) PMI (Ton Jochems). Image: 952170.

Norwegian aircraft slide show (Ireland):

Norwegian: Travel restrictions continue to impact operations in April

"Jean Sibelius. Finnish composer"

Norwegian Air Shuttle issued this report:

Norwegian’s traffic figures for April are impacted by government travel restrictions and therefore low demand.

In April 59431 customers flew with Norwegian, an increase of approximately 18000 compared to the same period last year. The capacity (ASK) was down 7 percent, and the total passenger traffic (RPK) was up by 115 percent.

The load factor was 42.2 percent, up 24 percentage points, compared to April last year.

“The pandemic and international travel restrictions continue to impact our traffic results when compared to the same period last year despite the percentage increases. However, as the reopening of borders in Norway and across Europe progresses, we are confident that we will continue to see a gradual increase in year on year traffic. We continuously adjust our operations to changes in demand.” Said Jacob Schram, CEO of Norwegian.

Norwegian operated ten aircraft in April, mainly on domestic routes in Norway. The company operated 97.7 percent of its scheduled flights in April, whereof 97.8 percent departed on time.

Top Copyright Photo: Norwegian.com (Norwegian Air Sweden) Boeing 737-8JP WL SE-RRZ (msn 42083) (Jean Sibelius, Finnish composer) PAE (Nick Dean). Image: 953561.

Norwegian (Sweden) aircraft slide show:

Norwegian’s reconstruction process in Ireland is approved

Norwegian Air Shuttle made this announcement:

Norwegian’s reconstruction process in Ireland, called the Examinership, was approved by the judge in the Irish High Court on March 26. Based on this decision, Norwegian will now send the same proposal for voting in Norway. Following this, the company will start the process of raising capital with the goal of a final resolution by the end of May.

The Examiner process in Ireland is a reconstruction involving several of the company’s Irish subsidiaries. The goal of the process, which started on November 18, 2020, is primarily to strengthen the company financially and to rightsize the fleet in order to adapt to future demands.

The verdict from the Irish High Court was reached following meetings with the company’s creditors, whereby a large majority voted in favor of the reconstruction process. A similar voting process will now take place with the creditors in the Norwegian reconstruction during the next 14 days, prior to the final ruling from the Norwegian Court. The Norwegian reconstruction is therefore continuing as planned, and is expected to be completed by mid May.

“This is a demanding and ongoing process, however, the result of the court rulings enforces our beliefs of a positive final outcome. We are looking forward to and are preparing fora post-pandemic world, without travel restrictions and open borders.”Said Schram.

The decision from the Irish High Court will be legally binding following an appeal period of one month and the company will technically still be in the Examinership until the process of capital raise is finalized. Given that the court proceedings continue as planned, Norwegian’s goal is to finalize the capital raise by the end of May 2021.

Norwegian Air International is an Irish semi-ultra budget airline and a fully integrated subsidiary of Norwegian Air Shuttle, using its corporate identity. It operates flights to destinations in Europe and the Middle East from several bases in Denmark, Finland, Spain, and the United Kingdom, and is headquartered at Dublin Airport.

Norwegian Air International aircraft photo gallery:

Norwegian Air International aircraft slide show:

 

Norwegian to drop the Boeing 737 MAX entirely

Norwegian Air Shuttle has contracted with aircraft broker Orix Aviation to market 12 of its 18 delivered, but grounded, Boeing 737 MAX aircraft according to E24.

Norwegian is not expected to operate the type ever again. Instead the company will concentrate on the Boeing 737-800 NG as it scales back in order to survive.

Norwegian is also trying to cancel its order for the remaining MAX aircraft Boeing was preparing to build and deliver.

Norwegian cancels order for Airbus A320neo aircraft, submits restructuring plan

Norwegian Air Shuttle has cancelled its order for Airbus A320neo aircraft.

The airline had previously signed an order for 100 A320neo aircraft with Airbus.

In other news, Norwegian has sent its restructuring plan to its creditors and shareholders. The airline issued this statement:

On March 11, Norwegian’s financial reconstruction plan was sent to its creditors and shareholders. If the plan is approved by the Irish and Norwegian courts in the coming weeks, the company can continue the reconstruction processes and initiate a capital raise in April, targeting completion in May 2021.

Jacob Schram, CEO of Norwegian, said: “We have had many constructive and challenging negotiations with creditors since the indicative plan was presented on January 14, 2021. The Examiner in Ireland and the Reconstructor in Norway both believe that this plan is in the interest of the creditors and shareholders of the company. This is an important milestone in the process of securing Norwegian’s future.”

The Examiner will firstly present formal proposals for the restructuring based on the plan presented to the creditors of the company. Following the necessary creditor meetings the proposals will then be presented to the Irish High Court for approval. The proposals outline how creditors will be dealt with in the actual reconstruction. Unsecured creditors who will not participate in the planned capital raise, will be entitled to cash and a dividend totaling to around five percent. The dividend claims may be converted to shares, in total representing approximately 25 percent of the company’s share capital following the restructuring. New investors in the capital raise will receive approximately 70 percent of the post-restructuring share capital, and current shareholders approximately five percent.

Geir Karlsen, CFO of Norwegian, said: “It is hoped that the Irish High Court will make their final decision within the next couple of weeks. If approved by the Irish Court, the plan will be dealt within the reconstruction process in Norway. If everything goes according to plan, we will be able to carry out the capital raise in May.”

Norwegian has sought to identify solutions to refund a small share of customers with claims from prior to entering the examinership on November 18th, 2020. Approximately 98 percent of refund claims booked directly with Norwegian, were refunded before the commencement of the reconstruction process. Despite discussions with the Examiner and Reconstructor, it has unfortunately proven impossible to allow the reimbursement of the outstanding refund claims to customers due to the principles of the restructuring processes.

COVID-19 heavily influences Norwegian’s January traffic figures

Norwegian Air’s traffic figures for January are heavily influenced by lower demand caused by continued travel restrictions across Europe.

In January, 74,224 customers flew with Norwegian, a decrease of 96 percent compared to the same period last year. The capacity (ASK) was down 98 percent, and the total passenger traffic (RPK) was down by 99 percent. The load factor was 35.9 percent, down 45 percentage points.

Jacob Schram, CEO of Norwegian, said: “The pandemic continues to have a negative impact on our business as travel restrictions remain. We are doing everything in our power to come out of the examinership as a stronger, more competitive airline and we look forward to welcoming more customers on board as travel restrictions are lifted.”

Norwegian operated eight aircraft on average in January, mainly on domestic routes in Norway. The company operated 96.8 percent of its scheduled flights in January, whereof 90.4 percent departed on time.

In other news, Norwegian also reported its fourth quarter results. As expected, the results were heavily impacted by COVID-19 and travel restrictions in all markets. The net loss was NOK 16.6 billion, including impairment of NOK 12.8 billion. The operating expenses before leasing and depreciation were reduced by 82 percent compared to the same quarter last year. In 2020, the company reduced net interest-bearing debt by NOK 18 billon. The examinership process in Ireland and the reconstruction process in Norway that were initiated in the fourth quarter are on track.

The pandemic continues to have a negative impact on the aviation industry. Demand was severely affected by changing travel restrictions and the continued spread of COVID-19 across Norwegian’s key markets. Out of a current fleet of 131 aircraft, an average of 15 were operational during the fourth quarter, mainly on domestic routes in Norway. Norwegian carried 574,000 customers, a decrease of 92 percent compared to the same period in 2019. Production capacity (ASK) was down 96 percent and passenger traffic (RPK) decreased by 97 percent. The load factor was 52.4 percent, a decrease of 32.5 percentage points compared to the fourth quarter of 2019.

Jacob Schram, CEO of Norwegian, said: “2020 was an exceptionally difficult year for the aviation industry and for Norwegian. Consequently, the fourth quarter results are as expected. Unfortunately, many of our employees are furloughed or have lost their jobs, partly due to the company’s decision to cease long-haul operations. Despite the difficulties the pandemic has caused, there is a great fighting spirit and engagement within the company, and together we will build new Norwegian when we exit the reconstruction processes. Now, we are doing everything we can to emerge as a more financially secure and competitive airline with an improved customer offering, and as soon as Europe begins to reopen, we will be ready to welcome more customers on board.”

In the fourth quarter of 2020, Norwegian entered an examinership process in Ireland and a reconstruction process in Norway. Both processes are progressing as planned and are on track. The purpose of the processes is to reduce debt, reduce the size of the fleet and make the company financially attractive to secure new capital. Norwegian targets to reduce its debt significantly to around NOK 20 billion and to raise NOK 4 – 5 billion in new capital. In 2020, the company reduced net interest-bearing debt by NOK 18 billon, mainly through conversion to equity. Going forward, Norwegian will focus on a strong and profitable Nordic and European network. The company plans to serve these markets with approximately 50 narrow body aircraft in 2021. However, the ramp-up is dependent on the development of the pandemic, travel restrictions and government advice in key markets.

Norwegian operated 90.1 percent of its scheduled flights in the fourth quarter, whereof 94.1 percent departed on time.

Norwegian aircraft photo gallery:

Norwegian aircraft slide show:

COVID-19 heavily influences Norwegian’s January traffic figures

Norwegian Air’s traffic figures for January are heavily influenced by lower demand caused by continued travel restrictions across Europe.

In January, 74,224 customers flew with Norwegian, a decrease of 96 percent compared to the same period last year. The capacity (ASK) was down 98 percent, and the total passenger traffic (RPK) was down by 99 percent. The load factor was 35.9 percent, down 45 percentage points.

Jacob Schram, CEO of Norwegian, said: “The pandemic continues to have a negative impact on our business as travel restrictions remain. We are doing everything in our power to come out of the examinership as a stronger, more competitive airline and we look forward to welcoming more customers on board as travel restrictions are lifted.”

Norwegian operated eight aircraft on average in January, mainly on domestic routes in Norway. The company operated 96.8 percent of its scheduled flights in January, whereof 90.4 percent departed on time.