Category Archives: Norwegian.com (Norwegian Air Shuttle)

640,000 passengers flew with Norwegian in February

Norwegian’s traffic figures for February show that the number of passengers has remained stable over the second month of the year. 640,000 passengers flew with the company and load factor was over 81 percent. In February, ticket sales reached the highest level since the outbreak of the pandemic in March 2020.

In February, Norway and many European countries removed entry rules and other measures and restrictions associated with the pandemic.

“February is traditionally a month with lower travel demand, however, figures have remained comparable to the month of January. We are particularly pleased that our aircraft have had a load factor of over 81 percent. When travel restrictions were lifted, we immediately noticed increased demand for flights. We will have a comprehensive summer program this year to meet this demand,” said Geir Karlsen, CEO of Norwegian.

Norwegian carried 643,089 passengers in February, compared with 61,374 in February 2021. The load factor was 81.3 per cent. The capacity (ASK) was 1,089 million seat kilometres, while actual passenger traffic (RPK) was 885 million seat kilometres. In February, Norwegian had an average of 44 aircraft in operation, and 99.8 per cent of scheduled flights were operated. Punctuality was 87.8 percent.

During the summer program, 280 routes to 38 destinations are planned, and Norwegian will have around 70 aircraft in operation. The company has noted a very positive development in future bookings over the last period, and monitors closely the uncertain situation in Europe, the turmoil in the financial markets and the change in oil prices.

Norwegian aircraft photo gallery:

AerCap signs lease agreements with Norwegian Air Shuttle for 10 new Boeing 737-8 MAX 8 Aircraft and 8 Boeing 737-800 NG aircraft

AerCap Holdings N.V. has announced that it has signed agreements with Norwegian Air Shuttle ASA for the lease of ten new Boeing 737 MAX 8 aircraft and eight Boeing 737-800 NG aircraft. The aircraft are scheduled to deliver in 2022 and 2023.

Norwegian also issued this statement:

Norwegian has a long-standing relationship with AerCap, the world’s largest aviation leasing company. The signed lease agreements also include eight Boeing 737-800 NG, which are part of the 70 aircraft fleet operational for the summer 2022 season. With these additions, Norwegian will have a total fleet of 80 aircraft by the summer of 2023.

The Boeing 737 MAX 8 is approximately 14 percent more fuel efficient compared to previous-generation aircraft, hence contributing to Norwegian’s ambitious target to reduce its carbon emissions by 45 percent by 2030, compared to 2010.

Norwegian has previously announced several lease agreements that will increase its fleet from the current 51 aircraft to this summer’s fleet of 70. For some of the aircraft under these agreements, Norwegian has the option to substitute certain aircraft with equivalent narrow-body models from Airbus.

Norwegian aircraft photo gallery:

Norwegian delivers a profit before tax of NOK 117 million and improved cash position in the fourth quarter 2021

Norwegian today reported its fourth quarter and preliminary full year results for 2021. Passenger demand increased from the previous quarter, however, demand was negatively impacted by the outbreak of the coronavirus omicron variant. Profit before tax (EBT) was NOK 117 million, compared to a loss of NOK 16.6 billion in the fourth quarter of 2020 and a profit of NOK 169 million in the third quarter.

In the fourth quarter of 2021, 3.1 million passengers travelled with Norwegian, up from 0.6 million in the same period last year and 2.5 million in the previous quarter. Production (ASK) was 4.6 billion seat kilometres, while passenger traffic (RPK) was 3.6 billion seat kilometres. The load factor increased to 77.0 percent, up from 52.4 percent in the same period 2020 and 73.1 percent in the previous quarter. At the end of the fourth quarter of 2021, the total operational fleet comprised 51 aircraft.

Norwegian has continued to focus on cost control and liquidity discipline across every aspect of the company, which has led the to an improvement in the cash position. By the end of the fourth quarter, cash and cash equivalents increased to NOK 7.7 billion.

“I am pleased that we have been able to adapt to fluctuations quickly and efficiently, and that we can report a profit and an improved cash position in a quarter strongly affected by the omicron virus and government-imposed travel restrictions. I would also like to thank colleagues from across the airline for their continued dedication and hard work. We are looking forward to welcoming more customers on board heading into the busier spring and summer seasons, with a fleet increasing to 70 aircraft and over 270 routes on sale,” said Geir Karlsen, CEO of Norwegian.

Punctuality, meaning share of flights departing on schedule, was 87.8 percent in the fourth quarter of 2021, down from 94.1 percent in the fourth quarter of 2020 and 91.0 percent in the previous quarter. Norwegian was named the most punctual Nordic airline in 2021, and number three in Europe.

Norwegian has entered into a collaboration agreement with Neste

Norwegian has entered into a collaboration agreement with Neste, the world’s leading producer of sustainable aviation fuels (SAF). Norwegian’s corporate customers can now reduce their CO2 emissions from business travel by up to 80 per cent through sustainable aviation fuel. The agreement is an important step in accelerating a voluntary market for such fuels.

Sustainable aviation fuel is a proven low carbon solution that has been in use since 2011. Norwegian’s modern and fuel-efficient aircraft can tank up to 50 per cent SAF. By replacing fossil-based aviation fuel, SAF can reduce lifecycle GHG emissions up to 80 per cent.

In 2022, Norwegian will blend in 0.5 per cent sustainable aviation fuel on all fuel consumption in Norway and 1 per cent in Sweden and France, under government mandates. All voluntary purchases from corporate customers come in addition to these government mandates.

Helping corporates meet their emission reduction targets
Scan Global Logistics (SGL), a fast-growing global full-service logistics provider headquartered in Copenhagen, has set an ambitious target of reducing their emissions with 50% every 10 years. Reducing CO2 emissions from business travel is one of their priorities and they chose to partner with Norwegian and Neste to make significant steps in reducing business travel impact.

Under the agreement between Norwegian and Neste, Scan Global Logistics covered the additional cost for seven tons Neste MY Sustainable Aviation FuelTM which was used on Norwegian flights. This reduced SGL’s CO2 emissions from business travel by 21 tonnes.

Sustainably sourced and independently verified
Neste’s sustainable aviation fuel reduces emissions by up to 80 per cent in neat form and over the life cycle compared to fossil jet fuel use, calculated with established life cycle assessment (LCA) methodologies, such as the CORSIA methodology. It is made from sustainably sourced, renewable waste and residue raw materials.

Norwegian has decided to purchase sustainable aviation fuel for all its administration related business travel in 2022, replacing the fossil jet fuel consumption.

 

Norwegian second quarter results: Positive effect of completed reconstruction process and steady uplift of demand

Norwegian reported its second quarter results and published the H1 2021 financial report. The results continued to be impacted by COVID-19 and travel restrictions in all markets. However, following the successful completion of the reconstruction process and the subsequent NOK 6 billion equity raise, the company is now well positioned for future growth and to respond to increased customer demand.

Geir Karlsen, CEO of Norwegian, said: “The H1 financial report and Q2 results mark a clear improvement in both the financial situation, due to lower operating costs and the successful completion of the reconstruction process of the company, and the gradual ramp up of our operations in response to increased passenger demand.”

Profit before tax (EBT) was NOK 1,590 million in the first half of 2021, compared with a loss of NOK 4,792 million in the same period in 2020. For the first half of 2021, production (ASK) was reduced by 94 percent compared to the same period last year. Total revenue in the first half of 2021 was NOK 591 million, compared with NOK 7,138 million in the same period last year, a decrease of 92 percent. Unit revenue increased by 22 percent following a yield increase of 93 percent and a decreased load factor by 28.8 percentage points. Average sector length decreased by 62 percent. At the end of first half of 2021, the total fleet comprised 51 aircraft. Up to 32 aircraft were operational during the first half of 2021 due to travel restrictions and lower demand.

In the second quarter of 2021, the company successfully exited the examinership and reconstruction process which improved equity by NOK 10.7 billion.

Norwegian has committed to be a price leader in the Nordic markets, offering affordable fares and a reliable service to more than 250 routes across its European network. The company value simplicity when travelling and thanks to the Norwegian Travel Assistant app and the award-winning loyalty programme ‘Norwegian Reward’, which counts over four million members, passengers can easily control every aspect of their journey. Onboard, Norwegian continues to offer a modern and comfortable flying experience with free WiFi available for all passengers.

”The results continue to be heavily impacted by international travel restrictions. However, Norwegian is now in a much stronger financial position and is able to plan for the future with renewed confidence and focus. Forward bookings continue to increase in response to the relaxation of travel restrictions and the roll out of international vaccination programs. We expect to see this trend continue in the remaining months in 2021 and through 2022,” Karlsen continued.

Cash and cash equivalents were NOK 7,475 million at the end of first half of 2021, an increase of NOK 4,808 million compared with the end of 2020. Norwegian now has a fully reconstructed balance sheet with close to zero net interest-bearing debt, a strong cash position and a rightsized business.

Norwegian releases its Summer 2022 schedule for UK and Ireland to Scandinavia with 142 weekly flights

Norwegian will continue to increase flights between the UK and Ireland to destinations across Scandinavia as the airline releases the summer 2022 flying program. All flights are now available to book offering a wide range of destinations from London, Edinburgh, Manchester and Dublin.

In total, across the European network, Norwegian will offer 259 from routes from the Nordics as a result of travel restrictions and quarantine requirements easing and consequently demand for flights increasing.

In 2020 and 2021, the aviation industry was hit hard by travel restrictions and quarantine requirements as a result of the COVID-19 pandemic. Norwegian expects that the ever-increasing vaccination rate will mean that the risk of new travel restrictions will be significantly lower in 2022.

London Gatwick will serve Oslo, Stavanger, Trondheim, Bergen, Helsinki, Stockholm and Copenhagen with a total of 115 weekly flights.

Manchester will serve Oslo, Stavanger, Bergen and Stockholm with a total of eight weekly flights.

Edinburgh will serve Oslo, Stockholm and Copenhagen with a total of 15 weekly flights.

Dublin will serve Oslo and Copenhagen with a total of four weekly flights.

In other news, Norwegian’s traffic figures for July shows a continued increase in the number of passengers. Demand is driven by ease in travel restrictions, in addition to a higher level of the population being vaccinated. In July, Norwegian operated 33 aircraft, which is approx. 50 percent more than the previous month. For the coming autumn and winter season, the number of aircraft and routes will gradually be increased to meet anticipated market demand.

In July, 695,830 passengers flew with Norwegian, which is approx. 50 percent more than at the same time last year. Compared with July 2020, the total capacity (ASK) has increased by 104 percent and passenger traffic (RPK) up 124 percent. The load factor in July was 74.4 percent, an increase of 7 percentage points compared with last year.

Travel to Northern Norway has been especially popular this summer, and the company increased its capacity to the northern parts of Norway to meet this demand.

Norwegian closes its long-haul network, Gatwick jobs at stake, will focus on Europe and 737s

Norwegian has made a major decision to shut down its long-haul Boeing 787 Dreamliner network and concentrate on short-haul operations from Europe with this announcement:

Norwegian’s Board of Directors has outlined a simplified business structure and dedicated short haul route network. With this plan, Norwegian can build a robust and solid company that will attract investors and continue to serve new and existing customers.

Norwegian has long been recognized as an industry leader in low cost travel, winning numerous awards. The company will build on this foundation, focusing on its core Nordics business, operating a European short haul network with narrow body aircraft. The airline will continue to meet its customers’ needs by offering competitive fares across a broad range of domestic routes in Norway, across the Nordics and to key European destinations.

“Our short haul network has always been the backbone of Norwegian and will form the basis of a future resilient business model,” said Jacob Schram, CEO of Norwegian.

The current plan is to serve these markets with around 50 narrow body aircraft in operation in 2021 and to increase that number to around 70 narrow body aircraft in 2022. Furthermore, Norwegian targets to reduce its debt significantly to around NOK 20 billion and to raise NOK 4 – 5 billion in new capital through a combination of a rights issue to current shareholders, a private placement and a hybrid instrument. The company has received concrete interest in participation in the private placement. Norwegian has recently reinitiated a dialogue with the Norwegian government about possible state participation based on the new business plan.

The COVID-19 pandemic has profoundly affected the entire aviation industry. Travel restrictions and changing government advice continue to negatively influence demand for long haul travel, and Norwegian’s entire Boeing 787 Dreamliner fleet has been grounded since March 2020. Future demand remains highly uncertain. Under these circumstances a long haul operation is not viable for Norwegian and these operations will not continue. The consequence of this decision is that the board of directors of the legal entities employing primarily long haul staff in Italy, France, the UK and the US have contacted insolvency practitioners. Norwegian will continue to assess profitable opportunities as the world adapts and recovers from the impact of COVID-19.

Customers with bookings affected by the future changes in our route network will be contacted directly and will be refunded. The examinership and reconstruction processes undertaken in Ireland and Norway will continue as planned, and the plan presented today is subject to approval by the Examiner and Reconstructor, support from the creditors and subsequently court approval.

Norwegian Air Shuttle aircraft photo gallery:

Norwegian Air Shuttle aircraft slide show:

Norwegian commits to reduce CO2 emissions by 45 percent by 2030

Norwegian Air Shuttle made this announcement:

Norwegian has launched a new environmental sustainability strategy that will begin immediately and deliver several industry leading targets. Cutting CO2 emissions by 45 percent, remove all non-recyclable plastics and recycle all single-use plastics are key commitments in the new strategy. The goal is in line with the 1.5°C target set forth in the Paris Agreement.

Jacob Schram, CEO of Norwegian, said: “At Norwegian we take our responsibility towards the environment seriously, and that is why we must look to the future and implement a strategy that produces immediate and tangible benefits for the environment today. Norwegian will continue to instigate a positive change across the industry in this field that will benefit not only the environment but also our customers and our business. The low-cost business model is the sustainability model as it enables efficient energy and resource management.”

Will require 500 million litres sustainable aviation fuels

To limit global warming to 1.5°C, carbon emissions must be reduced by 45 percent by 2030 compared to 2010 levels, according to the International Panel on Climate Change (IPCC, 2018). We commit to improve the carbon efficiency of our operations and will reduce our carbon emissions by 45 percent per passenger kilometer (RPK) by 2030 – compared to 2010 levels. This will be achieved through both fleet renewal and sustainable aviation fuels.

The airline commits to utilising between 16 and 28 percent sustainable aviation fuels by the end of the decade, depending on the level of fleet renewal. The target amounts to up to 500 million litres sustainable aviation fuels by 2030.

To achieve this important goal, it is also crucial to get in place a regulatory framework that actively rewards carbon efficiency and increases both the production and use of sustainable aviation fuel.

Jacob Schram said: “We encourage producers to ramp up production of sustainable aviation fuels. Norwegian will be actively engaging with producers to kick start this vital contribution to the industry and take advantage of the emission savings that these fuels offer.”

Will remove all non-recyclable plastics

Initial elements of the sustainability strategy will also include a 100 percent reduction of non-recyclable plastics and 100 percent recycling of single-use plastics by 2023.

Anders Fagernæs, Norwegian Head of Environmental Sustainability, said: “More sustainable and smarter options are becoming a greater part of the considerations that customers make when choosing which airline to fly with. We will champion this attitude and become the customers sustainable choice by reducing and recycling plastic waste, promoting sustainable aviation fuel and continuing to fly one of the world’s youngest fleets to achieve a 45 percent reduction in CO2 emissions by 2030.”

A solid foundation

Norwegian is already one of the world’s leading fuel-efficient carriers due to its modern fuel-efficient aircraft. Norwegian was the first airline to sign the United Nations Framework Convention on Climate Change (UNFCCC) pledge, committing to become carbon neutral by 2050.

The airline was also voted the world’s most fuel-efficient airline on transatlantic routes in 2015 and 2018 by the International Council on Clean Transportation (ICCT) and since 2010 the airline has reduced its emissions by 28 percent.

Norwegian strongly affected by COVID-19 – 71 percent passenger decline, 8,000 furloughed or laid off employees and 140 grounded aircraft

Norwegian Air Shuttle reported its results for the first half year of 2020. The figures are as expected heavily impacted by the COVID-19 pandemic with a net loss of NOK 5.3 billion. During the first half of 2020, 5.31 million customers travelled with the company; a decrease of 71 percent compared to the same period last year. Norwegian successfully converted debt, gained access to state guaranteed loans of NOK 3 billion and conducted a public offering, in addition to implementing a series of cost-reduction measures. Still, Norwegian is facing challenging times ahead.

Before COVID-19, Norwegian had guided the market of a profitable 2020 and the best summer ever. Strict government travel advice and the following drop in customer demand forced Norwegian to ground 140 aircraft and furlough or lay off approximately 8,000 employees. In the second quarter, Norwegian only operated 7-8 aircraft on domestic routes in Norway. Following a successful restructuring process, the company gained access to the Norwegian government’s loan guarantee of NOK 3 billion and an additional NOK 0.3 billion from commercial banks.

“When we entered 2020, we were expecting a positive result and the best summer ever, thanks to successful cost-saving initiatives and a more efficient operation. Then we were hit by COVID-19 and customer demand literally stopped from one day to the next, as government-imposed travel restrictions and travel advice were introduced world-wide. For the past months we have been working tirelessly to make sure that we can emerge from this crisis as a stronger company, well-positioned for future competition. Some of these measures have been painful, but totally necessary if we are to make it through at all. Creditors, bondholders and shareholders have shown us support and trust to find a way forward for the company and our customers are expressing their strong support, for which I am grateful. And not least, I am extremely proud of all our Red Nose Warriors who are keeping up a positive spirit,” said CEO Jacob Schram.

During the first six months of 2020, 5.3 million customers travelled with Norwegian, compared to 18.1 million during the same period previous year. Production (ASK) was down by 69 percent and passenger traffic (RPK) decreased by 72 percent. The load factor was 78.2 percent, a decrease of 6.5 percentage points compared to the first half of 2019. Both load factor and production are adjusted according to the government mandatory blocking of middle seats on domestic routes in Norway in the second quarter of 2020.

Punctuality was at 87.2 percent, an improvement of 7.3 percentage points compared to the first half of 2019.

Poor visibility creates uncertainty ahead

On July 1, Norwegian reopened 76 routes, put an additional 15 aircraft into service and brought more than 600 employees back to work. The market is still highly uncertain, mainly due to changing travel advice from governments across Europe. As the government changes its travel advice, demand is immediately impacted. Going forward the company will continue to adjust its route portfolio in line with demand and government travel advice.

“The COVID-19 crisis has impacted aviation and the travel industry particularly hard, and most companies need government support to survive. We see that many of our main competitors receive considerable liquidity support from their governments as aviation represents the backbone of infrastructure. We are thankful for the loan guarantee made available to us by the Norwegian government which we worked hard to obtain. However, given the current market conditions it is not enough to get through this prolonged crisis,” Schram said.