Category Archives: Norwegian.com

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:

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 finalizes recapitalization and secures state aid

Norwegian Air Shuttle has made this announcement:

Norwegian confirms that the restructuring is completed and that the state loan guarantee of in total NOK 3 billion has been approved. The company has now converted NOK 12.7 billion of debt to equity and laid a solid foundation for the future, although the next months will remain challenging.

“I want to thank everyone who has supported the company during this unprecedented crisis that has affected the entire the airline industry: The Government and Parliament; customers; employees: shareholders; leasing companies; creditors; bondholders, the travel industry and other Norwegian supporters. Now that we can access the state loan guarantee, we can continue to transform the company. Through this process, the belief in New Norwegian and the company’s strategy have been confirmed by shareholders, the market, bondholders, leasing companies, other creditors and lenders. Nevertheless, the months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues,” said CEO Jacob Schram.

Since the end of 2018, Norwegian has taken significant actions to restructure its operations and return to profitability. The company was on the path to deliver a positive net profit in 2020, and this summer was set to be the strongest in the company’s history. Instead, the coronavirus outbreak and global travel restrictions has led to a substantial drop in demand.

The Company has seized this time as an opportunity to restructure and develop a new strategy and business plan – New Norwegian – for a strengthened airline to re-emerge when travel restrictions are lifted and demand returns.

“In addition to securing that the company survives this crisis, our goal has been that Norwegian should have a strong position in the future airline industry, with a clear direction and strategy. This will ensure sustainable operations and a structure that will be to the benefit of both shareholders, customers and colleagues,” says Schram.

Norwegian Air Shuttle aircraft photo gallery:

Norwegian Air calls for a special meeting on May 4 to discuss its future

Norwegian Air Shuttle (Norwegian Air) is basically in hibernation as its plans its future. The beleaguered airline has called for a special meeting on May 4, 2020.

At that meeting, the management of the company is expected to present a new restructuring plan that will see a much smaller airline if approved. Creditors will be asked to exchange debt for equity.

The company is also planning a hibernation phase that will last until next winter.

Read more from Forbes.

Norwegian aircraft photo gallery:

Norwegian to cancel 85 percent of its flights and temporarily layoff approximately 7,300 colleagues

Norwegian Air Shuttle made this announcement:

The COVID-19 situation is escalating by the hour and due to stagnating demand and enforced travel restrictions by authorities worldwide, Norwegian will gradually cancel most of its flights and temporarily lay off a major share of its workforce.

“What our industry is now facing is unprecedented and critical as we are approaching a scenario where most of our airplanes will be temporarily grounded. Several governments in Europe have already said that they will do everything they can to ensure that their airlines can continue to fly when society returns to normalcy. We appreciate that the authorities of Norway have communicated that they will implement all necessary measures to protect aviation in Norway, consequently securing crucial infrastructure and jobs,” said CEO Jacob Schram of Norwegian.

Norwegian has already discontinued a significant number of its flights and the main priority this week is to maintain as many scheduled flights as possible to ensure that customers are able to immediately return to their home destinations. The company will also work closely with the authorities to arrange flights for the benefit of stranded passengers, if necessary. Customers who are directly affected by route changes and cancellations will be contacted by Norwegian via text message or e-mail.

“We understand that this extraordinary situation is stressful for our customers, but I want to assure everyone that we are working around the clock to ensure that everyone is taken care of in the best way possible at this time,” said Schram.

As a result of most of the company’s planes being parked, Norwegian unfortunately has to temporarily lay off more than 7,300 colleagues in total which equates to approximately 90 per cent of its workforce, which includes pilots, cabin crew, maintenance and administrative staff. The layoff procedures vary from country to country and Norwegian’s team is already in constructive dialogues with union and HSE representatives at all its locations across the network.

“It is indeed with a heavy heart we have to temporarily lay off more than 7,300 of our colleagues, but we unfortunately have no choice. However, I want to emphasize that this is temporary, because when the world returns to normalcy my goal is to keep as many of our dedicated colleagues as possible,” said Schram.

Norwegian’s route network changes

-Thousands of flights have already been cancelled.

-As of March 21, the company will primarily fly a reduced scheduled domestically in Norway and between the Nordic capitals. Some European flights will be operated. All intercontinental are cancelled except flights between Scandinavia and Thailand (last flights at end of March).

-All flights that will be operating will be available for sale on Norwegian.com.

-Limited schedule will remain in place until at least April 17 but will be reviewed on a regular basis in line with changes in travel restrictions and demand.

Norwegian will continue to share updates with its customers, the financial market and the media once new measures are implemented.

Detailed reduced schedule – starting March 25

Norway:

Oslo -Bergen/Stavanger/Trondheim: 4 daily departures

Oslo – Ålesund/Bodø/Evenes/Tromsø: 2 daily departures

Oslo -Alta/Kirkenes: 1 daily departure

OSL – Haugesund/Kristiansand/Molde: 1 daily departure

Oslo – Svalbard: 3 weekly depatures

Oslo -Stockholm/Copenhagen: 2 daily departures

Oslo – Helsinki: 4 weekly departures

Stavanger – Bergen: 1 daily departure

Bergen – Trondheim: 1 daily departure

Sweden:

Stockholm – Kiruna: 4 weekly departures

Stockholm – Luleå/Umeå: 2 weekly departures

Stockholm – Helsinki: 2 daily departures

Stockholm – Copenhagen: 2 daily departures

Stockholm – Oslo: 2 daily departures

Finland:

Helsinki – Kittilä: 6 weekly departures

Helsinki – Oulu: 1 daily departure

Helsinki – Rovaniemi: 1 daily departure

Helsinki – Oslo: 4 weekly departures

Denmark:

Copenhagen – Oslo: 2 daily departures

Norwegian Air Shuttle aircraft photo gallery:

Norwegian reports its best ever quarterly result with a profit before tax of NOK 2.2 billion

Norwegian Air Shuttle has issued this financial report:

Norwegian’s third quarter results are characterised by improved profitability, higher unit revenue, lower unit cost and reduced growth, in line with the strategy. Profit before tax improved by 38 percent to NOK 2.2 billion compared to the same quarter last year.

Unit revenue and revenue per passenger kilometer (yield) both increased by 3 percent this quarter. Total revenue was NOK 14.4 billion, an increase of 8 percent from the same period last year, primarily driven by intercontinental growth. Norwegian carried approximately 10.5 million passengers; a reduction of 3 percent due to lower capacity. The load factor was 91.2 percent, up 0.7 percentage points.

Norwegian’s key priority is returning to profitability through a series of measures, including an optimised route- and base portfolio and an extensive cost-reduction program. The production growth (ASK) in the third quarter was 3 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 force with an achieved cost reduction this quarter of NOK 827 million. The company expects to achieve a cost-reduction of NOK 2.3 billion for the year through #Focus2019.

“Norwegian’s third quarter results show that we are delivering on our strategy of moving from growth to profitability. We are delivering record-high earnings, record-high operating revenue and reduced unit cost, even when hit by operational issues outside of our control,” said Acting CEO and CFO of Norwegian, Geir Karlsen. “I would also like to commend everyone at Norwegian for contributing to delivering on our cost-reductions,” he added.

As Norwegian’s international foothold has continued to grow, the United States is now the largest market in terms of revenue, followed by Norway, Spain and the UK.

Since 2008, Norwegian has reduced the per passenger CO2 emissions by 30 percent. During the third quarter, Norwegian’s CO2 per passenger kilometre was 69 grams – unchanged from the same period previous year, due to the use of older wet-leased aircraft caused by the grounding of the 737 Max 8 fleet. The passenger climate impact will also be reduced going forward as more new aircraft enter the fleet. With an average age of only 3.8 years, Norwegian’s fleet is one of the most fuel efficient and modern in the world.

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

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 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

"Freddie Mercury, British Rock Legend"

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.

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) AMS (Ton Jochems). Image: 946289.

Norwegian aircraft slide show:

Norwegian moves to San Francisco and Miami for higher yields

Norwegian has moved its Bay Area service from Oakland to San Francisco on March 31 for potential higher yields from the area.

This follows the move from Fort Lauderdale/Hollywood to Miami for the same reason.

Miami issued this statement and photo:

Norwegian’s new service receives a water-cannon salute from Miami-Dade County.

Norwegian launched first-ever service at MiamiInternational Airport on March 31. The new service now gives travelers a daily nonstop option between MIA and London Gatwick Airport, aboard Norwegian’s Boeing 787 Dreamliner aircraft that seats 344 passengers in a two-class configuration.

Norwegian is one of four international airlines entering the Miami market within the next four months. On April 3, Moroccan national carrier Royal Air Maroc will launch the first-ever Miami–Casablanca route – MIA’s first passenger flights to Africa since the year 2000 and Florida’s only nonstop service to the continent. On June 1, LOT Polish Airlines will begin four weekly flights to Warsaw – MIA’s first-ever service to Poland and the only nonstop route between Florida and Eastern Europe. French airline Corsair will launch service to Paris Orly Airport on June 10 with four weekly flights.

Previously the airline made this announcement:

Norwegian 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.

The airline will move two of its existing London nonstop routes starting March 31, 2019. Service to London currently operated from Fort Lauderdale 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. Economy fares from San Francisco to London start as low as $159.90 and from Miami at $159.90, one-way, including taxes.

Above Photo: Norwegian. Harvey Milk, American Civil Rights Activist featured on Norwegian’s 787 Dreamliner

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 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.

Top Copyright Photo: Mark Durbin. Inbound flight number to SFO on March 31 was flight NRS 7173. 787-9 G-CKWE had the honor.