Tag Archives: Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul)

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:

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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 adds Miami and San Francisco; expands Boston routes

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 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:

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Norwegian reveals its plans for 2018 from London Gatwick

Delivered on April 14, 2016

Norwegian Air Shuttle (Oslo) has announced its growth plans for this year from London Gatwick:

Low-cost airline Norwegian reveals its plans for 2018 as the award-winning carrier’s rapid expansion will take the airline to new heights. Norwegian will build upon its growth by launching new long-haul routes – including its first service to South America, introducing a new enhanced Premium cabin and inflight Wi-Fi to new long-haul aircraft. Norwegian will also add more affordable flights to its most popular USA destinations.

Europe’s third largest low-cost carrier flew 5.8 million passengers from the UK and Ireland and launched more than 15 routes in 2017. Some of its successes include commencing groundbreaking transatlantic flights from Scotland, Belfast and Ireland to smaller US east coast cities and taking low-cost long-haul global with the world’s longest low-cost route between London and Singapore.

Norwegian’s continued expansion is cleared for take-off and here are five developments to expect from the airline in 2018:

  1. Norwegian’s first route to South America – On February 14, 2018, Norwegian will launch its first route to South America with a brand new direct service from London Gatwick to Buenos Aires available from £299 ($406.20) one way. Four flights per week on the 787 Dreamliner will unlock more affordable travel to Argentina, offering travellers access to a unique mix of European and Latin American culture.
  2. New enhanced Premium cabin to fly on the 787 Dreamliner – Norwegian will introduce an expanded Premium cabin which will have 60% more seats for passengers wanting an enhanced experience. The new 56 seat cabin configuration will offer passengers more than a metre of legroom and 11” Panasonic monitors providing hours of complimentary inflight entertainment. The new cabin will be fitted on Norwegian’s final 20 787 Dreamliner orders set for delivery from February onwards.
  3. Chicago and Austin to become newest US destinations – Norwegian will add Chicago and Austin to its growing list of long-haul destinations from London Gatwick this spring. From £149.90 ($203.65) one way, holidaymakers and business travellers can fly daily to the Windy City which launches on March 25, 2018. From March 27, 2018, Norwegian will commence a new three weekly service to Austin, Texas, known for its world-famous cultural scene and for providing the backdrop to the South by Southwest (SXSW) festival. Direct flights are available from £164.90 ($224.00) one way.
  4. Introducing Wi-Fi on more state-of-the-art aircraft joining Norwegian’s fleet – Norwegian will add 11 Boeing 787 Dreamliners to its fleet in 2018 which are exclusively used on long-haul routes from London Gatwick. 10 of these new aircraft will feature the enhanced Premium cabin. Meanwhile 12 new Boeing 737-8 MAX 8 aircraft will land in Norwegian’s fleet this year to service the carrier’s transatlantic flights from Edinburgh, Belfast and Ireland to the US east coast. Later in 2018, Norwegian will begin to rollout inflight Wi-Fi on long-haul routes that will keep passengers connected in the skies.
  5. Daily Boston flights and planned increases for Oakland and LA – Next spring, Norwegian will increase the number of flights on some of its most popular routes from London Gatwick. Boston increases from five weekly flights to a daily service with fares from £134.90 ($183.28) one way. Plans are underway to increase Oakland-San Francisco to a daily service and more flights are planned to Los Angeles, with twice-daily departures on select days of the week.

Copyright Photo: Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul) Boeing 787-9 Dreamliner EI-LNJ (msn 37308) (Ole Bull) LGW (SPA). Image: 932556.

Norwegian aircraft slide show:

Norwegian to lease two additional Boeing 787-9 Dreamliners, 787 fleet going to 42

Norwegian to lease two additional Boeing 787-9 Dreamliners, 787 fleet going to 42

Norwegian has entered into a lease agreement with CIT Aerospace to lease two new Boeing 787-9 Dreamliners with deliveries in the spring of 2018. The latest agreement means that the company will have a fleet of 42 long-haul Dreamliners before 2020.

Norwegian currently has eight 787-8 Dreamliners and two 787-9 Dreamliners in the long-haul fleet.

Norwegian is also exercising eight Boeing 737 MAX 8 options. The Group already has 100 MAX 8 aircraft on order and is the launch customer for Europe.

Copyright Photo: Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul) Boeing 787-9 Dreamliner EI-LNI (msn 37307) (Greta Garbo) LGW (Robbie Shaw). Image: 932746.

AG Aircraft Color Prints 6.4.11