Tag Archives: Norwegian Air Shuttle

Norwegian to suspend more than 4,000 flights and implement layoffs

Norwegian Air Shuttle has made this announcement:

Following the U.S. ban on travel from most of Europe and the escalating coronavirus situation, Norwegian has decided to ground 40 percent of its long-haul fleet and cancel up to 25 percent of its short-haul flights until the end of May. The changes apply to the company’s entire route network.

Jacob Schram, CEO of Norwegian said: “This is an unprecedented situation and our main priority continues to be the care and safety of our customers and colleagues. The new restrictions imposed further pressure on an already difficult situation. We urge international governments to act now to ensure that the aviation industry can protect jobs and continue to be a vital part of the global economic recovery.”

40 percent of long-haul capacity to be cancelled

From March 13th to March 29th, we will cancel the majority of our long-haul flights to the U.S. from Amsterdam, Madrid, Oslo, Stockholm, Barcelona and Paris.

From March 13th to the end of May, all flights between Rome and the U.S. will be cancelled.

From March 29th until the end of April, all flights from Paris, Barcelona, Madrid, Amsterdam, Athens and Oslo to the U.S. will be cancelled.

All routes between London Gatwick and the U.S. will continue to operate as normal. Our goal is to reroute as many of our customers as possible through London during this difficult period.

The short-haul network heavily impacted

Norwegian will also cancel a large share of its domestic flights in Norway and flights within Scandinavia, such as Oslo-Copenhagen and Oslo-Stockholm. Flights to Italy will also be cancelled. Domestic and intra-Scandinavian flights will be combined to re-protect our customers.

Customers booked to travel on affected flights will be contacted to discuss their options including rebooking onto a flight at a later date. Due to a high number of enquires we encourage all customers to check our website www.norwegian.com/updates for the latest travel advice. If your travels are past April 15th, 2020, please refrain from contacting our Customer Care team at this time.

Layoffs

During a pandemic it is Norwegian’s policy to prioritize and safeguard the health and well-being of employees while ensuring Norwegian’s ability to maintain essential operations and continue providing services to our customers.

Due to the extraordinary market situation as a result of the coronavirus, and thus a dramatic drop in customers and subsequent production decline, we must look at all possible measures to reduce costs. This unfortunately also includes temporary layoffs of up to 50 percent of our employees and the number may increase. All departments will be affected by the temporary layoffs.

We have initiated, in consultation with the unions, a discussion and mapping process and will then return with leave notices to affected departments, stations and employees.

Norwegian Air Shuttle aircraft photo gallery:

Norwegian drops 22 long-haul flights to the United States

Norwegian has made this announcement:

Norwegian has during the past few days experienced reduced demand on some routes, particularly on future bookings. Bookings for flights departing in the coming weeks are less affected. The company has decided to cancel 22 long-haul flights between Europe and the U.S. from March 28 to May 5. Norwegian has a limited number of flights to Northern Italy and other regions heavily affected by the virus. In addition, the company has a higher share of leisure traffic, which seem less affected than business traffic. The company has also already reduced its capacity by up to 15 percent in 2020. Norwegian is monitoring the developments closely and is continuously evaluating additional changes to its schedule.

The following routes are affected: Rome – Los Angeles; Rome – Boston; Rome – New York (reduced number of departures during selected weeks on all these routes) and London – New York (three daily departures are reduced to two on some days).

Affected customers will be contacted by Norwegian and offered a new itinerary.

Given the uncertainty and ongoing impact on overall demand for air travel, Norwegian withdraws its 2020 guidance provided to the market on February 13, 2020. At this stage, it is too early to assess the full impact on our business.

Norwegian aircraft photo gallery:

Norwegian blames its 2019 losses on the grounding of the Boeing 737 MAX and Rolls-Royce engine issues

Norwegian Air Shuttle issued this financial report for the fourth quarter and full-year 2019:

Norwegian reported its full year and fourth quarter 2019 results. Year on year, unit revenue increased in nine consecutive months, driven by maturing routes and the optimization of Norwegian’s global route network. The punctuality has improved considerably during the past six quarters, and in the fourth quarter 2019 it was up 3.1 percentage points to 82.6 percent.

Figures were negatively impacted by the global grounding of the Boeing 737 MAX aircraft and ongoing Rolls Royce engine issues. The net loss was NOK 1,609 million ($173.8 million) in 2019, while the underlying operating result before ownership costs doubled to NOK 6.5 billion.

In 2019, Norwegian secured significant financial milestones that further strengthened the airline’s move to profitability. The internal cost-reduction program #Focus2019 delivered on target with cost reductions of NOK 2.3 billion for the full year and NOK 444 million in the fourth quarter. In addition, the company has postponed aircraft deliveries, sold aircraft, sold its shares in Norwegian Finance Holding and sold its domestic operation in Argentina as well as raised new capital to strengthen the liquidity.

At the same time, 2019 was a challenging year for the industry marked by a tough trading environment. Significant costs caused by the global grounding of the Boeing 737 MAX and the ongoing Rolls Royce engine issues on the Dreamliner fleet meant the company was forced to wetlease additional aircraft to avoid cancellations and delays throughout the network.

The company’s total revenue in 2019 was NOK 43.5 billion, an increase of eight percent compared to 2018, driven by improved unit revenue and increased ancillary revenue per passenger. Norwegian’s shift in strategic focus from growth to profitability resulted in a production growth (ASK) of one percent while unit revenue increased seven percent. The load factor was 86.6 percent and more than 36 million customers chose to travel with Norwegian.

Fourth quarter results

For the fourth quarter, underlying operating result before ownership costs (EBITDAR excluding other losses/gains) improved to NOK 436 million compared to a loss of NOK 118 million in Q4 2018. Total revenue was NOK 8.9 billion, representing a seven percent reduction in revenue driven by capacity reductions and route optimization across the network. However, the revenue reduction was more than offset by lower operating expenses. In Q4, production (ASK) decreased by 19 percent, while a 16 percent improvement in unit revenue and eight percent higher ancillary revenue per passenger countered much of the capacity reduction. More than 7.5 million customers chose to travel with Norwegian this quarter.

“2019 marked a new flight path for Norwegian as the company changed its strategy to move from growth to profitability. We have achieved our initial goal to save NOK 2.3 billion as part of #Focus2019 and concluded several positive financial milestones. The focus of returning to profitability will continue as we focus on Program NEXT to build a strong, sustainable and profitable business to benefit our customers, employees and shareholders,” said Chief Financial Officer of Norwegian Geir Karlsen.

“Throughout 2020, we will turn challenges into opportunities as we remain committed to offering greater choice to customers, contributing to a sustainable aviation industry and refining our products and services. Norwegian has changed the landscape of low-cost travel and as a company we will continue to change and adapt to further attract both business and leisure customers,” said CEO of Norwegian Jacob Schram.

1.7 million tons of CO2 saved

Thanks to Norwegian’s young and more fuel-efficient fleet, 1.7 million metric tons of CO2 were saved in 2019 compared to the industry average. At the same time, 40 percent of the total CO2 emissions were offset through EU’s emissions trading system. Since its launch in December, 123,000 customers compensated their carbon footprint using the partnership between Norwegian and the climate-tech company CHOOOSE during the booking process.

Norwegian in the UK and Ireland:

  • Norwegian carries almost 6 million UK passengers each year from London Gatwick, Edinburgh and Manchester Airports to 30 destinations worldwide
  • Norwegian is the third largest airline at London Gatwick, with 4.6 million yearly passengers, and over 1,200 UK-based pilots and cabin crew
  • In 2014, Norwegian introduced the UK’s first low-cost, long haul flights to the U.S. – the airline now flies to 11 U.S destinations, Buenos Aires and Rio de Janeiro from London Gatwick
  • Norwegian is the only airline to offer free inflight WiFi on UK flights to more than 30 European destinations and 13 long-haul destinations.
  • The airline has one of the youngest aircraft fleets in the world with an average age of 3.8 years, including next-generation Boeing 787 Dreamliner, Boeing 737 MAX and Boeing 737-800s
  • Norwegian has been voted ‘Europe’s best low-cost carrier’ by passengers for six consecutive years at SkyTrax World Airline Awards from 2013-2018, along with being awarded the ‘World’s best low-cost long-haul airline’ in 2015, 2016, 2017, 2018 and 2019
  • Norwegian Reward is the airline’s free to join award-winning loyalty program offering members CashPoints and Rewards that reduce the cost of Norwegian flights

Norwegian aircraft photo gallery:

Jacob Schram appointed new CEO of Norwegian, drops long-haul routes from Stockholm and Copenhagen

Norwegian’s Board of Directors has appointed Jacob Schram as CEO of Norwegian, starting January 1, 2020. Geir Karlsen will continue as CFO and Deputy CEO.

Jacob Schram (57) has 30 years of experience from large international companies. He has previously held managing roles in Circle K, Statoil Fuel & Retail (SFR), McDonalds and McKinsey. As CEO, he led the process of publicly listing SFR on the Norwegian Stock Exchange in 2010. When Couche-Tard acquired SFR in 2012, he held the position as Group President for Europe until he stepped down in 2018. Schram initiated and led the global rebranding to Circle K at more than 10 000 stores across Couche-Tard’s international network and service stations.

Schram is also the author of the book “The Essence of business”. During the last year he has worked with private investments, start-ups and presentations related to his book and the topic “Future mobility 2030”, in addition to holding the position as Senior Advisor at McKinsey. Schram has a Master’s degree in Economics from Copenhagen Business School. He is a Norwegian citizen.

“Norwegian has made aviation history and I am honored to take on the role as CEO. The airline industry is characterized by strong competition and unforeseen events, but it is also an industry that is important to people everywhere. I look forward to using my experience to build on the strong foundation laid down by Bjørn Kjos, Geir Karlsen and the rest of the talented and dedicated Norwegian team. Now, my main focus will be to bring the company back to profitability and fortify the company’s position as a strong international player within the aviation industry,” said newly appointed CEO of Norwegian, Jacob Schram.

In other news, Norwegian’s long-haul flights from Stockholm (Arlanda) and Copenhagen will be discontinued on March 29, 2020.

Norwegian aircraft photo gallery:

Norwegian’s new route to Bergen from Manchester takes off

Norwegian’s newest route to Scandinavian took off on October 28 with a new nonstop service from Manchester to Norway.

Passengers travelling out on Norwegian’s new service to Bergen were welcomed at check-in at Manchester Airport with an inaugural celebration to mark the new route.

The new twice-weekly seasonal service on a Monday and Friday from Manchester Airport to Bergen offers consumers more choice when travelling with Norwegian to Scandinavia.

In addition to the new service, Norwegian already operates three non-stop routes to Scandinavia from Manchester Airport with three weekly flights to Oslo, two weekly flights to Stavanger and two weekly flights to Stockholm. Along with the new route the airline will now offer nine weekly flights to Scandinavia from Manchester.

Norwegian began operating from Manchester Airport in 2011 and all flights are served by new 186 seat Boeing 737-800 aircraft, offering all passengers free gate-to-gate Wi-Fi and live TV.

Flight schedule – all times local

Monday – DY1345 departs Manchester 12.15 arrives Bergen 14.55

Monday – DY1344 departs Bergan 10.50 arrives Manchester 11.30

Friday – DY1345 departs Manchester 20.50 arrives Bergen 23.30

Friday – DY1344 departs Bergan 19.30 arrives Manchester 20.10

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.