Norwegian Air Reports First Quarter Net Loss of $105 Million on Increase in Revenue to $193 Million
Norwegian Air Shuttle has reported a first quarter net loss of NOK 1.3 billion (US $105 million) on a 651 percent year-over-year increase in revenue to NOK 1.9 billion (US $193 million). The carrier ended the quarter with cash and equivalents of NOK 7.5 billion (US $761 million).
On Friday (May 13, 2022), Norwegian Air Shuttle reported their first quarter financial results for the period ending March 31, 2022. The carrier reported a first quarter net loss of NOK 1.3 billion (US $105 million) on an increase in revenue to NOK 1.9 billion (US $193 million) compared to revenue of NOK 255 million (US $25.9 million) in Q1 2021. The company ended the first quarter with cash and cash equivalents totaling NOK 7.5 billion (US $761 million). During the first quarter, Norwegian carried 2.2 million passengers compared to 200,000 during the same period last year with an average load factor of 76.9 percent versus 38.5 percent in Q1 2021.
In Friday’s announcment, Norwegian Air Shuttle’s CEO, Geir Karlsen, said,
“This quarter demonstrates our ability to adapt to fluctuations in demand quickly and efficiently, and that we can protect our strong liquidity position through a challenging trading period. We are now seeing a strong increase in bookings ahead of the summer season where we have an attractive offering with close to 280 routes on sale. The increase in fuel price does impact our bottom line, but we are seeing increased willingness to pay for air travel which partly offsets the increased cost effect. Finally, I am pleased to see that our corporate travellers are again returning, a customer segment that places high value on Norwegian’s attractive route network and strong on-time performance record.”
On February 28, 2022, Norwegian announced an agreement with AerCap to lease ten new fuel-efficient Boeing 737-8 MAX aircraft for delivery in Spring 2023. The airline is also in the process of leasing an additional five of the aircraft type, bringing their fleet to 85 for summer 2023, up from 70 aircraft this summer.
Norwegian Air Shuttle was founded in 1993 and offers smart and pleasant travel experiences at low prices. The airline has been voted ‘Europe’s Best Low-Cost Airline’ by Skytrax for the last six years. Norwegian’s loyalty program, Norwegian Rewards, has also been voted ‘The Airline Industry’s Best Loyalty Program in Europe/Africa’ at the Freddie Awards four years in a row. In 2019, Norwegian became the first airline to sign the UN Climate Action Programme, committing to becoming climate neutral by 2050. The carrier currently offers affordable flights on a short-haul network of destinations in the Nordic countries and to key European destinations.
Source: Norwegian Air Shuttle/Mynewsdesk