Norwegian Limits Loss and Prepares for Strong Summer

Norwegian has released its results for the quarter ending in January 2023. Norwegian has reported its results for the first quarter of 2023.

Norwegian is preparing for one of its strongest summers in history with the help of bookings that are continuing to grow.

Norwegian has set a limit of NOK 916 millions for its operating loss in the first quarter 2023. The profit before tax (EBT), which is the net income, was a loss amounting to NOK 992 millions. Cash and cash equivalents increased to NOK 8,6 billion at the end of the quarter, a significant improvement in liquidity. Norwegian operated 72 aircraft at quarter-end.

"This quarter is a strong demonstration of our ability to adjust capacity to seasonal fluctuations in demand and to prepare well for the busy summer travel season ahead. Ahead of the summer season, we have phased in eleven latest generation aircraft and welcomed many new colleagues. I am very glad that we will not depend on wet-lease capacity this summer. Instead, we will be able to serve our customers entirely with our own aircraft and crew," stated Geir Karlsen, CEO of Norwegian.

Norwegian carried 3.8 million passengers in the first three months of 2023. This is up from the 2.2 million that were on board during the first three months of 2022. The production (ASK), was 6.0 billion seats kilometres while the passenger traffic was only 4.9 billion seats kilometres. Norwegian's fleet flexibility allowed it to adjust its production to the lower seasonal demand. Production fell 13 percent compared to the previous quarter. The quarterly load-factor was 80.9 per cent, which indicates that capacity was adjusted well to lower demand.

Despite challenging weather conditions, high frequency of service

Norwegian was named as the most punctual carrier in the Nordics in 2022. The positive trend continued in the first quarter 2023, despite difficult conditions such as poor weather and French ATC strike. The share of flights that left on time was 83.5 %, and the regularity (share of flights) was 99.4 %.

The summer of 2018 is set to be a historically strong one

"We are in the process of improving the customer experience at Oslo airport Gardermoen where we have welcomed 150 new colleagues to our newly established customer-facing ground handling services. This makes us well prepared, both on the ground and in the air, to welcome all passengers on board in what I believe will be the strongest summer ever for the airline," mentioned Karlsen.

Norwegian Reward, the airline's award-winning loyalty program, was relaunched this winter. New benefits were made available to all members. The most frequent travelers can enjoy exclusive priority benefits, which makes it more appealing to corporate travellers who choose Norwegian as their preferred carrier. Norwegian's loyalty program was named as the best loyalty program in Europe and Africa by the prestigious Freddie Awards.

Look forward to a successful 2023 and a future that is sustainable

Norwegian is aware of its responsibility to play a leadership role in the transformation of the aviation industry. Sustainable aviation fuel, along with the renewal of Norwegian’s fleet will be a key factor in the airline’s sustainability goals. The company announced a historic strategic partnership in April with Norsk e-Fuel, which included an investment of more than NOK 50 millions, to build the first full-scale e-fuel facility in the world at Mosjoen, Norway. The plant will produce sustainable aircraft fuels (SAF), which is an important milestone in Norwegian's goal of reducing emissions by 45 percent by 2030.

Source: breakingtravelnews.com