Norwegian posts $49.8M loss...
08-02-2017, 10:54 AM
#11
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Joined APC: Mar 2017
Posts: 173
Originally Posted by TheFly
Norwegian widens net loss in 1H | Airline Financials content from ATWOnline
Low-cost carrier (LCC) Norwegian posted a first-half net loss of NOK411.9 million ($49.8 million), widened from a net loss of NOK54.7 million for the same period last year.
The fast-expanding carrier made a net profit of almost NOK1.1 billion for 2Q, compared to a profit of NOK745.4 million last time, but this year’s 2Q profit was canceled out by the hefty NOK1.5 billion deficit recorded in 1Q.
Revenue for the first half was up 12%, at just over NOK13 billion, compared to NOK11.6 billion last time.
Over the first half of the year, Norwegian carried almost 15.3 million passengers, up 13% on the 13.6 million carried over the same period in 2016.
Average sector length grew 6% to 1,519km, as more long-haul routes began to take off. The carrier plans to use its incoming fleet of Boeing 737 MAX 8s, with their longer range compared to its existing fleet of 737-800s, to inaugurate a series of transatlantic services between secondary airports. It also has a growing fleet of Boeing 787s for long-haul services.
Capacity for the first half jumped by 22%, to almost 32 billion ASKs. RPKs just failed to keep pace, rising 21% to 27.6 billion km.
As a result, load factor for the half-year was marginally down at 86.2%, compared to 86.6% last time.
Fuel consumption for the half-year also grew considerably compared to the same period last year, up 20% to 651,000 tonnes.
The results for 2Q were slightly down on last year, said Norwegian CEO Bjørn Kjos. While the continuing strength of the carrier’s load factor was satisfactory, he said, “We have had significant additional costs for leasing of aircraft, high oil price and the air passenger tax implemented by the government in Norway last year, which have had a negative impact on the result.”
However, he added, bookings for the coming months were “looking very good.”
The company’s fleet is planned to grow rapidly throughout 2017, with 17 Boeing 737-800s, nine 787-9s and six MAX 8s scheduled to have arrived by year-end.
Additionally, three Airbus 320neos are scheduled to be delivered, which will be leased to Hong Kong carrier HK Express.
Norwegian says that it plans to have 21 Boeing 787s in its inventory by the end of 2017. However, the carrier noted it “may decide to adjust capacity in order to optimize the route portfolio, depending on the development in the overall economy and in the marketplace.”
Alan Dron [email protected]
Low-cost carrier (LCC) Norwegian posted a first-half net loss of NOK411.9 million ($49.8 million), widened from a net loss of NOK54.7 million for the same period last year.
The fast-expanding carrier made a net profit of almost NOK1.1 billion for 2Q, compared to a profit of NOK745.4 million last time, but this year’s 2Q profit was canceled out by the hefty NOK1.5 billion deficit recorded in 1Q.
Revenue for the first half was up 12%, at just over NOK13 billion, compared to NOK11.6 billion last time.
Over the first half of the year, Norwegian carried almost 15.3 million passengers, up 13% on the 13.6 million carried over the same period in 2016.
Average sector length grew 6% to 1,519km, as more long-haul routes began to take off. The carrier plans to use its incoming fleet of Boeing 737 MAX 8s, with their longer range compared to its existing fleet of 737-800s, to inaugurate a series of transatlantic services between secondary airports. It also has a growing fleet of Boeing 787s for long-haul services.
Capacity for the first half jumped by 22%, to almost 32 billion ASKs. RPKs just failed to keep pace, rising 21% to 27.6 billion km.
As a result, load factor for the half-year was marginally down at 86.2%, compared to 86.6% last time.
Fuel consumption for the half-year also grew considerably compared to the same period last year, up 20% to 651,000 tonnes.
The results for 2Q were slightly down on last year, said Norwegian CEO Bjørn Kjos. While the continuing strength of the carrier’s load factor was satisfactory, he said, “We have had significant additional costs for leasing of aircraft, high oil price and the air passenger tax implemented by the government in Norway last year, which have had a negative impact on the result.”
However, he added, bookings for the coming months were “looking very good.”
The company’s fleet is planned to grow rapidly throughout 2017, with 17 Boeing 737-800s, nine 787-9s and six MAX 8s scheduled to have arrived by year-end.
Additionally, three Airbus 320neos are scheduled to be delivered, which will be leased to Hong Kong carrier HK Express.
Norwegian says that it plans to have 21 Boeing 787s in its inventory by the end of 2017. However, the carrier noted it “may decide to adjust capacity in order to optimize the route portfolio, depending on the development in the overall economy and in the marketplace.”
Alan Dron [email protected]
08-02-2017, 01:39 PM
#12
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Joined APC: Aug 2015
Position: Captain
Posts: 1,561
Originally Posted by BobSacamano
Shocking that Kos would cite "high oil price" as a factor, when oil has been relatively cheap for a few years now. If they can't cut it at these oil prices, they can't make it long term. Seems like a fundamental flaw.
Delta is looking to get all their new airbus deliveries
and United their 787s
They will stick with the 737 and Ryan and Easyjet business plan
Low cost in Europe
08-03-2017, 09:12 AM
#13
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Joined APC: Apr 2011
Posts: 1,477
Originally Posted by BobSacamano
Shocking that Kos would cite "high oil price" as a factor, when oil has been relatively cheap for a few years now. If they can't cut it at these oil prices, they can't make it long term. Seems like a fundamental flaw.
08-09-2017, 12:06 PM
#14
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Joined APC: Apr 2013
Posts: 263
Norwegian logged 5,669 delays in July
Norwegian logged 5,669 delays in July
Norwegian Air’s tough summer has so far left it with nearly 6,000 delayed flights and 170 cancellations in July alone, according to new statistics from Flightstats, which delivers airline data globally. Angry passengers are filing complaints and demands for compensation, and getting even more frustratrated when their claims are rejected.
Passengers on Norwegian Air flights have faced delays and cancellations that the airline itself admits are unsatisfactory. This flight from Krakow to Oslo last month was on time.
Newspaper Dagens Næringsliv (DN) reported Tuesday that Flightstats’ statistics were collected from both Norwegian’s Scandinavian-based operations for Norwegian Air Shuttle (NAS), which fly under the airline code DY, and from NAS’ Irish subsidiary Norwegian Air International, which operates under the code D8.
Norwegian operated 9,986 DY flights in July, and fully 27.7 percent of them were delayed by 45 minutes on average. The airline’s D8 flights numbered 8,742 and 35.4 percent of them were delayed by an average of 49 minutes. That put Norwegian’s Irish-based operations, which operate many of the airline’s long-haul flights to the US, near the bottom of the list of European airlines regarding punctuality. Only LOT Polish Airlines and Thomas Cook Airlines performed worse.
Around 170 flights were cancelled, causing great aggravation for stranded Norwegian passengers. State consumer advocacy officials in Norway have claimed that Norwegian Air’s delays and cancellations are systematic, based on a lack of back-up plans and conscious scheduling of ambitious flight programs without the necessary crews and aircraft to fly them.
‘Not satisfied’
Norwegian Air officials have vigorously denied the claims and retorted that rival airlines also suffer delays and cancellations. A Norwegian spokesman admitted, however, that the airline’s performance this summer has been unsatisfactory.
“We are of course not satisfied with either the regularity or punctuality we had in July,” Lasse Sandaker-Nielsen, communications chief for Norwegian, told DN. “Now we must sit down and examine what went wrong this summer. There have been too many long delays and cancellations.” He noted, however, that “it’s important to remember that we have more than 600 flights every day, and most of them are ontime.”
That’s little consolation for passengers who’ve been stranded in Oakland, Oslo, Malaga and other cities this summer. One US passenger recently aired his frustration in an email to newsinenglish.no, describing how his flight from New York’s JFK to London Gatwick was subject to a change of aircraft because its scheduled Boeing 787 Dreamliner “was down for maintenance and they have no spare aircraft.” He and his wife ended up being downgraded from the premium class tickets they’d purchased and put on “an overloaded Boeing 777 operated by a charter company.” Their return flight from London Gatwick to JFK was delayed by more than three hours. His claimed his demands for compensation have been denied and that he’s now contemplating a lawsuit.
Acute growing pains and heavy debt
Most tie all the delays and cancellations to Norwegian’s ambitious intercontinental expansion program that it launched in 2013 after it placed major orders for new 787s. They were plagued by technical difficulties and Norwegian, which is not a member of any airline alliance, had no reserve aircraft available. The company’s huge aircraft acquisition programs, also for new 737s and Airbus jets, have also left the airline saddled with heavy debt. The company’s longtime finance director Frode Foss abruptly quit earlier this summer.
The bad publicity around Norwegian comes amid ongoing speculation that the airline, which has seen its share price dive this year, is an acquisition target. Several published reports, including one in The Economist in July, have cited International Airlines Group (IAG) as a potential buyer along with others keen on consolidating low-fare operations. The airline now remains mostly under the control of founder Bjørn Kjos, a former fighter jet pilot who has seen his own fortunes fall, at least on paper, in line with the share price.
Norwegian, meanwhile, set a new passenger record in July despite all its problems. DN reported that 3,358,565 passengers traveled with the airline last month, the highest number ever carried by the airline in a single month and up 15 percent from July last year. Its yield (revenues per passenger per kilometer) fell, however, by 6 percent.
Norwegian logged 5,669 delays in July
Norwegian Air’s tough summer has so far left it with nearly 6,000 delayed flights and 170 cancellations in July alone, according to new statistics from Flightstats, which delivers airline data globally. Angry passengers are filing complaints and demands for compensation, and getting even more frustratrated when their claims are rejected.
Passengers on Norwegian Air flights have faced delays and cancellations that the airline itself admits are unsatisfactory. This flight from Krakow to Oslo last month was on time.
Newspaper Dagens Næringsliv (DN) reported Tuesday that Flightstats’ statistics were collected from both Norwegian’s Scandinavian-based operations for Norwegian Air Shuttle (NAS), which fly under the airline code DY, and from NAS’ Irish subsidiary Norwegian Air International, which operates under the code D8.
Norwegian operated 9,986 DY flights in July, and fully 27.7 percent of them were delayed by 45 minutes on average. The airline’s D8 flights numbered 8,742 and 35.4 percent of them were delayed by an average of 49 minutes. That put Norwegian’s Irish-based operations, which operate many of the airline’s long-haul flights to the US, near the bottom of the list of European airlines regarding punctuality. Only LOT Polish Airlines and Thomas Cook Airlines performed worse.
Around 170 flights were cancelled, causing great aggravation for stranded Norwegian passengers. State consumer advocacy officials in Norway have claimed that Norwegian Air’s delays and cancellations are systematic, based on a lack of back-up plans and conscious scheduling of ambitious flight programs without the necessary crews and aircraft to fly them.
‘Not satisfied’
Norwegian Air officials have vigorously denied the claims and retorted that rival airlines also suffer delays and cancellations. A Norwegian spokesman admitted, however, that the airline’s performance this summer has been unsatisfactory.
“We are of course not satisfied with either the regularity or punctuality we had in July,” Lasse Sandaker-Nielsen, communications chief for Norwegian, told DN. “Now we must sit down and examine what went wrong this summer. There have been too many long delays and cancellations.” He noted, however, that “it’s important to remember that we have more than 600 flights every day, and most of them are ontime.”
That’s little consolation for passengers who’ve been stranded in Oakland, Oslo, Malaga and other cities this summer. One US passenger recently aired his frustration in an email to newsinenglish.no, describing how his flight from New York’s JFK to London Gatwick was subject to a change of aircraft because its scheduled Boeing 787 Dreamliner “was down for maintenance and they have no spare aircraft.” He and his wife ended up being downgraded from the premium class tickets they’d purchased and put on “an overloaded Boeing 777 operated by a charter company.” Their return flight from London Gatwick to JFK was delayed by more than three hours. His claimed his demands for compensation have been denied and that he’s now contemplating a lawsuit.
Acute growing pains and heavy debt
Most tie all the delays and cancellations to Norwegian’s ambitious intercontinental expansion program that it launched in 2013 after it placed major orders for new 787s. They were plagued by technical difficulties and Norwegian, which is not a member of any airline alliance, had no reserve aircraft available. The company’s huge aircraft acquisition programs, also for new 737s and Airbus jets, have also left the airline saddled with heavy debt. The company’s longtime finance director Frode Foss abruptly quit earlier this summer.
The bad publicity around Norwegian comes amid ongoing speculation that the airline, which has seen its share price dive this year, is an acquisition target. Several published reports, including one in The Economist in July, have cited International Airlines Group (IAG) as a potential buyer along with others keen on consolidating low-fare operations. The airline now remains mostly under the control of founder Bjørn Kjos, a former fighter jet pilot who has seen his own fortunes fall, at least on paper, in line with the share price.
Norwegian, meanwhile, set a new passenger record in July despite all its problems. DN reported that 3,358,565 passengers traveled with the airline last month, the highest number ever carried by the airline in a single month and up 15 percent from July last year. Its yield (revenues per passenger per kilometer) fell, however, by 6 percent.
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