Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Norwegian Air posts Q1 loss, flags fuel cost impact on recovery

Economy May 13, 2022 02:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Norwegian Air Sweden Boeing 737-800 plane SE-RRJ approaches Riga International Airport in Riga, Latvia January 17, 2020. REUTERS/Ints Kalnins

OSLO (Reuters) -Norwegian Air posted a loss for the first quarter on Friday and said the surge in fuel costs will partly offset the positive effects of increased bookings for the summer season.

The carrier said it is now ramping up its operations as countries across Europe have removed most COVID-19 restrictions.

Norwegian Air earlier this month said the number of passengers rose by 50% in April from the prior month and that ticket yields, an important indicator of profitability, increased by 21% in the same period.

"The increase in bookings ahead of the summer season is significant," Chief Executive Officer Geir Karlsen said in a statement.

Pent-up demand for travel has also resulted in a higher willingness to pay for tickets, the company said, while cautioning that the cost of flying an aircraft was rising.

"The increase in fuel prices is expected to partly offset the company's positive recovery," Norwegian said.

The budget carrier, however, booked a net loss of 1 billion Norwegian crowns ($101.82 million) for the January-March period, which was dented by Omicron-fuelled lockdowns.

In the same quarter of 2021 the company's loss stood at 1.2 billion crowns.

The company's liquidity was less affected, however, with cash and cash equivalents declining by 160 million crowns in the quarter to 7.5 billion crowns at the end of March.

The pandemic in late 2020 sent indebted Norwegian into bankruptcy proceedings from which it emerged in a slimmed-down version almost a year ago, with no long-distance network, a smaller fleet and much less debt.

It has since gradually rebuilt its operations and expects to increase the number of aircraft in its fleet to 85 by mid-2023 from 51 at the end of 2021, which will still only be around half of the fleet it had at its pre-pandemic peak.

($1 = 9.8212 Norwegian crowns)

 

Norwegian Air posts Q1 loss, flags fuel cost impact on recovery
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email