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NORWEGIAN

Norwegian long haul bet pays off in profits

Europe's third largest low-cost carrier, Norwegian Air Shuttle, on Thursday reported a rise in quarterly profits as it flew with fewer empty seats.

Norwegian long haul bet pays off in profits
A Norwegian Airlines Dreamliner landing in Stockholm - Photo: NTB/Scanpix
“It has been a good quarter for Norwegian with positive growth throughout our route network, particularly on our long-haul network,” chief executive Bjørn Kjos said in a statement.
   
Net profit in the second quarter more than doubled from a year ago to 325 million kroner (36.7 million euros, $40 million) as the load factor, a measure of how full planes are, rose five percentage points to 85 percent.
   
The number of passengers rose by nine percent to nearly seven million, with London's Gatwick Airport — where Norwegian was already the third largest airline — posting the biggest gains, followed by Oslo and airports in Spain.
   
Norwegian is one of the few low-cost carriers to have ventured into long-haul flights, and has more than doubled the number of passengers in the segment to 324,000, giving it a load factor of 91 percent.
   
The group will soon increase the number of long-haul routes — all of which are currently operated between Northern Europe and North America, the Caribbean and Bangkok — from 21 to 28, including one between Gatwick and Boston.
   
Last month it announced the launch of its first routes not serving Europe, between the US and the French territories of Martinique and Guadeloupe.
   
Revenue grew 16 percent from a year ago to 5.86 billion kroner. A weakening of the Norwegian krone against the dollar and the euro was more than offset by a decline in fuel prices.

AIRLINE

Airline Norwegian posts 15 billion kroner loss after nightmare 2020

Low cost airline Norwegian has registered a loss of 14.9 billion Norwegian kroner for 2020, a year in which the company saw a drastic reduction in passenger numbers and was on the brink of bankruptcy.

A file photo of a Norwegian Air Shuttle plane in Finland.
A file photo of a Norwegian Air Shuttle plane in Finland. Heikki Saukkomaa / Lehtikuva / AFP

Low cost airline Norwegian has registered a loss of 14.9 billion Norwegian kroner for 2020, a year in which the company saw a drastic reduction in passenger numbers and was on the brink of bankruptcy.

The company published its annual results on Friday, revealing the huge operating loss.

Norwegian’s 2019 result, a loss of around 1.7 billion kroner, had put the company in a difficult position even prior to the outbreak of the Covid-19 pandemic.

The coronavirus outbreak and its consequent travel restrictions reduced the company’s passenger numbers to 6.9 million in 2020. That is 29 million fewer than in 2019.

Not all of the loss is due to fewer passengers. Around half of the company’s devaluation is attributed to a depreciation of the value of its aircraft fleet, news wire Ritzau reports.

“2020 was an exceptionally demanding year for air travel and for Norwegian,” CEO Jacob Schram said in a statement on the annual results.

“In light of that, the result for the fourth quarter (of 2020) is not surprising. Unfortunately, the majority of our employees are furloughed and many have lost their jobs – in part because of the closure of long distance services,” he added.

The company was already in debt prior to the pandemic and is now under bankruptcy protection in Ireland and is undergoing similar process in Norway.

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