The Norwegian Group with improved results in seasonally weak quarter

Norwegian recorded an operating loss (EBIT) of NOK 763 million for the group in the first quarter of 2024. The results were significantly improved compared to first quarter 2023, even though this quarter was impacted by a weaker Norwegian krone. Norwegian’s liquidity position improved to NOK 10.4 billion in a quarter which includes the successful acquisition of Widerøe.

For the first quarter of 2024, the Norwegian Group had an operating loss (EBIT) of NOK 763 million, compared to an operating loss of NOK 916 million in the same quarter last year. Operating profit was negatively impacted by currency revaluation effects resulting in a net loss of NOK 126 million for other losses/(gains) this quarter. Norwegian’s liquidity position improved through the first quarter to NOK 10.4 billion, including cash settlement for the Widerøe acquisition. The Norwegian Group fleet, including Widerøe, comprised a total of 136 aircraft, 87 aircraft for Norwegian and 49 for Widerøe.

“The significant improvement compared to 2023 is a clear sign that our many initiatives, both on revenues and costs, have the desired effect and move us in the right direction. Furthermore, we have increased our capacity for the season ahead with new routes and frequencies and are very much looking forward to welcoming a busy summer flying passengers to attractive destinations all over Europe,” said Geir Karlsen, CEO of Norwegian.

In the first quarter of 2024, Norwegian Group had 4.8 million passengers. 4.0 million were passengers of Norwegian and 0.8 million of Widerøe. For Norwegian, the capacity was up 3 percent from last year and down 13 percent from the previous quarter as capacity was adjusted to match the seasonally lower demand. The quarterly load factor was up four percentage points for both airlines, at 85 and 67 percent for Norwegian and Widerøe respectively. Winter weather and storms significantly affected operating performance for both airlines. Punctuality, the share of flights departing within 15 minutes of schedule, was 81.1 percent for Norwegian and 80.0 percent for Widerøe.

Widerøe acquisition moving the Group forward

Norwegian completed the acquisition of Widerøe on 12 January 2024, becoming the sole owner of the regional carrier. This quarter marked the last quarter that Widerøe operated under the previous Public Service Obligation (PSO) tender contracts. From 1 April, the new PSO tender came into effect, a tender which entails a 50 percent reduction in maximum prices and a six percent increase in capacity for Widerøe.

“Together with the Widerøe organisation, we are exploring how the acquisition can help create a much better offering for existing and new customers. This includes looking for opportunities to create more seamless travel from regional Norway to international destinations. We will create significant synergies together, both commercially and for operational efficiency, and have already capitalised on initial opportunities. Furthermore, we are eager to see how the new PSO tender will affect the rest of the year,” said Geir Karlsen, CEO of Norwegian.

Looking ahead to 2024 and the summer season

31 March marked the start of the 2024 summer season, which initiates a significant ramp-up for Norwegian with new routes, destinations, and the opening of new bases at Riga and Palma de Mallorca. The important Easter travel week fell earlier this year, providing an extra demand boost during March. Norwegian flew all international flights during Easter, with zero cancellations, bringing passengers from all over Europe to their holiday destinations.

The Norwegian fleet is forecasted to remain at 87 aircraft through the peak summer season, while the overall production for 2024 is forecasted to grow by approximately 12 percent compared to the previous year.