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Tuesday, June 6, 2023

Norwegian Air reports a $102 million deficit in the first quarter, cites ‘seasonally weak’ quarter

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For the first quarter of 2022, Norwegian Air lost $102 million (NOK 1,031 million).

When compared to the same period in 2021, the findings, which were released on May 13, 2021, show a small improvement.

However, in comparison to the previous quarter, when Norwegian Air made a profit of roughly $11.8 million, the airline’s latest performance shows a considerable decline (NOK 117 million).

Q1 2022 has been dubbed “the seasonally poorest quarter of the year” by Norwegian Air. The airline stated that the COVID-19 virus epidemic had a negative influence on passenger demand in the first part of the quarter. The low-cost carrier handled 2.2 million passengers in 2021, up from 0.2 million the previous year.

“The spread of omicron virus and government-imposed travel restrictions had a softening effect on air travel in December of 2021 that continued into January and February this year,” the statement said.

However, since mid-February, when restrictions in the Nordics and at key European destinations were lifted, the airline has seen a “significant rise” in passenger demand and ticket bookings.

“The use of flexible fleet arrangements through power-by-the-hour lease agreements enabled Norwegian to quickly adapt capacity to changes in demand, minimizing losses through an already challenging winter trading period,” the report continued.

Meanwhile, the airline also shared its outlook for summer 2022, revealing that it is currently “well-positioned to respond to increasing passenger traffic and strong pent-up demand ahead of the busy summer 2022 leisure season “with its fleet capacity of 58 aircraft.

“Travel restrictions have been eased in the Nordics and throughout all main European locations, giving our customers a wider range of European travel options.” Customers are planning and booking trips earlier these days, and there is a greater readiness to spend for air travel across Norwegian’s network,” the airline noted.

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