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Norwegian Air Shuttle remains in red as unit revenue declines in double digits

14-Jul-2010 12:27 PM

Norwegian Air Shuttle revenue up 6.9% - financial/traffic highlights :

  • Three months ended 30-Jun-2010:
    • Revenue: EUR256.3 million, +6.9% year-on-year;
      • Ancillary: EUR30.8 million,
    • Total operating costs: EUR238.2 million, +27.4%;
      • Fuel: EUR68.9 million, +75.9%;
      • Labour: EUR46.7 million, +9.3%;
    • Operating profit (loss): (EUR11.7 million), compared with a profit of EUR28.1 million in p-c-p;
    • Net profit (loss): (EUR17.0 million), compared with a profit of EUR22.7 million in p-c-p;
    • Passenger numbers: 3.2 million, +15%;
    • Load factor: 75%, -3 ppts;
    • Yield: EUR 6.56 cents, -15%;
    • Revenue per ASK: EUR 4.92 cents, -18%;
    • Costs per ASK: EUR 5.93 cents, -1%;
    • Costs per ASK excl fuel: EUR 4.29 cents, -10%;
    • Ancillary revenue per passenger: EUR9.61, +12%;
  • Six months ended 30-Jun-2010:
    • Revenue: EUR457.2 million, +10.2%;
      • Ancillary: EUR57.7 million, +36.2%;
    • Total operating costs: EUR441.8 million, +24.2%;
      • Fuel: EUR119.1 million, +58.6%;
      • Labour: EUR93.2 million, +15.8%;
    • Operating profit (loss): (EUR41.8 million), compared with a profit of EUR11.2 million in p-c-p;
    • Net profit (loss): (EUR42.1 million), compared with a profit of EUR8.9 million in p-c-p;
    • Passenger numbers: 5.9 million, +20%;
    • Load factor: 77%, +1 ppt;
    • Yield: EUR 6.56 cents, -16%;
    • Revenue per ASK: EUR 4.92 cents, -17%;
    • Costs per ASK: EUR 6.18 cents, -5%;
    • Costs per ASK excl fuel: EUR 4.67 cents, -11%;
    • Ancillary revenue per passenger: EUR 9.81, +13%;
  • 2010 forecast:
    • Costs per ASK: EUR 5.93 cents**. [more]

*Based on the average conversion rate of EUR1 = NOK7.92818 between 01-Apr-2010 and 30-Jun-2010
**Assuming a fuel price of USD 730 pr ton and USD/NOK 6,30 for the remainder of the year (excluding hedged volumes) and with the current route portfolio

Norwegian Air Shuttle: “The demand for travelling with Norwegian and advanced bookings has been satisfactory entering the third quarter of 2010. Norwegian's capacity increase from introducing larger aircraft [737-800’s], with a lower cost level, brings with it lower fares and even higher passenger volumes. However, the recent closure of European airspace has necessitated a need to stimulate the market further to keep the demand at a satisfactory level … The previous estimate and guided MNOK 100 in negative earnings effect from the volcanic ashes has been re-evaluated and accounted for in the Q2 results. Remaining estimates of direct costs is assessed to be adequate for any claims not yet received. For 2010, Norwegian guides for a production growth (ASK) of 30% mainly from increasing the fleet by adding 737-800s. Norwegian may decide to adjust capacity deployment depending on the development in the overall economy and in the marketplace,” Company statement. Source: Norwegian Air Shuttle, 13-Jul-2010.