Loading
14-Jul-2010 12:27 PM

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

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.

Want More News Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More