Boeing delivery delays hampering outlook for Norwegian
Norwegian Group announced in early Jul-2024 that it adjusted its 2024 profit expectations downwards.
As part of its 1Q2024 results presentation, the group presented profit expectations with an EBIT of between NOK2.5 billion (EUR219.23 million) and NOK3.2 billion (EUR280.61 million), with this subsequently being revised to between NOK2.1 billion (EUR184.15 million) and NOK2.6 billion (EUR228.00 million).
One of the reasons for the adjustment was delayed aircraft deliveries from Boeing, which forced Norwegian to hire external capacity equivalent to between one and two aircraft in summer 2024.
Norwegian has reportedly leased two Airbus A320-200s from DAT, since Jun-2024 and Jul-2024, respectively.
At the end of 2Q2024, the Norwegian mainline jet fleet comprised 86 aircraft, all Boeing 737s, of which 22 were 737 MAX 8 aircraft. One 737 MAX 8 was delivered during 2Q2024, while two 737-800s were redelivered to lessors due to lease expiry.
Norwegian Group fleet, as at 29-Jul-2024
For summer 2025, the fleet is forecast to increase to above 90 aircraft, which Norwegian says will allow it "to match the anticipated increase in demand for the group's air travel offering and to benefit from increasing scale".
During the company's 2Q2024 presentation, CEO Geir Karlsen labelled the delivery delays "an unacceptable situation and not a situation we can live with for the time to come".
Mr Karlsen said the carrier will have a discussion with Boeing in early Aug-2024, "where we would like to discuss other compensations in a situation where they are not able to deliver the aircraft in 2025".