Norwegian Air Concludes Third Quarter Progress – Anticipates a Positive Trend for Winter Season

The Norwegian airline has revealed positive progress in arrivals during the third quarter of the year, which shows a promising trend for the winter season.

According to a press release issued by Norwegian media, the passenger demand is being restored in all countries and bookings for summer 2022 show a positive trend, reports.

CEO of Norwegian, Geir Karlsen, noted that the third quarter’s results showcase that organisation’s initiative to safeguard the tourism outcomes by focusing on cost efficiencies have proven successful.

“We are now in a strong financial position going into the traditionally more challenging winter months. We have seen a positive trend in forward bookings month on month and an increasing number of passengers are choosing to fly Norwegian across our European network,” Karlsen said.

The profit before tax (EBT) reveals a net profit of NOK 169 million (€17.3 million) compared to a loss of NOK 980 million (€100.7 million) in the same period in 2020. During the third quarter, almost 2.5 million passengers travelled with the airline, about one million more compared to 2020.

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Production (ASK) surged by 130 per cent, and passenger traffic (RPK) increased by 177 per cent compared to July-September of 2020. Moreover, the load factor was marked at 73.1 per cent, about 12.5 per cent more than previously. As a result, the average sector length jumped by 20 per cent.

By the end of September, which also marked the end of the third quarter of 2021, the total fleet of Norwegian consisted of 51 aircraft.

The constant and ongoing cost control in Norwegian, combined with low cash burn, has led to a strong financial state towards the winter season with a NOK 7.6 billion (€781 million) in cash and equivalents.

The serious focus on costs and expenses favours and places Norwegian in a stronger position over the winter months compared to the previous year. In addition, booking data continue to show a positive trend for the next year as more passengers are choosing Norwegian as their carrier.

Furthermore, Norwegian isn’t the only authority sharing the good news, as the European Travel Commission (ETC) today published a report on Europeans’ willingness to travel for the next six months.

According to this report, 66 per cent of European nationals were positive they would travel in the next six months. The respondents also revealed their confidence in travelling has grown since the EU Digital COVID-19 Certificate was issued. However, while Spaniards (72.4 per cent), Italians (65.1 per cent) and Germans (63.1 per cent) had a confidence boost for travelling, Dutch (28.2 per cent) and Swiss (24.1 per cent) were the most sceptical on the EUDCC effectiveness.

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