Norwegian ticket revenue fell 3.7 billion in August – E24

The crown crisis continues to plague Norwegian in August. The company carried a total of 313,316 passengers during the month, a decrease from the 3.5 million passengers the previous year.

It appears in connection with the presentation of the airline’s traffic figures on Friday morning.

For the first time since the corona crisis broke out, the company will present a full traffic report on Friday, which will include all of the company’s key figures.

These show that revenue per flight per passenger-kilometer (performance) ended at NOK 0.84, an increase of NOK 0.46 over the same period last year. The number of revenue generating seat kilometers (RPK) ended at 335 million, representing a decrease from 8,647 million seat kilometers in the same period last year.

This means that Norwegian had total August ticket revenue of NOK 281.4 million in August, as calculated by E24. This is a decrease of NOK 3.69 billion in the same period last year.

– Require planning

The airline also announces that it has a gain in fuel consumption price coverage. This gain is NOK 70 million so far this quarter, but includes a gain of NOK 270 million on unrealized fuel contracts. This means that the company has experienced a greater loss on other contracts.

In recent months, Norwegian has reopened a large number of routes and put more aircraft into service.

– Demand for tickets is still rapidly affected by changes in travel restrictions by the authorities. We are constantly adapting our network to meet these changes, but there is no question that the crown situation and constantly new travel tips make planning demanding, says Norwegian CEO Jacob Schram in a comment.

– The long-term crisis that has affected all parts of aviation continues to create uncertainty in all markets, which means that adequate liquidity support is crucial to protect tourism, jobs and critical infrastructure in Norway during a longer period, continues.

Must have more money

When the airline released its quarterly report for the second quarter a week ago, it was clear that it lost NOK 4.8 billion in the first half of the year, of which NOK 1.5 billion corresponded to the second quarter.

At the same time, Norwegian CEO Jacob Schram again communicated that the company needs a cash top-up in the not too distant future.

– We will need more help before the end of the year to get through the winter, said the CEO during the quarterly presentation.

– We have reduced the debt with the company by about 17,000 million in recent months. So we’ve bought time, but we still need more liquidity in the next six to seven months, CFO Geir Karlsen said.

So far, the company hasn’t said anything about how much it imagines it needs, or what kind of financing it wants. Norwegian has previously stated that they will need “around NOK 2.2 billion by the second quarter of 2021”, if the crown crisis, travel restrictions and weak demand continue until 2020.