– As expected – E24

Updating …

Norwegian’s traffic figures for September are heavily affected by the corona pandemic and subsequent travel restrictions, as well as falling demand, according to a report.

– In September, several countries went from being yellow to turning red. We see that the moment the authorities introduce new and stricter travel restrictions, demand is immediately affected. We continually adapt the route offer depending on the situation, but the constant changes in the travel restrictions of the authorities make planning very demanding, both for us and for the clients. Looking ahead, we also see that this crisis is by no means over, says Norwegian CEO Jacob Schram.

Aviation analyst Hans Jørgen Elnæs at Winair says Norwegian’s traffic figures were more or less as expected. There is a marginal increase in passenger numbers compared to last month (August), probably driven by the autumn holidays in Norway.

– On the other hand, the filling level is under strong pressure and has dropped to 9.3 percentage points compared to August to 52.8 percent. This shows that the market does not respond enough when Norwegian increases capacity, something that most airlines in Europe experience after the second wave of Covid-19 in mid-August and weakening demand is expected to persist into the future. change of year and the first quarter of 2021.

– Norwegian has recently published its winter program, but I think it will be adjusted according to market demand, Elnæs writes in an email to E24.

Better profitability

So it was, compared to the corresponding period last year:

• Total capacity (ASK) was reduced by 93 percent.
• Total passenger traffic (RPK) was down 96 percent.
• The occupancy rate was 52.8 percent, 37 percentage points less.
• The total number of passengers was 319,370, a decrease of 90 percent.
• Revenue per passenger-kilometer flown (throughput) increased from 39 øre to 79 øre. This indicates higher profitability.

I need more money

Norwegian’s share price has been erased and is down more than 97 percent so far this year on the Oslo Stock Exchange. The market value of the company has fallen dramatically in the wake of the pandemic.

This spring, Norwegian landed a crisis package and avoided bankruptcy of the crown. Now the company is looking for more money with a flashlight and light. One of the doors they are knocking on is with the government, as E24 has previously written.

The Minister of Trade and Industry, Iselin Nybø, and the Minister of Transport and Communications, Knut Arild Hareide, will participate in a new meeting with Norwegian on possible aid in case of crisis.

This spring’s drama and aviation crisis culminated in April-May for Norwegian.

After intensive work, the company received first the support of the creditors and then that of the shareholders for the first crisis package.

Although the billion package ensured that the company did not fail, the crisis in the company’s financial crown was not resolved. Low demand, low traffic, and tight travel restrictions mean Norwegian needs more help.

In late August, management repeated this message and made it clear that they are in the process of stacking a new funding package.

– We will need more help before the end of the year to get through the winter, CEO Jacob Schram said at the time.