Norwegian Air reports Q1 loss, eyes seasonal summer boost – ET TravelWorld

Rate this post

Norwegian Air reported a first-quarter loss on Friday and said strong booking numbers would give the budget carrier a boost for the summer season.The January-March net loss decreased to 993 million Norwegian crowns (USD 94.7 million) from a year-ago loss of 1.03 billion, Norwegian said. During the first quarter, normally a slow period for holiday travel, the company curtailed capacity by up to 30 per cent to reduce costs.

“With strong booking numbers that continue to be encouraging, Norwegian prepares for what is expected to be one of the company’s strongest summers ever,” the airline said in a statement. Average fares booked so far for the June-August period are up 25 per cent compared to last year, it added.

“For the full-year of 2023, the company is forecasting a significant increase in unit revenue from last year,” Norwegian said.

British Airways owner slashes loss on strong demand

“IAG has delivered a strong first-quarter financial performance, as group airlines recovered capacity to close to pre-pandemic levels,” said chief executive Luis Gallego. “Iberia contributed a record first-quarter profit and all our airlines performed above expectations, benefiting from robust demand and a lower fuel price in the quarter,” he added.

At the same time, the carrier cut its forecast for overall capacity this year, so-called available seat kilometres, or ASK, to 32,500 from 34,000, which it said reflected plans to curtail capacity next winter.
Norwegian emerged from government-backed bankruptcy proceedings two years ago after shedding much of its debt as well as its transatlantic network. The region’s legacy player SAS is under US Chapter 11 bankruptcy protection proceedings, with US asset manager Apollo Global Management Inc planning to take a majority stake as part of the rescue plan.

  • Published On May 13, 2023 at 01:01 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETTravelWorld App

  • Get Realtime updates
  • Save your favourite articles

icon g play

icon app store

Scan to download App
travel barcode

Leave a Comment

Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

Please consider supporting us by disabling your ad blocker on our website