Budget airline Norwegian Air released their first quarter report yesterday, reporting a 1489 million Norwegian kroner (NOK) net loss.
This sent the company’s stock value up, with the increase peaking at 5.8 percent the first hour that Oslo Stock Exchange was open, according to NRK.
Focus is on profit
In a press release from Norwegian Air yesterday, the airline made it clear that they are focusing on increased revenue and ways to reduce costs
"The company’s internal cost reduction program #Focus2019 has been implemented, [and] achieved cost reductions were NOK 467 million this quarter,” the statement said.
In addition, the company reported a total revenue increase from last years figures, by 14 percent.
This came as a welcome result of "intercontinental growth and increased traffic in the Nordics," the press release also noted.
Boeing 737 MAX
Norwegian Air has had to face some dire financial consequences, having recently purchased a fleet of 18 Boeing 737 MAX 8 aircrafts, but then having to keep them grounded.
According to the report, "the company is currently assessing the financial impact of the grounding of Boeing 737 MAX 8 worldwide."
So far, the airline estimates that the grounding of the 18 aircrafts has cost them around NOK 500 million.
This news comes just after having made an announcement, on April 24th, that the company have reached an agreement with Boeing, on the matter of this specific model aircrafts being added to Norwegian's fleet over years to come.
Reportedly, the two companies found a way "to postpone the delivery of 14 737 MAX aircraft originally due for delivery in 2020 and 2021."
Whereas Norwegian Air may have seen its shares notably lifted on Thursday, it comes after value plunged by close to 60 percent this past year, Bloomberg Opinion columnist Chris Bryant pointed out.
In addition, analysts at Bernstein stated in a note, that while "results were good enough for this company to continue flying in the near-term, [they] do not fully solve underlying structural issues.”
We believe that information should be free and will therefore never put up a paywall.
If you like reading our reports about the Scandinavian business scene and would like to donate towards the upkeep of the site, we would be very grateful. Click here to donate.
Tech | 🕐 16. Jan. 2020
Business | 🕐 09. Jan. 2020
Business | 🕐 13. Jan. 2020
Culture | 🕐 14. Mar. 2019
Startups | 🕐 25. Nov. 2019
Tech | 🕐 22. Nov. 2019
Startups | 🕐 14. Nov. 2019
Startups | 🕐 21. Nov. 2019
Tech | 🕐 02. Dec. 2019