Norwegian reports profit after restructuring

Friday, September 3, 2021

Norwegian recently reported a profit before tax of NOK1,590 million (£133 million) for the first half of 2021 following the reopening of the aviation sector in Europe. The figure compares to a loss of NOK4,792 million in the same period in 2020.

The airline continued to be impacted by Covid-19 and travel restrictions in all markets through the year.  However, the carrier mentioned that following the successful completion of the reconstruction process and the subsequent NOK6 billion equity raise, the company is now “well positioned” for future growth.

Total revenue in the first half of 2021 was NOK591 million, compared with NOK7,138 million in the same period last year, a decrease of 92 per cent. In the second quarter of 2021, the company successfully exited the examinership and reconstruction process which improved equity by NOK10.7 billion.

Norwegian has committed to be a price leader in the Nordic markets, offering affordable fares and a reliable service to more than 250 routes across its European network. However, the airline has stopped aiming to be a global low-cost carrier.

Geir Karlsen, Chief Executive of Norwegian, said in a statement that the first half financial report and quarter two results mark a clear improvement in both the financial situation, due to lower operating costs and the successful completion of the reconstruction process of the company, and the gradual ramp up of operations in response to increased passenger demand.

He said that the results continue to be heavily impacted by international travel restrictions. He also mentioned that Norwegian is now in a much stronger financial position and is able to plan for the future with renewed confidence and focus.

He shared that forward bookings have continued to increase in response to the relaxation of travel restrictions and the roll out of international vaccination programmes and mentioned that the airline is expecting to see the trend continue in the remaining months in 2021 and through 2022.

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