The Norwegian Group has released its first-quarter 2024 results, showing a positive trajectory despite ongoing industry challenges.
While an operating loss (EBIT) of NOK 763 million was reported, this represents a significant improvement from the NOK 916 million loss incurred in the same period of 2023.
This positive trend comes amidst a weaker Norwegian krone impacting currency revaluation effects.
Financial Performance and Strengthened Liquidity
The Group’s financial health is further bolstered by a strengthened liquidity position reaching NOK 10.4 billion in the first quarter.
This positive development is attributed not only to cost-saving initiatives but also to the successful acquisition of Widerøe, a regional carrier.
The Widerøe acquisition, finalized in January 2024, is expected to generate significant synergies in the future, both commercially and operationally.
Q1 Operational Highlights
The combined Norwegian Group fleet, including Widerøe, now boasts a total of 136 aircraft, with 87 for Norwegian and 49 for Widerøe.
Passenger numbers also paint a promising picture, reaching 4.8 million in the first quarter. This figure breaks down to 4.0 million passengers on Norwegian flights and 0.8 million on Widerøe.
Notably, both airlines experienced a four percentage point increase in their quarterly load factor, reaching 85% and 67% for Norwegian and Widerøe, respectively.
These figures demonstrate a promising recovery in travel demand despite the impact of winter weather conditions.
Widerøe Acquisition: A Strategic Move
The acquisition of Widerøe marks a strategic move for the Norwegian Group, expanding its reach within the regional market and strengthening its domestic presence.
The first quarter of 2024 served as the final period under Widerøe’s previous Public Service Obligation (PSO) tender contracts.
A new PSO tender came into effect on April 1st, demanding a 50% reduction in maximum prices while requiring a 6% increase in Widerøe’s capacity.
The Norwegian Group is confident it can navigate these changes effectively, leveraging Widerøe’s expertise in regional routes.
CEO Geir Karlsen Expresses Optimism
Geir Karlsen, CEO of the Norwegian Group, expressed optimism about the future. He highlights the Group’s overriding focus on creating a seamless travel experience for passengers.
This vision includes integrating Widerøe’s network with Norwegian’s international destinations, offering customers a wider range of travel options and improved connectivity.
Mr. Karlsen anticipates significant commercial and operational synergies to emerge from the acquisition, creating a more cost-effective and efficient airline group.
A Busy Summer Season and Growth Prospects
The summer season officially commenced on March 31st, marking a significant ramp-up for Norwegian. The airline has introduced new routes and destinations, catering to the surge in travel demand during the peak season.
Additionally, Norwegian has expanded its network with base openings in Riga, Latvia, and Palma de Mallorca, Spain. This expansion offers passengers wider travel possibilities.
The airline successfully operated all international Easter flights, further bolstering passenger confidence and demonstrating its commitment to operational reliability.
Overall, the Norwegian Group appears well-positioned for a positive year ahead.
It boasts a projected fleet size of 87 aircraft maintained throughout the peak summer season.In growth terms it anticipates 12% growth in overall production for 2024 compared to last year.
The Group’s financial performance has shown improvement, its liquidity is strong, and the Widerøe acquisition presents exciting opportunities for growth.
As the summer season unfolds, interest will be on the Norwegian Group to see if it can translate its positive first-quarter results into sustained success throughout the year.
Click the banner to subscribe to our weekly newsleter.
Click the photo to join our WhatsApp channel so then you can stay up to date with everything going on in the aviation industry!
