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Mortyman
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Joined: Sat Aug 12, 2006 8:26 pm

Norwegian’s 2 Q Results /60 % Growth On Longhaul

Thu Jul 16, 2015 3:24 pm

Norwegian’s long-haul routes had a revenue growth of 60 percent.

Solid growth in all markets
Seven million passengers chose to travel with Norwegian in the second quarter – an increase of nine percent. Norwegian’s strongest growth in terms of passenger numbers was at London Gatwick, with Oslo Airport as a close runner up. The Spanish airports are also experiencing a solid rise in number of Norwegian-passengers.

During the second quarter, Norwegian’s total revenue was almost 5.9 BNOK, up 16 percent from the same quarter last year. Norwegian’s long-haul routes had a revenue growth of 60 percent.

Read more here:

http://media.norwegian.com/us/#/pres...nd-record-high-load-factor-1192933


Norwegian is also looking towards Canada and the French speaking market in relation to their French caribbean markets. Martinique might be in the pipeline.



http://www.dn.no/nyheter/naringsliv/...er-til--bli-heftigere-og-heftigere




Cabincrew taking a "crewfie" in Florida before heading to London

[Edited 2015-07-16 08:29:33]
 
BlueShamu330s
Posts: 2584
Joined: Sun Sep 23, 2001 3:11 am

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Thu Jul 16, 2015 4:07 pm

...on a net loss YTD of 213.3 NOK Million.

Rgds
Flying around India
 
avi8
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Joined: Sun Jun 26, 2011 1:36 am

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Thu Jul 16, 2015 6:21 pm

Quoting BlueShamu330s (Reply 1):

...on a net loss YTD of 213.3 NOK Million.

Rgds

Most big business projects rarely every start profitable. They are improving significantly if you look at the numbers closely. I would say good job; there's definitely a ton of room for improvement but good job.
avi8
 
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Mortyman
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Posts: 5827
Joined: Sat Aug 12, 2006 8:26 pm

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Thu Jul 16, 2015 6:21 pm

Quoting BlueShamu330s (Reply 1):
...on a net loss YTD of 213.3 NOK Million.

Yes, but I'm sure that will improve as time progress. The airline is increasing in volume and naturally there are expenditures that also needs to be handled in such an operation.

From Reuters:

Norwegian Air says long-haul expansion pays off

"Norwegian Air Shuttle swung to a forecast-beating operating profit in the second quarter, as its heavy bet on the long-haul market turned profitable for the first time, the company said on Thursday."

""We've reached critical mass in long haul and we now expect a very good development going forward ... Not least in the London market," Chief Executive Bjoern Kjos told an investor presentation."

"Norwegian did not give separate earnings numbers for the long-distance operations but Kjos said they had contributed to profits. "We're already there now," Kjos told Reuters."


* Q2 EBIT NOK 521 mln vs NOK 508 mln forecast

* CEO says company reaches critical mass in long haul

* Passengers flying between Europe and U.S./ Asia up 130 pct

* Available seat kilometres up 8 percent

* Revenue passenger kilometres up 15 percent


http://www.reuters.com/article/2015/...-air-results-idUSL5N0ZW0CZ20150716
 
MaverickM11
Posts: 17969
Joined: Thu Apr 06, 2000 1:59 pm

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Thu Jul 16, 2015 6:40 pm

Quoting BlueShamu330s (Reply 1):
...on a net loss YTD of 213.3 NOK Million.

  But LF is high! And longhaul grew 60%! 
Quoting Mortyman (Reply 3):
"Norwegian did not give separate earnings numbers for the long-distance operations but Kjos said they had contributed to profits. "We're already there now," Kjos told Reuters."

Mmmhmmm....you tellin' us or you tellin' yourself

"Today, Norwegian has a long-haul fleet of eight Dreamliner aircraft. "
Norwegian was quite profitable until these arrived, and the fact that 8 aircraft are sinking them into regular (big) losses is telling.

[Edited 2015-07-16 11:58:51]
I don't take responsibility at all
 
greenjet
Posts: 875
Joined: Sat Aug 25, 2001 9:59 pm

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Thu Jul 16, 2015 11:15 pm

Quoting BlueShamu330s (Reply 1):
...on a net loss YTD of 213.3 NOK Million.

However, it is an improvement from a loss of 465 NOK million in 1H 2014. Operating profit/loss improved from a loss of 861 NOK million in 1H 2014 to a loss 202 NOK million in 1H 2015 with notable yoy improvement in Q2 2015 (521 NOK million profit). Margins are still weak at the end of the day but there are green shoots. Stock price has also increased 68% over past 12 months.
 
reality
Posts: 435
Joined: Fri Apr 06, 2007 1:01 pm

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Thu Jul 16, 2015 11:41 pm

Quoting greenjet (Reply 5):
However, it is an improvement from a loss of 465 NOK million in 1H 2014
Quoting greenjet (Reply 5):
Stock price has also increased 68% over past 12 months.

Also, ontime performance for US flights has improved dramatically (actually not hard to do given the dismal performance last year)

Also, there are more flights from LGW to the US which attracts more US and UK passengers...so they don't need to rely only on Scandinavian passengers filling most of the seats.

They may have a bright future.

Quoting avi8 (Reply 2):
Most big business projects rarely every start profitable. They are improving significantly if you look at the numbers closely. I would say good job; there's definitely a ton of room for improvement but good job.

  

[Edited 2015-07-16 16:41:38]
 
centrex
Posts: 45
Joined: Sat Apr 25, 2015 12:03 pm

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Fri Jul 17, 2015 1:05 am

Equity share was 19% in 2013. 9% 2014 and estimated 10% by analysts in 2015, might get lower. Isn´t that pretty pretty low for an airline? They can hardly withstand any kinds of crisis with that equity level?
 
hohd
Posts: 883
Joined: Sat May 17, 2008 1:03 am

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Fri Jul 17, 2015 2:03 pm

If Norwegian was smart they would buy the 340's which most airlines want to get rid of and reconfigure them and fill up the planes to its gills. Surprisingly LH is doing the same thing, under their Jump brand, using old 340's to good use as they are already paid off.
 
skipness1E
Posts: 4751
Joined: Sun Aug 19, 2007 9:18 am

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Fri Jul 17, 2015 3:49 pm

Quoting Mortyman (Reply 3):
Yes, but I'm sure that will improve as time progress.

The bottom line is this was predicated on being an offshore operation with Irish registered aircaft and world beating low wages, and that did not exactly work out well.
 
Natflyer
Posts: 640
Joined: Fri Oct 11, 2013 9:29 pm

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Fri Jul 17, 2015 5:06 pm

Quoting Mortyman (Thread starter):

Pity the very photogenic CEO is missing from the picture...
 
BlueShamu330s
Posts: 2584
Joined: Sun Sep 23, 2001 3:11 am

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Fri Jul 17, 2015 5:11 pm

Quoting skipness1E (Reply 9):
The bottom line is this was predicated on being an offshore operation with Irish registered aircaft and world beating low wages, and that did not exactly work out well.

  

Quoting Interim Report Q2 2015:

A market place where capacity growth exceeds market growth will increase the risk of yield pressure. However, low yield stimulates new demand, thus growing the market further. This necessitates a similar reduction in the cost level in order to maintain profitability.

 Wow!

But you're not making profit Bjørn.

So Kjos' policy is to continue running at a loss and flooding the market with excess capacity in the hope it generates sustainable future demand.
Seems to me more like a ruthless way to drive out weaker or vulnerable competition rather than generate new demand in the hope it works before the money runs out.

Monarch said this was exactly Norwegian's business plan all along...

Rgds
Flying around India
 
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Mortyman
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Posts: 5827
Joined: Sat Aug 12, 2006 8:26 pm

RE: Norwegian’s 2 Q Results /60 % Growth On Longhaul

Fri Jul 17, 2015 7:57 pm

Quoting skipness1E (Reply 9):
The bottom line is this was predicated on being an offshore operation with Irish registered aircaft and world beating low wages, and that did not exactly work out well.

That was / is ofcourse the preferred choice, as any airline today needs to look forward and strengthen their position in order to maintain their position in the competition. Ho¨wever just because it so far has'nt worked out, does'nt mean that the airline wont be successful.



The airline has been waiting for over 15 months to obtain a license for their USA initiative. During the announcement of quarterly results Thursday says airlines that they have not heard anything more about the license from US authorities.

- We can fly to cramp takes us with the permits we have today. So it does not really matter says Kjos


http://www.dn.no/nyheter/naringsliv/...er-til--bli-heftigere-og-heftigere

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