Norwegian leases new Dreamliners, posts loss

Pre-tax first quarter loss is NOK 813 million (€98.5mn)

Norwegian announced today that it has signed agreements to lease three new Boeing 787-9 Dreamliners for its long-haul operation. Two of the aircraft will be delivered in 2016 and one in 2017.

The aircraft type is a new, bigger, more environmentally friendly Dreamliner model, which is scheduled to enter commercial service this year.

The new planes will help Norwegian to expand its international operations. Norwegian currently has five 787-8 Dreamliners in its fleet and another three on order. In addition, it has six 787-9 Dreamliners on order. With the new order announced today, Norwegian will have 17 aircraft in its long-haul fleet in 2018.

Also today, Norwegian posted a pre-tax first quarter loss of NOK 813 million (€98.5 million). It is a seasonally weak quarter for most airlines. The results were affected by additional costs associated with wet-leasing replacement aircraft on long-haul routes, as well as a weaker Norwegian currency, the airline said.

Total revenue for the first quarter was NOK 3.55 billion, up 22% from the same quarter the previous year. The company carried 4.9 million passengers, a growth of 24%. The company’s traffic growth (RPK) was up as much as 50%, which means that Norwegian’s passengers are flying much longer distances on average than they did a year ago.

Load factor was 77%, up one percentage point compared to the same quarter last year. Adjusted for one-off costs and a weak Norwegian currency, the unit cost (CASK) was reduced by 9%.

TTG Nordic

[photo courtesy Norwegian]

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