Norwegian today reported its results for the third quarter of 2021. The figures show continued positive progress following the successful completion in May of the respective reconstruction processes. Passenger demand is returning across all our markets and forward bookings remain strong leading into our summer 2022 season. Profit before tax (EBT) showed a net profit of NOK 169 million compared to a loss of NOK 980 million in the same period in 2020. At the end of the third quarter of 2021, the total fleet comprised 51 aircraft. Continued cost control throughout the company combined with low cash burn has resulted in a strong financial position entering into the winter period with NOK 7.6 billion in cash and cash equivalents.
As travel restrictions across our European markets have continued to ease throughout the third quarter, demand has steadily increased. We have seen a return to more traditional booking patterns as passengers regain confidence to plan their travels with longer lead times into summer 2022. In line with the increased demand and ramp up of our operations, we have reopened crew bases in Stavanger, Bergen and Trondheim while recruiting for additional cabin crew at our Copenhagen base.
“The third quarter results clearly demonstrate that the actions taken across the organisation to safeguard the future of Norwegian by lowering debt and liabilities, while focusing on cost efficiencies, have succeeded. We are now in a strong financial position going into the traditionally more challenging winter months. We have seen a positive trend in forward bookings month on month and an increasing number of passengers are choosing to fly Norwegian across our European network,” said Geir Karlsen, CEO of Norwegian.
During the third quarter, close to 2.5 million passengers travelled with Norwegian, compared with approximately one million during the same period last year. Production (ASK) increased by 130 percent and passenger traffic (RPK) increased by 177 percent compared with the third quarter in 2020. The load factor was 73.1 percent, an increase of 12.5 percentage points.
Punctuality, share of flights departing on schedule, was 91.0 percent in the third quarter of 2021, down by six percentage points from 97.4 percent in the same period last year.
Looking ahead to a successful 2022
As travel demand continues to grow in line with the easing of international restrictions we can now look ahead with renewed optimism. Our stringent focus on costs and expenditure places Norwegian in a far stronger position over the winter months than previous years. Booking curves continue to show a positive trend well into 2022 as an ever increasing number of passengers choose to fly with Norwegian. Our passengers appreciate our modern fuel-efficient aircraft, welcoming service and extensive European network. We are especially pleased to be able to fully reopen our award-winning Norwegian Reward programme which is a much valued part of the passenger experience.
Fornebu 28 October 2021
Norwegian Air Shuttle ASA
For further information, please contact:
Tore Østby, Norwegian Air Shuttle ASA, phone: +47 995 464 00
This release is an announcement issued pursuant to legal information obligations and is subject of the disclosure requirements pursuant to the Market Abuse Regulation (MAR) Article 17 no. 1 and section 5-12 of the Norwegian Securities Trading Act, and was prepared by Tore Østby, Investor Relations at Norwegian Air Shuttle ASA, tel. +47 995 46 400.