Earnings Release • Aug 25, 2022
Earnings Release
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Norwegian Air Shuttle ASA
Norwegian today reported its results for the second quarter and first half of 2022. The figures demonstrate Norwegian's ability to increase capacity for the busy summer travel season and deliver robust operational performance. Amidst capacity constraints at European airports and aircraft technician strike, close to all scheduled flights were operated.
Profit before tax (EBT) in the second quarter amounted to NOK 1,248 million, impacted both by the reinstatement of aircraft order prepayments and the high fuel price this quarter. Cash and cash equivalents was unchanged from the previous quarter at NOK 7.5 billion. At quarter-end, Norwegian's total operational fleet comprised 65 aircraft.
"This quarter has demonstrated our ability to rapidly ramp up capacity and effectively meet the strong demand for air travel. The results have been made possible thanks to our dedicated colleagues that put our customers at heart of our operations. I am particularly pleased that we deliver market-leading regularity in times with capacity constrains across European airports and a strike in Norway," said Geir Karlsen, CEO of Norwegian.
The summer program has been well received among customers across markets. Many customers have longed to travel to Norwegian's key destinations, creating strong pent-up demand with increasing traffic and bookings through the quarter and into the busy summer season. Production (ASK) was close to double from the previous quarter, while the number of passengers increased with 124 percent. Load factor improved through the quarter to 85 percent in June and increased further into July.
This quarter, Norwegian announced a landmark deal with the purchase of 50 Boeing 737 MAX 8 aircraft, due to be delivered between 2025 and 2028. The delivery schedule closely corresponds to current aircraft lease expirations, entailing a limited net increase of the current fleet. The agreement also includes options for an additional 30 aircraft. Following the conclusion of the agreement, on 22 June, Norwegian reinstated a previously impaired pre-delivery payments (PDP) of NOK 2,099 million in the quarter.
"The aircraft deal with Boeing is key for the Norwegian's next chapter. It will enable us to serve our customers with modern fuelefficient aircraft, significantly reducing our carbon footprint. In addition, it sets the stage for us to own a large share of our fleet, enabling us to solidify our Nordic stronghold," said Karlsen.
In June, aircraft technicians went on strike after the Federation of Norwegian Aviation Industries (NHO Luftfart) and the Norwegian Aircraft Technician Organisation (NFO) failed to reach an agreement. Strong dedication and effort from the Norwegian organisation ensured that disruptions and cancellations were kept to a minimum. The strike was concluded after ten days on 28 June through forced arbitration.
In the second quarter of 2022, Norwegian had 5.0 million passengers, up from 0.4 million in the same period last year and 2.2 million passengers in the previous quarter. Production (ASK) was 7.6 billion, while passenger traffic (RPK) was 6.2 billion. The load factor increased to 81.2 percent, up from 57.4 percent in the same period last year and 76.9 percent in the previous quarter.
Punctuality was heavily impacted by capacity constraints at European airports this quarter. Share of flights departing on schedule was 78.8 percent, compared to 95.4 percent in the same period last year and 88.1 percent in the previous quarter. Regularity, share of flights taking place, was however 99.4 percent.
Looking ahead, Norwegian is well positioned to solidify the position as a leading Nordic airline. Our customers assign high value on Norwegians offering, including the attractive route network, the award-winning Norwegian Reward loyalty programme, and market-leading operational performance. Agreements entered into with Widerøe and Norse Atlantic Airways in July will serve to further increase the attractiveness of our offering.
Current booking trends are encouraging with many customers booking their autumn holidays. For the upcoming winter, Norwegian will utilise the fleet flexibility made possible through power-by-the-hour agreements to optimise production to fluctuations in demand. For the current year, Norwegian is increasing its fleet to 70 aircraft. For the summer of 2023, 15 additional aircraft will be added, bringing the total fleet to 85 aircraft.
| Q 2 | Q 2 | H 1 | H 1 | Full Year | |||
|---|---|---|---|---|---|---|---|
| (unaudited in NOK million) | 2022 | 2021 | Change | 2022 | 2021 | Change | 2021 |
| Operating revenue | 4,868.5 | 335.5 | 1,351 % | 6,784.7 | 590.8 | 1,048 % | 5,067.8 |
| EBITDAR | -214.2 | -538.3 | 60 % | -682.1 | -1,651.3 | 59 % | -1,516.0 |
| EBITDAR excl other losses/(gains) | -219.1 | -1,008.4 | 78 % | -671.5 | -1,861.7 | 64 % | -2,253.5 |
| Operating profit (EBIT) | 1,358.5 | -766.0 | N M | 509.9 | -2,227.8 | N M | -2,786.0 |
| EBIT excl other losses/(gains) | 1,353.6 | -1,236.1 | N M | 520.5 | -2,438.1 | N M | -3,523.5 |
| Profit (loss) before tax (EBT) | 1,248.3 | 2,778.9 | -55 % | 217.0 | 1,589.9 | -86 % | 1,876.0 |
| Net profit (loss) | 1,248.3 | 2,778.9 | -55 % | 214.7 | 1,589.9 | -86 % | 1,870.5 |
| EBITDAR margin | -4.4 % | -160.5 % | -10.1 % | -279.5 % | -29.9 % | ||
| EBIT margin | 27.9 % | -228.3 % | 7.5 % | -377.1 % | -55.0 % | ||
| EBT margin | 25.6 % | 828.3 % | 3.2 % | 269.1 % | 37.0 % | ||
| Net profit margin | 25.6 % | 828.3 % | 3.2 % | 269.1 % | 36.9 % | ||
| Book equity per share (NOK) | 3.9 | 2.2 | 81 % | 3.5 | |||
| Equity ratio (%) | 15.1 % | 8.7 % | 6.4 pp | 17.4 % | |||
| Cash and cash equivalents | 7,542.6 | 7,475.4 | 1 % | 7,694.8 | |||
| Net interest-bearing debt | 2,732.0 | 1,728.0 | 58 % | 1,682.5 |
| Q 2 | Q 2 | H 1 | H 1 | Full Year | |||
|---|---|---|---|---|---|---|---|
| (unaudited ratios in NOK) | 2022 | 2021 | Change | 2022 | 2021 | Change | 2021 |
| Yield - ticket revenue | 0.64 | 0.78 | -18 % | 0.60 | 0.82 | -27 % | 0.57 |
| Yield - total | 0.77 | 1.00 | -23 % | 0.72 | 1.06 | -32 % | 0.71 |
| Unit revenue - ticket | 0.52 | 0.45 | 16 % | 0.48 | 0.41 | 18 % | 0.41 |
| Unit revenue - total | 0.62 | 0.57 | 9 % | 0.57 | 0.53 | 9 % | 0.51 |
| Unit cost | 0.74 | 2.98 | -75 % | 0.73 | 3.38 | -78 % | 0.91 |
| Unit cost excl fuel | 0.43 | 2.83 | -85 % | 0.47 | 3.22 | -85 % | 0.76 |
| Ancillary revenue per passenger | 158 | 172 | -9 % | 157 | 186 | -16 % | 152 |
| ASK (million) | 7,627 | 527 | 1,347 % | 11,498 | 896 | 1,183 % | 9,437 |
| RPK (million) | 6,190 | 302 | 1,946 % | 9,166 | 445 | 1,962 % | 6,869 |
| Passengers (million) | 4.96 | 0.38 | 1,200 % | 7.18 | 0.59 | 1,119 % | 6.19 |
| Load factor | 81.2 % | 57.4 % | 23.8 pp | 79.7 % | 49.6 % | 30.1 pp | 72.8 % |
| Average sector length (km) | 1,147 | 672 | 71 % | 1,151 | 623 | 85 % | 960 |
| Fuel consumption (1,000 mt) | 154 | 11 | 1,243 % | 231 | 20 | 1,051 % | 193 |
| CO2 per RPK |
78 | 119 | -34 % | 79 | 142 | -44 % | 89 |
Passenger demand grew significantly across all markets through the quarter and into the busy summer travel season, prompting improving yields and load factor. In the second quarter of 2022, Norwegian had 4.96 million passengers, up from 0.38 million in the same period last year and 2.22 million in the previous quarter. Production (ASK) for the quarter was 7,627 million, up 97 percent from the previous quarter. Passenger traffic (RPK) was 6,190 million. The load factor was 81.2 percent, up from 57.4 percent in the second quarter of 2021 and 76.9 in the previous quarter.
At the end of the second quarter of 2022, the total operational fleet comprised 65 aircraft. An additional 2 aircraft were at quarter-end in the process of being phased into the fleet, and these were accounted for in the balance sheet through lease obligations and right-of-use assets. Including wet-lease operations, 64 aircraft were on average utilised during the quarter. Each operational aircraft was on average utilised 11.7 block hours per day, up from 5.4 block hours per day in the same period last year and 8.5 block hours in the previous quarter.
Punctuality, share of flights departing on schedule, was 78.8 percent in the second quarter of 2022, down from 95.4 percent in the second quarter of 2021 and 88.1 percent in the previous quarter. Share of flights arriving within one hour of scheduled arrival time was 95.2 percent.
Regularity, share of scheduled flights taking place, was 99.4 percent in the quarter, unchanged from the previous quarter.
Norwegian is experiencing marked increase in demand across all markets, clear indication of strong pent-up demand after subdued travel during to the COVID-19 pandemic. The interim financial statements for the second quarter of 2022 and the first half year of 2022 are affected by heightened macroeconomic uncertainty, predominantly due to the increased fuel price.
For the second quarter of 2022, production (ASK) was 7,627 million, an increase of 1,347 percent from the second quarter of 2021 and 97 percent from the previous quarter.
EBITDAR was negative NOK 214 million in the second quarter of 2022, compared to negative NOK 538 million in the same period last year and negative NOK 468 million in the previous quarter. EBITDAR excl. other losses/(gains) was negative NOK 219 million, an improvement from negative NOK 1,008 million in the same period last year and negative NOK 452 million in the previous quarter.
Operating profit (EBIT) for the quarter amounted to NOK 1,359 million, compared to negative NOK 766 million in the same period last year and negative NOK 849 million in the previous quarter. Operating profit was positively impacted by NOK 2,099 million relating to the reinstatement of pre-delivery payments (PDP) following the completion of the purchase agreement for Boeing aircraft announced in the quarter. Operating profit (EBIT) excluding other losses/(gains) amounted to NOK 1,354 million, compared to negative NOK 1,236 million in the same period last year and negative NOK 833 million in the previous quarter.
Profit before tax (EBT) amounted to NOK 1,248 million, compared with NOK 2,779 million in the same period last year and negative NOK 1,031 million in the previous quarter. Profit for the second quarter of 2021 was impacted significantly by positive restructuring effects.
Total operating revenue in the second quarter of 2022 increased to NOK 4,868 million from NOK 335 million in the second quarter of 2021. Compared to the previous quarter, total operating revenue increased 154 percent, a result of both increased passenger traffic and improved yields. Passenger ticket revenue was NOK 3,970 million, up from NOK 236 million in the same period last year and NOK 1,513 million in the previous quarter. Ancillary passenger revenue was NOK 782 million, compared to NOK 66 million in the same period last year and NOK 344 million in the previous quarter. Other revenue of NOK 116 million in the quarter primarily includes commissions and revenue from the loyalty program Norwegian Reward.
Unit ticket revenue in the quarter was NOK 0.52, up from NOK 0.45 in the same period last year and NOK 0.39 in the previous quarter. Unit revenue including flight related ancillary revenues was NOK 0.62, up from NOK 0.57 in the same period last year and NOK 0.48 in the previous quarter. Ticket revenue yield was NOK 0.64, compared to NOK 0.78 in the same period last year and NOK 0.51 in the previous quarter. Yield including flight related ancillary revenues was NOK 0.77, compared to NOK 1.00 in the same period last year and NOK 0.62 in the previous quarter. Ancillary revenue per passenger was NOK 158, compared to NOK 172 in the same period last year and NOK 155 in the previous quarter.
Total operating expenses excluding depreciation, amortization and aircraft lease amounted to NOK 5,083 million in the second quarter of 2022, up from NOK 874 million in the second quarter of 2021 and NOK 2,384 million in the previous quarter. Adjusted for other losses/(gains), operational expenses increased by 115 percent from the previous quarter, predominantly a result of increased production and higher prices for jet fuel.
Unit cost in the quarter was NOK 0.74, down from NOK 2.98 in the same period last year and up from NOK 0.71 in the previous quarter. Unit cost excluding fuel was NOK 0.43, down from NOK 2.83 in the same period last year and NOK 0.55 in the previous quarter.
Other losses/(gains) in the quarter amounted to a net gain of NOK 5 million, primarily related to currency loss on translation of working capital and a gain from the remaining 20 percent of the gain related to the sales agreement of slots at London Gatwick in December 2021. In the same period last year, other losses/(gains) amounted to a net gain of NOK 470 million. In the previous quarter, other losses/(gains) amounted to a net loss of NOK 16 million.
Aircraft lease, depreciation and amortization amounted to NOK 527 million in the quarter, compared to NOK 228 million in the same period last year and NOK 381 million in the previous quarter. Lease expenses were elevated this quarter due to wet-lease operations as aircraft sourced ahead of the summer season were delayed in delivery.
Following completion of the agreement to purchase 50 Boeing aircraft on 22 June 2022, NOK 2,099 million of previously paid in pre-delivery payment (PDP) was reinstated against the purchase. The PDP balance was previously impaired to zero value in the fourth quarter of 2020.
Net financial items amounted to a net loss of NOK 110 million in the second quarter of 2022, compared with a gain of NOK 3,545 million in the same period last year and a loss of NOK 183 million in the previous quarter. Net financial items in the second quarter of 2021 was positively impacted by financial restructuring effects relating to the completion of the restructuring process in May 2021. Interest expenses for the quarter included NOK 80 million in interest expense on lease liabilities recognized according to IFRS 16, compared to NOK 71 million in the same period last year and NOK 72 million in the previous quarter.
Other financial income (expense) includes net currency gain of NOK 44 million, primarily related to the revaluation of cash balances denominated in currencies other than functional currencies of the companies in the group.
Aircraft assets are accounted for in USD, creating a natural hedge against USD denominated financing when translated into NOK.
Net interest-bearing debt at the end of the second quarter of 2022 amounted to NOK 2,732 million. Compared to the previous quarter, net interest-bearing debt increased by NOK 561 million, primarily a result of increased lease liabilities with the sourcing of additional aircraft in the quarter and currency revaluations with NOK depreciating against the USD. A total of 67 aircraft were accounted for in the balance sheet through lease obligations and owned aircraft, up from 65 aircraft at the end of the previous quarter. Included in net-interest bearing debt is the zero coupon Retained Claims Bonds, amounting to NOK 2,614 million at the end of the quarter.
At the end of the second quarter of 2022, equity amounted to NOK 3,654 million, corresponding to an equity ratio of 15.1 percent. Compared to the previous quarter, the equity ratio increased by 3.8 percentage points, predominately a result of the positive net result after tax this quarter.
Total non-current assets amounted to NOK 12,203 million at the end of the second quarter of 2022, compared to NOK 9,075 million at the end of the previous quarter.
Intangible assets amounted to NOK 2,082 million at the end of the quarter, compared to NOK 2,069 million at the end of the previous quarter, and was predominantly comprised of deferred tax assets amounting to NOK 1,901 million.
Tangible assets amounted to NOK 9,834 million at the end of the quarter, compared to NOK 6,795 million at the end of the previous quarter, and was predominantly comprised of owned aircraft, right-of-use assets for leased aircraft and prepayment for ordered aircraft. Prepayment on aircraft increased to NOK 2,341 million, compared to zero value at the end of the previous quarter, a result of reinstatement of previously impaired pre-delivery payments and prepayment of NOK 200 million to Boeing this quarter.
Total current assets amounted to NOK 11,948 million at the end of the second quarter of 2022, compared to NOK 11,010 million at the end of the previous quarter. The increase during the quarter was primarily attributed to increased nominal value of credit card holdback with increased forward bookings. At the end of the quarter, holdback as share of air traffic settlement liabilities was 67 percent, down from 73 percent at the end of the previous quarter.
Cash and cash equivalents amounted to NOK 7,543 million at the end of the quarter, corresponding to an increase of NOK 8 million from NOK 7,535 million at the end of the previous quarter.
Total non-current liabilities amounted to NOK 10,636 million at the end of the second quarter of 2022, up from NOK 9,743 million at the end of the previous quarter. The increase is primarily attributed to sourcing of additional aircraft and currency revaluations of leases.
Total current liabilities amounted to NOK 9,860 million at the end of the second quarter of 2022, up from NOK 8,078 million at the end of the previous quarter.
Air traffic settlement liabilities amounted to NOK 4,805 million at the end of the quarter, up from NOK 3,613 million at the end of the previous quarter.
Other current liabilities were NOK 3,755 million at the end of the quarter, compared to NOK 3,271 million at the end of the previous quarter.
Equity at the end of the second quarter of 2022 amounted to NOK 3,654 million, up from NOK 2,265 million at the end of the previous quarter.
Cash and cash equivalents amounted to NOK 7,543 million at the end of the second quarter of 2022, an increase of NOK 8 million from NOK 7,535 million at the end of the previous quarter.
Cash flow from operating activities in the second quarter of 2022 amounted to positive NOK 556 million, compared to positive NOK 107 million in the previous quarter. Air traffic settlement liabilities increased by NOK 1,192 million while receivables decreased by NOK 943 million during the quarter. Other adjustments amounted to positive NOK 813 million during the quarter. Other adjustments primarily consist of finance items, changes in other assets and other liabilities in addition to non-cash effects included in profit before tax.
For the first half year of 2022, cash flow from operating activities amounted to positive NOK 663 million, compared to negative NOK 421 million in the same period last year.
Cash flow from investing activities in the second quarter of 2022 was negative NOK 141 million and primarily consist of NOK 200 million in pre-delivery payment to aircraft manufacturer Boeing. In the previous quarter, cash flow from investing activities amounted to positive NOK 13 million.
For the first half year of 2022, cash flow from investing activities was negative NOK 128 million, compared to negative NOK 5 million in the same period last year.
Cash flow from financing activities in the second quarter of 2022 was negative NOK 540 million, of which NOK 122 million related to the amortisation of the NAS13 bond and NOK 29 million to the repurchase of Retained Claims Bonds in March. In the previous quarter, cash flow from financing activities amounted to negative NOK 150 million.
For the first half year of 2022, cash flow from financing activities was negative NOK 690 million, compared to positive NOK 5,265 million in the same period last year which included NOK 5,863 million capital raise.
Norwegian is exposed to several risk factors such as market risk, operational risk, financial risk and liquidity risk. Future demand is dependent on sustained consumer and business confidence in key markets. Demand for airline travel is subject to strong seasonal variations. The effects of the coronavirus COVID-19 pandemic on the airline industry have dissipated in recent months, but adverse development in infections and travel restrictions going forward may impact the company's operations.
The current macroeconomic environment is uncertain with elevated energy and fuel prices, inflationary pressure, fluctuation in foreign exchange rates, as well as the potential impacts of disruptions in the global supply chain. Such factors may have a significant impact on Norwegian's business and financial result.
In the event of industrial actions, operations may be affected, causing disruptions for customers and affect the company's financial performance.
For additional explanations regarding risks and uncertainties, please refer to the following sections in the company's Annual Report 2021: The Financial Risk and Risk Management section and the Going Concern section of the Board of Director's report, Note 2: Financial Risk and Note 26: Contingencies and Legal Claims. Note 10 in this interim report includes updates to contingencies and legal claims.
Norwegian is currently increasing the total fleet to 70 aircraft for the current year. High fuel prices is expected to have a partly negative impact on the company's results for 2022. For the summer season of 2023, the company is adding an additional 15 aircraft to match increasing demand for air travel and benefit from increasing scale. For 2023 as a whole, the company is targeting a production of 35,000 million ASK, up from a target of 28,000 million ASK for 2022, and a reduction in unit cost excluding fuel.
For the upcoming winter season, the company has flexibility by power-by-the-hour (PBH) lease agreements on close to 30 percent of its fleet that allows the company to optimise capacity to fluctuations in demand.
Following a prolonged period with subdued reduced demand, air travel has returned with strong pent-up demand this summer. There has been record high willingness to pay for tickets across Norwegian's attractive route network. Current booking trends are encouraging with many costumers booking their autumn holidays and corporate travellers placing high value on Norwegian's operational performance.
With a strong brand loyalty, solid organisation and a robust financial situation, Norwegian is well positioned to benefit from the expected improvements in our markets.
| CONSOLIDATED INCOME STATEMENT | |||||
|---|---|---|---|---|---|
| Q 2 |
Q 2 |
H 1 |
H 1 |
Full Year | |
| (unaudited in NOK million) Note |
2022 | 2021 | 2022 | 2021 | 2021 |
| Passenger revenue | 3,970.0 | 236.0 | 5,482.7 | 363.2 | 3,911.8 |
| Ancillary passenger revenue | 782.3 | 65.9 | 1,126.8 | 109.8 | 941.5 |
| Other revenue | 116.2 | 33.6 | 175.3 | 117.9 | 214.5 |
| Total operating revenue 3 |
4,868.5 | 335.5 | 6,784.7 | 590.8 | 5,067.8 |
| Personnel expenses | 782.4 | 611.0 | 1,415.0 | 918.9 | 2,084.9 |
| Aviation fuel | 2,338.4 | 78.6 | 2,972.2 | 142.5 | 1,413.8 |
| Airport and ATC charges | 584.9 | 74.3 | 856.3 | 189.2 | 820.1 |
| Handling charges | 482.2 | 88.2 | 658.5 | 191.6 | 757.0 |
| Technical maintenance expenses | 423.9 | 143.8 | 696.6 | 390.3 | 855.5 |
| Other operating expenses | 475.7 | 347.9 | 857.6 | 620.1 | 1,390.2 |
| Other losses/(gains) | -4.9 | -470.1 | 10.6 | -210.3 | -737.5 |
| Total operating expenses excl lease, depr. and amort. | 5,082.7 | 873.8 | 7,466.8 | 2,242.1 | 6,583.9 |
| Operating profit excl lease, depr. and amort. (EBITDAR) | -214.2 | -538.3 | -682.1 | -1,651.3 | -1,516.0 |
| Aircraft lease, depreciation and amortization | 526.6 | 227.7 | 907.4 | 576.5 | 1,270.0 |
| Reversal of impairment loss regarding prepayment on aircraft | -2,099.4 | 0.0 | -2,099.4 | 0.0 | 0.0 |
| Operating profit (EBIT) | 1,358.5 | -766.0 | 509.9 | -2,227.8 | -2,786.0 |
| Interest income | 4.3 | 0.0 | 21.7 | 0.1 | 13.7 |
| Interest expense | 151.9 | 82.6 | 317.4 | 417.7 | 682.3 |
| Other financial income (expense) 9 |
37.4 | 3,627.5 | 2.8 | 4,235.4 | 5,330.5 |
| Net financial items | -110.2 | 3,544.9 | -292.9 | 3,817.7 | 4,662.0 |
| Profit (loss) before tax (EBT) | 1,248.3 | 2,778.9 | 217.0 | 1,589.9 | 1,876.0 |
| Income tax expense (income) | 0.0 | 0.0 | 2.3 | 0.0 | 5.5 |
| Net profit (loss) | 1,248.3 | 2,778.9 | 214.7 | 1,589.9 | 1,870.5 |
| Net profit (loss) attributable to: | |||||
| Owners of the parent company | 1,248.3 | 2,778.9 | 214.7 | 1,589.9 | 1,870.5 |
| Basic earnings per share (NOK) | 1.3 | 8.9 | 0.2 | 9.0 | 3.5 |
| Diluted earnings per share (NOK) | 1.1 | 5.7 | 0.2 | 6.0 | 2.7 |
| Number of shares at the end of the period | 929,989,739 | 707,335,368 | 929,989,739 | 707,335,368 | 928,518,496 |
| Average number of shares outstanding | 929,537,471 | 310,617,395 | 929,162,595 | 176,046,730 | 522,786,820 |
| Number of diluted shares at the end of the period | 1,124,581,417 1,138,045,158 1,124,581,417 1,138,045,158 1,124,319,545 | ||||
| Average number of shares outstanding after dilution | 1,125,486,810 | 486,364,004 1,125,221,693 | 265,556,777 | 698,547,559 |
| (unaudited in NOK million) | Q 2 2022 |
Q 2 2021 |
H 1 2022 |
H 1 2021 |
Full Year 2021 |
|---|---|---|---|---|---|
| Net profit (loss) for the period | 1,248.3 | 2,778.9 | 214.7 | 1,589.9 | 1,870.5 |
| Actuarial gains and losses | 0.0 | 0.0 | 0.0 | 0.0 | 14.1 |
| Exchange rate differences | 175.0 | -502.2 | 205.4 | -331.0 | 151.0 |
| Other | -3.4 | -0.4 | -3.4 | -4.3 | -3.9 |
| Total comprehensive income for the period | 1,419.9 | 2,276.3 | 416.7 | 1,254.6 | 2,031.7 |
| Total comprehensive income attributable to: | |||||
| Owners of the company | 1,419.9 | 2,276.3 | 416.7 | 1,254.6 | 2,031.7 |
| 30 JUNE | 30 JUNE | 31 DEC | ||
|---|---|---|---|---|
| (unaudited in NOK million) | Note | 2022 | 2021 | 2021 |
| ASSETS | ||||
| Intangible assets | 2,081.6 | 2,084.4 | 2,070.6 | |
| Tangible assets | 1,6 | 9,834.3 | 5,393.8 | 6,767.5 |
| Other non-current assets | 287.1 | 87.4 | 123.1 | |
| Total non-current assets | 12,203.1 | 7,565.6 | 8,961.3 | |
| Inventory | 74.2 | 62.8 | 16.3 | |
| Receivables | 4,330.7 | 2,528.5 | 2,152.9 | |
| Cash and cash equivalents | 7,542.6 | 7,475.4 | 7,694.8 | |
| Total current assets | 11,947.5 | 10,066.7 | 9,864.1 | |
| TOTAL ASSETS | 24,150.6 | 17,632.3 | 18,825.4 | |
| EQUITY AND LIABILITIES | ||||
| Shareholder's equity | 8 | 3,653.7 | 1,533.3 | 3,269.6 |
| Total equity | 3,653.7 | 1,533.3 | 3,269.6 | |
| Non-current debt | 7 | 8,973.8 | 8,843.5 | 8,416.4 |
| Other non-current liabilities | 1,662.6 | 1,474.1 | 1,071.4 | |
| Total non-current liabilities | 10,636.4 | 10,317.6 | 9,487.7 | |
| Air traffic settlement liabilities | 4,805.0 | 1,122.0 | 1,324.2 | |
| Current debt | 7 | 1,300.9 | 359.9 | 961.0 |
| Other current liabilities | 3,754.6 | 4,299.6 | 3,782.9 | |
| Total current liabilities | 9,860.5 | 5,781.5 | 6,068.0 | |
| Total liabilities | 20,496.9 | 16,099.1 | 15,555.8 | |
| TOTAL EQUITY AND LIABILITIES | 24,150.6 | 17,632.3 | 18,825.4 |
| CONSOLIDATED STATEMENT OF CASH FLOW | |||||
|---|---|---|---|---|---|
| Q 2 |
Q 2 |
H 1 |
H 1 |
Full Year | |
| (unaudited in NOK million) | 2022 | 2021 | 2022 | 2021 | 2021 |
| Profit before tax | 1,248.3 | 2,778.9 | 217.0 | 1,589.9 | 1,876.0 |
| Paid taxes | -2.1 | 0.0 | -2.1 | 0.0 | 0.0 |
| Depreciation, amortization and impairment | -1,752.7 | 220.4 | -1,438.9 | 569.2 | 1,133.5 |
| Reconstruction effects | 0.0 | -3,824.7 | 0.0 | -3,824.7 | -5,340.8 |
| Changes in air traffic settlement liabilities | 1,192.0 | 684.3 | 3,480.8 | 720.5 | 922.7 |
| Changes in receivables | -942.7 | 622.2 | -2,208.2 | 755.5 | 1,131.1 |
| Other adjustments | 813.2 | -670.2 | 614.6 | -231.1 | 416.6 |
| Net cash flows from operating activities | 556.0 | -189.1 | 663.2 | -420.8 | 139.1 |
| Purchases, proceeds and prepayment of tangible assets | -140.5 | 0.0 | -127.6 | 0.0 | 231.4 |
| Other investing activities | 0.0 | -5.1 | 0.0 | -5.1 | -8.7 |
| Net cash flows from investing activities | -140.5 | -5.1 | -127.6 | -5.1 | 222.6 |
| Loan proceeds | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Principal repayments | -417.1 | -351.3 | -484.8 | -351.3 | -687.6 |
| Financing costs paid | -115.6 | -3.2 | -197.3 | -5.3 | -13.3 |
| Paid dividend to creditors | -7.4 | -241.3 | -7.4 | -241.3 | -377.7 |
| Proceeds from issuing new shares and perpetual bond | 0.0 | 5,862.9 | 0.0 | 5,862.9 | 5,862.9 |
| Net cash flows from financing activities | -540.1 | 5,267.2 | -689.5 | 5,265.1 | 4,784.4 |
| Net change in cash and cash equivalents | -124.6 | 5,073.0 | -153.9 | 4,839.2 | 5,146.1 |
| Foreign exchange effect on cash | 132.4 | 23.0 | 1.7 | -30.7 | -118.2 |
| Cash and cash equivalents at beginning of period | 7,534.8 | 2,379.5 | 7,694.8 | 2,666.9 | 2,666.9 |
| Cash and cash equivalents at end of period | 7,542.6 | 7,475.4 | 7,542.6 | 7,475.4 | 7,694.8 |
| H 1 | H 1 | Full Year | |
|---|---|---|---|
| (unaudited in NOK million) | 2022 | 2021 | 2021 |
| Equity - Beginning of period | 3,269.6 | -6,623.9 | -6,623.9 |
| Total comprehensive income for the period | 416.7 | 1,254.6 | 2,031.7 |
| Share issue | 13.8 | 4,071.7 | 4,071.7 |
| Convertible dividend claim issue | 0.0 | 980.8 | 1,933.5 |
| Perpetual bonds issue and conversions | -13.8 | 1,843.3 | 1,843.3 |
| Interest payment on perpetual bond | -32.7 | 0.0 | 0.0 |
| Equity change on employee options | 0.1 | 6.7 | 13.2 |
| Equity - End of period | 3,653.7 | 1,533.3 | 3,269.6 |
The condensed consolidated interim financial statements comprise Norwegian Air Shuttle ASA and its subsidiaries (the company). Norwegian Air Shuttle ASA is a limited liability company incorporated in Norway. The consolidated financial statements of the company for the year ended 31 December 2021 are available at www.norwegian.com.
These unaudited condensed consolidated interim financial statements have been prepared in accordance with the rules and regulations of Oslo Stock Exchange and International Accounting Standard (IAS) 34 Interim Financial Reporting. They do not include all the information required for full annual consolidated financial statements and should be read in conjunction with the consolidated financial statements for the company for the year ended 31 December 2021.
The accounting policies applied by the company in these condensed consolidated financial statements are the same as those applied by the company in its consolidated financial statements for the year ended 31 December 2021.
The preparation of condensed consolidated interim financial statements in accordance with IFRS and applying the chosen accounting policies require management to make judgments, estimates and assumptions which affect the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical figures and various other factors which are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the company's accounting policies and the key sources of estimation uncertainty, were the same as those that applied to the consolidated financial statements for the period ended 31 December 2021.
The going concern basis of accounting is adopted in preparing these interim financial statements. Refer to the Risks and Uncertainties section of this Interim Report for further information.
The company assess no new impairment indicators during the reporting period.
The Group has recognized a partial impairment reversal of NOK 2,099.4 million relating to predelivery payments ("PDP") towards Boeing.
In 2020, PDP balances were impaired by NOK 4,121 million, due to uncertain recoverability of PDP assets related to aircraft purchase agreements.
After negotiations with Boeing in relation to a new aircraft purchase agreement dated 22 June 2022, Boeing has confirmed that USD 215 million will be compensated by re-instating USD 200 million for aircraft and USD 15 million that can be utilized for other goods and services.
| (unaudited in NOK million) | Effect on income |
|---|---|
| 1% decrease in jet fuel price | 72 |
| 1% depreciation of NOK against USD | -25 |
| 1% depreciation of NOK against EURO | -2 |
The sensitivity analysis reflects the effect on operating costs in 2022 by changes in market prices and exchange rates. The effect on operating costs are annualized based on the current level of production, fuel prices and exchange rates.
Passenger revenue comprises only ticket revenue, while ancillary passenger revenue is other passenger related revenue such as optional extras. Other revenue consist of revenue not directly related to passengers such as third-party products and other
income. Passenger related revenue per country is based on the starting point of customer journeys. Freight related revenue is based on the starting point of freight services.
| OPERATING REVENUE BY COUNTRY | |||||||
|---|---|---|---|---|---|---|---|
| Q 2 |
Q 2 |
H 1 |
H 1 |
Full Year | |||
| (unaudited in NOK million) | 2022 | 2021 | Change | 2022 | 2021 | Change | 2021 |
| Per country Norway |
2,057.0 | 254.5 | 708 % | 2,929.6 | 483.6 | 506 % | 2,487.0 |
| Denmark | 607.5 | 27.2 | 2,130 % | 794.1 | 35.1 | 2,163 % | 575.8 |
| Spain | 587.9 | 18.4 | 3,095 % | 972.4 | 20.2 | 4,704 % | 651.1 |
| Sweden | 580.7 | 30.8 | 1,787 % | 755.3 | 30.8 | 2,355 % | 524.2 |
| United Kingdom | 199.1 | 0.0 | 254.5 | 0.0 | 91.1 | ||
| Finland | 161.1 | 1.5 | 10,605 % | 216.7 | 1.5 | 14,298 % | 122.0 |
| France | 120.0 | 2.2 | 5,472 % | 145.2 | 2.2 | 6,644 % | 104.8 |
| Italy | 96.0 | 0.1 | 85,782 % | 114.0 | 0.1 | 101,878 % | 66.3 |
| Germany | 65.4 | 0.0 | 82.6 | 0.0 | 47.5 | ||
| Greece | 53.7 | 1.0 | 5,084 % | 53.8 | 1.0 | 5,092 % | 65.3 |
| Other | 340.1 | 0.0 | 466.5 | 16.3 | 2,761 % | 332.7 | |
| Total operating revenue | 4,868.5 | 335.5 | 1,351 % | 6,784.7 | 590.8 | 1,048 % | 5,067.8 |
| Total outside of Norway | 2,811.5 | 81.0 | 3,371 % | 3,855.1 | 107.2 | 3,496 % | 2,580.8 |
The Executive Management team reviews the company's internal reporting to assess performance and allocate resources. Executive Management has determined the operating segment on these reports.
Executive Management considers the business as one operational segment, which is low-cost air passenger travel. The company's operating profit arises from airline-related activities and the only revenue generating asset of the company is its aircraft fleet, which is employed flexibly across the entire operation and irrespective of geographic location.
Performance is measured by Executive Management based on the operating segment's earnings before interest, tax, aircraft lease, depreciation and amortization (EBITDAR). Other information is measured in a manner consistent with that in the financial statements.
For detailed information on related party transactions, please refer to Note 25 in the Annual Report for 2021. There have been no significant transactions with related parties during 2022 apart from recurring agreements such as described in the 2021 Annual Report. All transactions with related parties are considered priced on an arm's-length basis.
| (unaudited in NOK million) | 30 JUNE 2022 |
30 JUNE 2021 |
31 DEC 2021 |
|---|---|---|---|
| Predelivery payments | 2,341.3 | 0.0 | 0.0 |
| Owned aircraft, parts and installations on leased aircraft | 1,089.0 | 1,049.8 | 1,020.7 |
| Right of use assets aircraft and parts | 5,860.8 | 3,765.2 | 5,152.6 |
| Aircraft, parts and installations | 6,949.8 | 4,815.0 | 6,173.3 |
| Other fixed assets owned | 350.3 | 392.7 | 382.3 |
| Right of use assets other | 193.0 | 186.2 | 212.0 |
| Other fixed assets | 543.3 | 578.8 | 594.3 |
| Total tangible assets | 9,834.3 | 5,393.8 | 6,767.5 |
| Total right of use assets | 6,053.8 | 3,951.4 | 5,364.6 |
| 30 JUNE | 30 JUNE | 31 DEC | |
|---|---|---|---|
| (unaudited in NOK million) | 2022 | 2021 | 2021 |
| Bond issue | 3,079.0 | 4,354.6 | 3,101.9 |
| Aircraft financing | 772.9 | 616.3 | 744.7 |
| Lease liabilities | 4,990.3 | 3,749.6 | 4,434.8 |
| Other non-current debt | 131.6 | 123.0 | 134.9 |
| Non-current debt | 8,973.8 | 8,843.5 | 8,416.4 |
| Bond issue | 121.8 | 0.0 | 125.0 |
| Aircraft financing | 75.8 | 130.5 | 58.1 |
| Lease liabilities | 1,103.3 | 229.3 | 777.9 |
| Current debt | 1,300.9 | 359.9 | 961.0 |
| Total borrowings | 10,274.7 | 9,203.4 | 9,377.3 |
| Name | Country | Number of shares | Percent |
|---|---|---|---|
| 1 Geveran Trading Company, Ltd. | Cyprus | 129,614,986 | 13.9 % |
| 2 Sundt AS | Norway | 105,603,198 | 11.4 % |
| 3 Folketrygdfondet | Norway | 55,405,388 | 6.0 % |
| 4 Silver Point Capital, L.P. | United States | 42,526,526 | 4.6 % |
| 5 Davy Stockbrokers | Ireland | 31,856,825 | 3.4 % |
| 6 Nordnet Bank AB. | Norway | 31,344,684 | 3.4 % |
| 7 DNB Asset Management AS | Norway | 29,668,531 | 3.2 % |
| 8 Keskinäinen eläkevakuutusyhtiö Varma | Finland | 27,500,000 | 3.0 % |
| 9 Avanza Bank AB | Sweden | 26,031,411 | 2.8 % |
| 10 Handelsbanken Kapitalförvaltning AB | Sweden | 22,026,082 | 2.4 % |
| 11 Contrarian Capital Management, LLC | United States | 18,304,923 | 2.0 % |
| 12 KLP Forsikring | Norway | 11,827,089 | 1.3 % |
| 13 Retail Investors Holding 20,000 to 50,000 shares | Norway | 11,301,600 | 1.2 % |
| 14 BlackRock Institutional Trust Company, N.A. | United States | 10,099,260 | 1.1 % |
| 15 Brumm AS | Norway | 10,000,942 | 1.1 % |
| 16 Nordea Funds Oy | Finland | 9,439,301 | 1.0 % |
| 17 Swedbank AB | Sweden | 9,301,270 | 1.0 % |
| 18 Arctic Fund Management AS | Norway | 8,779,799 | 0.9 % |
| 19 HSBC Trinkaus & Burkhardt AG | Germany | 7,001,243 | 0.8 % |
| 20 UBS Switzerland AG | Switzerland | 6,186,689 | 0.7 % |
| Top 20 shareholders | 603,819,747 | 64.9 % | |
| Other shareholders | 326,169,992 | 35.1 % | |
| Total number of shares | 929,989,739 | 100.0 % |
*) The data is obtained through third-party analysis of beneficial ownership and fund manager information provided in replies to ownership notices issued to custodians. Reasonable efforts have been made to verify the data, however Norwegian Air Shuttle ASA cannot guarantee the accuracy of the analysis.
In the first half of 2022 there have been four conversions of debt, where a total of NOK 13,8 million have been converted. The company have issued total 1,471,243 new shares in these conversions.
Norwegian Air Shuttle ASA had a total of 929,989,739 shares outstanding at 30 June 2022. There were 81,642 shareholders at the end of first half 2022.
| NOTE 9 QUARTERLY DATA | |||
|---|---|---|---|
| Q 1 |
Q 2 |
Full year | |
| (unaudited in NOK million) | Note 2022 |
2022 | 2022 |
| Passenger revenue | 1,512.6 | 3,970.0 | 5,482.7 |
| Ancillary passenger revenue | 344.5 | 782.3 | 1,126.8 |
| Other revenue Total operating revenue |
59.1 3 1,916.2 |
116.2 4,868.5 |
175.3 6,784.7 |
| Personnel expenses | 632.5 | 782.4 | 1,415.0 |
| Aviation fuel | 633.7 | 2,338.4 | 2,972.2 |
| Airport and ATC charges | 271.4 | 584.9 | 856.3 |
| Handling charges | 176.3 | 482.2 | 658.5 |
| Technical maintenance expenses | 272.7 | 423.9 | 696.6 |
| Other operating expenses | 381.9 | 475.7 | 857.6 |
| Other losses/(gains) | 15.5 | -4.9 | 10.6 |
| Total operating expenses excl lease, depr. and amort. | 2,384.1 | 5,082.7 | 7,466.8 |
| Operating profit excl lease, depr. and amort. (EBITDAR) | -467.9 | -214.2 | -682.1 |
| Aircraft lease, depreciation and amortization | 380.7 | 526.6 | 907.4 |
| Reversal of impairment loss regarding prepayment on aircraft | 0.0 | -2,099.4 | -2,099.4 |
| Operating profit (EBIT) | -848.6 | 1,358.5 | 509.9 |
| Interest income | 17.4 | 4.3 | 21.7 |
| Interest expense | 165.5 | 151.9 | 317.4 |
| Other financial income (expense) | -34.5 | 37.4 | 2.8 |
| Net financial items | -182.6 | -110.2 | -292.9 |
| Profit (loss) before tax (EBT) | -1,031.3 | 1,248.3 | 217.0 |
| Income tax expense (income) | 2.3 | 0.0 | 2.3 |
| Net profit (loss) | -1,033.6 | 1,248.3 | 214.7 |
In March 2017 and June 2018, the Norwegian Tax Authorities made a reassessment pertaining to an EEC cross-border restructuring that took place in 2013 and 2014. The restructuring was carried out under the rules of contingent tax-free group reorganizations. The disputed question is if the rules on contingent tax-free group reorganization, as they applied in 2013 and 2014, are contrary to EU law. The case was heard by the Oslo Municipality court 12-20 April 2021 and the court issued a ruling dated 21 May 2021 in favour of the tax authorities. Norwegian and its tax advisor are of the opinion that the ruling is without merit, thus the ruling is appealed, and is currently being heard in the Court of Appeal. The maximum total potential cost increase would be NOK 650 million. As a consequence of the Reconstruction, the amount is crammed down to NOK 32.9 million, and the company has prepaid for this amount.
On 21 September 2021, the Norwegian Environment Agency (Nw.: Miljødirektoratet) concluded in an administrative ruling that the cram down of claims in the Examinership and Reconstruction does not apply to the company's obligation to surrender emission allowances under EU ETS (see Section 9.6.2 "Environmental regulations") for emissions predating 18 November 2020. The contemplated market value of such allowances was approximately NOK 300 million at year-end. The Reconstructor determined that the Restructuring applies to the company's obligation to surrender emission allowances because a different view would have given preference to the EU ETS regime which the current insolvency legislation does not facilitate. Therefore, the company was unable to comply with the Norwegian Environment Agency's demand of the company surrendering emissions allowances. The lack of compliance has caused the Norwegian Environment Agency to impose a fine of NOK 400 million on the company. The company filed a complaint on 25 October 2021 and on 4 February 2022 the Norwegian Environment Agency sent the complaint to the Ministry of Climate and Environment. The company, supported by its advisors and the Reconstructor, are of the view that such fine either is invalid as the company is incapable of complying with the EU ETS regime or–if at all valid –will be subject the cram-down introduced in the Restructuring. The company has appealed the administrative ruling and expects the appeal to probably be effective and has therefore not made a provision for the fine. As a consequence of the Reconstruction, the amount corresponding to the contemplated market value of such allowances was crammed down and the company has made a provision of NOK 15 million at year end.
There are no other significant additions or changes to the information regarding contingencies or legal claims presented in Note 26 to the Annual Financial Statements for 2021.
In July of 2022, Norwegian made a prepayment of NOK 643 million to aircraft manufacturer Boeing relating to the purchase of 50 Boeing 737 MAX 8 aircraft announced in the second quarter of 2022.
There have been no other material events subsequent to the reporting period that might have a significant effect on the financial report for the second quarter and first half year of 2022.
We confirm, to the best of our knowledge, that the condensed set of financial statements for the first half of 2022 has been prepared in accordance with IAS 34 – Interim Financial Reporting and gives a true and fair view of the company's assets, liabilities, financial position and results of operation.
To the best of our knowledge, the interim report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major transactions with related parties.
Fornebu, 24 August 2022 The Board of Directors of Norwegian Air Shuttle ASA
/s/ Svein Harald Øygard /s/ Sondre Gravir /s/ Ingrid Elvira Leisner
Chair Director Director
/s/ Chris Browne /s/ Lars Rahbæk Boilesen /s/ Torstein Hiorth Soland Director Director Employee representative
Employee representative Employee representative CEO
/s Katrine Gundersen /s/ Eric Holm /s/ Geir Karlsen
Norwegian Air Shuttle's financial information is prepared in accordance with International Financial Reporting Standards (IFRS). In addition, the company presents alternative performance measures (APM). The APMs are regularly reviewed by management and their aim is to enhance stakeholders' understanding of the company's performance. APMs are calculated consistently over time and are based on financial data presented in accordance with IFRS and other operational data as described in the table below.
The definitions are consistent with those used in previous financial reports.
| MEASURE | DESCRIPTION | REASON FOR INCLUDING | |
|---|---|---|---|
| Operating profit (EBIT) | Earnings before net financial items, income tax expense (income) and share of profit (loss) from associated companies. Equivalent to operating profit in the consolidated income statement in the annual report |
Enables comparability of profitability regardless of capital structure or tax situation |
|
| EBIT excl other losses/(gains) | Earnings before net financial items, income tax expense (income) and share of profit (loss) from associated companies, adjusted for other losses/(gains)-net |
Enables comparability of profitability regardless of capital structure or tax situation, excluding effects for certain volatile operating expenses |
|
| EBIT margin | EBIT divided by total operating revenue | Enables comparability of profitability relative to operating revenue | |
| EBITDAR | Earnings before net financial items, income tax expense (income), depreciation, amortization and impairment, restructuring, aircraft leasing expenses and share of profit (loss) from associated companies |
A measure of operating performance that enables comparison between airlines as it is not affected by the method used to finance aircraft |
|
| EBITDAR excl other losses/(gains) / Underlying operating result before ownership costs |
Earnings before net financial items, income tax expense (income), depreciation, amortization and impairment, restructuring, aircraft leasing expenses and share of profit (loss) from associated companies, adjusted for other losses/(gains)-net |
A measure of operating performance that enables comparison between airlines as it is not affected by the method used to finance aircraft, excluding effects for certain volatile operating expenses |
|
| EBITDAR margin | EBITDAR divided by total operating revenue | Enables comparability of profitability relative to operating revenue | |
| Profit (loss) before tax (EBT) | Earnings before income tax expense (income). Equivalent to profit (loss) before income tax expense (income) in the Consolidated Income Statement in the annual report |
Enables comparability of profitability regardless of capital structure or tax situation |
|
| EBT excl other losses/(gains) and impairment |
Earnings before income tax expense (income), adjusted for other gains/(losses) and impairment costs |
Enables comparability of profitability regardless of one-off impairment losses, excluding effects for certain volatile operating expenses |
|
| EBT margin | EBT divided by total operating revenue | Enables comparability of profitability relative to operating revenue | |
| Net interest-bearing debt | Non-current debt plus current debt less cash and cash equivalents | Measurement of the ability to pay all debt with available cash and cash equivalents, if all debt matured on the day of the calculation. It is therefore a measure of the risk related to the company's capital structure |
|
| Other losses/(gains) | Gains and losses from foreign currency contracts, forward fuel contracts, adjustment of market value for total return swaps, translation of working capital in foreign currency, net gain or loss from sale of fixed assets and significant restructuring costs |
Included as a specification to operating expenses to separate certain volatile effects from other operating expenses |
|
| Operating expenses excl leasing, depreciation and amortization |
Total operating expenses not including aircraft lease expense, depreciation, amortization and impairment |
A measure of operating expenses that enables comparison between airlines as it is not affected by the method used to finance aircraft |
|
| Operating expenses excl other losses /(gains), depreciation and lease |
Total operating expenses not including other losses/(gains) depreciation, amortization, impairment and lease expenses |
A measure of operating expenses that includes leasing but is not affected by other losses /(gains) depreciation, amortization, impairment and lease expenses, relevant to monitor the company's ability to reduce operating expenses during the COVID-19 pandemic and disregarding certain highly volatile and certain fixed costs |
| Q 2 | Q 2 | H 1 | H 1 | Full Year | |
|---|---|---|---|---|---|
| (unaudited in NOK million) | 2022 | 2021 | 2022 | 2021 | 2021 |
| Operating profit (EBIT) to EBIT excl other losses/(gains) | |||||
| Operating profit (EBIT) | 1,358.5 | -766.0 | 509.9 | -2,227.8 | -2,786.0 |
| - Other losses/(gains)* | -4.9 | -470.1 | 10.6 | -210.3 | -737.5 |
| EBIT excl other losses/(gains) | 1,353.6 | -1,236.1 | 520.5 | -2,438.1 | -3,523.5 |
| EBITDAR to EBITDAR excl other losses/(gains) | |||||
| EBITDAR | -214.2 | -538.3 | -682.1 | -1,651.3 | -1,516.0 |
| - Other losses/(gains)* | -4.9 | -470.1 | 10.6 | -210.3 | -737.5 |
| EBITDAR excl other losses/(gains) | -219.1 | -1,008.4 | -671.5 | -1,861.7 | -2,253.5 |
*Other losses /(gains) is defined in table above and is a part of operating expenses, see consolidated income statement.
| ITEM | DESCRIPTION | |
|---|---|---|
| Aircraft lease expenses | Lease and rental expenses on aircraft including both dry leases and wet leases | |
| Ancillary revenue per passenger |
Ancillary passenger revenue divided by number of passengers | |
| ASK / Production | Available seat kilometers. Number of available passenger seats multiplied by flight distance | |
| Average sector length | Total flown distance divided by number of flights | |
| Book equity per share | Total equity divided by number of shares outstanding | |
| CO2 per RPK | Amount of CO2 emissions divided by RPK | |
| Constant currency | A currency exchange rate that excludes the impact of exchange rate fluctuations from comparable period, e.g. 2019 as comparable period | |
| Equity ratio | Book equity divided by total assets | |
| Fixed asset investment | Consists of the following non-current assets presented in the statement of financial position in the annual report: Investments in financial assets, investment in associate and other receivables |
|
| Fuel consumption | Aviation fuel consumed, presented in metric tons | |
| Load factor | RPK divided by ASK. Describes the utilization of available seats | |
| Passengers | Number of passengers, including no-show* | |
| RPK | Revenue passenger kilometers. Number of sold seats multiplied by flight distance | |
| Unit cost | Total operating expenses, excluding impairment and other losses/(gains)-net, divided by ASK | |
| Unit cost excl fuel | Total operating expenses, excluding impairment, other losses/(gains)-net and aviation fuel expenses, divided by ASK | |
| Unit revenue - ticket | Passenger ticket revenue divided by ASK | |
| Unit revenue - total | Passenger ticket revenue and flight related ancillary revenue divided by ASK | |
| Yield - ticket | Passenger ticket revenue divided by RPK. A measure of average fare per kilometre | |
| Yield - total | Passenger ticket revenue and flight related ancillary revenue divided by RPK. A measure of average passenger revenue per kilometre |
Telephone +47 67 59 30 00 Internet norwegian.com
Mailing address P.O. Box 113 NO–1366 Lysaker Visiting address Oksenøyveien 3, Fornebu Organization number NO 965 920 358 MVA
Svein Harald Øygard Chair Sondre Gravir Director Ingrid Elvira Leisner Director Chris Browne Director Lars Rahbæk Boilesen Director
Torstein Hiorth Soland Director, employee representative Katrine Gundersen Director, employee representative Eric Holm Director, employee representative
Geir Karlsen Chief Executive Officer Hans-Jørgen Wibstad Chief Financial Officer Guro H. Poulsen EVP People Adrian Dunne EVP Operations Tore Jenssen SVP Arctic Aviation Assets
Magnus Thome Maursund EVP Network, Pricing & Optimisation Christoffer Sundby EVP Sales, Marketing & Customer Care Anne-Sissel Skånvik EVP Communications and Public Affairs Knut Olav Irgens Høeg EVP IT and Business services
Jesper Hatletveit [email protected] norwegian.com/us/about/company/investor-relations/
| 25 August | Q2 Results |
|---|---|
| 6 September | Monthly traffic data August |
| 6 October | Monthly traffic data September |
| 26 October | Q3 Results |
| 4 November | Monthly traffic data October |
| 6 December | Monthly traffic data November |
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