Latest news with #GeirKarlsen
Reuters
08-05-2025
- Business
- Reuters
Norwegian Air cuts capacity forecast due to delayed Boeing deliveries, shares drop
May 8 (Reuters) - Budget airline Norwegian Air ( opens new tab reported a smaller-than-expected operating loss for the first quarter but cut its annual capacity guidance, sending its shares around 7% lower on Thursday. The Oslo-listed carrier sees an overall capacity of about 37,500 million seat kilometres in 2025, corresponding to growth of 3% from last year. It had forecast growth of 4% when it last reported quarterly results. The lower guidance is due to delayed aircraft deliveries from Boeing (BA.N), opens new tab, it said. Marcus Gavelli, an analyst at Pareto Securities, said in an emailed comment that the guidance cut likely reflected a more cautious approach to ensure yield growth. He added that expectations for slightly higher costs might also weigh on the shares on Thursday. Norwegian Air said its unit cost - the average cost of flying an aircraft seat - excluding fuel in 2025 was expected to increase by a mid-single-digit percentage compared to last year, assuming current foreign exchange rates. In February, it had forecast annual unit cost excluding fuel to increase by a single-digit percentage. The airline did not provide an annual guidance for its operating result. "We're also seeing our competitors being a little bit more reluctant now on guiding too much," CEO Geir Karlsen told Reuters in an interview. Norwegian Air reported an operating loss of 610.9 million Norwegian crowns ($59 million) for the first quarter, while analysts polled by the company were expecting a much bigger loss of 976 million crowns. It also managed to narrow the loss compared to the same period last year, when it reported 762.6 million crowns loss before interest and taxes. The results were positively impacted by efficiency gains and initiatives implemented during the quarter, including the purchase of 10 previously leased Boeing 737-800 aircraft, as well as stronger Norwegian crown against U.S. dollar, it said. ($1 = 10.3475 Norwegian crowns)
Yahoo
03-03-2025
- Business
- Yahoo
Norwegian to buy 10 leased Boeing aircraft
COPENHAGEN (Reuters) - Budget carrier Norwegian has agreed to buy 10 Boeing 737-800 aircraft that are currently part of its leased fleet, the airline said on Monday. The transaction is expected to close during the first quarter and will initially be funded through the company's cash reserves, though the airline is looking at securing long-term financing after completion, Norwegian's statement said. "This move is expected to deliver both short and long-term cost savings, as well as provide additional flexibility for future fleet planning," said Chief Executive Geir Karlsen. Norwegian said it expects to book a non-recurring gain of about 570 million Norwegian crowns ($50.7 million) as a result of the deal. "This gain reflects the pricing the company has been able to achieve for the aircraft and the corresponding reduction of existing lease liabilities," Norwegian said. The deal is also expected to yield recurring cost savings of about 200 million crowns a year, net of financing costs, it added. ($1 = 11.2452 Norwegian crowns) (This story has been corrected to show that Norwegian is buying 10 leased Boeing aircraft, not buying them from Boeing, in the headline) Sign in to access your portfolio
Reuters
03-03-2025
- Business
- Reuters
Norwegian to buy 10 of its leased aircraft from Boeing
COPENHAGEN, March 3 (Reuters) - Budget carrier Norwegian ( opens new tab has agreed to buy 10 Boeing 737-800 aircraft that are currently part of its leased fleet, the airline said on Monday. The transaction is expected to close during the first quarter and will initially be funded through the company's cash reserves, though the airline is looking at securing long-term financing after completion, Norwegian's statement said. "This move is expected to deliver both short and long-term cost savings, as well as provide additional flexibility for future fleet planning," said Chief Executive Geir Karlsen. Norwegian said it expects to book a non-recurring gain of about 570 million Norwegian crowns ($50.7 million) as a result of the deal. "This gain reflects the pricing the company has been able to achieve for the aircraft and the corresponding reduction of existing lease liabilities," Norwegian said. The deal is also expected to yield recurring cost savings of about 200 million crowns a year, net of financing costs, it added. ($1 = 11.2452 Norwegian crowns) Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here.
