The following is a summary of the Norwegian Air Shuttle ASA (NWARF ) Q1 2024 Earnings Call Transcript:
Financial Performance:
Norwegian Air Shuttle ASA saw its revenues rise by 55% in Q1 2024 compared to the same quarter from the previous year.
The firm ended the quarter with a loss of NOK 763 million on EBIT, a result that was better than previously expected.
The company saw a significant rise in unit revenue from 0.63 to 0.73 (17% increase), which was driven by the increase in load factor, improved yield and increased available seat kilometers (ASK).
Cash position of the firm has improved to NOK 10.4 billion.
The firm witnessed its EBITDAR rise significantly from a loss of NOK 124 million to a profit of NOK 427 million.
Business Progress:
The firm has significantly expanded its network by adding more than 100 routes in Wideroe, and optimising its capital structure.
A better visual profile for the company has been designed, including a new logo.
Through their partnership with Wideroe in January, they are expecting positive results.
Growth plan includes a significant capacity increase, bringing in 15 more aircraft than what they had in Q1 2023.
Expansion into new bases in Riga, Latvia, and launching a new route from Germany to Spain have diversified the network.
The firm continued its cost efficiency efforts, including the aim to mitigate losses in low seasons while maximising profits in peak seasons.
Future plans targeting attracting corporate markets, increasing bookings networkwide, and anticipating a significant boost from Wideroe due to less seasonal operations.
They have plans to insource ground handling in Spain, optimize their base structure and may consider to buy up to 30 MAX 10 aircraft options from Boeing.
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