Scandinavia’s largest LCC, Norwegian Air Shuttle, slips into the red in 2Q2010 as yields decline

Scandinavia’s largest LCC, Norwegian Air Shuttle, reported a EUR12 million operating loss and a EUR17 million net loss in the three months to Jun-2010 (2Q2010), falling from profits in 2Q2009. This occurred despite a 7% increase in revenues (to EUR256 million) and a 15% increase in passenger numbers (to 3.2 million) in the quarter and as yields and unit revenues slumped 15% and 18%, respectively. [2109 words]

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This report contains the following subheadings:

• Growing (ancillary) revenue boosts cash balance
• Yield pressures continue, down 15%
• Unit costs down 1%; excluding fuel down 10%
• Operating expenses increase 27%
• Boost in market share, as others reduce capacity
• More than 3 million pax; hit by European airspace closures
• Revised fleet plan through 2014; accelerates B737-300 phase out
• Losses in first half
• Current conditions suit LCC model

This report contains the following charts and tables:

• Norwegian financial highlights for three months ended Jun-2010
• Norwegian EBITDAR and EBIT margins: 1Q2006 to 1Q2010
• Norwegian Air Shuttle revenue development (NOK million): 2Q2007 to 2Q2010
• Norwegian Air Shuttle ancillary revenue per passenger (NOK): 2Q200 to 2Q2010
• Norwegian revenue growth (domestic and international): 1Q2006 to 1Q2010
• Norwegian Air Shuttle yield and RASK growth: May-2008 to Jun-2010
• Norwegian CASK ex fuel and unit fuel costs: 2Q2007 to 2Q2010
• Norwegian cost breakdown: 2Q2010 vs 2Q2009 
• Norwegian’s market share in major markets 
• Norwegian Air Shuttle route network: Jul-2010
• Norwegian Air Shuttle fleet plan: 2010 to 2014
• Cost of flying one seat: Ryanair vs easyJet vs Norwegian vs SAS
• Norwegian financial highlights for six months ended Jun-2010