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Published on Thursday, February 13, 2020

Norwegian announces further capacity cuts






Norwegian is to make further cuts to its long-haul network this year as it strives to become profitable by the end of 2020.


On announcing a pre-tax loss of 1.8 billion kroner ($203 million) last year, the airline said it will fly 13% to 15% fewer seats in 2020.


It had previously announced it would reduce capacity by 10% this year but today it revealed it will make further cutbacks and said it will focus its long-haul routes on London, Rome, Paris, Barcelona and the US.


So far, it has axed more than 50 short-haul routes and more than 20 long-haul services and embarked on a cost-cutting programme.


"2019 marked a new flight path for Norwegian as the company changed its strategy to move from growth to profitability. We have achieved our initial goal to save NOK 2.3 billion as part of #Focus2019 and concluded several positive financial milestones" said chief financial officer Geir Karlsen.


"Throughout 2020, we will turn challenges into opportunities as we remain committed to offering greater choice to customers, contributing to a sustainable aviation industry and refining our products and services."


The airline said it would make a net profit this year, based on the grounded Boeing 737 MAX aircraft returning to service in September.


It said it is continuing discussions with Boeing over compensation for delays to the MAX deliveries. Norwegian has also had to stump up additional repair costs for Rolls Royce engines on its Boeing 787 Dreamliners, with further repair costs expected this year.

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