Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Norwegian Air Shuttle New — Q1 2024 Earnings Presentation
23 slides from Norwegian Air Shuttle Asa's earnings presentation, Apr 25, 2024
Slide 1: Presentation of first quarter 2024
Presentation of first quarter 2024 25 April 2024
Slide 2: Q1 operating loss (EBIT) NOK 763 million, ramping up for summer
Q1 operating loss (EBIT) Ramping up for summer NOK 763 million season ● EBIT excl. other losses/(gains) NOK 637 million ● persistent booking momentum with significant – impacted by negative FX revaluation effects increase in capacity ● significant improvement from Q1 last year ● 650 new flying colle
Slide 3: Q1 operating performance (Norwegian)
Number of passengers this quarter (group) 4.8 million Load factor 84.7% (+4 p.p) 66.7% (+4 p.p) (change YoY) Norwegian capacity (ASK) +3% Q1 2024 6,213m (YoY) Q1 2023 6,042m Q1 operating performance (Norwegian) Punctuality March operating performance Regularity report (Cirium) • top five punctual Eu
Slide 4: Reduced winter capacity supporting unit revenue
Reduced winter capacity supporting unit revenue 100.0% 95.0% Norwegian Traffic – PAX per month, load factor and yield Strong load and improving unit revenue 3,500 90.0% 85.3% 86.2% 86.0% 84.1% 85.0% • Q1 unit revenue (total) +17% YoY 1.00 83.6% 83.2% 85.0% 3,000 82.4% 0.91 0.92 0.90 March traffic bo
Slide 5: Norwegian – persisting booking momentum into summer
Norwegian – persisting booking momentum into summer 7-day rolling sales figures (PAX) – All markets1) 14,000,000,000 Booked revenue – May to August travel2) 600 ,000 12,000,000,000 2019 500 ,000 10,000,000,000 400 ,000 2022 8,000,000,000 300 ,000 2023 6,000,000,000 2024 200 ,000 4,000,000,000 100 ,0
Slide 6: Financial results for Q1 2024
Financial results for Q1 2024
Slide 7: Quarterly financial highlights
Quarterly financial highlights Revenues Norwegian unit revenue – total Norwegian passenger traffic (million RPK) 0.76 0.73 6,019 ● Norwegian unit revenue higher with improving load and 5,265 yield 0.63 4,886 – up 17% from Q1 last year ● ancillary NOK 173 per pax – up from NOK 158 last year Q1 2023 Q
Slide 8: Revenue development
Revenue development Quarterly total operating revenue (NOK million) Capacity discipline during winter • supporting load factor and yield improvement Reduction in other revenue • other revenue for Norwegian reduced to NOK 92m • level normalising after COVID-19 CashPoint expiry Widerøe contributing po
Slide 9: Operating profit (EBIT) development
Operating profit (EBIT) development Quarterly EBIT (NOK million) Revenue and fuel supporting earnings • realised fuel hedge gains for Norwegian and Widerøe • EU-ETS quota price down 30% vs last year Cost level impacted by inflation and ccy • unit cost excl. fuel NOK 0.61 – development according to p
Slide 10: Group P&L – significant improvement from last year
Group P&L – significant improvement from last year Chng. NOK million Q1 2024 Q1 2023 (YoY) Passenger revenue 5,126 3,191 Ancillary passenger revenue 731 604 Other revenue 288 181 Total operating revenue 6,144 3,975 +55% improved yield, load and Widerøe inclusion Personnel expenses 1,774 920 addition
Slide 11: Robust balance sheet
Robust balance sheet 31 Mar. 31 Dec. Chng. NOK million 2024 2023 (QoQ) Net interest-bearing debt Intangible assets 2,592 2,162 Tangible assets 19,097 15,016 31 Mar. 31 Dec. Chng. NOK million Total non-current assets 22,129 17,506 +26% NOK 3.5bn from inclusion 2024 2023 (QoQ) of Widerøe Cash & equiv.
Slide 12: Cash flow – improved liquidity position into winter
Cash flow – improved liquidity position into winter Quarterly cash flow (NOK million) Positive working capital effect • increased forward bookings • holdback at normalised level • strong forward bookings Excess liquidity on deposits and money-market funds • Incl. Widerøe cash settlement • rate-of-re
Slide 13: The way forward
HonningsvS Hammerfesty-s-— — Svalbard inzarote Gran Canaria
Slide 14: Widerøe – highly complementary business
Widerøe – highly complementary business Acquisition completed in January • major operator of public service obligation (PSO) – fleet of 49 aircraft – 46 turboprops and three E2s • transaction price NOK 1,125 million remaining Improving 2024 outlook subject to certain adjustments • new PSO tender in
Slide 15: Widerøe roadmap
Widerøe roadmap Key synergy streams* – consolidated synergies in excess of NOK 300m Jan. 2024 Q1’24 1 2 Completed Collaboration Capturing efficiency Revenue synergies acquisition - identifying key synergies - improved connections synergy streams and interlining Strong customer proposition • increase
Slide 16: Key cost initiatives for 2024 and beyond
Key cost initiatives for 2024 and beyond On-time Continuously pushing Avoid extra crew, fuel, ATC cost performance improvement Supporting brand and loyalty Handling & New agreements and Reduce key costs for handling airports ongoing negotiations and airport charges Customer Modern automation and Ser
Slide 17: Securing modern long-term fleet for Norwegian
Securing modern long-term fleet for Norwegian Countering Boeing delivery delays • upcoming deliveries for Boeing aircraft delayed 8 to 11 months 120 – partially compensated for incurred delay cost 110 • 87 aircraft fleet for summer, down from previous 90 aircraft estimate 101 – overall unchanged 202
Slide 18: Facilitating for sustainable aviation
Facilitating for sustainable aviation Committed to 45% reduction in emission intensity by 2030 • 10% reduction in CO2 per RPK for Q1 vs previous year • more effective flight patterns – less fuel burn – less CO2 emissions Reaching EU through A4E • working with all major airlines in Europe to facilita
Slide 19: Outlook
Outlook FY 2024 Q1 Q2 Q3 Q4 Capacity growth1) c. 12% 3% c. 19% c. 10% c. 16% FY 2023 FY 2024 Operating profit (EBIT)2) NOK 2.5 – 3.2 billion (excl. Widerøe) $ Norwegian unit cost (NOK) excl. fuel2) Flat vs. 2023 1) Available seat kilometres (ASK) vs. same period last year 2) Assuming average market
Slide 20: norwegian
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Slide 21: Appendix
norwegian> Appendix
Slide 22: 20 largest shareholders
20 largest shareholders as of 31 March 2023* Name Country Number of shares Percent 1 Geveran Trading Company, Ltd. Cyprus 129,010,512 13.4% 2 Sundt AS Norway 80,292,265 8.3% 3 Folketrygdfondet Norway 48,732,100 5.1% 4 Ballyfin Aviation Limited Ireland 31,472,703 3.3% 5 Acadian Asset Management LLC U
Slide 23: Disclaimer
Disclaimer Certain statements included in this presentation contain forward-looking statements, such as statements of future expectations. Although the statements provided are based on b b g N w g A S ASA (“N w g ”) b b r of assumptions and forecasts that, by their nature, involve risks and uncertai
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