Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Norwegian Air Shuttle New — Q2 2024 Earnings Presentation
22 slides from Norwegian Air Shuttle Asa's earnings presentation, Jul 12, 2024
Slide 1: Presentation of second quarter 2024
Presentation of second quarter 2024 12 July 2024
Slide 2: Q2 profit before tax NOK 477 million; preparing for winter season
Q2 profit before tax (EBT) Preparing for NOK 477 million winter season ahead ● group operating profit (EBIT) NOK 593 million ● exciting routes launched for Northern Norway – Norwegian EBIT NOK 391 million travel and warmer holiday destinations – Widerøe EBIT NOK 202 million ● increased corporate tra
Slide 3: 7.3 million passengers (+30% YoY)
Number of passengers in second quarter (group) 7.3 million (+30% YoY) Load factor 82.4% (-2 p.p) 70.2% (+5 p.p) (change YoY) Norwegian capacity (ASK) +19% Q2 2024 10.3bn (YoY) Q2 2023 8.7bn Q2 operating performance (Norwegian) Punctuality May operating performance report (Cirium) Regularity • Norweg
Slide 4: Significant ramp-up into peak summer
Significant ramp-up into peak summer 100.0% 95.0% Norwegian Traffic – PAX per month, load factor and yield Significant ramp-up in Q2 90.0% 86.2% 86.0% 85.0% 84.4% 85.0% 82.4% 83.6% 83.2% 82.1% 1.0 0 • Q2 capacity +66% from previous quarter and +19% YoY 80.4% • new routes, destinations and frequencie
Slide 5: Norwegian – stable booking momentum
Norwegian – stable booking momentum 7-day rolling sales figures (PAX) – All markets1) Booked revenue – third quarter (Jul. – Sep.) travel2) 2019 20,000,000,000 2022 2023 15,000,000,000 2024 10,000,000,000 5,000,000,000 0 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Jan Feb Mar Apr May Jun Jul St
Slide 6: Corporate travel – increasing market share
Corporate travel – increasing market share Corporates choosing Norwegian Corporate passengers • from corporates we speak to: – “50% or higher share of travel with Norwegian” +19% – “reduced corporate travel compared to 2019” +28% • strong on-time performance and close to zero cancellations – Q2 regu
Slide 7: Financial results for Q2 2024
Financial results for Q2 2024
Slide 8: Quarterly financial highlights
Quarterly financial highlights Revenue • group revenue increasing to NOK 9.3 billion – up 36% vs. last year – Widerøe contribution NOK 1.8 billion • Norwegian unit revenue lower with capacity growth and Easter effect – total unit revenue down 5.6% from Q2 last year • Norwegian ancillary NOK 194 per
Slide 9: Revenue development
Revenue development Quarterly total operating revenue (NOK million) +2475 (+36%) Capacity and PAX increase in quarter 9,347 • predominant increase on long sectors vs. Q2 2023 +670 (+10%) • load factor and yield impacted by capacity 1,805 -258 increase and Easter holiday falling in Q1 -185 7,542 1,23
Slide 10: Operating profit (EBIT) development
Operating profit (EBIT) development Quarterly EBIT (NOK million) Capacity increase supporting revenues -57 • Norwegian operating revenue +10% YoY 249 Cost improvement amidst inflation and ccy 651 -442 • unit cost excl. fuel NOK 0.47 593 – scale benefits – down 2% YoY • weak NOK against USD impacting
Slide 11: Group P&L
Group P&L Q2 2024 Q2 2023 Chng. NOK million (Group) (Norwegian) (YoY) Passenger revenue 7,820 5,615 Ancillary passenger revenue 1,257 994 Other revenue 270 262 Total operating revenue 9,347 6,871 +36% increased volumes and Widerøe inclusion Personnel expenses 2,079 1,071 additional flying FTEs and W
Slide 12: Robust balance sheet
Robust balance sheet 30 Jun. 31 Mar. Chng. NOK million 2024 2024 (QoQ) Net interest-bearing debt (Group) Intangible assets 2,622 2,592 Tangible assets 18,951 19,097 30 Jun. 31 Mar. Chng. NOK million Total non-current assets 22,031 22,129 2024 2024 (QoQ) Cash & equiv. 11,498 10,434 +1,064 Receivables
Slide 13: Robust cash flow in quarter
Robust cash flow in quarter Quarterly cash flow (NOK million) Opening balance Positive working capital effect 10,434 (31 Mar. 2024) • increased forward bookings • holdback at normalised level • Q2 operating profit Operating activities 2,330 • strong forward bookings Excess liquidity on deposits and
Slide 14: The way forward
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Slide 15: Widerøe – vertically integrated, key regional infrastructure operator
Widerøe – vertically integrated, key regional infrastructure operator Organisation • 3,000 employees – majority in ground handling (WGH) and technical (WTS) • 49 aircraft fleet – 46 DeHavilland turboprops • Tore K. Jenssen new CEO – previously Norwegian Chief Asset Officer Commercial operations • pr
Slide 16: Widerøe – highly complementary airline
Widerøe – highly complementary airline Solid business rationale Capturing on key synergies* • seamless connectivity end-to-end – consolidated synergies in excess of NOK 300m – network alignment with Norwegian from winter 2024 – interlining sales up 73% vs. last year • increasing inbound travel – att
Slide 17: 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 18: Short-term growth impacted by Boeing aircraft delays
Short-term growth impacted by Boeing aircraft delays Countering Boeing delivery delays • upcoming deliveries for Boeing aircraft delayed 8 to 11 months – partially compensated for incurred delay cost 110 • 86 aircraft fleet for summer, down from 87 estimate last quarter 102 – sourcing external capac
Slide 19: Summary
Summary Second quarter performance • capacity increase coinciding with price softening in shoulder season – strong growth (+19% YoY) focused on longer sectors – utilising fare and campaigns to fill seats • market traction investment when establishing new routes • improving cost performance with ongo
Slide 20: Outlook
Outlook FY 2024 Q3 Q4 Capacity growth1) c. 12% c. 10% c. 16% FY 2023 FY 2024 Group operating profit (EBIT)2) NOK 2.1 – 2.6 billion $ Norwegian unit cost excl. fuel2) Low single-digit % increase vs. 2023 1) Available seat kilometres (ASK) vs. same period last year 2) Assuming average market rates for
Slide 21: norwegian x
norwegian x
Slide 22: 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 the best reasonable assumptions of management of Norwegian Air Shuttle ASA (“Norwegian”), the statements are based
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