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Old 9th Oct 2019, 11:59
  #42 (permalink)  
Doors to Automatic
 
Join Date: Dec 1999
Location: EGNX
Posts: 1,158
Originally Posted by directmisbi View Post
I will say this. Let the numbers do the talking. Q3 will be out shortly. Full year results are likely showing another loss, but CFO still guiding the markets for a 100 percent improvement comparing last year. This excluding the 787 and max reimbursements. Loadfactor on LH in the high nineties, yield up month by month. Rumors of Norwegians demise have been greatly exaggerated, partly led by media, MOL and his evil henchmen
100 percent improvement? On what?

If Norwegian were in their current position going into a Summer where the general market is on the up, with all aircraft delivered and markets becoming established then maybe they might stand a chance but as things stand I would doubt that very much. The decision to buy brand new 787s for an LCC product was madness in my opinion. The airline would have been better off opting for A321s and operating them to the limits of their range, rather than launching flights to places like BKK and EZE.

Seat costs on the B788 on LGW-JFK are circa 250 one-way. Adjust for ancillary revenue and a 90% load factor and you need a fare of around 235 to break-even. That is excluding taxes, year round and across every seat. For every 133 fare put out, a 335 fare will be required to achieve that average. A 335 fare will equate to around 800 return once taxes and charges are added on, hardly low-cost! Yes, there is a premium cabin, but that accounts for only a relatively small number of seats.

When the airline is putting out 50 o/w fares in low season excluding taxes (yes you did read that right) please help me understand how it will miraculously turn itself around?

Last edited by Doors to Automatic; 9th Oct 2019 at 12:11.
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