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Norwegian Air’s Q3 revenue rises as travel picks up -Breaking

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© Reuters. FILE PHOTO: A Norwegian Air plane is refuelled at Oslo Gardermoen airport, Norway November 7, 2019.REUTERS/Lefteris Karagiannopoulos

Terje Solsvik, Gwladys Foouche

OSLO (Reuters -Norwegian Air reports a 68% increase in its third quarter revenue. This is as European travel slowly recovers from the pandemic. The airline also stated that it will continue scaling up after a bankruptcy which slashed its operations.

Sales for the budget carrier were 1.52 billion Norwegian crowns (180 million) in July-September, an increase of 905million crowns one year ago. Travel was still severely restricted under COVID-19 lockdowns.

The pandemic sent the indebted airline into bankruptcy proceedings https://www.reuters.com/business/aerospace-defense/norwegian-air-saved-collapse-reinvents-regional-carrier-2021-05-26 last year, forcing it to terminate its transatlantic network before emerging in a slimmed-down version in May 2021.

Geir Karsen, chief executive of GEOX said that the organization is now financially strong for what will be a challenging winter season.

“We are seeing a positive trend of forward bookings, month-on-month,” he said. He also stated that more passengers have chosen to fly Norwegian over our European network.

The company stated that bookings rose in the wake of vaccinations and relaxations in travel restrictions. It expects its available seat kilometers (ASK), which is a crucial capacity indicator, to increase to 29 Billion in 2022, from 18.2 Billion in 2020.

ASK was just 4.8 billion kilometers year-to-date in 2021.

Norwegian’s court-ordered restructuring was supported also by Norway’s Government. It reduced the airline’s fleet from approximately 160 to 51. However, the company announced Wednesday that it has agreed to lease 13 more planes in order to meet growing demand. [L8N2RN6LR]

It stated that the company was encouraged by the strong booking curve and positive developments in demand, and will continue to ramp up its plans for the fourth quarter. The plan includes increasing the fleet’s capacity to 50 aircraft before 2021, and ramping-up to 70 aircraft after 2022.

Norwegian was able to reduce its debt by about 80% when it was restructured. But Flyr is now competing for Norwegian domestic flights and foreign destinations.

Cash and equivalents to 7.6 billion crowns are available by the company. The cash burn will be minimal during traditionally losing winter seasons.

($1 = 8.4391 Norwegian crowns)

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