Q2 2024 Norwegian Air Shuttle ASA Earnings Call Transcript
Key Points
- Norwegian Air Shuttle ASA (NWARF) reported a strong revenue growth of 36% to NOK9.3 billion for the second quarter, with Widerøe contributing NOK1.8 billion.
- The company achieved a reduction in CASK (Cost per Available Seat Kilometer) by 2% year-on-year, indicating improved cost efficiency.
- Norwegian Air Shuttle ASA (NWARF) maintained a high on-time performance, being rated the most punctual European airline in May by Cirium.
- The company has a robust cash balance of NOK11.5 billion, with a reduction in net interest-bearing debt by NOK1.4 billion.
- The integration with Widerøe is progressing well, with significant synergies expected to be realized in the coming winter and through 2025.
- The company experienced a softening in demand during the second quarter, impacting unit revenue which decreased by 5.6% compared to the previous year.
- Norwegian Air Shuttle ASA (NWARF) faced challenges with delayed aircraft deliveries from Boeing, leading to increased operational costs.
- The company had to engage in tough negotiations with pilot and cabin crew unions, resulting in higher-than-expected salary agreements.
- There was a negative impact from a weak local currency and slightly higher fuel prices than anticipated.
- The company had to reduce its guidance for 2024 due to the combination of market softening, increased costs, and operational challenges.
Good morning, and welcome to the second-quarter 2024 presentation for the Norwegian Group. My name is Jesper Hatletveit, and I am the VP of Investor Relations here at Norwegian Group. Today's presentation will be held by our CEO, Geir Karlsen; and our CFO, Hans-Jørgen Wibstad. It will be followed by Q&A from the audience and the web.
Please go ahead, Geir.
Thank you. Welcome, everybody. It seems like it's a quiet Oslo Sentrum in the morning on a Friday in July. But I know that some are following this online, so let's head on.
The second quarter ended with earnings before tax of NOK477 million; EBIT, NOK593 million, split on NOK391 million on Norwegian and NOK202 million on Widerøe. We are continuing to strengthen the liquidity position, and we have set aside, as we all know, NOK823 million in dividend fund that we hope to pay out to our dear shareholders as soon as possible.
It is a fight
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
