Norwegian today reported its third quarter 2020 results. As anticipated, these
were heavily impacted by the COVID19 pandemic with a net loss of NOK 980
million. Norwegian carried approximately one million customers, a decrease of 91
per cent compared to the same period last year showing a slight improvement on
the previous Q2 decrease of 99 per cent. Norwegian continued to successfully
convert debt and implement a series of cost-reduction measures throughout the
third quarter. 


Demand was severely affected by changing travel restrictions and a secondary
wave of reported COVID-19 infections across our key markets which led to
fluctuating and decreasing demand. Approximately 25 short haul aircraft were
operational during the third quarter out of a current total fleet of 140. A
significant financial restructuring process has been ongoing since the pandemic
hit, reaching several new milestones during the third quarter of 2020. Further
conversion of lease liabilities and vendor debt to equity as well as the
powerby-the-hour arrangements had a combined positive equity effect of NOK 2.9
billion in the quarter. Year to date, the restructuring improved equity by NOK
18.2 billion. 
 
Jacob Schram, CEO of Norwegian, said: "Our third quarter results clearly show
that the effects of the global COVID-19 pandemic continue to heavily impact our
operations and financial position. Changing government travel advice and further
restrictions as a result of a second wave of infections seen in many countries
have further contributed to a decrease in customer confidence and certain routes
becoming once again unviable leading us to rapidly adapt our network. We
continue to work tirelessly to make sure that we can emerge from this crisis as
a stronger company, well-positioned for future competition and thank our
creditors, bondholders and shareholders who have shown us strong support
throughout." 
 
During the third quarter, approximately one million customers travelled with
Norwegian, compared with 10.53 million during the same period previous year.
Production (ASK) was down 94 per cent and passenger traffic (RPK) decreased by
96 per cent. The load factor was 60.6 per cent, a decrease of 30.6 percentage
points compared to the third quarter of 2019. 
 
Punctuality, share of flights departing on schedule, was 97.4 percent in the
third quarter of 2020, increased by 22.7 percentage points compared to 74.7
percent in the third quarter of 2019  
 
Norwegian has continued to mitigate the risks and uncertainties by several
measures aiming to minimize cash burn, secure funding and improve the financial
position of the company. Among other measures, the company has grounded most of
its aircraft and temporarily laid off most of its staff. Norwegian has undergone
a revitalization of the company's organizational structure, strategy, business
plans and top management levels in order to emerge from the COVID-19 pandemic as
a more competitive and profitable airline. Norwegian will consider further
changes to production during the winter season and beyond based on travel advice
and restrictions from governments in the company's markets and on customer
demand. 
 
"I am very proud of the immense challenges that colleagues from across the
airline have overcome to reduce our immediate and long-term costs, rebalance our
debt and continuously adjust our network to reflect the changes in passenger
demand and evolving travel restrictions. Together we have demonstrated the
continued spirit of our Red Nose Warriors that can be found at every level
within our company in the face of the deepest crisis that our industry has ever
seen. But this alone is not enough, this crisis is far from over and as we enter
the traditionally more difficult winter trading environment it is crucial that
the Norwegian aviation industry receive further support if we are going to
survive and get through this unprecedented situation and emerge ready to support
the economic recovery of the Nordics from 2021 onwards," said Schram. 
 
On November 9, the government of Norway announced that they declined further
financial support. This announcement, combined with newly imposed strict
COVID-19 measures, leaves the company in a challenging situation. The company is
currently evaluating the effects of the current situation with an aim to
safeguard the interest of all stakeholders. 
  


Fornebu 10 November 2020
Norwegian Air Shuttle ASA