NAS ASA Q2 2024 Financial Report: Strong Performance and outlook
Support at 10NOK and 50% Fibonacci bounce, might be a bullish year!
Norwegian Air Shuttle ASA (NAS) has released its second-quarter financial report for 2024, showcasing impressive growth and strong operational performance. As a result, the stock has surged by 6% today. Here’s a detailed look at the key highlights and the forecast moving forward.
Q2 2024 Financial Highlights
- Quarterly Profit Before Tax (EBT): NOK 477 million
- Operating Profit (EBIT): NOK 593 million
- Operating Margin: 6.3%
- Passenger Growth: Norwegian saw a 12% increase, while Widerøe reported a 14% growth.
- Improved Cost Performance: Unit cost excluding fuel decreased by 2% for Norwegian.
- Strong Cash Flow: Net interest-bearing debt (NIBD) reduced by NOK 1.4 billion, improving liquidity to NOK 11.5 billion at the end of the quarter.
- Fleet Expansion: The Norwegian fleet included 86 aircraft, with 22 being the latest technology 737 MAX 8 aircraft. The Widerøe fleet comprised 49 aircraft.
Operational Performance
- Passenger Numbers:
- Norwegian: 6.3 million passengers, an increase of 680,000 from the same period last year.
- Widerøe: 1.0 million passengers, an increase of 122,000.
- Load Factors:
- Norwegian: 82.4%, down two percentage points from last year.
- Widerøe: 70.2%, an improvement of five percentage points.
- Punctuality and Regularity:
- Norwegian: 80.8% punctuality, 99.2% regularity.
- Widerøe: 91.4% punctuality, 96.9% regularity.
- Loyalty Partnership:
- In May, Norwegian and Strawberry announced a structure for the world’s first multi-partner rewards points ecosystem, targeting a market launch in the second half of 2024. This will allow the 10-million-member strong loyalty programmes to earn and use a shared loyalty currency across participating programmes and partners.
New Routes
- Norwegian launched 27 new routes for the winter program, including destinations such as Dubai, Agadir, and Hurghada, as well as routes from European cities to popular winter holiday spots like Tromsø and Evenes.
Future Outlook
- Capacity and Fleet Growth:
- Norwegian is expected to increase overall production by approximately 12% in 2024 compared to the previous year.
- Growth is projected to slow in the upcoming year due to aircraft delivery delays from Boeing.
- By the summer of 2025, the Norwegian fleet is forecasted to increase to over 90 aircraft.
- Strategic Partnerships and Stability:
- Norwegian reached new collective bargaining agreements (CBAs) with the majority of its pilots, cabin crew, and technicians, ensuring operational stability during the peak summer travel season.
- The acquisition of Widerøe and the integration of complementary route networks position Norwegian to remain a preferred travel partner throughout the Nordics.
- Market Position:
- Norwegian and Widerøe’s strong operational performance and expanding route networks are expected to drive continued growth.
- The loyalty programme partnership with Strawberry will enhance customer retention and engagement.
Stock Performance
- As of today, NAS stock has increased by 6%, reflecting investor confidence in the company’s robust financial performance and positive outlook.
Conclusion
Norwegian Air Shuttle ASA's Q2 2024 report highlights a period of significant growth and strategic advancements. With a solid financial foundation, expanding fleet, and innovative partnerships, Norwegian is well-positioned for continued success in the coming years.
Investors and stakeholders can look forward to further growth and stability as Norwegian navigates the dynamic aviation landscape. Do your own research and happy trading!
Norwegian Air Shuttle ASA (NAS) has released its second-quarter financial report for 2024, showcasing impressive growth and strong operational performance. As a result, the stock has surged by 6% today. Here’s a detailed look at the key highlights and the forecast moving forward.
Q2 2024 Financial Highlights
- Quarterly Profit Before Tax (EBT): NOK 477 million
- Operating Profit (EBIT): NOK 593 million
- Operating Margin: 6.3%
- Passenger Growth: Norwegian saw a 12% increase, while Widerøe reported a 14% growth.
- Improved Cost Performance: Unit cost excluding fuel decreased by 2% for Norwegian.
- Strong Cash Flow: Net interest-bearing debt (NIBD) reduced by NOK 1.4 billion, improving liquidity to NOK 11.5 billion at the end of the quarter.
- Fleet Expansion: The Norwegian fleet included 86 aircraft, with 22 being the latest technology 737 MAX 8 aircraft. The Widerøe fleet comprised 49 aircraft.
Operational Performance
- Passenger Numbers:
- Norwegian: 6.3 million passengers, an increase of 680,000 from the same period last year.
- Widerøe: 1.0 million passengers, an increase of 122,000.
- Load Factors:
- Norwegian: 82.4%, down two percentage points from last year.
- Widerøe: 70.2%, an improvement of five percentage points.
- Punctuality and Regularity:
- Norwegian: 80.8% punctuality, 99.2% regularity.
- Widerøe: 91.4% punctuality, 96.9% regularity.
- Loyalty Partnership:
- In May, Norwegian and Strawberry announced a structure for the world’s first multi-partner rewards points ecosystem, targeting a market launch in the second half of 2024. This will allow the 10-million-member strong loyalty programmes to earn and use a shared loyalty currency across participating programmes and partners.
New Routes
- Norwegian launched 27 new routes for the winter program, including destinations such as Dubai, Agadir, and Hurghada, as well as routes from European cities to popular winter holiday spots like Tromsø and Evenes.
Future Outlook
- Capacity and Fleet Growth:
- Norwegian is expected to increase overall production by approximately 12% in 2024 compared to the previous year.
- Growth is projected to slow in the upcoming year due to aircraft delivery delays from Boeing.
- By the summer of 2025, the Norwegian fleet is forecasted to increase to over 90 aircraft.
- Strategic Partnerships and Stability:
- Norwegian reached new collective bargaining agreements (CBAs) with the majority of its pilots, cabin crew, and technicians, ensuring operational stability during the peak summer travel season.
- The acquisition of Widerøe and the integration of complementary route networks position Norwegian to remain a preferred travel partner throughout the Nordics.
- Market Position:
- Norwegian and Widerøe’s strong operational performance and expanding route networks are expected to drive continued growth.
- The loyalty programme partnership with Strawberry will enhance customer retention and engagement.
Stock Performance
- As of today, NAS stock has increased by 6%, reflecting investor confidence in the company’s robust financial performance and positive outlook.
Conclusion
Norwegian Air Shuttle ASA's Q2 2024 report highlights a period of significant growth and strategic advancements. With a solid financial foundation, expanding fleet, and innovative partnerships, Norwegian is well-positioned for continued success in the coming years.
Investors and stakeholders can look forward to further growth and stability as Norwegian navigates the dynamic aviation landscape. Do your own research and happy trading!
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