|Bid||35.83 x N/A|
|Ask||35.80 x N/A|
|Day's Range||35.10 - 36.60|
|52 Week Range||29.24 - 158.73|
|Beta (3Y Monthly)||2.20|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg Opinion) -- If it’s true that all political lives end in failure, then the same could be said for business. Carsten Spohr became Deutsche Lufthansa AG’s chief executive in 2014, made an impressive start, and had his contract extended to the end of 2023. He may regret signing up for that long.The German airline’s shares tumbled 12 percent on Monday after it issued a second profit warning in as many months. It expects to generate as little as 2 billion euros ($2.2 billion) of operating profit in 2019, up to 25% below what was expected by analysts.The stock is now worth less than four times last year’s earnings, a pretty pitiful multiple, and investors who bought the stock when Spohr took over have lost money. Suddenly, a man feted as one of Germany’s most accomplished corporate leaders looks ordinary.How times have changed. Spohr’s response to a 2015 aircraft crash at the Lufthansa offshoot Germanwings was both sensitive and assured. Later on he faced down industrial action to win concessions from staff on pensions. In 2017, Lufthansa’s profit hit a record high and the stock price soared 150%. Spohr was duly named Manager of the Year by Germany’s influential Manager Magazin.Sustaining all of this was always going to be hard in the notoriously unstable airline business. Fuel costs have risen, rivals have added new capacity and air cargo demand has waned, thanks in part to U.S. President Donald Trump’s trade crusades. (It’s worth reading Bloomberg’s William Wilkes on Lufthansa’s litany of problems.)But Spohr can’t just blame external factors. His company has chased growth to the detriment of profitability and it has spent heavily on new jets and integrating older ones from the insolvent Air Berlin. Gross capital expenditure jumped 8% to 3.8 billion euros ($4.3 billion) last year, leaving precious little spare cash.While Lufthansa is still doing fine on long-haul routes, Spohr’s big idea — a budget subsidiary called Eurowings — has been a disaster. The new unit was meant to challenge Ryanair Holdings Plc and EasyJet Plc in Europe, and to serve long-haul holiday destinations, but it lost more than 230 million euros last year. Instead of breaking even in 2019, as was anticipated, it will now remain in the red.Spohr has hit the brakes on Eurowings’s expansion but the company plans to “vigorously defend” its dominant market position in Germany and Austria. Translated, that sounds worryingly like: “Fare war? Bring it on.”Ryanair is pursuing a similar battle of attrition against weaker rivals such as Norwegian Air Shuttle ASA, with the aim of forcing them out of business. But Ryanair’s costs are much lower than those of Eurowings.Of course, Lufthansa can afford a couple of bleak years. At the end of March it had 12 billion euros of net debt, aircraft lease and pension liabilities — or about 2.4 times Ebitda (a measure of earnings). Norwegian’s leverage is miles higher.But when your corporate strategy is all about acquisition (Thomas Cook Group Plc’s German arm could be next on Spohr’s shopping list) and heavy investment, falling profits are doubly alarming. They suggest cash might be misallocated. “We think the sooner the company focuses on value for shareholders and less chasing or defending market share, the better for the shares. We see no hint of that yet,” RBC’s Damian Brewer complained.At an investor event next week, Spohr has a chance to explain how he plans to fly Lufthansa out of this mess. Once seen as a safe steward of Lufthansa’s capital, he’s starting to look a little reckless.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Norwegian Air expects Boeing's 737 MAX aircraft to remain grounded until at least the end of August, missing the European summer season, CEO Bjoern Kjos said on Friday. “If you ask Boeing they still say June or July,” Kjos said at the Paris Air Forum. More than 300 Boeing 737 MAX jets have been grounded worldwide after two fatal crashes in Ethiopia and Indonesia killed nearly 350 people.
Norwegian Air shares rose 28% on Thursday following a report by Spanish business daily Expansion that the budget carrier could again become the target of takeover offers. Britain's IAG, the owner of British Airways, earlier this year sold its stake in Norwegian and said it was no longer interested in an acquisition. Citing "sources in the market", the Expansion report said investors are taking positions in Norwegian Air ahead of a possible takeover.
Norwegian Air filled more seats on its planes and earned higher revenues per customer in April while dealing with the grounding of its 18 Boeing 737 MAX aircraft, it said, sending the company's shares sharply higher in early trade. The company said last month that the global grounding of 737 MAX jets, which followed deadly crashes of airliners in Indonesia and Ethiopia, could scupper Norwegian's plan to return to profitability this year. While analysts had anticipated an income boost, there had been uncertainty about the impact of the 737 MAX groundings, as well as a strike among pilots at rival SAS.
European shares were little changed early on Tuesday with London markets leading losses as investors returned from a long weekend to digest a slew of earnings and watch for developments around U.S.-China trade talks. UniCredit helped lift the Milan index after Italy's biggest bank said it was considering a sale of its FinecoBank unit and had adopted measures to ensure the online broker could operate outside the group. Mobile phone group Cellnex gave a major boost to the IBEX 35 index on news that it had the go-ahead to buy Iliad's mobile tower assets in France and Italy for 2 billion euros ($2.24 billion.
If card providers are worried about a particular carrier’s finances, they can withhold more money on ticket sales from the company, potentially making its liquidity problem worse. Norwegian was forced to raise 3 billion kroner ($350 million) in capital in February to head off a liquidity and capital crunch that was made worse by cautious credit card companies. Receivables — mainly cash due to the company from ticket sales — jumped by more than one-third to an eye-popping 10.7 billion kroner in the first quarter.
Norwegian Air said the grounding of its Boeing 737 MAX aircraft may last until the end of August and could scupper the carrier's plan to return to profitability this year. Boeing's MAX aircraft have been grounded following the crash of a Lion Air plane in Indonesia last October and an Ethiopian Airlines jet last month, which together killed 346 people. The MAX ban will likely raise Norwegian's 2019 costs by up to 500 million Norwegian crowns (£44.8 million), the company said, adding that its efforts to cut other operating expenses were moving at a faster-than-expected pace.
Norwegian Air believes its fleet of 18 Boeing 737 MAX aircraft could remain grounded until the end of August, Chief Executive Bjoern Kjos told Reuters on Thursday. "There is a saying that you should hope for the best and plan for the worst, so we are planning to have (the MAX aircraft) on the ground throughout August," Kjos told Reuters on the sidelines of Norwegian's earnings presentation.
Norwegian Air does not expect to postpone more deliveries of aircraft from plane makers, the company said on Thursday. Norwegian late on Wednesday announced deals with Boeing and Airbus to postpone deliveries ...
Norwegian Air has agreed with Airbus and Boeing to reschedule delivery of aircraft to cut capital spending, the loss-making budget carrier said on Wednesday. In total, the announced restructurings and postponements of Boeing and Airbus aircraft delivery will reduce capital expenditure for 2019 and 2020 by $2.1 billion (1.6 billion pounds), the company said. The company said its Dublin-based subsidiary Arctic Aviation Assets DAC had reached an agreement with Boeing to postpone delivery of 14 737 MAX aircraft which were originally due in 2020 and 2021.
PARIS/OSLO (Reuters) - Norwegian Air's largest cabin crew union in France has called for a strike from April 24 to April 26, seeking higher pay and better working conditions, a union representative said on Saturday. UNAC union representative Anastasia Durand told Reuters the union represents 70 percent of the airline's 158 cabin crew based at Charles de Gaulle airport in Paris, also known as Roissy, from where Norwegian has four or five flights per day. Norwegian, which flies directly from Charles de Gaulle airport mainly to destinations in the United States, including New York and Los Angeles, was not immediately available to comment.
A Norwegian Air subsidiary has agreed with Airbus to postpone plane deliveries scheduled for this year and next, cutting its capital spending by $570 million (£436 million), the loss-making budget carrier said on Wednesday. It is the second time in two months that the airline has postponed aircraft deliveries. The latest postponement covers an order by Norwegian Air's Dublin-based aircraft leasing company Arctic Aviation Assets DAC for A320neos and A321LRs, Norwegian said.
COPENHAGEN, Denmark (AP) — Low-cost carrier Norwegian Air Shuttles says it is postponing the delivery of Airbus aircraft to reduce its capital expenditure by approximately $570 million in 2019 and 2020.
Norwegian Air earned less money than expected from each traveller in March but its aircraft filled up at a faster pace than analysts anticipated, the budget carrier's monthly traffic report showed on Thursday. The grounding last month of its Boeing 737 MAX jets following the deadly crash of an Ethiopian jet, has forced Norwegian to lease other aircraft as the peak summer season nears, further complicating its drive for profitability. While Norwegian has said it would seek compensation from Boeing for the cost of grounding its eighteen MAX fleet, its chief executive has also defended the aircraft model.
Just days after asking for a few more weeks to finish its software fix, Boeing Co. says its made a successful test run -- and also won kudos from the chief executive of Norwegian Air Shuttle. The aircraft maker on Wednesday tried out its updated software for its 737 MAX -- the same type of jet that saw two crashes in since October -- and said it appears to work.