|Bid||39.10 x N/A|
|Ask||39.11 x N/A|
|Day's Range||36.12 - 40.19|
|52 Week Range||28.57 - 152.17|
|Beta (3Y Monthly)||2.20|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 24, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||224.45|
Budget airline Norwegian Air is asking bondholders to extend the maturity of its debt by up to two years, and will in return pledge valuable take-off and landing slots at London Gatwick Airport as a security, it said in Monday. While the indebted carrier's operational performance has improved since mid-July, the company's working capital has decreased this year amid ongoing engine problems and the grounding of its fleet of Boeing MAX aircraft, it added. Norwegian's bonds, which mature in December 2019 and August 2020 with a combined outstanding amount of $380 million, will be extended to November 2021 and February 2022 if bondholders accept the revised terms.
Norwegian Air has agreed to sell its stake in banking company Norwegian Finans Holding for 2.22 billion crowns ($246.7 million), boosting the loss-making airline's finances and sending its shares sharply higher on Monday. Norwegian Finans Holding owns Bank Norwegian, a credit card company originally set up by Norwegian Air. The airline is selling its 17.5% stake to Cidron Xingu Limited, indirectly controlled by Nordic Capital Fund IX and Sampo.
Norwegian Air says it’s ending trans-Atlantic service between Ireland and three U.S. and Canadian airports because the grounding of Boeing 737 Max aircraft makes the routes “no longer commercially viable.”
Norwegian Air's revenue per customer grew less than expected in July and the company filled slightly fewer seats than analysts had predicted during the peak summer season, its monthly traffic data showed on Tuesday. Europe's third largest budget carrier has warned that the global grounding since March of the Boeing 737 MAX aircraft, which make up 11% of Norwegian's fleet, may hamper its plans to return to profitability this year.
Bjørn Kjos, the co-founder of low-cost carrier Norwegian is to step down as CEO after 17 years in the role. He will be replaced on an interim basis by current chief financial officer Geir Karlsen with chairman Niels Smedegaard also taking on a more active management role. Kjos is remaining with Norwegian and will immediately […]The post Norwegian Air's Long-Serving CEO Departs as Airline Pushes for Higher Profits appeared first on Skift.
(Bloomberg Opinion) -- Silicon Valley startups have long recognized the benefit of having a few grownups in the room to make sure the youthful, idealistic founders don’t forget about the bottom line. At Norwegian Air Shuttle ASA it’s the older crowd you’ve had to keep an eye on. The transatlantic budget airline’s 72-year-old co-founder Bjorn Kjos has been on a breakneck expansion drive over the past few years, but now he’s stepping down after being forced to abandon that high-spending strategy to ensure his company’s survival. Kjos, who’s staying on as an adviser, has been Norwegian’s CEO for 17 years, making him one of the oldest corporate leaders in Europe. A former fighter pilot and lawyer, his achievements are the stuff of industry legend. Norwegian has come from nowhere to now carry about 38 million passengers every year. American customers flying to Europe are its biggest source of revenue. Unfortunately, Kjos had a big weakness: An obsession with growth that almost proved Norwegian’s undoing. In 2012 Norwegian placed Europe’s biggest ever aircraft order, and the pace didn’t let up. Kjos has since opened a subsidiary in Argentina.The growth has taken a huge toll on Norwegian’s balance sheet. The company has 61 billion kroner ($7.1 billion) of net debt and lease liabilities but generates little profit. Forced to raise 3 billion kroner of fresh capital in January, Norwegian’s liquidity and capital base remains thin. Since its shares peaked in 2015, they have fallen 80%. Compared to the colorful Kjos, his interim replacement Geir Karlsen may seem a trifle grey. But the plain-speaking former chief financial offer, who has a degree in business administration, is just what Norwegian needs to win back the trust of the capital markets.While second-quarter revenues and earnings published on Thursday were pretty good, the coming months will be difficult. The airline must repay or refinance a 250 million euro bond in December. Yet credit card companies are making its life difficult by holding back more cash until passengers actually travel (an insurance policy in case it can’t fly at some point). Norwegian’s receivables – the cash expected on ticket sales – ballooned to 12.6 billion krone during the second quarter. That’s almost 50% above a normal level.That pressure should alleviate somewhat as Norwegian’s customers take the flights they’ve booked, allowing the credit card companies to release the money. Norwegian has other ways to raise cash too, including selling airport takeoff slots and divesting its stake in Bank Norwegian AS. Because of the grounding of the Boeing 737 Max, the company won’t have to spend as much this year on new jets and it’s doing a decent job of reining in costs. Details of a long discussed aircraft-owning joint venture remain scant though.The airline now expects passenger capacity to increase by a maximum of 5% this year; indeed it might not grow at all. The Kjos era of more planes, more seats, and more routes appears to be over for now. It’s about time.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis 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's Bjoern Kjos stepped down on Thursday as chief executive of the airline he co-founded and turned into Europe's third-biggest budget carrier by passenger numbers. The airline has shaken up the long-haul market with cut-price transatlantic fares, but its rapid expansion has left it with hefty losses and high debts and it had to raise 3 billion crowns ($350 million) from shareholders earlier this year. "I am way overdue," Kjos, 72, laughing, told a news conference, announcing his plans to quit the top job.
Norwegian Air's Bjoern Kjos stepped down on Thursday as chief executive of the airline he co-founded and turned into Europe's third-biggest budget carrier by passenger numbers over more than 25 years. Chief Financial Officer Geir Karlsen will act as interim CEO while the company hires a permanent, new CEO. Kjos, who is 72 and is a major shareholder in the business, will have a new role as an adviser to the chairman.
OSLO/MADRID (Reuters) - Shares in budget carrier Norwegian Air rose on Friday after British Airways and Iberia owner IAG denied a Spanish media report it was preparing another offer for the airline.
Passenger numbers at Norwegian Air fell 1% year-on-year in June as the budget airline took another hit from the ongoing grounding of Boeing's 737 MAX planes. "The total number of passengers declined slightly in June, due to the grounding of 18 Boeing 737 MAX and less charter capacity," Europe's third-largest budget carrier by passengers flown said on Thursday.
(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 firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis 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.