Norwegian Air expects rise in bookings as travel restrictions ease

Norwegian Air Shuttle’s first results since it emerged from bankruptcy protection showed the low-cost airline still struggling with the impact of the Covid-19 pandemic, even as it improved its financial position. Norwegian said it expected future bookings to continue to increase as travel restrictions across Europe are eased, but warned that the uncertainty over Covid was still too high to provide profit guidance this year. Under its preferred measure of earnings before interest, tax, depreciation, amortisation and restructuring costs excluding other gains and losses, Norwegian’s losses widened from NKr467m in H1 2020 to NKr1.86b ($215m) in the first six months of this year. Revenues dropped 92% to NKr591m. But thanks to its financial restructuring, which it completed in May, it swung from a pre-tax loss of NKr4.79b last year to a profit in 2021 of NKr1.59b. CE Geir Karlsen said the H1 results represented “a clear improvement” in Norwegian’s financial situation as the airline had cut its operating costs and debt, allowing it to plan for the future with “renewed confidence and focus”. He added: “Forward bookings continue to increase in response to the relaxation of travel restrictions and the rollout of international vaccination programmes. We expect to see this trend continue in the remaining months in 2021 and through 2022.”<br/>