Norwegian to fly between UK, Ireland and U.S. NE Coast cities. from Summer 2017.
#406
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But it seems to be all fake! I'm honestly amazed this accounting is legal (a matter that Norwegian has had trouble with in the past).
First, they do admit that their unit revenue was down another 11% year over year. Here's my Captain Obvious statement: if you're losing lots of money as an airline, and you rapidly expand but then suffer another double-digit unit revenue decline, you're not going to magically become profitable.
But wait, you say, their costs are down! That seems curious given that fuel prices have skyrocketed. But they claim their non-fuel costs have dramatically declined. But again, this seems like smoke and mirrors. For example, they grew capacity 48% (wow), but didn't incur any additional maintenance expense on their fleet. What?
And there are lots more gems. Air Transport World notes that "second-quarter profit was helped by a one-off gain amounting to NOK455 million, reversed from a NOK197 million loss, resulting partly from translation of working capital in foreign currency and a gain of NOK 254 million from forward contracts on currency and fuel. " Say what? Who came up with this? This obviously isn't "real" income.
Charitably, what seems to be going on here is the proverbial putting lipstick on a pig. I'm not surprised that Irish Guy fell for it, but Bloomberg? C'mon. How bad is our financial press these days? Regardless, I don't think Walsh will be impressed.
First, they do admit that their unit revenue was down another 11% year over year. Here's my Captain Obvious statement: if you're losing lots of money as an airline, and you rapidly expand but then suffer another double-digit unit revenue decline, you're not going to magically become profitable.
But wait, you say, their costs are down! That seems curious given that fuel prices have skyrocketed. But they claim their non-fuel costs have dramatically declined. But again, this seems like smoke and mirrors. For example, they grew capacity 48% (wow), but didn't incur any additional maintenance expense on their fleet. What?
And there are lots more gems. Air Transport World notes that "second-quarter profit was helped by a one-off gain amounting to NOK455 million, reversed from a NOK197 million loss, resulting partly from translation of working capital in foreign currency and a gain of NOK 254 million from forward contracts on currency and fuel. " Say what? Who came up with this? This obviously isn't "real" income.
Charitably, what seems to be going on here is the proverbial putting lipstick on a pig. I'm not surprised that Irish Guy fell for it, but Bloomberg? C'mon. How bad is our financial press these days? Regardless, I don't think Walsh will be impressed.
Income is real income and makes the income-makers a bit more sure-footed than they would otherwise have been. Attacking the media for not peddling inaccuracies or phobias doesn't really add to the credibility of those attacking the media.
#407
Join Date: Feb 2017
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Posts: 767
But it seems to be all fake! I'm honestly amazed this accounting is legal (a matter that Norwegian has had trouble with in the past).
First, they do admit that their unit revenue was down another 11% year over year. Here's my Captain Obvious statement: if you're losing lots of money as an airline, and you rapidly expand but then suffer another double-digit unit revenue decline, you're not going to magically become profitable.
But wait, you say, their costs are down! That seems curious given that fuel prices have skyrocketed. But they claim their non-fuel costs have dramatically declined. But again, this seems like smoke and mirrors. For example, they grew capacity 48% (wow), but didn't incur any additional maintenance expense on their fleet. What?
And there are lots more gems. Air Transport World notes that "second-quarter profit was helped by a one-off gain amounting to NOK455 million, reversed from a NOK197 million loss, resulting partly from translation of working capital in foreign currency and a gain of NOK 254 million from forward contracts on currency and fuel. " Say what? Who came up with this? This obviously isn't "real" income.
Charitably, what seems to be going on here is the proverbial putting lipstick on a pig. I'm not surprised that Irish Guy fell for it, but Bloomberg? C'mon. How bad is our financial press these days? Regardless, I don't think Walsh will be impressed.
First, they do admit that their unit revenue was down another 11% year over year. Here's my Captain Obvious statement: if you're losing lots of money as an airline, and you rapidly expand but then suffer another double-digit unit revenue decline, you're not going to magically become profitable.
But wait, you say, their costs are down! That seems curious given that fuel prices have skyrocketed. But they claim their non-fuel costs have dramatically declined. But again, this seems like smoke and mirrors. For example, they grew capacity 48% (wow), but didn't incur any additional maintenance expense on their fleet. What?
And there are lots more gems. Air Transport World notes that "second-quarter profit was helped by a one-off gain amounting to NOK455 million, reversed from a NOK197 million loss, resulting partly from translation of working capital in foreign currency and a gain of NOK 254 million from forward contracts on currency and fuel. " Say what? Who came up with this? This obviously isn't "real" income.
Charitably, what seems to be going on here is the proverbial putting lipstick on a pig. I'm not surprised that Irish Guy fell for it, but Bloomberg? C'mon. How bad is our financial press these days? Regardless, I don't think Walsh will be impressed.
Their hedging, plus the new stock issuance of 200M NOK will keep Norwegian alive through the third quarter, possibly Q4.
#408
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Join Date: Mar 2000
Posts: 17,377
https://crankyflier.com/2018/07/16/n...rofit-machine/
#409
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Say what? I'm attacking the media because they exercised gross negligence in describing Norwegian's latest earnings report. Here's what the Cranky Flyer had to say about this:
https://crankyflier.com/2018/07/16/n...rofit-machine/
https://crankyflier.com/2018/07/16/n...rofit-machine/
The interest in acquiring Norwegian shares wasn’t only pursued by the so-called “dumb money” as of late, or was it?
#410
FlyerTalk Evangelist
Join Date: Mar 2000
Posts: 17,377
Whatever interest there is in acquiring Norwegian isn't due to that company's ability to operate a profitable airline. Indeed, if you exclude not-for-profit airlines (like the Middle East ones), Norwegian is probably the least successful airline in the world.
#412
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Join Date: Jun 2018
Posts: 1,186
Let's just say that the company press release had a "slightly" different tone compared to the business journalists' reporting, and no business publication more or less copied the company talking points. Norwegian, on the other hand, managed to pull the wool over several publications' eyes.
#413
Join Date: Sep 2004
Location: YUL
Posts: 990
#416
Join Date: Jan 2017
Location: Portland OR
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Posts: 560
None from the UK (their MAX routes from EDI/BFS). They have made DUB-SWF double daily and are promoting shopping day trips to a mall in Newburgh.
Dont forget LGW-SIN also gets the chop in January. And theyre trying to sell all (60) of their A320/neos that are due for delivery soon.
https://www.businesslive.co.za/bd/co...t-commitments/
Dont forget LGW-SIN also gets the chop in January. And theyre trying to sell all (60) of their A320/neos that are due for delivery soon.
https://www.businesslive.co.za/bd/co...t-commitments/
#418
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Join Date: Mar 2000
Posts: 17,377
There maybe more short term risk to Norwegian than I thought. Obviously, if oil prices continue to increase here (impossible to know, as such prices are largely speculative and not fundamental), there would be more risk of a Norwegian bankruptcy.
https://primeraair.com/about-us/corp...es-operations/
https://primeraair.com/about-us/corp...es-operations/
#419
Join Date: Feb 2017
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Posts: 767
None from the UK (their MAX routes from EDI/BFS). They have made DUB-SWF double daily and are promoting shopping day trips to a mall in Newburgh.
Dont forget LGW-SIN also gets the chop in January. And theyre trying to sell all (60) of their A320/neos that are due for delivery soon.
https://www.businesslive.co.za/bd/co...t-commitments/
I went through their monthly RASK numbers (from their monthly traffic figures) it was: .47 (Jul), .40 (Aug), .33 (Sep). I'll be generous and estimate a .41 RASK for the quarter (more flying in Jul than Sep). Their Q2 CASK was .41 so my guess is that they'll report a loss for Q3 due to rising fuel costs unless they magically come up with more one time profits from currency and fuel hedges.
From this point forward, anyone buying tickets on Norwegian is really rolling the bones and are taking a chance that they'll meet the same fate as Primera customers.
#420
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As far as I understood it is all of the yet to be delivered Airbus 320NEO that they are trying to off load. As they will not need the capacity growth coming from this.
Norwegian very proudly made the biggest airliner orders in European history, ordering bunch of 737MAX and a bunch of A320NEO. Reason for splitting between two manufacturers was that they could get the planes quicker that way. Some people doubted what they would do with all those aircraft, well now we know.
Norwegian very proudly made the biggest airliner orders in European history, ordering bunch of 737MAX and a bunch of A320NEO. Reason for splitting between two manufacturers was that they could get the planes quicker that way. Some people doubted what they would do with all those aircraft, well now we know.