© Reuters. FILE PHOTO: A Norwegian Air plane is refueled at Oslo Gardermoen airport, Norway, November 7, 2019. Picture taken November 7, 2019. REUTERS/Lefteris Karagiannopoulos/File Photo
By Victoria Klesty
OSLO (Reuters) – Norwegian Air reported a first-quarter loss on Friday and said strong bookings would give the budget carrier a boost for the summer season.
The net loss from January to March fell to 993 million Norwegian kroner ($94.7 million) from a loss of 1.03 billion a year ago, Norwegian said.
During the first quarter, normally a slow time for holiday travel, the company reduced capacity by up to 30% to cut costs.
“With strong booking numbers that continue to be encouraging, Norwegian is preparing for what is expected to be one of the strongest summers in company history,” the airline said in a statement.
Average fares booked so far for the June-August period are up 25% from last year, he added.
“For 2023, the company expects a significant increase in unit revenue compared to last year,” Norwegian said.
At the same time, the carrier cut its overall capacity forecast this year, so-called available seat kilometers, or ASK, to 32,500 from 34,000, which it said reflected capacity reduction plans. next winter.
Norwegian emerged from government-backed bankruptcy proceedings two years ago after getting rid of much of its debt as well as its transatlantic network.
The region’s incumbent, SAS, is in bankruptcy protection proceedings under US Chapter 11, with US asset manager Apollo Global Management (NYSE:) Inc planning to take a majority stake as part of the bailout.
($1 = 10.4882 Norwegian kroner)