NAS.OL - Norwegian Air Shuttle ASA
| Previous close | 40.60 |
| Open | 40.62 |
| Bid | 40.48 x N/A |
| Ask | 40.68 x N/A |
| Day's range | 40.23 - 41.42 |
| 52-week range | 26.69 - 120.02 |
| Volume | 1,375,176 |
| Avg. volume | 2,605,816 |
| Market cap | 5.552B |
| Beta (3Y monthly) | 0.94 |
| PE ratio (TTM) | N/A |
| EPS (TTM) | -26.88 |
| Earnings date | 13 Feb 2020 |
| Forward dividend & yield | N/A (N/A) |
| Ex-dividend date | N/A |
| 1y target est | 224.45 |
- Reuters - UK Focus
Norwegian Air to expand alliance with other carriers - Kjos
- Reuters
Norwegian Air to fly three new non-stop U.S.-Europe routes
The announcement of new routes comes at a time when Europe's third-largest low-cost carrier by passenger numbers, after Ryanair and easyJet , has been making major inroads in the market for transatlantic travel, but has hemorrhaged cash in the process. Norwegian was left with a whopping 61.7 billion crowns of interest bearing debt at the end of the third quarter ended September, around ten times the airline's stock market value. The company, which operates more than 500 routes to over 150 destinations around the world, has cut jobs, sold older aircraft as well as its stake in Bank Norwegian, as part of its plan to rein in costs and reduce capacity by 10% next year.
- Bloomberg
Are Passenger Jet Engines Hitting Their Technical Limits?
(Bloomberg Opinion) -- The high-pressure turbine blades in a Trent 1000 passenger jet engine have to withstand temperatures far above the melting point of the nickel alloy from which they’re made. It’s a fiendish technical challenge for the engine’s British manufacturer, Rolls-Royce Holdings Plc — comparable to trying to stop an ice cube melting inside a kitchen oven on full blast. The solution found by the company’s engineers was to blow cool air through tiny holes in the blades. Unfortunately this clever approach has encountered some unexpected problems.Boeing 787 aircraft operated by British Airways, Norwegian Air Shuttle, Virgin Atlantic and others have been grounded in recent months for inspections and repairs because the Trent 1000 engine blades have been degrading faster than anticipated. It’s the type of problem that’s becoming common in the industry as the demands placed on engines become ever greater.The expense of dealing with these things is rising too. Last week, Rolls-Royce quantified the cost of fixing various Trent 1000 issues at 2.4 billion pounds ($3.1 billion), a cash outflow the debt-laden manufacturer can ill afford.Few inventions have done more to transform our life over the past century than jet engines. They’ve let people travel faster and further, and they’re remarkably safe. Passenger fatalities like the one caused by a turbine failure on a Southwest Airlines flight last year are rare. Developed at enormous expense and using innovative new materials, the most recent “powerplants” (to use engines’ industry name) are comparatively quiet and fuel efficient.Yet these innovations have taken the technology closer to its technical limits and reliability issues have crept in. “By pushing the envelope on thrust and efficiency, things have started to go wrong elsewhere in the system,” says Nick Cunningham at Agency Partners. This is worrying because companies are under pressure to build even more efficient propulsion systems to curb carbon emissions. Rolls-Royce’s problems appear the most serious — some 40 787s powered by its engines are parked — but this is an industry-wide issue. Forced to ground planes and adjust flight schedules, airlines have resorted to leasing replacement aircraft and have told engine manufacturers to pay compensation.In September Tim Clark, the boss of Emirates, said manufacturers are delivering aircraft that don’t do what was promised. “Give us airframes and engines that work from day one. If you can’t do it, don’t produce them,” he said.The laws of science aren’t the only thing testing the engine makers. Airbus SE and Boeing Co. have brought several new passenger jets to market in quick succession and their powerplant suppliers have had to ramp up production rapidly. A lot of new demand is from emerging markets where dusty or polluted air can put additional strain on engines.Airbus production was thrown into chaos last year by engine glitches involving Pratt & Whitney’s geared turbofan (GTF) for the A320neo, Airbus’s top-selling jet. More recently the launch of Boeing’s 777x wide-body aircraft was pushed to next year after the premature wearing out of a General Electric engine component.It’s one thing for an engine to miss tough production targets, but quite another for engines to fail once they’re in service. “Engine manufacturers have always had teething problems but in four decades I’ve never seen anything like the list of technical issues they’re been having lately,” says John Strickland, director of JLS Consulting. This month India threatened to ground scores of Airbus A230neo jets operated by domestic carrier Indigo unless the Pratt engines were replaced by the end of January. The warning followed several incidents of engines shutting down in-flight.In October Lufthansa AG subsidiary Swiss temporarily grounded its Airbus A220(1) fleet so the Pratt engines could be inspected after a spate of powerplant failures (the debris from one such incident was recovered from a French forest last week). Since then Canadian regulators ordered the same aircraft not to operate at full power above a specified altitude.About 70% of airlines and lessors surveyed by Citi Research said groundings caused by engine issues were a key concern. Some are looking to operate mixed fleets to lessen the risk of one engine type being grounded. While that’s prudent, it’s more expensive than using a single type of equipment.The risk for engine manufacturers is that reliability issues cost them market share. Earlier this year Air New Zealand switched an order for 787 jet engines to GE after problems with its Rolls-Royce kit. Indigo placed a $20 billion order with the GE/Safran engine joint venture rather buy from Pratt (Pratt claimed the decision was price-related).The problems haven’t affected all new technologies. Rolls-Royce’s XWB powerplant for the Airbus A350 has proven reliable so far. The core gearing innovation underpinning Pratt’s GTF also appears to work as planned; a relief because it cost about $10 billion to develop. There’s more at stake, though, than airline flight schedules and manufacturers’ pride and profitability. As with the car industry, the aerospace sector is gearing up for an epochal effort to curb carbon emissions. Aviation accounts for 2%-3% of greenhouse gas emissions but the sheer volume of plane deliveries in coming years will counteract engine efficiency gains. Aviation’s share could rise to between 10% and 25% by 2050, a Roland Berger study found. Unlike carmakers, the airlines lack viable technological alternatives. Biofuels have potential but fully electric large commercial aircraft are probably decades awayEngine manufacturers are working on still more efficient jet engine designs. Rolls-Royce claims its Ultrafan technology will deliver a 25% improvement in fuel burn compared to the first generation of Trents. Bringing these innovations to market quickly is essential from a planetary perspective but rushing development could prove counterproductive. “My sense is that public opinion in Europe at least is moving quicker than the technology,” says Rob Stallard at Vertical Research Partners.Cunningham is even less optimistic. “Gas turbines are running out of road at just the point where the political impetus is toward greater decarbonization,” he says. “Jet engines are unlikely to get a lot better from here.”(1) The plane was developed by Bombardier Inc and was known as the C-Series before Airbus acquired a majority stake.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis 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.
- Reuters - UK Focus
LIVE MARKETS-Closing snapshot: Not a bad day
* Earnings drive top movers Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. European stocks edged higher today as investors found some comfort on a scaling-back of recession bets amid optimism about a China-U.S. trade deal. With this string of not-great but good-enough news, the Euro stocks index hit its highest since February 2018, while European blue chips had their best day in two years with the banking sector enjoying its best session in six months.
- Reuters - UK Focus
LIVE MARKETS-Italy, the contrarian 2020 bet?
* Earnings drive top movers Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Germany has long been dragging its feet on such a project that included a common deposit insurance scheme and clearly its new stance is a welcome development but, as always, there is a but and, of course, the devil is in the details.
- Reuters - UK Focus
LIVE MARKETS-Money for nothing in the age of rage
* Earnings drive top movers Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. A post by Ray Dalio's Linkedin (find it here: https://bit.ly/2qo3IdR ) is doing the rounds this morning, with the hedge fund billionaire putting his finger on the big debate raging around quantative easing and MMT amid growing global discontent. The theme, as it turns out, has emerged as a central topic in the Reuters Global Investment Outlook Summit.
- Reuters - UK Focus
LIVE MARKETS-Ray of hope for Europe: $1 trln flow into ESG funds by 2030
* Earnings drive top movers Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Yes, that massive amount of cash is likely to flow into ESG funds as the theme has become mainstream, especially in Europe.
- Reuters - UK Focus
LIVE MARKETS-UK High Street: available at your local large, mid and small cap index
* Earnings drive top movers Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. It's a rare thing to witness: at one stage this morning, the UK high street theme was top of the FTSE 100, FTSE 250 and the British small cap index.
- Reuters - UK Focus
LIVE MARKETS-It's official: banks no longer Europe's worst
* Earnings drive top movers Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. It seems that all those brokers calling for investors to come back to the battered banking sector is having an effect! European banks have hit an early May peak this morning and are now up more than 6% year to date, leaving to Telecoms the trophy of worst sectoral performer.
- Reuters
Norwegian Air gets lifeline to prove it can make money
Norwegian Air's third fundraising from investors in 20 months could be the airline's final chance to prove it can make money from cheap transatlantic air travel, one of its major shareholders said on Wednesday. Shares in the budget airline fell around 10% after it raised 2.5 billion crowns (£212.2 million) from a discounted sale of shares, as well as a convertible bond issue. The move was the latest by acting CEO Geir Karlsen and Chairman Niels Smedegaard, both appointed earlier this year, to try to prevent Norwegian from joining the ranks of airlines that have collapsed due to industry overcapacity.
- Reuters - UK Focus
UPDATE 2-Norwegian Air gets lifeline to prove it can make money
Norwegian Air's third fundraising from investors in 20 months could be the airline's final chance to prove it can make money from cheap transatlantic air travel, one of its major shareholders said on Wednesday. Shares in the budget airline fell around 10% after it raised 2.5 billion crowns ($272 million) from a discounted sale of shares, as well as a convertible bond issue. Norwegian, which has also been hit by the grounding of Boeing's 737 MAX jet, has raised 5.4 billion crowns from its shareholders since March 2018, including 1.3 billion last year and 4.1 billion this year, in addition to the new bond sale.
- Reuters - UK Focus
LIVE MARKETS-Reading through Lagarde's poker-face Berlin speech
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reading through Lagarde's Monday speech in Berlin for policy clues was no easy task, not least because it officially wasn't about monetary policy. For her first official speech, the ex-IMF French chief chose to honour none other than Wolfgang Schaeuble, a monetary hawk who embodies, at least for a good chunk of the European left, Germany's hardcore orthodoxy on all things monetary and fiscal.
- Reuters - UK Focus
LIVE MARKETS-On the radar: UK high street blues, Q3 ups and downs
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. One of the most spectacular hit could come from the UK high street. Shares in struggling Norwegian Air will also be closely watched after it managed to raise $272 million.
- Reuters
Struggling Norwegian Air raises $272 million from share sale, bond issue
Norwegian Air on Tuesday raised 2.5 billion crowns ($272.31 million) to meet the struggling airline's cash needs through 2020 with its third share sale in two years and a bond issue. With mounting debts and suffering from the grounding of its 18 Boeing 737 MAX aircraft, Norwegian has replaced breakneck expansion with cost cutting to regain profitability. The convertible bond issue received significant interest from international and domestic investors," it said.
- Reuters - UK Focus
UPDATE 3-Struggling Norwegian Air raises $272 million from share sale, bond issue
Norwegian Air on Tuesday raised 2.5 billion crowns ($272.31 million) to meet the struggling airline's cash needs through 2020 with its third share sale in two years and a bond issue. The data had been scheduled for release on Wednesday.
- Reuters - UK Focus
REFILE-EasyJet adds Orly baggage connections with long-haul partners
Low-cost airline easyJet has added baggage services to its flight-connections partnership with two budget long-haul carriers flying from Paris, in a move that challenges Air France on transatlantic and Caribbean leisure routes. Starting on Friday, easyJet said passengers arriving at Orly for connecting flights with La Compagnie or Corsair can re-check baggage at a desk near the carousel before being fast-tracked to their next boarding gate with easyJet's "self-connect" service. Traditional carriers such as Air France-KLM, whose regional networks have been eroded by low-cost rivals, now face stiffer long-haul competition as budget and point-to-point operators combine offerings to provide new connections and routes.
- Skift
Norwegian Air Just Might Have Found a Way to Save Itself
Over the last year or so, Norwegian Air looked like it would follow carriers such as Air Berlin and Monarch into the aviation graveyard. Under a new leadership team, however, the company could be paving a path out of its financial mess. On the back of a surprisingly good set of third-quarter results, the airline […]
- Bloomberg
Norwegian Air Is Flying Again
(Bloomberg Opinion) -- A charismatic entrepreneur who prioritized growth over profitability, ran up a massive rent bill and then stepped aside when it looked like the company might run out of cash. No, not WeWork Cos Inc.; I’m talking about Norwegian Air Shuttle ASA.On Thursday the hip transatlantic airline, loved by bargain-hunting American millennials, announced the first fruits of its turnaround under a new chief executive officer. Geir Karlsen replaced the company’s co-founder Bjorn Kjos as CEO this summer, and Norwegian’s chairman Bjorn Kise stood down in May.As well as reporting surprisingly good earnings for the third quarter, Norwegian announced a long-awaited aircraft-buying venture with a leasing subsidiary of China Construction Bank Corporation. The deal should help Norwegian keep more of its own cash, which is handy given the airline’s massive spending commitments and other liabilities. Including lease obligations, Norwegian has $6.8 billion of net debt. The shares surged as much as 23% on the news, bruising the many hedge funds shorting Norwegian’s stock.As with WeWork, Norwegian’s once giddy valuation imploded last year when investors started to doubt that the balance sheet was robust enough to support Kjos’s huge ambitions. Not content with revolutionizing transatlantic air travel, he started domestic flights in Argentina too.The stock has lost more than three-quarters of its value since April 2018, and a capital increase in January did little to stop the rot: Credit card companies became anxious about Norwegian’s prospects and held back money it was due on ticket sales. Shareholders wanted evidence that Norwegian recognized the gravity of its situation and was responding. At last that appears to be happening.Recently the company secured a two-year extension on about $380 million of debt that was about to mature. Norwegian has also reined in costs and sold aircraft. Meanwhile, capacity growth is expected to be flat this year and may decline by as much as 10% next year. That sounds like heresy for a growth company but it’s the right answer in such desperate circumstances.This doesn’t mean Norwegian’s in the clear. The June to September quarter is always good for airlines, while the winter months are much tougher because there are fewer passengers and there’s less cash coming in. Boeing Co.’s inability to restart deliveries of the 737 Max passenger jet creates additional costs for Norwegian, which is a big buyer of the aircraft, and it’s still not clear when these issues will be resolved. For now, though, Norwegian is proof that losing a charismatic founder needn’t destroy a company’s fortunes. Indeed, it might be just the ticket.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis 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.
- Reuters
Norwegian Air shares jump as fleet deal, earnings ease pressure
Norwegian Air unveiled higher-than-expected earnings and a deal to offload 27 new Airbus jets, sending its shares sharply higher on hopes that the low-cost carrier can avoid becoming the latest in a series of airline collapses. The carrier on Thursday posted third-quarter net income of 1.67 billion crowns (£141.9 million), raised its 2019 savings goal and outlined plans to cut capacity while increasing operating profit by 4 billion crowns over two years. Under a long-awaited joint venture, Norwegian will sell its A320 NEO planes on order from Airbus to a new leasing company 70% owned by China Construction Bank , generating a much-needed cash profit on each aircraft due in 2020-2023.
- Reuters
Norwegian Air, JetBlue tie up to expand transatlantic network
Norwegian Air and New York's JetBlue Airways plan a partnership enabling passengers flying between Europe and the United States to continue to multiple destinations under a single booking, potentially boosting traffic and average fares. The airlines said in a joint statement on Thursday that if agreed the partnership would come into effect in the middle of next year. Norwegian, Europe's third-largest budget carrier, has shaken up the market for travel across the Atlantic with cut-price fares that challenge traditional carriers such as IAG's British Airways, but its breakneck expansion left it with high debts and in the red.
- Reuters - UK Focus
UPDATE 3-Norwegian Air, JetBlue tie up to expand transatlantic network
* Allow passengers to fly between Europe, U.S. OSLO, Oct 17 (Reuters) - Norwegian Air and New York's JetBlue Airways plan a partnership enabling passengers flying between Europe and the United States to continue to multiple destinations under a single booking, potentially boosting traffic and average fares. The airlines said in a joint statement on Thursday that if agreed the partnership would come into effect in the middle of next year.
- Reuters - UK Focus
Barcelona airport train and metro access briefly blocked over separatist protests
Metro and train access to Barcelona's El Prat airport were briefly suspended on Monday over separatist protests after Spain's Supreme Court sentenced nine independence leaders to years in jail. Both the metro and train have now resumed, the train operator and local police said. Reuters footage showed police in full riot gear cordoning off dozens of protesters, some of whom were hooded and wearing masks, at one of the airport's access ways.
