NAS.OL - Norwegian Air Shuttle ASA

Oslo - Oslo Delayed price. Currency in NOK
38.20
-0.28 (-0.73%)
At close: 4:25PM CET
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Previous close38.48
Open39.10
Bid38.20 x N/A
Ask38.23 x N/A
Day's range38.01 - 39.30
52-week range26.69 - 78.31
Volume1,911,117
Avg. volume2,095,345
Market cap5.988B
Beta (5Y monthly)0.93
PE ratio (TTM)N/A
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target estN/A
  • Ryanair Boss Might Get His $110 Million Bonus
    Bloomberg

    Ryanair Boss Might Get His $110 Million Bonus

    (Bloomberg Opinion) -- When shareholders narrowly voted to approve a possible 99 million euros ($110 million) bonus for Ryanair Holdings Plc boss Michael O’Leary in September, it seemed unlikely they’d actually have to pay him the money.The terms of the reward plan require O’Leary to get the stock price back above 21 euros, and at the time of the annual meeting it was languishing at less than 10 euros. (Alternatively he needs to double net profit).How times have changed. On Friday the shares jumped as much as 11% after Ryanair reported stronger than expected Christmas sales and ticket prices. The stock has gained almost two-thirds since the AGM, meaning O’Leary’s windfall is back within grasp. His stock options are triggered if the share price exceeds 21 euros for a four-week period between April 2021 and March 2024.A year ago I wrote that Ryanair’s bonus plan is pretty egregious because the share price might jump for reasons that have nothing to do with O’Leary’s skills as a manager. Guess what? That’s exactly what has happened — in myriad fortunate ways. European stocks have rallied since September thanks in part to the massive liquidity boost provided by the U.S. Federal Reserve. And airlines stocks in general have far outstripped the average for a variety of economic and structural factors.Boris Johnson’s thumping U.K. election victory means a no-deal Brexit is off the table (for now) and has boosted the pound, which is positive for Ryanair’s British revenues. And Thomas Cook Group Plc’s insolvency and cash-strapped Norwegian Air Shuttle’s diminished ambitions have supported ticket prices because of less competition.Another factor supporting prices is the grounding of Boeing Co.’s 737 Max following two fatal crashes, which means an expected surge of aircraft capacity hasn’t materialized.Ryanair is, of course, a big 737 Max customer and Boeing’s inability to deliver those planes has been extremely disruptive for O’Leary and limited his ability to expand. Yet one silver lining is that his airline has cut back on less profitable routes and is no longer struggling with a pilot shortage, which contributed to recent labor unrest and investor concerns about rising personnel costs. One day the 737 Max will fly again, at which time a capacity glut will probably re-emerge; analysts at Citigroup Inc. note the size of the 737 Max order book in Europe is equivalent to 9% of the continent’s entire aircraft fleet.While analysts have turned more positive on Ryanair shares, the stock is 14% higher than their average price target, according to Bloomberg data. Based on the company’s updated profit guidance for the year to March of about 1 billion euros, the stock trades on a steep 18 times earnings. Higher fuel prices amid the conflicts in the Middle East could yet bring the airline sector back down to earth.Still, O’Leary has a decent shout at getting his money for doing very little. That shows how misguided Ryanair’s pay practices were.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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Willie Walsh Wasn't Everybody's Favorite Pilot
    Bloomberg

    Willie Walsh Wasn't Everybody's Favorite Pilot

    (Bloomberg Opinion) -- A perennial risk in the airline industry is that executives splash money on shiny new planes but fail to make an adequate return. Willie Walsh, the chief executive officer of International Consolidated Airlines Group, has tried to do things differently by — shock! — insisting that the British, Irish and Spanish airlines he oversees make decent money. (Created in 2011, IAG now comprises British Airways, Spain’s Iberia, Ireland’s Aer Lingus and the no-frills Vueling and Level units).Nonetheless, the announcement on Thursday of his retirement won’t be mourned by all. His outspokenness and focus on the bottom line didn’t always endear him to customers, employees or suppliers. The moniker “Slasher Walsh” has stuck with him since his days running Aer Lingus, when he cut thousands of jobs and sold the company art collection.Today some British Airways customers lament that the “world’s favorite airline” isn’t as polished as it was — a series of IT glitches haven’t helped. Aircraft maker Airbus SE, engine supplier Rolls-Royce Holdings Plc and Heathrow airport have all received a tongue-lashing from Walsh lately.Investors are a different story. They admired his disciplined approach to capital allocation and his persistence in trying to consolidate the fragmented European industry under the IAG umbrella. This holding company structure has become fashionable — Rynair Holdings Plc and Germany’s Deutsche Lufthansa AG are copying it, and no wonder.If done well, knitting together national carriers like this should bring the cost-saving advantages of scale without compromising brand identities (or provoking political opposition to mergers). Walsh has been a keen acquirer but he also knew when to back off; he showed fortitude last year by acquiring a small stake in Norwegian Air Shuttle ASA in anticipation of a possible bid, and then walking away when his expectations weren’t met.IAG’s operating margins have steadily expanded, allowing the company to increase shareholder returns. Dividends and buybacks have totaled 4.1 billion euros ($4.6 billion) since 2015. Since 2011 the shares have returned 190% with dividends reinvested, about 13% a year. That’s not shabby considering the desperately low valuations investors ascribe to airlines. IAG trades on less than 7 times estimated earnings.Walsh’s departure feels like the end of an era, and he’s not the only long-timer nearing the departure gate. Tim Clark is stepping down from Emirates and Michael O’Leary is giving up directly overseeing Ryanair to focus on its new holding structure.  IAG’s in decent shape but perhaps this is a good moment to be leaving the cockpit. The new decade will probably be hard for airlines. While Walsh has committed to achieving net zero emissions, environmental taxes may yet curtail his company’s growth ambitions or require expensive investments in even more fuel-efficient jets. His replacement, Luis Gallego of Iberia, will have to be equally disciplined.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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Airline stocks drop as problems mount for Boeing and oil rises
    Yahoo Finance UK

    Airline stocks drop as problems mount for Boeing and oil rises

    Stocks in airline and aerospace companies sold off on Wednesday amid a flurry of bad news for the sector.

  • Norwegian Air makes progress on turnaround plan after cutting capacity by a quarter
    Reuters

    Norwegian Air makes progress on turnaround plan after cutting capacity by a quarter

    Norwegian Air cut its capacity by a quarter in December, removing loss-making routes as it made headway on its plan to regain profitability, traffic data from the budget carrier showed on Tuesday. The airline has shaken up the transatlantic travel market with low fares, but breakneck expansion and the forced grounding of its Boeing 737 MAX fleet also brought mounting debts and losses. Norwegian has raised funds from investors three times in 20 months to prevent it from joining the ranks of airlines that have collapsed due to industry overcapacity.

  • Norwegian Air hoping to agree Boeing 737 MAX compensation this year
    Reuters

    Norwegian Air hoping to agree Boeing 737 MAX compensation this year

    Norwegian Air hopes to agree compensation from Boeing by year-end over the grounding of the 737 MAX, the airline's acting CEO said, as it counts the costs of having 18 of the aircraft grounded since March. "The dialogue (with Boeing) has been ongoing since summer and we hope to come to an understanding before the end of the year," acting Chief Executive Geir Karlsen said in a podcast made on Dec. 11 and released by brokerage DNB Markets on Dec. 18. Norwegian has 92 737 MAX aircraft on order.

  • Boeing 737 Max suspension sends shockwaves through airline industry
    Yahoo Finance UK

    Boeing 737 Max suspension sends shockwaves through airline industry

    Shares in engineering firms and airlines dropped across Europe after Boeing said it was pausing production of the troubled 737 MAX.

  • Reuters

    Fewer flights help Norwegian Air improve profitability

    November traffic figures show Norwegian Air's drive to slash flights is helping to improve profitability, sending the debt-laden airline's shares up 6% in early Thursday trading. The company is targeting a 10% cut in ASK for 2020 from 2019, it said in October.

  • Reuters - UK Focus

    UPDATE 3-Fewer flights help Norwegian Air improve profitability

    November traffic figures show Norwegian Air's drive to slash flights is helping to improve profitability, sending the debt-laden airline's shares up 6% in early Thursday trading. The cut-backs helped the budget carrier fill remaining flights, increasing the number of seats sold on each aircraft as well as income per passenger.

  • Reuters - UK Focus

    UPDATE 2-Norwegian Air to end routes from Sweden, Denmark to U.S, Thailand

    Budget airline Norwegian Air is ending flights from Copenhagen and Stockholm to the United States and Thailand due to weak demand and technical problems affecting the engines on its Boeing 787 Dreamliners, it said on Wednesday. Flights between Oslo and the United States would continue, while routes between Norway and Thailand were under review, it said, the latest initiative to cut costs and restore profits after rapid expansion left the carrier weighed down by debt. "Scandinavia isn't big enough to maintain intercontinental flights from Oslo, Stockholm and Copenhagen," Senior Vice President Commercial Matthew Wood said in a statement.

  • Norwegian Air to end routes from Sweden, Denmark to U.S., Thailand
    Reuters

    Norwegian Air to end routes from Sweden, Denmark to U.S., Thailand

    Budget airline Norwegian Air is ending flights from Copenhagen and Stockholm to the United States and Thailand due to weak demand and technical problems affecting the engines on its Boeing 787 Dreamliners, it said on Wednesday. Flights between Oslo and the United States would continue, while routes between Norway and Thailand were under review, it said, the latest initiative to cut costs and restore profits after rapid expansion left the carrier weighed down by debt. "Scandinavia isn't big enough to maintain intercontinental flights from Oslo, Stockholm and Copenhagen," Senior Vice President Commercial Matthew Wood said in a statement.

  • Airlines get ready for jet biofuel take-off in Norway
    Reuters

    Airlines get ready for jet biofuel take-off in Norway

    Airlines are confident of having sufficient supplies of biofuel-infused jet fuel to comply with a Norway requirement which takes effect next year, although they warn of additional costs. From January, jet fuel suppliers in Norway must blend 0.5% of biofuel in all their aviation fuel, a policy Oslo hopes will boost supply and demand and lead to lower CO2 emissions. Although aviation biofuel suppliers say it can cut the carbon footprint of airlines by up to 80%, it costs four times as much as normal jet fuel, which has so far curtailed usage and therefore demand for increased production.

  • Norwegian Air appoints industry outsider as new CEO to lead restructuring
    Reuters

    Norwegian Air appoints industry outsider as new CEO to lead restructuring

    Loss-making Norwegian Air has appointed Jacob Schram as chief executive to take charge of the budget carrier's restructuring as it struggles with a low-cost, long-haul model in an overcrowded industry. Schram, who does not have a background in aviation, joins Norwegian from management consulting company McKinsey and was previously a top executive in the petrol retail industry, Norwegian's board said on Wednesday. Schram, 57, will be tasked with cutting costs and making the airline profitable again after the breakneck expansion left it with hefty losses and high debts, forcing it to repeatedly ask shareholders for new funds to stave off collapse.

  • Reuters - UK Focus

    UPDATE 4-Norwegian Air appoints industry outsider as new CEO to lead restructuring

    Loss-making Norwegian Air has appointed Jacob Schram as chief executive to take charge of the budget carrier's restructuring as it struggles with a low-cost, long-haul model in an overcrowded industry. Schram, who does not have a background in aviation, joins Norwegian from management consulting company McKinsey and was previously a top executive in the petrol retail industry, Norwegian's board said on Wednesday.

  • Norwegian Air to fly three new non-stop U.S.-Europe routes
    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.

  • Are Passenger Jet Engines Hitting Their Technical Limits?
    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.

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