Norwegian today reported its third quarter 2020 results. As anticipated, these were heavily impacted by the COVID19 pandemic with a net loss ofNOK 980 million . Norwegian carried approximately one million customers, a decrease of 91 per cent compared to the same period last year showing a slight improvement on the previous Q2 decrease of 99 per cent. Norwegian continued to successfully convert debt and implement a series of cost-reduction measures throughout the third quarter. Demand was severely affected by changing travel restrictions and a secondary wave of reported COVID-19 infections across our key markets which led to fluctuating and decreasing demand. Approximately 25 short haul aircraft were operational during the third quarter out of a current total fleet of 140. A significant financial restructuring process has been ongoing since the pandemic hit, reaching several new milestones during the third quarter of 2020. Further conversion of lease liabilities and vendor debt to equity as well as the powerby-the-hour arrangements had a combined positive equity effect ofNOK 2.9 billion in the quarter. Year to date, the restructuring improved equity byNOK 18.2 billion .Jacob Schram , CEO of Norwegian, said: "Our third quarter results clearly show that the effects of the global COVID-19 pandemic continue to heavily impact our operations and financial position. Changing government travel advice and further restrictions as a result of a second wave of infections seen in many countries have further contributed to a decrease in customer confidence and certain routes becoming once again unviable leading us to rapidly adapt our network. We continue to work tirelessly to make sure that we can emerge from this crisis as a stronger company, well-positioned for future competition and thank our creditors, bondholders and shareholders who have shown us strong support throughout." During the third quarter, approximately one million customers travelled with Norwegian, compared with 10.53 million during the same period previous year. Production (ASK) was down 94 per cent and passenger traffic (RPK) decreased by 96 per cent. The load factor was 60.6 per cent, a decrease of 30.6 percentage points compared to the third quarter of 2019. Punctuality, share of flights departing on schedule, was 97.4 percent in the third quarter of 2020, increased by 22.7 percentage points compared to 74.7 percent in the third quarter of 2019 Norwegian has continued to mitigate the risks and uncertainties by several measures aiming to minimize cash burn, secure funding and improve the financial position of the company. Among other measures, the company has grounded most of its aircraft and temporarily laid off most of its staff. Norwegian has undergone a revitalization of the company's organizational structure, strategy, business plans and top management levels in order to emerge from the COVID-19 pandemic as a more competitive and profitable airline. Norwegian will consider further changes to production during the winter season and beyond based on travel advice and restrictions from governments in the company's markets and on customer demand. "I am very proud of the immense challenges that colleagues from across the airline have overcome to reduce our immediate and long-term costs, rebalance our debt and continuously adjust our network to reflect the changes in passenger demand and evolving travel restrictions. Together we have demonstrated the continued spirit of our Red Nose Warriors that can be found at every level within our company in the face of the deepest crisis that our industry has ever seen. But this alone is not enough, this crisis is far from over and as we enter the traditionally more difficult winter trading environment it is crucial that the Norwegian aviation industry receive further support if we are going to survive and get through this unprecedented situation and emerge ready to support the economic recovery of the Nordics from 2021 onwards," said Schram. OnNovember 9 , the government ofNorway announced that they declined further financial support. This announcement, combined with newly imposed strict COVID-19 measures, leaves the company in a challenging situation. The company is currently evaluating the effects of the current situation with an aim to safeguard the interest of all stakeholders. Fornebu10 November 2020 Norwegian Air Shuttle ASA
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