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Norwegian Air Shuttle operating loss seen to expand to NOK243m Q1 2010.


21 April 2010 - Low-cost carrier Norwegian Air Shuttle ASA (OSL: NAS) is expected to see its operating loss expand to NOK243m in the first quarter of 2010 from NOK134m a year earlier, according to the average estimates of four analysts, polled by SIX Estimates.

However, the company's sales are projected to grow to NOK1.608bn in January to March 2010 from NOK1.387bn, according to the average estimates of five analysts.

The loss before interest, tax, depreciation and amortisation is estimated to widen to NOK194m from NOK102m over the period.

The pretax loss is expected to expand to NOK246m from NOK150m and the net loss -- to NOK179m from NOK110m.

"We expect big interest towards Norwegian Air Shuttle's first-quarter report (...) We think the interest will mainly be related to the company's cost-estimates as a result of the volcanic ash and what implications this will have on future bookings. We have registered that more companies are requesting the employees to use alternative transport if possible, due to fears for new restrictions in the airspace," analyst Nicolay Dyvik with SEB Enskilda told SIX News.

He expects that the focus in the future will be on the yield development, as well as on unit costs.

The participants in the poll were ABG Sundal Collier, Arctic Securities, Fondsfinans, Handelsbanken Capital Markets and SEB Enskilda.

The air carrier is due to release its report for the first quarter of 2010 on 22 April.

(EUR1 = NOK8)

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Publication:Airline Industry Information
Article Type:Brief article
Geographic Code:4EXNO
Date:Apr 21, 2010
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