Forward bookings lift at Norwegian, sending shares flying

posted on 6th July 2021 by Eddie Saunders
Forward bookings lift at Norwegian, sending shares flying

By Millie Turner |

Shares were sent flying at budget airline Norwegian this morning after it posted a lift to its forward bookings and had high hopes for end-of-summer travel.

Norwegian, also known as Norwegian Air Shuttle, has enjoyed the benefits of pent-up demand and gradually easing restrictions which has sparked confidence in flyers and carriers.

June’s traffic figures were knocked by restrictions and quarantine costs which deterred travellers, however, the airline said they are set for further growth.

225,509 passengers flew with Norwegian last month, which is a near 100 per cent more than at the same time last year.

The airline’s figures sent shares flying this morning, soaring 8.6 per cent to 12.7p per share.

“June traffic results still show the impact of low demand due to reduced flying schedules and government-imposed travel restrictions. However, we have seen a continued month on month increase in bookings as countries ease restrictions,” CEO Geir Karlsen said.

The airline has higher hopes for July in which it says the number of aircraft and routes will increase.

The Norwegian boss also said that it has “resumed flights to a number of key European destinations” and will increase its network and schedules as demand rises.

It comes as Boris Johnson unveiled a list of regained freedoms in England last night, however, the prime minister held back on details regarding the highly anticipated return of travel.

Johnson hinted at a return to mass leisure travel in time for the end of the summer season, which garnered a tepid response from industry figures. chief executive Andrea Bertoli said the industry “really needed” the announcement to allow fully vaccinated people to return from or visit amber list countries without quarantine.

“It will be a last-minute summer as UK holidaymakers are just waiting to have a stable context to pack their bag and head south to a nice beach in the Mediterranean,” Bertoli said.