Norwegian Air claims the grounding of Boeing's 737 MAX jets will cost the airline up to $58 million, as reported in the company's first quarter results.
Boeing's decision to ground its entire fleet of 737 MAX aircraft following a fatal accident in Ethiopia last month, has meant that Norwegian Air has been forced to lease other aircraft and rebooking passengers on other flights. This has impacted the airline after it posted first quarter pre-tax losses of approximately $231 million.
“I’m pleased with the positive developments this quarter, despite the 737 MAX issues. We have taken a series of initiatives to improve profitability by reducing costs and increasing revenue, “ Norwegian CEO Bjørn Kjos said. “We are optimising our base structure and route network to streamline the operation as well as divesting aircraft, postponing aircraft deliveries and not least implementing our internal cost reduction program, which will boost our financials. I am also pleased that booking figures and overall demand for the coming months look promising.”
Norwegian reported revenue of $928 million in the first three months of this year, up 14% on the same period in 2018.