Flyr’s quarterly report shows that the new airline lost NOK 64.7 million in the second quarter, and NOK 87.4 million in the first six months of the year. With only one day of operation in the second quarter, the analysts’ excitement was more related to how booking passenger tickets would go after the accounts were closed.
While presenting the accounts Thursday morning, Flyr CEO Tonje Wikstrøm Frislid and Chief Financial Officer Brede Huser also took questions from Carnegie analyst Eric Raffdal about bookings for the second half of the year.
– There is little overview of the booking at the moment, with passengers who ordered tickets only a week or two before the flight departure, a short comment of Hauser.
Opposite Dagens Næringsliv, Wikstrøm Frislid explains:
– We have seen that ticket sales in July were very good, but it is difficult to predict the extent of the demand during the fall. People book tickets very short before departure, and this reduces predictability. In addition, we are less well known than other players, and we must continue to work to increase our knowledge of the market.
At the same time, Wikstrøm Frislid seems to have made a little sway in the direction of the Norwegian, who fatally learned that growth alone is not the happiness of life:
– Now we won’t grow up too fast. Nor do we believe that the market will rise to its pre-corona peak. We are vigilant and focused on maintaining a very low cost level.
This winter, Flyr raised NOK 600 million in new stock, in addition to the first effort from aviation investor and entrepreneur Erik G. Braathens with NOK 50 million. The report now shows a cash balance of NOK 514.8 million at the end of the quarter.
In an investor presentation in May, Flyr’s management believed the NOK 600 million issue amount would be enough for the company to continue operating until it becomes profitable – and all the way to having 28 aircraft in the air within three years. CFO Huser stated during the quarterly presentation Thursday morning that the company’s capital base has only been reduced in line with the company’s plan.
On Thursday, however, Flyr’s stock fell about 2.5 percent in opening trades in Bursen, but recovered soon after. There was moderate trading in the stock.
“After the quarterly report, we asked analysts and investors about our project, building an airline, and we answered that we were in place according to both financial and operational plan,” says Wikström Friesled, adding a bragging phrase “and motivated staff were crucial for us to get off to such a good start.” .
New planes next year
The Flyer took off from Oslo to Tromsø at the end of June this year, after taking delivery of the first two Boeing 737-800s earlier in the same month. Thus, there isn’t much to mention in revenue in the second quarter.
In the report, Flair wrote that one day of the operation included four flights, and that this gave a turnover of 250 thousand kroner. In July, the company had two planes in the air and expects to have three by the end of the third quarter, but here the company has experienced delays.
Earlier, Flyr’s management claimed that the airline should be able to take advantage of the decline in the market after the Corona outbreak, and charter planes at half the market price before the epidemic reached Europe.
However, when the company ramps up its investments this week with its third aircraft, it will do so with charter planes And Crew (witlease). This is due to delays from the leasing company, and Flyr has now ordered the planes and crew from Denmark’s AirSeven, according to flysmart24.no. The same medium reports that AirSeven offers an older Boeing 737-400, which flew in its heyday under the name Harald Hårfagre for Braathens SAFE. The age of the aircraft suggests that it will increase the pressure on Flyr’s capital base.
This week Flyr also had to hire help from AirBaltic.
– With the aim of “low cost level”, what would it be like to have to charter an expensive aircraft to replace delays from the aircraft supplier?
Nobody wants to use planes other than theirs, but so far we’re only talking about a few departures as we’ve had to charter planes. We’ve been so successful in taking care of our customers and staff, and we should consider some of the charter planes, as most other airlines do as well,” says Friesled.
Ruggede in the stock exchange
Flyr’s stock is trading this week for about NOK 4.70, in contrast to the subscription price of NOK 5 on the February issue.
The stock was listed on the Oslo Stock Exchange on March 1. Since then, the short-term price increase has been replaced by a more turbulent stock market period for the company — even after the first Flyr arrived in early June.
At the time, the company was still planning to use two aircraft during the summer, then expanded to eight aircraft and 350 employees during the year. Within three years of planning The company has 28-30 aircraft in the fleet.
Analysts are now waiting for the Norwegian to deliver its semi-annual report on Tuesday in just under two weeks. The next day, SAS follows the competition, but then with a report for the third quarter in SAS’s skewed fiscal year. Norse Atlantic Airways recently announced a start-up delay, but will provide an update on September 29. (Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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