Norwegian reports December 2008 and annual traffic

Norwegian has reported December 2008 and annual traffic figures for its two operating arms Norwegian.no and Norwegian.se

The total number of passengers flown by Norwegian.no in December 2008 was 553,259 compared to 487,067 last year, an increase of 66,192 passengers (14%), and a 20% increase in passenger traffic.

• Total passenger traffic (RPK) increased by 20%, compared to last year.
• Total capacity (ASK) increased by 25%, compared to last year.
• The cabin factor was 74%, which is a decrease of 3 percentage points compared to the same period last year.
• The company estimates a yield around NOK 0.68 for December 2008 (+13%)

The increase in passenger traffic, production and passengers is related to the company's expansion in established markets and to the introduction of new routes from January 2008 to December 2008, as well as adjustments in production capacity and a steady increase in passengers. Domestic passenger traffic increased by 35% and capacity increased by 43%, resulting in a cabin factor of 70% which is a decrease of 5 pp compared to the same period last year. The growth is a result of shifting capacity toward new routes in the domestic market.

International passenger traffic increased by 14% and capacity increased by 18%, giving a cabin factor of 75%, which is a decrease of 3 percentage points compared to the same period last year. The operation in Poland performs according to plan.

The new base in Copenhagen accounted for approximately 3% of Norwegian.no's total production in December.

The yield is estimated at NOK 0.68 for the period (+13%). The increase in yield more than offset the decrease in load factor. The net effect is an increase in unit revenue (RASK). The average flying distance was equivalent to December last year.

Internet sales accounted for 86% of tickets sold in December.

Norwegian.se carried a total of 98,636 passengers in December 2008, compared to 100,646 in 2007, a decrease of 2,010 passengers (-2%), and a 65% increase in passenger traffic (RPK).

• Total passenger traffic (RPK) increased by 65%, compared to the previous year.
• Total capacity (ASK) increased by 57%, compared to 2007.
• The cabin factor was 75%, which is an increase of 3 percentage points compared to the same period last year.
• The company estimates a yield around NOK 0.64 for December 2008.

The yield is estimated at NOK 0.64 for the period (-29%). The development in yield and cabin factor is to a large extent due to changes in the route portfolio, with new routes and 70 % longer average flying distance.

Internet sales accounted for 90% of tickets sold in December.

"We have experienced a significant growth of 32% for the Group in 2008. The domestic market share has increased in Norway, and is now well above 45 percent on some of the major routes. We have also improved our presence in the Scandinavian market. We are very satisfied with the passenger growth, and are looking forward to 2009 with excitement. The New Year's sales campaign has so far exceeded our expectations with good margin which shows that Norwegian's low fares and attractive products stimulates the leisure market despite the turbulent macroeconomic times", says CEO of Norwegian, Bjorn Kjos.