Flyr reports on Wednesday morning passenger revenues in the first quarter of NOK 78 million. But the costs amounted to NOK 262 million, so that the operating loss from January to March was NOK 212 million.
After tax, Flyr lost NOK 211 million in the first three months of the year. The company writes in a stock exchange release that the first quarter was characterized by the corona wave and the war in Ukraine, which affected the demand for flights.
On average, Flyr filled 58.4 percent of the seats in the first quarter. A total of 164,000 passengers flew with the low-cost carrier from January to March. But despite a challenging market, Flyr believes that there are good prospects as we now enter the summer season.
– Flyr is making progress according to plans. Our offer has been well received in the market, and we are pleased with a positive development after a long period that has been severely affected by the pandemic.
– We are now prepared for the summer season with 44 routes to 38 destinations, and early bookings indicate a significant upswing in the activities ahead, says CEO Tonje Wikstrøm Frislid in the stock exchange announcement.
In the first three months of the year, Flyr burned NOK 143 million from the underlying operation of the company, the so-called cash flow. That is almost 50 million kroner a month.
At the end of the quarter, Flyr had NOK 271 million in cash, but the company has subsequently strengthened its liquidity.
In with 1.1 billion
The company recently had to raise NOK 250 million in fresh capital from the owners, a total of NOK 1.1 billion since its inception. Several well-known investors contributed to the capital increase in May, but recently sold off.
This capital increase came only a few months after the previous one, there the small shareholders were in danger of being diluted. Large sums have been wasted during a very difficult period for aviation.
In the take-off year 2021 (first flight on 30 June), Flyr lost NOK 437 million in a year characterized by major restrictions on aviation. In the last quarter of last year, the company lost NOK 50 million a month. The government has not wanted to give Flyr corona support.
Stortap for Norwegian
The first quarter of this year has also been characterized by restrictions on aviation. Norwegian lost NOK 849 million on operations in the first three months of the year. Fewer departures and empty planes characterize operations.
The cabin factor – the fill level – for Flyr was moderate at 61.6 per cent in April, while it was 54 per cent in January and 47 per cent in December. The fleet now consists of eight aircraft.
The price development since the IPO last year has therefore been a more or less continuous downturn. As the graph below shows, the price decline is as much as 75 percent to NOK 1.14.
The market value of Flyr at the close of trading on Tuesday was NOK 719 million.
Braathen heir Erik G. Braathen (66) established Flyr AS during the corona autumn 2020 and is chairman of the board and largest owner with 8.50 percent.
The company flies between Norwegian cities and within (Southern) Europe. The low-cost airline aims to deliver the easiest flight to passengers, especially through digital services.