– estimates are of course uncertain, but I would estimate that airlines lose somewhere between 25 and 35 million a day. In addition, any loss as a result of that people choose to book with competitors for traveling further into the future. The losses are difficult to calculate, says Kenneth Sivertsen, an analyst at SEB.
He estimates that the strike will mainly frame the current booking.
– It is undoubtedly a costly conflict. Norwegian has the money to keep for a while, but the company can not withstand a protracted conflict that affects a quarter of revenues. The company has ordered 303 aircraft, where 250 aircraft remains for delivery the next seven years, and it has taken on huge investment amount, says Sivertsen.
70 pilots went on strike Saturday morning and Wednesday went further 650 out on strike. Meanwhile laid-off company 800 cabin crew.
Think strike ends this week
Sivertsen points out that the majority of costs are relatively fixed, but that part of the cost will fall away when the planes are on the ground, such as fuel and landing fees. It also increases certain other costs because airlines will have to lease the aircraft with crew to certain destinations.
Sivertsen do not think the strike is prolonged.
– I’ll be surprised if it lasts for over weekend. It appears that the parties have taken the first small steps towards an agreement. Therefore also stock up today. But nothing is certain.
English share has risen by 3.8 percent Thursday after news that the parties have been in dialogue.
The last week is the total down 6.3 percent.
– Can sell fly
That size of the losses is uncertain, shows deviations in analysts’ estimates. Analyst Jacob Pedersen in Sydbank think the strike cost Norwegian is somewhere between 25 and 70 million a day.
– It provides a huge scratch on the car for short and medium flights in Scandinavia, he says to news agency Ritzau, rendered Bourse .dk.
Pedersen says he does not think the strike is fatal for English and that the company has the opportunity to sell some of its aircraft and lease them back if the strike would be lengthy.
Analyst Peter Nystrom in ABG Sundal Collier says to E24 that he believes airlines can endure throughout March without raising new capital.
He has previously told Dagens Næringsliv that he estimates that airlines will lose about 15 million day if the company’s aircraft remains on the ground in Norway.
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