Norwegian Air Shuttle shares: Price analysis before trading

Can I receive dividends when I buy Norwegian Air Shuttle shares?

No

Information on Norwegian Air Shuttle shares

ISIN code: NO0010196140

Ticker: FRA: NWC

Index or market: OBX

How to buy and sell Norwegian Air Shuttle shares?

Open an account by clicking here

Deposit Funds

Search Norwegian Air Shuttle (FRA: NWC)

Buy/Sell Norwegian Air Shuttle shares

Your capital is at risk

Elements to consider before selling or buying Norwegian Air Shuttle shares

Analysis N°1

First, closely follow the strategies put in place by the group in order to achieve its goal of becoming one of the leaders of long-haul LCC around the world.

Analysis N°2

The creation of new air routes by Norwegian Air Shuttle is also part of the events to follow for this fundamental analysis because this would allow the group to broaden its reach and gain new customers, especially internationally.

Analysis N°3

The establishment and development of new customer services aimed at increasing their loyalty through a marketing strategy is also an important element to take into account.

Analysis N°4

You should also closely monitor the group's competition in its sector of activity with the main airlines operating in the same segments as well as low cost airlines which have been gaining ground in recent years.

Analysis N°5

The cost of energy raw materials and more specifically of fuel is a factor that can impact the group's profitability and therefore its stock market share.

Analysis N°6

Finally, pay attention to the group's advertising campaigns which are currently less frequent and qualitative than those of the competitors and which could therefore harm this company.

Analysis before buying or selling Norwegian Air Shuttle shares

Buy Norwegian Air Shuttle shares

Sell Norwegian Air Shuttle shares

Your capital is at risk

General presentation of Norwegian Air Shuttle

Now let's take a few moments to take a look at Norwegian Air Shuttle and its business. With perfect insight of the sources of income of the company, you’ll have more chances to anticipate the possibilities of development and growth.

The Norwegian Air Shuttle group is a Norwegian airline company which operates in three main areas of activity, details of which are as follows:

First of all, passenger transport services represent the major part of the group's activities since it generates more than 80.9% of the total turnover of this company.
Next come the services which represent 15.3% of the group's turnover with reservation, baggage management and ticket sales services.
Freight transport services represent 1.7% of the company's turnover.
Finally, the balance of turnover, i.e. 2.1%, comes from a few ancillary activities.

It is also interesting to know the geographical distribution of the turnover of Norwegian Air Shuttle which generates only 19.9% of its turnover in Norway. The rest, 19.1% from the United States, 13.8% from Spain, 10.2% from the United Kingdom, 7.9% from Sweden, 6.8% from Denmark, 4.5% from France, 2.8% from Finland, 2.8% from Italy, 1.7% from Argentina and 10.5% from the rest of the world.

The group currently employs around 9,389 people.

Photo credits: ©ewastudio/123RF.COM

The major competitors of Norwegian Air Shuttle

It's also important to know the main competitors of Norwegian Air Shuttle well in order to integrate them into your analyses of this value. Here is a presentation of its most important adversaries in its market:

EasyJet

This British low-cost airline is one of the main competitors of Norwegian Air Shuttle and is the second European company in terms of passengers. This company is owned by Stelios Haji-Ioannou through its participation in Easygroup, a company registered in Jersey. EasyJet employs nearly 10,000 people and has been in existence since 1995 after a loan of 5 million pounds from the father of Stelios Haji-Ioannou, a ship-owner from Cyprus. EasyJet is listed on the London Stock Exchange and is part of the FTSE 100 stock index.

Finnair

This other airline this time is a Finnish company and the flag carrier of the Republic of Finland. This company operates mainly from Helsinki-Vantaa airport and is the leader in the domestic and international air markets in Finland. The group is 60% owned by the Finnish state and 20% by foreign investors. The shares of this company are listed on the Helsinki Stock Exchange. Finnair is also a member airline of the Oneworld alliance.

Scandinavian Airlines System

Also known as SAS AB, this Scandinavian airline is arguably Norwegian Air Shuttle's most direct competitor. It previously owned the regional airline Wideroe and the now defunct airlines Aerovias Guest, Spanair, Braathens, Flyyelskap, bmi and Bluel. It still owns 37.5% of Air Greenland and 2.66% of Estonian Air today.

The major partners of Norwegian Air Shuttle

Now, let's take a look at the strategic alliances that the Norwegian Air Shuttle group has put in place in the past and which may have an impact on its stock market price. Here are two tangible examples of partnerships that have had repercussions on this value and its evolution.

JetBlue

First of all, the Norwegian Air Shuttle group signed a partnership with JetBlue in 2019 with the aim of allowing passengers to make a single reservation to combine their Norwegian transatlantic flight with a connecting flight from the JetBlue network in the United States, Latin America or the Caribbean. Since then, flights can be booked on the websites of the two companies and allow two huge complementary networks to be associated. This partnership entered into force during the summer of 2020. Another benefit of this alliance is that it will connect the JetBlue network, which provides flights to over 60 American cities and 40 cities in the Caribbean and Latin America, to the Norwegian network through New York JFK, Boston and Fort Lauderdale airports. Passengers' luggage can also be checked in for their entire journey.

Ryanair

Finally, the second past partnership was signed in 2017 with Ryanair aimed at competing with large companies by offering their respective passengers the benefit of an extended network of transatlantic medium and short-haul flights. The merger of these two entities has made it possible to promote connectivity between the flights of each of them. Norwegian Air Shuttle has therefore been able to supply its transatlantic lines by relying on Ryanair's short and medium-haul network.

Trade the Norwegian Air Shuttle share!

Your capital is at risk. Performance is not a guide to future performance and is not constant over time.

The factors in favour of a rise in the Norwegian Air Shuttle share price:

Before we begin to analyse the Norwegian Air Shuttle share price, it is important to understand how this company may perform in the face of certain threats or opportunities in the future. To do this, it is interesting to know the main strengths and weaknesses of this company and therefore the advantages and disadvantages of this stock.

Let's start by summarising the main strengths that the Norwegian Air Shuttle Group has at the moment:

First of all, we can emphasise that the group offers high-frequency domestic flights. This gives it a strong presence and a significant foothold in the domestic market.
In terms of financial analysis, it can also be noted that the growth in market share and net revenues generated by the group is largely positive and higher than that of its peers. This reflects the financial strength and quality of the group's profitability strategy.
The Norwegian Air Shuttle Group also enjoys a strong presence and excellent brand image in the region in which it operates.
The company also benefits from a very good customer orientation, which gives it an excellent reputation among its customers.
Norwegian Air Shuttle's development and growth prospects are also very good. Indeed, the company intends to become one of the world's leading long-haul LCCs.
Norwegian Air Shuttle also has interesting prospects for its development in the years to come. Indeed, the company plans to expand its reach by establishing new routes to international destinations and thus multiplying its sources of revenue from other markets.
Finally, it is known that the company is currently investing heavily in marketing strategy, particularly in the quality of its customer service and in increasing customer loyalty.

The factors in favour of a drop in the Norwegian Air Shuttle share price:

Of course, the Norwegian Air Shuttle group also has weak points that are disadvantages for its share price. Here is a summary of the company's most important weaknesses:

Among the group's main weaknesses is the fact that the company is not currently a member of any airline alliance, which is not the case for its major competitors.
It is also regrettable that the current frequency of flights to international destinations is significantly lower than that of other local companies. This can have an impact on customer retention and profitability.
Similarly, Norwegian Air Shuttle's main competitor, the SAS group, is financially supported by the state, which gives it a serious competitive advantage.
The current rise in oil prices is also a brake on the profitability of Norwegian Air Shuttle, which is obliged to increase its fares to maintain its margins.
Finally, the group has certain shortcomings in terms of marketing and advertising strategy compared to competitors who invest more in their customer communication.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

When and how was Norwegian Air Shuttle created?

The Norwegian Air Shuttle group was created in 1993 by the takeover of the regional Busy Bee operations from Brathens which provided charter flights in western Norway with three Fokker 50s. A few years later, in 1999, the group was carrying nearly 500,000 passengers with 6 aircrafts. In 2001, Brathens was acquired by SAS Scandinavian Airlines, which ended Norwegian Air Shuttle's collaboration with it.

Who are the different subsidiaries owned and operated by Norwegian Air Shuttle?

The Norvegian Air Shuttle group operates through several airlines. Of course, it operates the company of the same name, Norwegian Air Shuttle, but also other airlines including Norwegian Long Haul also in Norway, Norwegian Air International in Ireland, Norwegian Air UK in the United Kingdom and even Norwegian Air Argentina in Argentina. The group may subsequently develop other companies and subsidiaries of this type.

How to anticipate a rise in the Norwegian Air Shuttle share price?

There are a number of things that can influence an uptrend in the Norwegian Air Shuttle share price that you should be aware of in your analyses. These can be fundamental elements such as economic and financial news or publications or even technical and graphic indicators.

Trade the Norwegian Air Shuttle share!

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Analysis before buying or selling Norwegian Air Shuttle shares