Norwegian Breaks Records Again, But Lost a Lot of Money
Scandinavian low-cost carrier Norwegian Air is making all kinds of waves of late on February 8, Flight DY7014 traveled from New York (JFK) to London (LGW) in 5 hours and 9 minutes, beating its own commercial subsonic transatlantic speed record set just a few weeks prior by 4 minutes.
A powerful jet stream contributed to the accomplishment, pushing the Boeing 787-9 Dreamliner to a top cruising speed of 799 mph, more than 20 mph faster than last month's record.
"This is certainly a monumental coup for Norwegian as we've gone from fast growing to fastest-going," said captain Martin Wood. "We flew at 33,000 feet right in the core of the jet stream at 193 knots (222 mph), which was surprisingly smooth and pushed us toward breaking the transatlantic flight record time again on our brand new Boeing 787 Dreamliner."
Jet streams are the powerful West - to - East winds that cause eastbound flight times to be shorter than the other direction. Flight crews decide their routing on long-haul flights across the North Atlantic based, among other factors, on where jet streams are blowing on a given date, in order to take advantage of tail winds and avoid head winds. Norwegian has been especially good at finding this winter's very strong jet streams.
SkyTrax World Airline Awards has awarded Norwegian Air the title of "World's Best Long-Haul, Low-Cost Airline" for three years running, a tagline the airline has proudly adopted into its branding. Norwegian CEO Bjoern Kjos also just said that he wants to expand with routes into both Africa and the Middle East, which he said is tough to do because of what he called opposition by local politicians.
Yet not all headlines have been glowing. Kjos also said that he is "not at all satisfied" with the airline's recent financial results. The carrier just reported a net loss of €30.8 million ($38 million USD) in 2017, compared to a €116 million ($144 million) profit in 2016. The financial loss was driven by "significant" costs associated with hiring expansion as well as rising fuel prices. Excluding the increased cost of fuel, Norwegian's costs in 2017 rose by 6%.
Last year Norwegian added 32 new aircraft to its fleet, which has an average aircraft age of just 3.6 years. Several of those new planes have been Boeing 787s, far bigger (and more expensive) than the 737s forming the bulk of the fleet. That's good news for passengers and the environment, because newer and larger planes pollute less per each passenger transported, but not necessarily for investors: Norwegian shares have dropped more than 30 percent this year. The airline is betting on future growth to drive profit: more than 33 million passengers flew Norwegian in 2017, a 13% increase over 2016.
Yet, Thursday the airline said the outlook for growth and costs was worse than previously expected. A Swedbank analyst who follows the company said numbers for the second quarter of 2018 are "light years behind expectations."
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.