Airlines slash Northern departures

EPECTATIONS OF A âdifficultâ winter season has led two regional airlines to slash departures on their northern Norwegian routes this winter.
In announcements released on Tuesday, Flyr and Widerøe predicted drastically reduced demand for domestic travel in Norway as a result of rapidly rising consumer prices, at the same time as both airlines were struggling with higher energy prices and interest-rate hikes.
Christian Skaug, the Widerøe marketing director, said: âWeâre not encouraged by the way the market looks. The Norwegian economy has slowed rapidly and, not surprisingly, this has an effect on the demand for air travel.â
The decline is especially sharp among holiday and leisure travellers. The segment had otherwise rebounded strongly this summer after pandemic restrictions had been relaxed. Business travel, according to Mr Skaug, has not returned to pre-pandemic levels.
Persistently high fuel prices and the re-introduction of a passenger tax have significantly increased costs for airlines in Norway, but significant overcapacity and tough price competition on the Norwegian domestic market have made it impossible for airlines there to pass the increased costs on to passengers.
Tonje Wikstrøm Frislid, Flyrâs managing director, called the decision to focus on its holiday routes to southern Europe this winter âdisappointingâ but necessary to ensure the airlineâs survival.
By reducing departures in northern Norway and laying off staff, Flyr hopes to cut its costs this winter by 50%.
âIt was a difficult decision that we hoped we would not have to make. But demand isnât at the level we need it to be. This particularly true of business travellers, who havenât returned.â
Mr Frislid expects to begin to return to normal service in the spring.
Hans Jørgen ElnĂŚs, an airline industry analyst, told NRK, a news outlet, that airlines would likely see renewed demand in 2023, but said this winter would be tough to get through for airlines, and expected that SAS and Norwegian, Norwayâs two largest airlines, to announce similar reductions soon.
âThere are a lot of things that are hitting people and businesses in their wallets. The result is falling demand and airlines need to do something in response.â