The young low-cost airline Flyr is facing a frosty winter, as the carrier had to announce that numerous routes had to be paused. The background is that the so-called cash burn is to be greatly reduced.

The capacity is to be reduced by around 50 percent. As a result, many routes will be temporarily suspended and those that remain will be served less frequently. Between November 2022 and March 2023, the aim is to save the equivalent of around 38,5 million euros in operating costs. At the same time, it is announced that it intends to reactivate the routes in the 2023 summer timetable.

Flyr received AOC and operating license from the Norwegian authorities in June 2021. On June 30, 2021, the first commercial flight was carried out. In the meantime, the fleet has grown to six Boeing 737-800 and B737 Max 8 each. The 12 machines are not owned by the carrier but are leased. Leasing contracts have already been signed for two more Max 8s.

Winter booking figures far below expectations

Most recently, Flyr explained that the 2022 summer flight schedule was very successful. The highest capacity utilization in the company's history was achieved. However, no specific information was given on the income. For the 2022/23 winter period, far fewer tickets could be sold than originally assumed. Therefore, one wants to pull the emergency brake to avoid higher losses.

“We face a challenging winter season, with consumer spending expected to fall sharply following recent interest rate hikes, high headline cost inflation and record high energy prices. This is hitting the airline industry and Flyr as a business hard and will result in reduced demand for air travel. This and the persistently high kerosene prices leave us no choice but to adjust our route offering for the coming winter season. Unfortunately, this also forces us to dismiss some of our dear colleagues. However, our goal is to take on as many as possible on a voluntary basis. With these measures, we are in a good position to be able to hit the ground running next spring and summer,” says Flyr Managing Director Tonje Wikstrøm Frislid, who agrees that there is no choice but to make the extensive cuts.

Lack of availability in travel agencies as a strong disadvantage

In the 2022/23 winter timetable, only those routes that have good advance booking figures and a high yield will be used. Specifically named were the destinations Las Palmas, Rome, Paris, Barcelona, ​​Brussels, Malaga, Alicante, Berlin and Nice, as well as within Norway from the capital to Trondheim and Bergen. Furthermore, some holiday destinations will be headed for temporarily around Christmas and New Year.

“We are seeing satisfactory demand on our routes to European holiday destinations and will continue to offer a selection of popular destinations next winter. At the same time, we have to admit that it has taken longer than expected to retain business travelers on domestic routes in Norway, where the incumbent airlines hold large market shares. Developing solutions for distribution through travel agencies, where most business travelers book their flights, has also taken too long. In addition, it was not to our advantage that the Norwegian government provided our main competitors with multi-billion NOK financial aid for Covid-19,” said Frislid.

At the start of the 2023 summer timetable period, Flyr intends to resume those routes that will be discontinued shortly. The company is forecasting high demand to exceed this year's levels. They also want to introduce a frequent flyer program, expand further and build a "winter-safe" network.