Norwegian reports surprise return to black for second quarter | News


Norwegian has reported a net profit of NOK300 million (£28 million) for the second quarter, despite the highest growth in the company’s history.

Going forward, the growth will slow down and ramp-up costs will decrease, in line with Norwegian’s strategy, the company said.

The net result compares to a loss of NOK691 million (£64 million) in the second quarter last year.

The result is affected by a reduction in unit costs, which has decreased by nine percent this quarter, and with 19 per cent excluding fuel.

One-offs have also this quarter contributed to the cost reduction.

The costs are lower despite Norwegian’s highest ever production growth of 48 per cent and increasing fuel prices.

Norwegian’s traffic growth this quarter was 46 per cent.

The airline carried ten million passengers during the second quarter, an increase of 16 per cent.

The load factor for the second quarter was 86.8 per cent, down 0.9 percentage points compared to the second quarter last year.

Norwegian has grown rapidly over the past years, expanding international traffic and adding new bases, destinations and markets to its portfolio.

In terms of total revenue, the US represents the strongest market outside Norway.

“Despite being at the peak of our growth phase, we have been able to present a profit and decreased unit costs during the second quarter.

“Going forward, the growth will slow down and we will reap what we have sown for the benefit of our customers, staff and shareholders,” said chief executive of Norwegian, Bjørn Kjos.

During the second quarter, Norwegian has introduced three Boeing 787-9 Dreamliners and two Boeing 737 MAX 8 aircraft to its fleet.

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