Business World

Wednesday 17 October 2018

Norwegian flies into profit as capacity increases

Photo: Bloomberg
Photo: Bloomberg
Ellie Donnelly

Ellie Donnelly

Scandinavian carrier Norwegian has reported a profit of NOK 300m (€31.7m) for the second quarter of 2018.

This was a swing from a loss of NOK 691m (€73m) in the same period last year.

Earnings before interest, taxation, depreciation, and amortisation for the three month period were NOK 83m (€8.7m).

The performance as driven by a reduction in unit costs, which fell by 9pc this quarter (19pc excluding fuel).

In addition, the airline reported traffic growth of 46pc for the three month period, according to an interim report from the low-cost airline.

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

Load factor at the airline for the second quarter was 86.8pc, down 0.9 percentage points.

In terms of total revenue, the US represents the strongest market for the group outside of its domestic market.

"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," CEO of Norwegian, Bjørn Kjos, said.

"Going forward, the growth will slow down and we will reap what we have sown for the benefit of our customers, staff and shareholders."

In order to increase its capacity, during the second quarter, Norwegian introduced three Boeing 787-9 Dreamliners and two Boeing 737 MAX 8 aircraft to its fleet.

In total, this year the airline will take delivery of 11 Boeing 787-9 Dreamliners, 12 Boeing 737 MAX 8 and the two Boeing 737- 800 aircraft that have already been delivered.

Next year the airline will launch a new route between Dublin and Hamilton Toronto Airport.

It's Norwegian's first-ever route from Europe to Canada, and it will be serviced with a single-aisle Boeing 737 Max aircraft. The route starts on March 31.

It also marks Norwegian's third route from the Irish capital.

Hamilton Toronto is located about 64km from downtown Toronto, a city whose primary airport is Pearson.

Earlier this year Mr Kjos has said the airline had attracted takeover interest from a number of potential bidders.

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