Norwegian reports Q2 profit

Eleanor Steed
By Eleanor Steed July 12, 2018 14:35

Norwegian reports Q2 profit

Norwegian (NAS) has reported its second quarter earnings for 2018 with a net profit of NOK 300 million. The net result compared to a loss of NOK 691 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% excluding fuel. One-offs have also this quarter contributed to the cost reduction. The costs are lower despite Norwegian’s highest ever production growth (ASK) of 48% and increasing fuel prices. Norwegian’s traffic growth (RPK) this quarter was 46%. Going forward, the growth will slow down and ramp-up costs will decrease, in line with Norwegian’s strategy, says the airline.

The airline carried ten million passengers during the second quarter, an increase of 16%. The load factor for the second quarter was 86.8%, down 0.9 percentage points compared to the second quarter last year.

“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 CEO of Norwegian, Bjørn Kjos.

During the second quarter, Norwegian has introduced three 787-9s and two 737 MAX 8s to its fleet. In total, this year Norwegian will take delivery of 11 787-9s, 12 737 MAX 8s and the two 737- 800s aircraft that have already been delivered.

Eleanor Steed
By Eleanor Steed July 12, 2018 14:35