Thursday, 12 July 2018

Impressive profits for Norwegian during the second quarter.

The European low-cost airline that is shaking up transatlantic travel, has reported second-quarter earnings today showing a net profit of NOK 300 million, in spite of what the airline calls the highest levels of growth in its history.

The airline that recently Ryanair boss Michael O'Leary called a 'dog', posted a loss of NOK 691 million the second quarter last year, so a net profit of NOK 300 million this quarter shows this 'dog' is more a pedigree than a mutt.

Ten million passengers flew with Norwegian during the second quarter, an increase of 16 percentage points, while the load factor was down slightly to 86.8 percent. The load factor is particularly impressive considering the rapid growth the carrier has undertaken in recent times adding new bases and new routes, predominantly to the USA.   

“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.

“I’m also extremely happy and grateful that we during the past six months have received ten different awards. In June we were named Norway’s most innovative company and in July, we were awarded the “World Travel Award” for the best low-cost airline in Europe, and the “Ambassador’s Award” from the US Ambassador to Norway. The latter proves the importance Norwegian has had in terms of strengthening and building US – Norway relations and growing the countries’ economies. It shows that what we have achieved so far in the US is being appreciated and acknowledged by the US government,” Kjos continues. 

During the second quarter, Norwegian has introduced three Boeing 787-9 Dreamliners and two Boeing 737 MAX 8 aircraft to its fleet. In total, this year Norwegian 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. With an average age of only 3.7 years, Norwegian’s fleet is one of the “greenest” and most modern fleets in the world.