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BBT July/August 2018
July/August 2018
For Business, Corporate Travel & Meeting Buyers & Arrangers

Norwegian financial recovery continues

Norwegian aircraft taking off

Low-cost carrier Norwegian has maintained its path to financial recovery, reporting a net profit of just over £28 million in the second quarter.

The news shows an impressive turn-around on last year’s results, with the carrier losing more than £64 million in the second quarter last year.

Norwegian says the profit comes as a result of a 9 per cent reduction in unit costs (or 19 per cent excluding fuel), which it points out happened despite the airline seeing its highest-ever available seat kilometre growth of 48 per cent.

The carrier’s revenue per kilometre (RPK) was up 46 per cent.

Norwegian is rapidly expanding its route network and has introduced several new aircraft to its fleet, including three B787-9 Dreamliners, two B737 MAX 8s. By the end of this year, the carrier will have taken delivery of 25 aircraft. Its average fleet age is 3.7 years.

Bjorn Kjos, CEO of Norwegian, commented: “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.”

norwegian.com

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