After reporting a net loss for 2017, low-cost carrier Norwegian has reported signs of recovering from a period of investment, with earnings for the first quarter improving.
The net result for the quarter was a loss of £4.16 million, compared to nearly £135 million in the first quarter of 2017. Norwegian says this is a result of a financial gain from reclassification of the investment in Norwegian Finans Holding of around £175 million.
In addition, the carrier says its unit cost excluding fuel dropped 5 per cent.
With the airline’s fleet growing rapidly in the past few years, passenger numbers increased to 7.5 million in the quarter – up 12 per cent year on year. Capacity growth was at 36 per cent and load factor was 84.5 per cent.
Norwegian says its expansion into US destinations made the American market its strongest in terms of growth.
Following the news that International Airlines Group (IAG) purchased a 4.6 per cent share in the airline, Norwegian says it has received several inquires and has established a steering committee and started conversations with judicial and financial advisors to “review the situation”.
Bjorn Kjos, CEO of Norwegian, commented: “Norwegian has been through a long period of strong growth, which will reach its peak by the second quarter this year. Going forward, additional capital will boost competitiveness and protect existing and future investments in a market characterised by higher oil prices and fluctuating currencies.”