Norwegian profits up in krone but down in pounds

Norwegian profits up in krone but down in pounds

Norwegian has reported a net profit of £94 million in its third quarter results.

The airline’s results reflect a 4% rise in terms of Norwegian krone on the same quarter last year, with a 1 billion NOK profit up from 993 million. But in pound sterling, its profits slumped 5% from £99 million.

Norwegian’s total revenue this quarter was 10 billion NOK (£940million), compared to 8.3 billion NOK the same quarter last year and reports that it has 5.6 billion NOK (£526million) in cash at the end of Q3.

Norwegian’s load factor increased to 92% from 91.3% against the same period last year and it carried 9.8 million passengers, a 14% rise.

The airline recorded its highest growth in the US and Spain, with passenger numbers up 79% and 25% respectively.

Ten new aircraft entered Norwegian’s fleet; four Boeing 737 MAX, one Boeing 737-800 and five Boeing 787-9 Dreamliners and the airline says its total emissions per passenger kilometre reduced by 2%.

Chief executive Bjørn Kjos said: “I am pleased with the passenger growth and high load factor this quarter. During our 15 years in the skies, almost 210 million passengers have chosen Norwegian. An increasing number of passengers in the US, Spain and other parts of the world considerably contribute to the growth, which proves that our global strategy is being realised.

“However, we have had major additional costs related to wet-leasing and compensation paid to passengers affected by delays, significantly affecting the quarterly result. But looking ahead, the ticket sales are satisfactory both on established and new routes.”

Meanwhile, the firm’s Argentinian subsidiary Norwegian Air Argentina, established in January,  was granted concessions to operate 153 routes from the South American country on Wednesday night.

“Norwegian plans to have a considerable operation in Argentina that includes both domestic and international flights,” a spokesman said.

 

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