Norwegian posts improving financials in Q3

posted on 29th October 2018 by Justin Burns
Norwegian posts improving financials in Q3

Norwegian has reported a result (EBT) of 1.6 billion NOK (£149 million) for the third quarter (Q3) 2018 and net profit was 1.3 billion NOK – an improvement of 18 per cent compared to the same quarter last year.

The carrier said it continued to reduce its unit costs despite a capacity growth of 33 per cent and going forward, it said the growth will abate, consequently further reducing unit cost. The company’s unit costs excluding fuel decreased by 10 per cent in Q3.

The total revenue increased by 33 per cent to 13.4 billion NOK. In total, approximately 11 million passengers chose to travel with Norwegian in Q3- an increase of 11 per cent. The load factor remained high at 90.5 per cent compared to 91.7 per cent last year.

Norwegian has made significant investments in recent years, with the establishment of new bases internationally and in new markets; recruitment of several thousand employees – primarily pilots and cabin crew – the launch of many new routes and increase of frequencies on well-established routes.

The strong international footprint the carrier said has for instance contributed to the US now representing the largest market after Norway in terms of total revenue.

Norwegian chief executive officer, Bjørn Kjos said: “I am very pleased to present a solid result this quarter with a reduced unit cost despite strong growth. Going forward the growth will slow down, and we will begin to reap the large investments we have made over the years, which will benefit customers, employees and shareholders.

“However, there is no doubt that tough competition, high oil prices and a strong dollar will affect the entire aviation industry, making it even more important to further streamline our operations and continue to reduce costs.”

During Q3, Norwegian has taken delivery of one brand-new Boeing 787-9 Dreamliner and four Boeing 737 MAX 8 aircraft. In 2018, 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.