Norwegian posts solid profit in Q2

posted on 13th July 2018 by Justin Burns
Norwegian posts solid profit in Q2

Norwegian (NAS) has reported its second quarter (Q2) earnings for 2018 with a net profit of NOK 300 million ($36.9 million) – the highest growth in the company’s history.

However, the airline said going forward, the growth will slow down and ramp-up costs will decrease, in line with its strategy.

The net result was NOK 300 million compared to a loss of NOK 691 million the second quarter last year.

The result is affected by a reduction in unit costs, which has decreased by nine perc ent this quarter, and with 19 per cent excluding fuel.

One-offs have also this quarter contributed to the cost reduction. The costs are lower despite Norwegian’s highest ever production growth (ASK) of 48 per cent and increasing fuel prices. Norwegian’s traffic growth (RPK) this quarter was 46 per cent.

The airline carried ten million passengers during Q2 an increase of 16 per cent. The load factor was 86.8 per cent, down 0.9 percentage points compared to Q2 last year.

Norwegian has grown rapidly over the past years, expanding international traffic and adding new bases, destinations and markets to its portfolio. In terms of total revenue, the US represents the strongest market outside Norway.

Norwegian chief executive officer, Bjørn Kjos said: “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.”

During Q2 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.