Norwegian reports second quarter profit

Norwegian carried more than 4 million passengers in the second quarter (26% more than the same period last year) and achieved a positive net result of NOK54 million compared with a loss of NOK134 million in the same quarter last year.

The 2Q11 turnover was just over NOK2.7 billion, up by 34%. The operating result for the second quarter was NOK137 million, which is NOK185 million better than last year, despite an extra fuel charge of NOK193 million. The underlying operating result, says Norwegian, was NOK333 million better than previous year.

"The results for the second quarter are, as expected, strongly affected by the high fuel price, which is almost 50% higher than the same period last year,” noted Norwegian’s CEO Bjørn Kjos. “The second quarter last year was also influenced by the authorities’ closure of the airspace caused by the volcanic eruption in Iceland. That set aside, together with fuel and currency effects, the underlying operating result for the second quarter was NOK333 million better than the same period last year. This is due to lower costs thanks to a more modern fleet and more efficient operation.

"I am very pleased with the strong passenger growth, not least as we keep a steady course toward lower costs and increased competitiveness. During the second quarter, we have secured financing for several new aircraft to be delivered between summer 2011 and end of 2012,” Kjos continued. “New aircraft are essential for being a strong competitor in terms of passenger comfort, lower fuel consumption and environmental savings. During the quarter, we have managed to save more than NOK50 million as a result of more fuel-efficient aircraft in the fleet.”

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