Posted on: 24 October 2013 by Mark Howells
Norwegian has reported a third quarter pre-tax profit of NOK604 million, which the airline says was significantly affected by the additional costs associated with wet-leasing replacement aircraft on long-haul routes as well as lower summer bookings due to unusually warm weather in the Nordics.
The company reported strong growth in all European markets and a high load factor (81%) in its the third quarter. The base at London Gatwick led the passenger growth, followed by Oslo Airport Gardermoen and Stockholm Arlanda. Meanwhile, Norwegian long-haul routes have a load factor of more than 90%.
The aforementioned pre-tax result (EBT) of NOK604 million was just over 30% down on the to NOK873 million achieved in the same period in 2012. The costs associated with wet-leasing replacement aircraft for the Boeing 787s totalled NOK101 million, significantly affecting the quarterly results. This amount includes the cost of wet-lease, extra fuel and costs for accommodation, food and drink for delayed passengers.
Around 6 million passengers travelled with Norwegian during the third quarter, an increase of 800,000 passengers (16%) compared with the same period last year. The company’s traffic growth (RPKs) was considerably higher at 30%.
“In this quarter, we clearly see the outline of the company’s growth strategy. We have a strong passenger growth in all markets and we have managed to maintain a high load factor,” observed CEO Bjørn Kjos.