Higher oil price hits profits at Norwegian

Higher oil price hits profits at Norwegian

Norwegian has reported pre-tax profits of NOK861 million (£80.5 million) for the second quarter of financial 2017.

This is slightly down from last year’s result, mainly due to higher oil prices and the air passenger tax implemented by the government in Norway last year.

The overall performance was positive in all of Norwegian’s main markets during the second quarter.

The load factor for the second quarter has remained high at 88 per cent, the same as the second quarter last year.

During the second quarter, Norwegian has introduced one new Boeing 787 Dreamliner, eight new Boeing 737-800 and two Boeing 737 MAX aircraft to its fleet.

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Norwegian will have a fleet of at least 42 Dreamliner long-haul aircraft within a few years.

During the second quarter, the airline carried 8.6 million passengers, an increase of 12 per cent.

Norwegian’s strongest growth in terms of passenger numbers was Oslo Airport and London Gatwick.

During the second quarter, Norwegian’s total revenue was NOK7.8 billion, up 17 per cent from the same quarter last year.

The sale of 2.5 per cent of Bank Norwegian shares contributed positively to the result.

Norwegian’s net profit this quarter ended at NOK1.1 billion.

This summer, Norwegian also took delivery of two Boeing 737 MAX aircraft.

Norwegian chief executive Bjørn Kjos said: “I am very pleased with the high load factor for this quarter.

“I’m also grateful that more than 200 million passengers have shown confidence in us and chosen to fly with Norwegian since we began flying in 2002.

“However, we have had significant additional costs for leasing of aircraft, high oil price and the air passenger tax implemented by the government in Norway last year, which have had a negative impact on the result.”