Norwegian reports increase in profits for third quarter

Norwegian reports increase in profits for third quarter

Norwegian has reported earnings before tax of £149 million for the third quarter of 2018.

The company continued to reduce its unit costs despite a capacity growth of 33 per cent.

Going forward, the growth will abate, consequently further reducing unit cost.

The net profit for the third quarter was £121 million, an improvement of 18 per cent compared to the same quarter last year.

The company’s unit costs excluding fuel have decreased by ten per cent this quarter.

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The total revenue increased by 33 per cent to £1.2 billion.

In total, approximately 11 million passengers chose to travel with Norwegian in the third quarter - an increase of 11 per cent.

The load factor remained high at 90.5 per cent compared to 91.7 per cent last year.

“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,” said Norwegian chief executive Bjørn Kjos.

During the third quarter, 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.