Norwegian reports net profit of £94m for third quarter

Norwegian reports net profit of £94m for third quarter

Norwegian has reported net profit of NOK1 billion (£94million) for the third quarter of 2016, an improvement of four per cent compared to the same quarter previous year.

The load factor increased to 92 per cent.

The passenger development has been positive in all of Norwegian’s key markets, with a significant growth in the US and Spain.

The third quarter was characterised by strong international passenger growth and a high load factor, as well as fleet growth- and renewal.

The company carried 9.8 million passengers, an increase of 14 per cent compared to the same quarter previous year.

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The US and Spain reported the highest increase in number of passengers, 79 per cent and 25 per cent respectively.

The load factor increased to 91.7 per cent and the capacity growth was 25 per cent.

In total, ten new aircraft entered the fleet, whereof four Boeing 737 MAX, four Boeing 737-800 and five Boeing 787-9 Dreamliners.

Norwegian’s total revenue for the quarter was NOK 10 billion (£940 million), compared to NOK 8.3 billion the same quarter last year.

Norwegian chief executive Bjørn Kjos said: “I am pleased with the passenger growth and high load factor this quarter.

“During our 15 years in the skies, almost 210 million passengers have chosen Norwegian.

“An increasing number of passengers in the US, Spain and other parts of the world considerably contribute to the growth, which proves that our global strategy is being realised.

“However, we have had major additional costs related to wet-leasing and compensation paid to passengers affected by delays, significantly affecting the quarterly result.

“But looking ahead, the ticket sales are satisfactory both on established and new routes.”

During the quarter, Norwegian launched 14 new intercontinental routes, including Singapore, Denver and Seattle as new destinations.