Norwegian reports solid profit in second quarter

Norwegian (NAS) has released its second quarter earnings for 2018 with a net profit of NOK 300 million, despite the highest growth in the company’s history. Going forward, the growth will slow down and ramp-up costs will decrease, in line with Norwegian’s strategy.

The net result was NOK 300 million compared to a loss of NOK 691 million the second quarter last year. The result is affected by a reduction in unit costs, which has decreased by 9% this quarter and with 19% excluding fuel.

One-offs have also this quarter contributed to the cost reduction. The costs are lower despite Norwegian’s highest ever production growth (ASK) of 48% and increasing fuel prices. Norwegian’s traffic growth (RPK) this quarter was 46%. The airline carried ten million passengers during the second quarter, an increase of 16%. The load factor for the second quarter was 86.8%, down 0.9 points compared to the second quarter last year.

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