Norwegian Air Shuttle (Norwegian) has delivered an operating profit (EBIT) of NOK 651 million in the second quarter (Q2) characterised by strong operational performance leading up to the busy summer travel season. The airline's profit before tax (EBT) amounted to NOK 538 million with an improvement in the liquidity position with cash and cash equivalents exceeding NOK 9.3 billion. At quarter-end, the carrier’s fleet comprised 81 aircraft.
Norwegian reported a fall in second-quarter net profit, but said demand remains strong and it has begun examining the potential for a dividend. The carrier reported a net profit of NOK 537.9 million ($50.8 million), down from NOK1.25 billion a year earlier.
On the operational front the airline had 5.6 million passengers in the quarter, up from 5.0 million passengers in the second quarter of 2022. Production (ASK) was 8.7 billion seat kilometres, while passenger traffic (RPK) was 7.3 billion seat kilometres. Production was up 44% from the previous quarter as it ramped up capacity ahead of the busy summer travel season. The quarterly load factor was 84.4%, up from 81.2% in the same period last year.
“The company is experiencing positive demand trends across key markets and unit revenue is expected to increase significantly this year compared with last year, supported by the summer 2023 season being one of the strongest in Norwegian's history. Current booking momentum remains strong," Norwegian said in a statement.
"Bookings and visibility for the fourth quarter and thereafter is limited, as is to be expected at this time of the year. While there is no sign of weakness in forward bookings, the company is mindful of demand uncertainties following potential weaknesses in consumer confidence,” the statement added.
Going ahead, Norwegian and Strawberry’s new loyalty company announced that Avida has been selected as the preferred financial partner. Norwegian’s acquisition of Widerøe, a regional carrier, is expected to enhance customer connectivity with the transaction expected to close by Q4 2023.
In April, Norwegian announced a partnership with Norsk e-Fuel to build the world’s first full scale e-fuel plant in Mosjøen, Norway to produce sustainable aviation fuels (SAF). The partnership is estimated to secure approximately 20% of Norwegian’s total demand for SAF by 2030. In addition, Norwegian will invest more than NOK 50 million for a minority equity stake in the company.