Home Airlines Norwegian’s profit rises sharply in third quarter

Norwegian’s profit rises sharply in third quarter

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Airline forecasts total capacity growth of 5% for 2015
This morning, Norwegian reports a sharply higher third-quarter profit, due to fuller planes, higher ticket revenue and cheaper fuel.
Net profit for the three months ending September 30 stood at NOK 833 million (€90 million), up from NOK 374 million in the same quarter last year. Analysts had earlier predicted an even higher net profit of NOK 917 million.
The pre-tax result (EBT) was NOK 1.1 billion, a “strong improvement” from the NOK 505 million in the same quarter last year.
Europe’s third-largest budget airline after Ryanair and easyJet said that demand for travel and advance bookings are “satisfactory” entering the fourth quarter. It forecasts capacity growth of 5% for 2015, including long haul.
Sales for the third quarter increased to NOK 7.29 billion from NOK 6.34 billion, as 7.7 million passengers flew on the airline during the period, an increase of 9%. Long-haul passenger growth was 15%. Load factor increased by 6 percentage points to 91%.
“The third-quarter results show that Norwegian’s long-haul operations and international routes are becoming significantly more important,” said the airline’s chief executive Bjorn Kjos. “This is where we see most of the future growth potential, enabling the company to compete in a global market with strong competition.”
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