LONDON — Norwegian has today reported their second quarter performance for 2018. They have reported 2Q18 net profits of $37.02 million, despite the highest growth in the company’s history.
The carrier has said that they are to slow down their growth and ramp-up costs will decrease, as they have recently been turning over losses due to expanding too quickly.
The net result of the $37.02 million profit as compared to a loss of $85.2 million in the second quarter last year. The result is affected by a reduction in unit costs, which has decreased by around nine percent, as well as a 19% reduction excluding fuel.
The carrier carried 10 million passengers in 2Q18, which was an increase of 16%. The load factors were recorded at 86.8%, which was down 0.9% compared to 2Q17.
Norwegian’s growth over the past few years has been based on expanding international traffic and adding new bases so then they can add more routes to their portfolio.
In terms of total revenue, the US represents the strongest market to the carrier outside of Norway.
Today, Norwegian reported its second quarter earnings for 2018 with a net profit of NOK 300 million, despite the highest growth in the company’s history: https://t.co/mOHhueNv07 #flynorwegian pic.twitter.com/5tOPX0WatC
— Norwegian (@Fly_Norwegian) July 12, 2018
Commenting on the results was CEO of Norwegian, Bjørn Kjos:
“Despite being at the peak of our growth phase, we have been able to present a profit and decreased unit costs during the second quarter. Going forward, the growth will slow down and we will reap what we have sown for the benefit of our customers, staff, and shareholders.”
“I’m also extremely happy and grateful that we during the past six months have received ten different awards. In June we were named Norway’s most innovative company and in July, we were awarded the “World Travel Award” for the best low-cost airline in Europe, and the “Ambassador’s Award” from the US Ambassador to Norway,” Kjos added.
“The latter proves the importance Norwegian has had in terms of strengthening and building US – Norway relations and growing the countries’ economies. It shows that what we have achieved so far in the US is being appreciated and acknowledged by the US government,” he concluded.
Norwegian carried 3.5 million passengers in June. “We have been through a long period of strong growth and going forward we will reap what we have sown for the benefit of our customers, staff and shareholders,” said CEO Bjørn Kjos. #flynorwegian https://t.co/fMVoMyoUhU pic.twitter.com/XuR7NZXzqu
— Norwegian (@Fly_Norwegian) July 5, 2018
In terms of deliveries during 2Q18, Norwegian took delivery of three Boeing 787-9 Dreamliners and two Boeing 737MAX8 aircraft to its fleet.
By the end of the year, the carrier would have taken 11 787-9’s and 12 737MAX8’s as well as the two 737-800 aircraft that have been delivered already. With an average age of around 3.7 years, Norwegian has one of the most modern fleets in the world.
All-in-all, it has been great news for Norwegian that they are recording a profit, even if it is something that has been a “surprise” for them.
Now they can place a focus on continuing that profit growth and start making even more money than they have in the past, through the help of the international markets such as the United States and Argentina respectively.