Norwegian (NAS) today reported a second quarter 2014 net profit of 128 MNOK. The second quarter is characterized by strong growth and a record high load factor, and influenced by significant, one-off costs, a weak Norwegian currency and high oil prices. The strike from labour union Parat earlier this year alone cost Norwegian over 100 MNOK in lost revenue.
The second quarter figures also reflect Norwegian s growth strategy and the company s goal to fill all its new seats. Despite significant costs related to the start-up of the long-haul operation and higher costs due to the weak Norwegian currency, the unit cost (CASK) is down, strengthening Norwegian s competitive advantage further. Over the past year, Norwegian has introduced seven Dreamliner aircraft to its long-haul operation.
The total revenue in the second quarter was over 5 BNOK, up 26 percent from the same quarter last year. The pre-tax result (EBT) was -137 MNOK. 6.4 million passengers chose to travel with Norwegian during the second quarter, which is an increase of 16 percent and almost 900 000 passengers more than the same period last year. The company s traffic growth (RPK) was considerably higher at 46 percent, which reflects that each of Norwegian s passengers on average flies significantly longer than they did a year ago.
Norwegian realized a strong production growth (ASK) of 41 percent. The growth is, naturally, stronger in new markets. Despite Norwegian s strong capacity growth, the company is still filling its seats. The load factor in this quarter was 80 percent, up three percentage points from the same quarter last year, which is record high for a second quarter.
This quarter, we see clear results of the company s strategy. Over the past year, we have established a long-haul operation and we have opened several new bases in
Norwegian was recently awarded the title
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