Norwegian Air Shuttle, Scandinavia’s largest low-cost carrier, has announced a profit before taxes of NOK538 million (EUR46.7 million as of August 24) in the second quarter of 2023. The number compares to a result in the same quarter of last year of NOK1.248 billion, which was then pushed up by a non-operational earning.
Comparing EBITDAR (earnings before interest, taxes, depreciation, amortization and rent) in the second quarter of each year, which provides a metric of operational performance, that stands at NOK1.569 billion in the second quarter of 2023 versus NOK93 million in the same period of 2022.
The improved result was pushed primarily by increased capacity, up 14% over the second quarter of 2022, and unit revenues, up 22%. The airline also benefitted from lower fuel expenses, amounting to NOK2.051 billion (versus NOK2.338 billion in 2022) despite more flying.
“This quarter has demonstrated our ability to ramp up capacity and deliver a superb operational performance to become one of the top airlines in Europe”, stated Geir Karlsen, Norwegian’s CEO, in a press release.
“These results have been made possible thanks to over 4,700 of our colleagues working tirelessly to ensure our passengers arrive at their destinations as smoothly as possible. By solely flying with our own aircraft and crew, we can deliver ‘the Norwegian way’ to all our customers. Our seamless customer experience has made us one of the most loved airlines in the Nordics”.
With a strong cash flow — NOK721 million in quarter — and cash position — NOK9.3 billion in cash and cash equivalents, Norwegian says it has opted at exercising its call option for the NAS13 bond, which at the end of the quarter had NOK440.9 million outstanding.
The financial debt taken during Norwegian’s restructuring in the COVID-19 pandemic vetoes the payment of dividends. The airline said in Thursday’s report that the redeeming of NAS13 is a first step in optimizing the debt structure in the direction of allowing for dividend payments.
Norwegian estimates to face this Summer season with a fleet of 81 aircraft, with 91 for Summer 2024. The airline currently operates 16 next-generation Boeing 737 MAX 8, according to Planespotters.net, and in its investors’ presentation, it said it expects its fleet transition to the MAX to end by 2030.
