Scandinavian budget carrier Norwegian’s operating profit slipped 9% in the second quarter to NKr593 million ($55.3 million) compared with the same period last year, as the airline confirmed its recently lowered full-year profits outlook.
Norwegian earlier this month revised downwards its full-year operating profit forecast, to NKr2.1-2.6 billion – including the contribution from newly acquired regional operator Wideroe – citing a softening of traffic during the second quarter.
”Traffic figures for Norwegian have in recent months exhibited some degree of softness with load factor and yield decreasing compared to last year, partially a result of significant capacity increase on longer flights,” it says today, reiterating the new outlook. However, it adds: “Current booking trends still remain robust for the months ahead.”
Norwegian revenues climbed from NKr6.9 billion to NKr9.4 billion, including NKr1.9 billion from Wideroe. That was based on Norwegian flying 7.3 million passengers, of which 1 million were carried by Wideroe in the three months ending June. Load factor at Norwegian though fell two percentage points to 82.4%, though Wideroe’s load factor climbed five points to 70.2%.
Norwegian chief executive Geir Karlsen says: ”We have delivered good operations in the second quarter amidst a hectic ramp-up into the summer season. Both Norwegian and Wideroe are delivering strong passenger growth. With an increasing number of routes, frequencies and destinations, we look forward to welcoming passengers on board.”
The airline expects to increase capacity 10% in the third quarter and 16% in the fourth quarter, contributing to an overall increase in capacity for the year of 12%.
”Growth for 2025 is expected to slow compared to 2024 due to aircraft delivery delays from Boeing,” it says, noting it expects to increase its fleet from 86 this summer to above 90 next summer.
