Norwegian Q3 2013 profits dip / News / The Foreigner

Norwegian Q3 2013 profits dip. Norway carrier Norwegian Air Shuttle AS’s third-quarter profit has been greatly stunted by defects from the new Boeing 787 Dreamliner and warmer weather in northern European countries. The report, published Thursday morning, showed the airline’s Q3 pre-tax result (EBT) was NOK 604 million (some USD 102.56/EUR 74.28/GBP 63.43 million at today’s ROE) This was compared to NOK 873 million (about USD 148.25/EUR 107.36/GBP 91.68 million) in the same period in 2012.

norwegianairshuttle, norwayflights



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Norwegian Q3 2013 profits dip

Published on Thursday, 24th October, 2013 at 14:04 under the news category, by Linn Schjerven.
Last Updated on 24th October 2013 at 15:55.

Norway carrier Norwegian Air Shuttle AS’s third-quarter profit has been greatly stunted by defects from the new Boeing 787 Dreamliner and warmer weather in northern European countries.

A Norwegian plane landing
A Norwegian plane landing
Photo: Hans Olav Nygård/Norwegian


The report, published Thursday morning, showed the airline’s Q3 pre-tax result (EBT) was NOK 604 million (some USD 102.56/EUR 74.28/GBP 63.43 million at today’s ROE)

This was compared to NOK 873 million (about USD 148.25/EUR 107.36/GBP 91.68 million) in the same period in 2012.

“Our results this quarter are significantly affected by the additional cost associated with replacement aircraft for the Dreamliner,” said CEO of Norwegian Bjørn Kjos.

”In addition, Northern European sun seekers chose to enjoy the warm summer at home instead of flying south,” he added.

While the airline is not alone in experiencing slow summer sales due to the hotter northern Europe weather, according to them, Norwegian has experience several faults with the its first Dreamliners over the year. This has resulted in repeated groundings of the aircrafts.

Much of the extra expenses have gone to leases of replacement planes, extra fuel, and providing accommodation and food for delayed passengers.

The company still plans to phase in seven new Dreamliners by the end of 2014, despite the recent defects.

At the same time, Norwegian also reported a high passenger increase, from about 5.2 million passengers in Q3 2012 to some 6 million in the same period this year – a rise of 16 percent.

“We clearly see the outline of the company’s growth strategy in this quarter,” said Mr. Kjos.

“We have a strong passenger growth in all markets and we have managed to maintain a high load factor,” he added.

The base at London Gatwick has experience the strongest passenger growth, followed by Oslo Gardermoen and Stockholm Arlanda.

The low-cost commercial airline accounts for 90 percent of the growth at London Gatwick.



Published on Thursday, 24th October, 2013 at 14:04 under the news category, by Linn Schjerven.
Last updated on 24th October 2013 at 15:55.

This post has the following tags: norwegianairshuttle, norwayflights.





  
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