The Norwegian airline Norwegian reports an operating profit (EBIT) of -849 million SEK for the first quarter of 2022.
Analysts had expected an average of -833 million Norwegian kroner, according to a forecast compilation made by Infront.
Operating profit before leasing, impairment and depreciation as Norwegian EBITDA amounted to -468 million Norwegian kroner. Adjusted EBITDA amounted to -452 million Norwegian kroner. This compares with analysts' expectations of an EBITDA of -495 million Norwegian kroner and an adjusted EBITDA of -512 million, respectively.
Net sales amounted to 1,916 million Norwegian kroner. Expectations were 1,886 million.
Norwegian notes that air travel is recovering after a period of subdued demand during the pandemic.
”Consumer expectations are improving across all markets and there is strong pent-up demand to travel, resulting in a higher willingness to pay for tickets and increased bookings ahead of the busy summer 2022 holiday season,” the airline wrote in its first-quarter report.
The increase in fuel prices is expected to partially counteract the company's positive recovery, Norwegian says.
Under the outlook heading in the report, Norwegian reiterates that it is adding aircraft for the summer and will have 70 aircraft in operation to match the production schedule for the summer of 2022.
For the full year 2022, the company stands by its target of an available capacity of 28,000 million ASK. Norwegian also expects a significant reduction in unit costs in line with increased economies of scale, the company states in the report.
