During the third quarter, Norwegian Group had its best quarterly result in the company's history, with earnings before tax (EBT) of NOK 2,891 million. Several major news events marked the quarter, including the first ever dividend and an order for 30 additional Boeing aircraft.
During the third quarter, the Norwegian Group had an operating profit (EBIT) of NOK 3,071 million and an operating margin of 25.1 percent. Cash and cash equivalents amounted to NOK 10.5 billion at the end of the quarter.
– We are very pleased to be able to present another record quarter. In August, the company's first dividend of 90 Norwegian krone per share was paid to approximately 75,000 shareholders. This has been a very good quarter and I would like to extend a big thank you to all colleagues at both Norwegian and Widerøe who have made a great effort during the most travel-intensive period of the year. The fact that Widerøe has set passenger records several times is an achievement in itself and in September the company had the highest number of passengers in its more than 90-year history, says Norwegian's CEO Geir Karlsen.
During the third quarter, the Norwegian Group had 8.41 million passengers, of which 7.28 million were Norwegian passengers and 1.12 million travelled with Widerøe. The load factor during the quarter was 88.3 percent for Norwegian, up 0.3 percentage points from last year, while Widerøe had a load factor of 77.5 percent, down 0.6 percentage points. Norwegian's capacity increased by 2 percent and Widerøe's increased by 3 percent. Both companies had good operational performance during the quarter. Widerøe operated 98.2 percent of its scheduled flights, the highest figure in over ten years, and had an on-time performance of 91.8 percent. Norwegian operated 99.3 percent of its scheduled flights and had an on-time performance of 77.8 percent, up 3.6 percentage points compared to the same period last year.
Fleet renewal and tailwind in Denmark
During the third quarter, Norwegian expanded its existing Boeing order through an option to purchase an additional 30 Boeing 737 MAX 8 aircraft. The total order now amounts to 80 aircraft.
– By exercising the option on the Boeing agreement, we maintain flexibility with the fleet while confirming the ambition to have one of Europe's most modern and fuel-efficient aircraft fleets. This is an important step in the ongoing renewal of the aircraft fleet and we are pleased to be able to strengthen the long-term cooperation with Boeing, continues Geir Karlsen.
October was a very important month for the Danish operations with several positive news items. The month began with the launch of ten new international routes from Billund Airport. On the same day, Norwegian was named ”Europe’s Best Airline” at the Danish Travel Awards. A few days later, Norwegian won the Danish government’s tender for a domestic route to reduce climate impact. The tender means that from March next year, 93 percent of Norwegian’s flights between Aalborg and Copenhagen will be flown with at least 40 percent sustainable aviation fuel (SAF). The tender is expected to save approximately 6,700 tons of carbon dioxide from a life cycle perspective.
Well prepared for the winter season
Norwegian has reduced capacity by between 25 and 45 percent over the coming winter months, compared to October. The adjustment has been made to adapt supply to demand during the winter months and to optimize operations during the low season.
–We have an attractive route network during the winter season that has been adapted to customer needs. The booking trend looks promising and customers are booking trips earlier this year compared to previous years. We have therefore sold more tickets this year than at the same time last year, with lower capacity. It looks positive for a good winter season with full aircraft, continues Geir Karlsen.
According to the press release.
