Norwegian Air bounces back to profit in Q2

The carrier, which quit long-haul during the pandemic, made a pre-tax profit of £109.5 million in the second quarter, following an £86 million loss in the first three months of 2022.

The airline said second quarter figures were impacted by higher fuel prices and the reinstatement of aircraft order prepayments.

“This quarter has demonstrated our ability to rapidly ramp up capacity and effectively meet the strong demand for air travel,” said Geir Karlsen, chief executive.

The airline saw load factors of 85% in June, with capacity close to double the previous quarter. In the second quarter, Norwegian carried five million passengers, up from 0.4 million in the same period last year and 2.2 million in the previous quarter. 

During the quarter, Norwegian sealed the purchase of 50 Boeing 737 Max 8 aircraft for delivery between 2025 and 2028.

 
“The delivery schedule closely corresponds to current aircraft lease expirations, entailing a limited net increase of the current fleet,” it said. However, the agreement also includes options for an additional 30 aircraft.

The carrier said current booking trends “are encouraging”. For the coming winter, Norwegian will utilise power-by-the-hour aircraft leasing agreements to downsize according to demand. 

For the current year, Norwegian is increasing its fleet to 70 aircraft, but for summer 2023, 15 additional aircraft will be added.