Friday, July 12, 2024 The Norwegian Group has reported a significant operational performance for the second quarter of 2024, achieving an operating profit (EBIT) of NOK 593 million. This period was characterized by strong capacity and passenger growth, although slightly lower demand affected ticket prices. The company’s operational efficiency, improved cost management, and robust cash flow were notable highlights of this quarter.
Impressive Financial Performance For the second quarter of 2024, the Norwegian Group achieved an operating profit (EBIT) of NOK 593 million, representing an operating margin of 6.3 percent. The profit before tax (EBT) for the quarter stood at NOK 477 million.
The liquidity position saw an improvement, reaching NOK 11.5 billion by the end of the quarter, an increase of NOK 1.1 billion from the previous quarter.
The Norwegian fleet consisted of 86 aircraft, including 22 latest technology 737 MAX 8 aircraft, while the Widerøe fleet comprised 49 aircraft. Operational Efficiency and Passenger Growth Geir Karlsen, CEO of Norwegian, remarked on the strong operations delivered in the second quarter amidst the hectic ramp-up into the summer season. He noted that Norwegian was named Europe’s most punctual airline in May.
Both Norwegian and Widerøe demonstrated strong passenger growth, with an increasing number of routes, frequencies, and destinations, ready to welcome more passengers on board. During this quarter, the Norwegian Group carried 7.3 million passengers, with 6.
3 million flying with Norwegian and 1.0 million with Widerøe. Compared to the same period last year, Norwegian saw an increase of 680,000 passengers, while Widerøe experienced a growth of 122,000 passengers.
Norwegian’s production (ASK) increased by 19 percent to 10.3 billion seat kilometers, whereas Widerøe’s production rose by 2 percent. The quarterly load factor for Norwegian was 82.
4 percent, a slight decrease of two percentage points from last year. Widerøe, however, saw an improvement in its quarterly load factor, reaching 70.2 percent, up by more than five percentage points from the previous year.
Punctuality and Regularity Punctuality, measured by the percentage of flights departing within 15 minutes of schedule, was 80.8 percent for Norwegian and 91.4 percent for Widerøe.
Regularity, the percentage of flights that actually took place, was 99.2 percent for Norwegian and 97.4 percent for Widerøe.
Cirium, the global aviation consultancy, recognized Norwegian Air Shuttle (DY) as Europe’s most on-time airline in May and the third most punctual low-cost carrier globally. New Route Launches and Network Expansion Looking ahead, Norwegian has launched 27 new routes for the upcoming winter season. These new routes include destinations such as Dubai, Agadir, and Hurghada, as well as routes from European cities to popular winter holiday spots like Tromsø and Harstad/Narvik.
This expansion of the route network is highly valued by customers of Norwegian and Widerøe. The acquisition of Widerøe and the integration of complementary route networks ensure that the airlines remain preferred travel partners across the Nordics. Global Impact on Travelers The growth and operational efficiency of the Norwegian Group have significant implications for the global travel industry.
For travelers, the expanded route network offers more options and flexibility, making it easier to plan trips to new and exciting destinations. The increased capacity and improved punctuality enhance the overall travel experience, reducing delays and ensuring more reliable service. Forecasted Growth and Future Prospects Overall production for Norwegian in 2024 is forecasted to grow by approximately 12 percent compared to the previous year.
However, growth is expected to slow down in the upcoming year due to delays in aircraft deliveries from Boeing. For the summer of 2025, the Norwegian fleet is projected to exceed 90 aircraft, continuing the trend of expansion and improved service offerings. The Norwegian Group’s impressive financial performance and operational growth in the second quarter of 2024 highlight its strong position in the travel industry.
The introduction of new routes and increased capacity not only benefits local travelers but also has a positive impact on the global travel market. By providing more travel options, improving service reliability, and enhancing the overall passenger experience, the Norwegian Group is set to remain a key player in the aviation industry, attracting more travelers from around the world..
