The Norwegian Group has reported a strong operational performance for the second quarter of 2024, achieving an operating profit (EBIT) of NOK 593 million. This represents a significant achievement for the company, with the operating margin reaching 6.3 percent. The period saw a surge in capacity and passenger growth, although slightly lower demand impacted ticket prices. Despite this, the company’s operational efficiency, improved cost management, and robust cash flow were key highlights of the quarter.
The financial performance was equally impressive. The profit before tax (EBT) for the quarter stood at NOK 477 million, indicating healthy profitability. The company’s liquidity position also 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. This robust liquidity position strengthens the company’s financial stability and allows for continued investment in growth initiatives.
The Norwegian Group’s fleet currently comprises 86 aircraft, including 22 of the latest technology 737 MAX 8 aircraft. The Widerøe fleet, also part of the group, consists of 49 aircraft. This significant fleet size enables the company to offer a wide range of routes and destinations, catering to a diverse traveler base.
Geir Karlsen, CEO of Norwegian, commented on the strong operations delivered in the second quarter, noting the company’s accomplishment of being named Europe’s most punctual airline in May. Both Norwegian and Widerøe have experienced impressive passenger growth, with an increasing number of routes, frequencies, and destinations, ensuring they are well-positioned to accommodate the growing demand for air travel.
During the quarter, the Norwegian Group carried a total of 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, while 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 are crucial aspects of air travel, and the Norwegian Group consistently demonstrates excellence in these areas. 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. Notably, 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.
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.
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.
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.
