Norwegian’s profits dip
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Norwegian Air has seen a dip in its pre-tax earnings although its London flights have helped to boost its passenger numbers.
The carrier saw an EBT drop 12% from 604 million kroner to 505 million kroner in its third quarter figures, which it attributed to delayed approval from the US Department of Transportation; leasing replacement aircraft and a weak currency.
The airline also had to pay out for accommodation and food during some flight delays.
Norwegian said the cost on waiting for US DOT approval were particularly ‘considerable’. The airline is requesting a permit under its Irish subsidiary.
Despite the dip in financials the carrier saw its load factor at 85% against a capacity increase of 36%, carrying 7.1 million passengers. Its Gatwick routes have seen the strongest growth.
“We’re very satisfied that throughout our world-wide route network, an increasing number of new passengers choose Norwegian.However, we have also experienced some turbulence this quarter,” said CEO Bjørn Kjos. “Our results are affected by additional costs related to the pending U.S. permit for our subsidiary in Dublin, consequently reducing our ability to optimise our fleet of aircraft. Even though technical difficulties with our Boeing 787 Dreamliners have also caused additional costs, our long-haul operation now consists of more aircraft and improved reliability.”
He added: “Looking into 2015, we will see a year of consolidation and lower growth. Next year, our fleet of short-haul aircraft will consist exclusively of Boeing 737-800s as older Boeing 737-300s will be phased out.”
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