Norwegian posts weaker quarterly profit rise

Capacity grows 35% in 2014, to slow to 5% in 2015

 

 

Norwegian posted a smaller than expected rise in third-quarter earnings, blaming it on flight delay costs and a weak currency. Operating profit before leasing and depreciation increased to NOK1.22 billion (€147 million) in Q3 from the year-earlier figure of NOK1.17 billion.

Norwegian has been expanding rapidly with new bases around Europe and routes between London and New York – one of the industry’s most competitive markets.

“The combination of a weak Norwegian krone, delayed approval from the US Department of Transportation and costs associated with flight delays affected the results this quarter,” the company acknowledged in a statement.

The carrier is showing signs of slowing its expansion. Its capacity, measured in available seat kilometre, is growing by 35% in 2014 but slowing to 5% in 2015. It plans a fleet of 99 planes in 2015 and 117 in 2016. It had just six at the end of 2002.

Reuters

[photo courtesy Norwegian]

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