Norwegian Group builds ‘buffer’ against fuel price volatility

The Norwegian Group has built in a “buffer against volatility” for its two airlines amid rising fuel costs.

The declaration came as Norwegian Air reported 1.68 million passengers in March and regional arm Wideroe with 350,000.

The month was characterised by strong demand for early Easter holiday traffic and continued “encouraging demand” for spring and summer travel, the Scandinavian airline group noted.

Chief executive Geir Karlsen said: “We are very pleased with the solid traffic figures in March, and it is great to see that so many chose to fly with us for their Easter holiday travels. 

“The continued high load factor demonstrates that our customers appreciate the route network we offer and that we have adapted our capacity well for the winter and spring seasons.”

He added: “While we are pleased with the solid demand and encouraging booking trends for the summer season, we are of course mindful of the wider economic environment, including the recent increase in fuel prices. 

“Through our fuel hedging strategy, we have built a buffer against volatility, which is crucial for us to continue to offer competitive fares to our customers through the coming season.”

Norwegian Air operated an average of 78 aircraft last month, with capacity down by 6% year on year but with an improved load factor of 87.7%

Wideroe’s load factor of 73.8% in the month was up 3.1 percentage points from March last year.

The regional carrier’s chief executive Tore Jenssen said: “I am pleased with our performance this month.

"High regularity and punctuality are critical for the local communities that rely on us, and our March passenger and load factor figures show that we continue to deliver a reliable service throughout our network.”