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Strike costs Norwegian Air over 100m krona in lost revenue

A strike earlier this year cost Norwegian more than 100 million Norwegian krona [NOK] in lost revenue, the airline revealed today.

A pre-tax loss of 137 million NOK was recorded in the second quarter, despite revenue rising by 26% to more than 5 billion NOK as passenger numbers rose by 16% to 6.4 million.

The three-month period was characterised by strong growth and a record high load factor, but influenced by significant, one-off costs, a weak Norwegian currency and high oil prices, the low-cost carrier said.

“The second quarter figures also reflect Norwegian’s growth strategy and the company’s goal to fill all its new seats,” the airline said.

“Despite significant costs related to the start-up of the long-haul operation and higher costs due to the weak Norwegian currency, the unit cost is down, strengthening Norwegian’s competitive advantage further.”

Norwegian has introduced seven Boeing 787 Dreamliners to its long-haul operation over the past year.

Chief executive Bjørn Kjos said: “This quarter, we see clear results of the company’s strategy. Over the past year, we have established a long-haul operation and we have opened several new bases in Europe.

“More than half of our 417 routes are currently operated outside Norway, which illustrates a significant international expansion over the past year.

“At the same time, we have managed to cut costs, which is essential in such a competitive, global business as the aviation industry.

“We have, however, had significant, one-off expenses. Both wet lease of aircraft and the strike from labour union Parat has affected the result significantly.

“There is also a high competitive pressure, particularly in the Scandinavian market.”

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