Norwegian Air flew into profit in the second quarter of the year despite a strike by aircraft technicians and European airport capacity curbs.
The budget carrier reported a pre-tax profit of NOK 1.2 billion in the second quarter as capacity was raised to meet summer travel demand despite of higher fuel prices.
Close to all scheduled flights by its fleet of 65 aircraft were operated amidst capacity constraints at European airports and the aircraft technician strike.
Ten days of industrial action by technicians in Norway was resolved on June 28 through forced arbitration.
More: Air New Zealand sees demand rise as borders reopen
TAP reports ‘healthy demand’ and ‘higher revenue’ despite losses
InsideJapan Tours reports strong demand as trips resume
“Strong dedication and effort” ensured that disruption and cancellations were kept to a minimum, according to the airline, however punctuality was affected by airport capacity constraints.
“Many customers have longed to travel to Norwegian’s key destinations, creating strong pent-up demand with increasing traffic and bookings through the quarter and into the busy summer season,” it added. “Current booking trends are encouraging with many customers booking their autumn holidays. For the upcoming winter, Norwegian will utilise the fleet flexibility made possible through power-by-the-hour agreements to optimise production to fluctuations in demand.”
Norwegian is increasing its fleet to 70 aircraft this year, with 15 more being added for summer 2023.
Chef executive Geir Karlsen said: “This quarter has demonstrated our ability to rapidly ramp up capacity and effectively meet the strong demand for air travel.
“The results have been made possible thanks to our dedicated colleagues that put our customers at the heart of our operations.
“I am particularly pleased that we deliver market-leading regularity in times with capacity constraints across European airports and a technician strike in Norway.”
A deal to acquire 50 Boeing 737 Max 8s with options for a further 30 for delivery from 2025 was announced in the quarter.
Karlsen added: “The aircraft deal with Boeing is key for Norwegian’s next chapter. It will enable us to serve our customers with modern fuel-efficient aircraft, significantly reducing our carbon footprint.
“In addition, it sets the stage for us to own a large share of our fleet, enabling us to solidify our Nordic stronghold.
“Looking ahead, Norwegian is well positioned to solidify the position as a leading Nordic airline. Our customers assign high value on Norwegian’s offering, including the attractive route network, the award-winning Norwegian Reward loyalty programme, and market-leading operational performance.
“Agreements entered into with Widerøe and Norse Atlantic Airways in July will serve to further increase the attractiveness of our offering.”
More: Air New Zealand sees demand rise as borders reopen
TAP reports ‘healthy demand’ and ‘higher revenue’ despite losses