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Norwegian Air signals recovery with move back into profit

Norwegian Air reported a return to the black in the first half of the year after a 6 billion Norwegian krona (NOK) equity raise.

The carrier completed a reconstruction process after trimming operations and dropping low fare long-haul services from airports such Gatwick in order to survive the pandemic.

Norwegian Air exited an examinership and reconstruction process in the second quarter, which improved equity by NOK 10.7 billion.

The budget carrier reported a pre-tax profit of NOK 1.6 million (£134,000) in the first six months of 2021 against a loss of almost NOK 4.8 million in the same period last year.

This came despite total revenue plunging 92% to NOK 591 million, from NOK 7.1 billion year-on-year.

The results continued to be impacted by Covid-19 and travel restrictions in all markets, the airline said.

However, the carrier is now “well positioned for future growth” and to respond to increased customer demand.

Chief executive Geir Karlsen said: “The H1 financial report and Q2 results mark a clear improvement in both the financial situation, due to lower operating costs and the successful completion of the reconstruction process of the company, and the gradual ramp up of our operations in response to increased passenger demand.”

Just 32 aircraft were operational during the first half of 2021 due to travel restrictions and lower demand.

Norwegian has committed to be a price leader in the Nordic markets, offering affordable fares on more than 250 routes across its European network.

Karlsen added: ”The results continue to be heavily impacted by international travel restrictions. However, Norwegian is now in a much stronger financial position and is able to plan for the future with renewed confidence and focus.

“Forward bookings continue to increase in response to the relaxation of travel restrictions and the roll out of international vaccination programmes. We expect to see this trend continue in the remaining months in 2021 and through 2022.”

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