(Reuters) – Norwegian Air reported second-quarter gross profit that beat expectations on Friday, despite the impact of lower demand on ticket prices, with the budget airline citing improved cost levels and cash flow.
The group said the second quarter was characterised by solid capacity and rising passenger numbers, but that growth is likely to slow in the coming year due to aircraft delivery delays at Boeing.
Delays in the manufacture of new aircraft at Boeing and Airbus are weighing heavily on airlines, which are struggling to meet demand while part of their fleet is stuck in maintenance or has already been decommissioned, being forced to lease aircraft externally to reach the necessary capacity.
Norwegian reported an operating profit (EBIT) of 593 million Norwegian crowns (50.90 million euros) for the quarter, above analysts’ expectations of 386 million crowns in a consensus compiled by the company, but down almost 9% year-on-year.
(Report by Agata Rybska; by Pauline Foret, edited by Augustin Turpin)
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