Norwegian posts improved profits as Argentina OKs route requests

LCC Norwegian has reported a 2017 Q3 net profit of just over NOK1b ($122m), up 4% year-over-year (YOY), on strong international passenger growth and increasingly high load factors. The LCC achieved the result on revenues that jumped 21% YOY, to fractionally over NOK10b, compared to NOK8.3b a year ago. Passenger numbers were up 14% YOY at 9.8m, with figures from Spain and the US showing particularly large improvements. The US figures, up 79% on a year ago, were the result of the increasingly large number of transatlantic routes the carrier has instituted in recent months. During the quarter, Norwegian launched 14 new intercontinental routes, including Denver and Seattle. Load factor was slightly up at 91.7%, compared to the year-ago figure of 91.3%. Capacity growth was up 25% at 20.7b, while RPK kept pace, up 26% at just under 19b. “An increasing number of passengers in the US, Spain and other parts of the world considerably contribute to the growth, which proves that our global strategy is being realized,” Norwegian CEO Bjørn Kjos said. “However, we have had major additional costs related to wet leasing and compensation paid to passengers affected by delays, significantly affecting the quarterly result. But looking ahead, the ticket sales are satisfactory both on established and new routes.”<br/>