Norwegian Air Shuttle Reports Fall in Q2 Net Profit

Norwegian Air Shuttle has announced a decrease in its second-quarter net profit, but remains optimistic about future demand and is considering the possibility of issuing a dividend. The low-cost carrier saw a net profit of 537.9 million Norwegian kroner ($50.8 million) for the quarter, down from NOK1.25 billion in the same period last year.

Despite the decline in net profit, total revenue rose by 41% to NOK6.87 billion compared to NOK4.87 billion recorded in the previous year's second quarter. This increase was attributable to an uptick in passenger numbers, with 5.6 million people flying with Norwegian Air Shuttle during the quarter, up from 5.0 million in the corresponding period of 2022.

Norwegian Air Shuttle reported a significant growth in passenger demand for air travel throughout the quarter. The airline successfully expanded its capacity in anticipation of the busy summer travel season. Although earnings were affected by macroeconomic uncertainties, primarily due to the weakening of the Norwegian kroner against the U.S. dollar and euro, strong demand continues across all markets.

The company is pleased with the positive demand trends observed in key markets and expects unit revenue to experience a significant increase this year compared to last year. According to Norwegian Air Shuttle, the summer season of 2023 is poised to be one of the strongest in the company's history.

With regards to future bookings, Norwegian Air Shuttle mentioned that while there are no indications of weakness in forward bookings, limited visibility for the fourth quarter and beyond is expected at this time of the year. The company remains cautious about potential uncertainties in consumer confidence that might impact demand.

Norwegian Air Shuttle has started a process to evaluate and optimize its capital structure to ensure it is well-suited for its operations and to explore the possibility of distributing dividends.