Norway’s new passenger tax hits Norwegian profits
Higher oil prices and a new passenger tax in Norway have hit the profits of Norwegian in the second quarter.
The airline reported pre-tax of 861 million NOK (£80.5 million), slightly down on last year.
Norwegian carried 8.6 million passengers during the quarter, a rise of 12%.
Strongest growth in terms of passenger numbers was at Oslo Airport and London Gatwick.
Overall load factor was 88%, the same as the second quarter last year.
During the period, Norwegian introduced one new Boeing 787 Dreamliner, eight new Boeing 737-800 and two Boeing 737 MAX aircraft to its fleet.
It will have a fleet of at least 42 Dreamliner long-haul aircraft within a few years.
CEO Bjorn Kjos said: "I am very pleased with the high load factor for this quarter. I’m also grateful that more than 200 million passengers have shown confidence in us and chosen to fly with Norwegian since we began flying in 2002.
"However, we have had significant additional costs for leasing of aircraft, high oil price and the air passenger tax implemented by the government in Norway last year, which have had a negative impact on the result.”
He said bookings and pre-sales for the coming months are looking ‘very good’.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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