Norwegian traffic increases, but not as fast as capacity
Budget carrier Norwegian saw an 18% increase in traffic in January, but the growth in passenger numbers failed to match its 27% increase in capacity.
As a result, it managed to fill only 76.1% of its seats, which was almost six percentage points fewer than a year earlier.
Nevertheless, CEO Bjorn Kjos said the management team was please with the passenger growth, saying there was traditionally less demand in January.
He added: "Norwegian has been through a period of significant growth, but now the company will change its strategic focus from expansion and growth to profitability."
Norwegian’s yield for the quarter to date grew to 0.35 Norwegian crowns from 0.32 crowns a year earlier. Analysts had expected an increase to 0.33 crowns, said Reuters.
The loss-making airline, which has rapidly expanded its transatlantic business, recently announced plans to cut costs and raise cash from owners after British Airways’ parent IAG abandoned its attempt to buy it.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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