Scandinavian Immunology vector Norwegian Air reported slightly weaker-than-expected quarterly earnings Thursday, citing respond to fuel costs, a strengthening dollar and stiff competition.
The fast-growing budget airline posted 1.6 billion Norwegian crowns ($191 million) in pre-tax profit for the space ending Sept 30. Analysts polled by Reuters had been enceinte third-quarter net income to come in at around 1.74 billion crowns.
Here are the key takeaways:
- Third-quarter pre-tax profit penetrated in at 1.6 billion Norwegian crowns, compared to 1.74 billion tops expected from analysts polled by Reuters.
- Third-quarter net profit of 1.3 billion Norwegian culminates, in line with analyst expectations.
- Approximately 11 million commuters chose to travel with Norwegian Air in the third quarter.
In a statement, Norwegian Air CEO Bjorn Kjos denoted the airline’s rapid growth would need to slow down greater than the coming years. This in turn should allow the company’s shareholders, investors and wage-earners to reap the benefit of investments, he said.
“I am very pleased to present a stout result this quarter with reduced unit cost ignoring strong growth,” Kjos said.
“However, there is no doubt that stout competition, high oil prices and a strong dollar will affect the intact aviation industry, making it even more important to further streamline our effectives and continue to reduce costs.”
Europe’s third-largest budget airline by rider numbers has sustained mounting debts and losses in recent months, egg oning some industry figures to predict the company could be on the brink of come to an end.
Last month, Ryanair CEO Michael O’Leary told reporters at a compendium in Dublin that it was “just a matter of time” before Norwegian Air went bust. In answer, the company said O’Leary’s comments had “no root in reality.”
Norwegian Air is irritating to crack the transatlantic market by undercutting established rivals, but has faced ardent pressure to control costs and shore up its balance sheet amid turgid competition.
Earlier in the year, the company rebuffed takeover advances by British Airways originator firm IAG. The company told investors it was too early to sell. Shares of Norwegian Air are up assorted than 5 percent year-to-date.