Boeing strike triggers Norwegian slowdown
October 28, 2024
Norwegian has reduced its capacity growth forecast for 2025 amid the ongoing fallout from the Boeing strike.
The Norwegian Group reported a robust operating profit of NOK 2.13 billion (approx £150 million) for Q3 2024, with capacity growth and rising passenger numbers across both its airlines, Norwegian Air Shuttle and Widerøe.
Norwegian Group’s operating margin for the quarter reached 18.4%, and pre-tax profits were NOK 2 billion. Cash reserves remained strong at NOK 11.5 billion, a 2.1 billion increase year-over-year.
Passenger numbers for the group totalled 8.2 million, with Norwegian carrying 7.2 million and Widerøe transporting over 1 million for the first time in a single quarter. This marks a year-over-year increase of 690,000 passengers for Norwegian and 99,000 for Widerøe. Norwegian’s available seat kilometers (ASK) rose 10% to 11.5 billion, while Widerøe’s ASK dipped by 2%.
Load factors also showed improvement: Norwegian’s load factor reached 88%, a slight increase from the previous year, while Widerøe’s load factor rose 4.6 percentage points to 78%.
However growth for 2025 is expected to slow from the forecasted capacity growth of 13% for 2024. This is due to aircraft delivery delays from Boeing which are expected to worsen due to the Boeing strike, the carrier said. For the summer of 2025, the Norwegian fleet is currently forecasted to increase to around 90 aircraft from a current total of 86.
“We are pleased with a solid quarter, showing increased load factors and unit revenues across both airlines, especially considering a 10 percent capacity increase for Norwegian,” said Geir Karlsen, CEO of Norwegian.
“We will expand our network with new and exciting destinations, while mitigating any challenges posed by the current fleet projections.”
He added: “A record quarter for Widerøe demonstrates that the acquisition is bearing fruits, and we look forward to continuing to develop the significant synergies between the airlines.
“The booking momentum for the fourth quarter is encouraging across the group, both for leisure and business travel.
“Norwegian is operating a number of new leisure routes, including Dubai and Egypt, in addition to routes from European cities to the popular winter destinations of Tromsø and Evenes.”
