Norwegian Air's shares rise after second-quarter profit beat
Adds CEO comments in paragraph 4-6, updates share movement, final paragraph
By Agata Rybska
July 12 (Reuters) -Norwegian Air NAS.OL reported second-quarter core earnings above market expectations on Friday after a rise in unit cost levels helped offset the impact of a dip in demand on ticket prices.
The airline said the quarter was characterised by strong capacity and an increase in passenger numbers, but that aircraft delivery delays from Boeing would slow growth in the upcoming year.
Delays in deliveries from Boeing BA.N and Airbus AIR.PA have forced airlines to lease aircraft externally to meet capacity needs.
Norwegian's CEO Geir Karlsen said the airline planned for at least 11-to-13 months of delays and did not have a date for when they would stop.
Referring to Norwegian's contractual right to compensation from Boeing, Karlsen told Reuters he was sure the companies would reach agreement.
"Even more importantly, what we would like to have is visibility on future deliveries so that we can plan the network in accordance to that," he said.
Norwegian said last week delays had forced it to source external capacity of one-to-two aircraft. It also said demand had been lower than expected in the second quarter, which prompted it to cut its profit outlook.
Norwegian said on Friday cash flow improved in the quarter and unit costs, or the average cost of flying an aircraft seat, fell 2% from a year ago, to 0.70 crowns.
Kenneth Sivertsen, analyst at Pareto, said the company has offset some of the impact of wage increases for pilots and other inflationary pressures through operational efficiency.
He cited better-than-anticipated costs, in-line revenues and solid results from its subsidiary Wideroe that only flies in the Nordics.
The Norwegian carrier sees its overall production in 2024 growing by about 12% compared to the previous year.
It reported operating profit (EBIT) of 593 million Norwegian crowns ($55.32 million) for the quarter, beating a company-compiled consensus of 386 million crowns but falling almost 9% from 650.5 million crowns a year earlier.
Shares in Norwegian Air rose 7% at market open. They then pared gains and were up 5.5% at 11.16 crowns per share at 1034 GMT.
($1 = 10.7203 Norwegian crowns)
Reporting by Agata Rybska; Editing by Kim Coghill, Rashmi Aich, Jane Merriman and Barbara Lewis
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
