Norwegian

Norwegian has reported a profit before tax of NOK1,590 million (£133 million) for the first half of 2021 as the aviation sector begins to reopen in Europe.

The figure compares to a loss of NOK4,792 million in the same period in 2020.

Geir Karlsen, chief executive of Norwegian, said: “The first half financial report and quarter two results mark a clear improvement in both the financial situation, due to lower operating costs and the successful completion of the reconstruction process of the company, and the gradual ramp-up of our operations in response to increased passenger demand.”

The results continued to be impacted by Covid-19 and travel restrictions in all markets, Norwegian said.

However, following the successful completion of the reconstruction process and the subsequent NOK6 billion equity raise, the company said it is now “well-positioned” for future growth.

Total revenue in the first half of 2021 was NOK591 million, compared with NOK7,138 million in the same period last year, a decrease of 92 percent.

In the second quarter of 2021, the company successfully exited the examinership and reconstruction process which improved equity by NOK10.7 billion.

Norwegian has committed to be a price leader in the Nordic markets, offering affordable fares and reliable service to more than 250 routes across its European network.

The carrier has, however, scrapped ambitions to be a global low-cost carrier.

”The results continue to be heavily impacted by international travel restrictions.

“However, Norwegian is now in a much stronger financial position and can plan for the future with renewed confidence and focus.

“Forward bookings continue to increase in response to the relaxation of travel restrictions and the rollout of international vaccination programs.

“We expect to see this trend continue in the remaining months in 2021 and through 2022,” Karlsen concluded.