Norwegian Group reports passenger surge in June, adjusts 2024 profit outlook

Norwegian Group experienced significant passenger growth in June 2024, with 2,245,735 passengers on Norwegian and 346,747 on Widerøe, totalling 2,592,482—an 11% and 6% year-on-year increase, respectively. However, the group has revised its 2024 profit outlook downward.

Key Highlights

• Passenger Growth: Norwegian saw an 11% rise and Widerøe a 6% rise compared to June 2023.
• Traffic and Capacity: Norwegian’s capacity (ASK) increased by 18% to 3,706 million seat kilometres, with actual passenger traffic (RPK) rising 16% to 3,126 million seat kilometres. Load factor decreased by 1 percentage point from June 2023.
• Operational Performance: Norwegian operated at a 99.4% regularity rate and 75.0% punctuality rate, with 96% of flights arriving within 60 minutes of the scheduled time.
• Route Expansion: The group launched 50 new routes this year, notably expanding in Northern Norway with ten new routes to European cities.

CEO Geir Karlsen expressed optimism about the passenger growth and the new routes, particularly in Northern Norway, despite a slight decrease in yield and load factor due to increased capacity on longer flights.

Revised Profit Outlook for 2024

The group now forecasts an operating profit (EBIT) of NOK 2.1 to 2.6 billion for 2024, including Widerøe, down from the previous NOK 2.5 to 3.2 billion. This revision is attributed to:

• Softer traffic demand and lower load factor in Q2.
• Higher pilot wage settlements.
• Aircraft delivery delays from Boeing, necessitating external capacity sourcing.
• A weaker NOK/USD exchange rate.

The group also anticipates a low single-digit percentage increase in unit costs excluding fuel for Norwegian compared to 2023. These forecasts are based on current foreign exchange and jet fuel prices for the remainder of the year.