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Norwegian profits hit by delay compensation costs

Thursday, 26 October 20173 min read

Norwegian has reported profits of £94 million for the third quarter, up by 4% year-on-year.

The company carried 9.8 million passengers, an increase of 14% compared to the same quarter last year.

It said passenger growth has been positive in all of Norwegian’s key markets, with significant growth in the US and Spain.

Overall load factor has risen to 92%.

Norwegian’s CEO Bjorn Kjos said: "An increasing number of passengers in the US, Spain and other parts of the world considerably contribute to the growth, which proves that our global strategy is being realised.

"However, we have had major additional costs related to wet-leasing and compensation paid to passengers affected by delays, significantly affecting the quarterly result. But looking ahead, the ticket sales are satisfactory both on established and new routes."

Meanwhile, it has been granted concessions to operator 153 routes from Argentina with its subsidiary Norwegian Air Argentina.

It has originally applied for 156 routes.

The airline said it plans to have a considerable operation in Argentina that includes both domestic and international flights.