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Norwegian Air pays first dividend after beating expectations

Norwegian Air, a budget airline, announced Friday that it had exceeded market expectations in the second quarter and would be paying a dividend.

Norwegian reported an operating profit (EBIT), of 1.25 billion Norwegian Crowns ($123.84 millions) for the third quarter. This was higher than the company's consensus estimate of 1.04 billion Norwegian crowns.

The airline said that it would also pay a dividend to shareholders of 0.90 crowns each for the first ever time.

In a statement, CEO Geir Carlsen stated that "the operating profit and margin were the second highest ever in this quarter and the passenger number and load factor were the highest for a second-quarter since 2019".

The carrier anticipates that its unit costs, which are the average costs of flying an airplane seat, will increase between a low- to mid-single digit percentage in comparison to 2024.

The airline maintained its capacity forecast of 37.500 million seat-kilometres.

Aircraft delivery delays at Boeing or Airbus put pressure on airlines who are struggling to meet the demand while parts of their fleet are in maintenance or are being decommissioned. This forces them to lease externally aircraft to meet their capacity needs.

The company did not give any guidance on its operating profit.

After the pandemic, the airline industry slowly recovers. The Norwegian state

converted

In May, the bank converted half the loan for 2021 reconstruction of the airline that it had provided.

it. Norwegian Air then redeemed half the voucher.

Norwegian reported the highest passenger numbers and load factors since the pandemic in June. (Reporting and editing by Matt Scuffham in Gdansk, Agnieszka Oleska, and Vera Dvorakova)

(source: Reuters)