Norwegian Shows a Profit after 3yrs of Losses

A profitable airline once again

Against a backdrop of rising fuel prices and chaos at some major European airports, Norwegian reported a profitable quarterly result for the first time in almost three years. The airline reported an operating profit (EBIT) of NOK 1.36 billion ($136 million) on sales of NOK 4.8 billion ($480 million) in the second quarter of 2022.

The positive effect on ticket sales caused by the SAS pilots’ strike mostly happened after the end of the quarter, so the third quarter results are also likely to be impressive.


Norwegian CEO Geir Karlsen said that not everyone liked the competition when the airline launched with low prices in 2022 but that since then, “airfares have come down and Norwegian has made it possible for many people to travel.”
At its height, Norwegian became one of Europe’s biggest airlines and operated a long-haul network from Oslo, London Gatwick and several other European airports. Rather than focus on daily flights to compete with legacy carriers, Norwegian preferred to fly less often to underserved markets such as Fort Lauderdale and Oakland from the Scandinavian capitals.
Despite being popular with passengers, the rapid expansion into long-haul overextended the airline’s finances. With wafer-thin margins, issues with Rolls-Royce engines, varying demand on speculative routes and the grounding of the Boeing 737 Max all piled on the pressure. The Covid-19 pandemic then proved the final nail in the coffin for the ‘old’ Norwegian.
The airline that emerged from a six-month bankruptcy protection process had ditched the long-haul model entirely and trimmed its fleet by more than 100 planes. The initial focus on Norway and Scandinavian routes has since been expanded and the airline now serves 280 routes to 108 destinations this summer.

With startup airline Norse Atlantic Airways taking over Norwegian’s former Dreamliner aircraft and launching a strikingly similar long-haul business model, Norwegian seems unlikely to return to the long-haul business anytime soon, despite placing an order for up to 50 Boeing 737 Max aircraft that will be delivered between 2025 and 2028.