Norwegian Air Doubles Pre-Tax Profit

Low-cost carrier Norwegian Air Shuttle reported a doubling of pre-tax profit in the second quarter to NOK930 million.

Operating revenue was NOK6.63 billion, up 13 percent from the same period a year ago.

Load factor for the quarter was up three percentage points from last year at 88 percent.

The company also said it had ordered 30 longer-range versions of the Airbus A321neo, upgrading part of an existing order for 100 A320neos. It did not give a value for the deal.

Norwegian, Europe's third-biggest budget airline by passenger numbers after Ryanair and easyJet, has launched flights to the Middle East, southeast Asia and the United States, bringing low-cost offers into the long-haul segment, as well as expanding in its core European market.

"We have had significant additional costs for leasing of aircraft and passenger compensation," chief executive Bjørn Kjos said in a statement. The compensation came after Norwegian Air's flights were disrupted by strikes in France.

In addition, this month the airline had a conflict with the Norwegian pilots' union that meant many pilots did not come to work at the start of the busy summer season.