(NA24): The Norwegian posted traffic figures on Tuesday, showing an increase in the number of passengers. In the future, however, chief executive Bjørn Kjos admits that the company faces three major challenges.
"We are now entering a period characterized by generally lower demand, fierce competition and high oil prices, which makes it all the more important to continue work to reduce the costs of the company," said CEO Bjørn Kjos in a message on Tuesday, market.
The lowest demand is due to the fact that the airline industry is experiencing a seasonal decline in winter. Norwegian also notes the competition from other airlines, especially in the low fares segment, which now boosts capacity.
Both parties speak for lower ticket prices.
In addition, oil prices have risen to a high level, although they have dropped ten dollars in the last month. This gives Norwegian airlines and other airlines higher costs.
Ryanair boss Michael O & Leary also showed lower ticket prices and higher oil prices when he argued that Norwegian and SAS could go through this winter. However, it was rejected by the companies themselves and by many independent experts accompanying the companies.
Also read: Michael O & # 39; Leary: – The most likely is that the SAS or the Norwegian went bankrupt
Otherwise, Tuesday showed traffic numbers that 3.4 million passengers chose to travel with the company in October, an increase of eight percent.
Although good news, revenue, that is, revenue per passenger per kilometer, fell 2% compared to the same month last year. Revenues per seat per kilometer fell five percent over the same period.
The Norwegian, however, writes that overall yield developments are positive, but that the decline is due to the increase in average length per flight, which is explained by the fact that the company grows more in long distance.
In addition, the planes were less crowded than before. The load factor, that is, how full the plane is, fell 2.4 percent to 85 percent.