Airliner, Norwegian reports short of expected because of Nkr70 million  strike cost

Thursday, 12 July 2012
The Norwegian budget airliner, Norwegian reported a weaker than expected second quarter result which made the boss, Bjørn Kjos irritated.

"We should have had a better result," he said. The airliner Norwegian on Thursday presented a laid a profit before tax of NOK 125 million in the second quarter.

The result is slightly weaker than analysts expected. Underlying profit (EBITDA, which is earnings before interest, taxes, depreciation and amortization) amounted to Nkr410 million, while it was expected that profit would reach Nkr493 million, according to estimates compiled by various analyst consensuses.

Profit before tax amounted to Nkr125 million, an improvement of Nkr 50 million compared with the corresponding quarter last year. Analysts expected, however, a pre-tax profit of Nkr193 million.

The company states that the result is affected by the strike at Avinor airports in Norway. Strikes and strike risk is in the second quarter has cost Norwegian Nkr70 million.

"The results this quarter is as expected to be strongly influenced by high oil prices and significant additional costs as a result of the strike and the strike turmoil has brought. Underlying results we put forward is considerably better than last year," says CEO Bjørn Kjos.

The strike cost, which the company incurred in the second quarter, has made the Norwegian boss annoyed.
"This strike was not popular. We hate that passengers have to stand and wait. We made Nkr50 million better than last year, so results are not bad, but we could have done better, and we should have had Nkr70 million better result if we had not let the weights of strike on us. It is expensive," he said.
By Scancomark.se Team