NWARF - Norwegian Air shares fly higher on sustained travel demand

European travelers are not pulling back on travel plans despite inflationary pressures, according to Norwegian Air Shuttle ( OTCPK:NWARF ).

In a Q3 earnings report offered on Wednesday, the Fornebu-based carrier said that profits and revenue continued to rise. In fact, revenue of NOK7.11B reflected a 268.4% jump from the prior year and came in at NOK6.44B. A pilot strike at rival Scandinavian carrier SAS and pent-up leisure travel demand were credited for the performance.

CEO Geir Karlsen also indicated that business travel demand is driving higher for the airline as well.

“This quarter has demonstrated our position as the reliable Nordic option for customers traveling to their holidays, to visit friends and family, or for business purposes. Many corporate customers choose to fly with Norwegian, and the number of business travelers is now on par with pre-pandemic levels for our most frequented domestic business routes,” he said. “Demand is expected to soften as we enter the winter trading period, but Norwegian is well prepared for this through flexible fleet arrangements, rigorous route planning and sound collaboration with our colleagues and unions.”

Winter capacity is expected to be reduced by approximately 25% into the year-end. For the summer of 2023, the airline plans to boost its fleet size to 85 aircraft. At the end of the third quarter, Norwegian’s fleet held 69 aircraft.

Oslo-listed shares of the air carrier rose 13.42% shortly before the European close.

Read more on congestion at Heathrow that impacted many European carriers in the quarter .

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