Earlier today we read that Norwegian Air Shuttle had a profit of 745.4 million earned in Q2 2016, up from 325 million at the same crossroads a year ago. According to TDN Finans was expecting a profit of 732 million.
The period’s total revenues amounted to 6.63 billion. There were expecting revenue of 6.61 billion.
– We have had a significant increase in costs due to the leasing of aircraft and passenger compensation, says Norwegian’s CEO Bjørn Kjos in a statement.
Analyst Kenneth Sivertsen SEB concludes that the 2016 estimates will be down.
– the report was weaker than expected cost guidance has been lifted and the estimates will come down (around five percent) for this report, writes analyst in a note, according to Reuters.
He also emphasizes that it is not totally black.
– Forward bookings remain strong and the increase in cost will probably be temporary, beats analyst firm .
Sivertsen reiterates its buy recommendation on the stock.
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