June 6, 2019 / 6:58 AM / 3 months ago

UPDATE 1-Norwegian Air's growth slows further in May, passenger income in line

(Adds CEO quote)

OSLO, June 6 (Reuters) - Norwegian Air’s income per passenger grew in line with expectations in May while overall capacity expansion continued to ease, the airline’s monthly traffic report showed on Thursday.

Norwegian’s May yield, a measure of revenue per passenger carried and kilometres flown, rose to 0.38 Norwegian crown ($0.04) from 0.36 crown a year ago, as expected in a Reuters poll of analysts.

Capacity growth stood at 4 percent year-on-year, whereas analysts had expected growth of 7.7 percent.

“Following a period of significant expansion and investments, the figures show that our growth is slowing down, in line with our strategy of moving from growth to profitability,” Chief Executive Bjoern Kjos said in a statement.

Norwegian’s fleet of 18 Boeing MAX aircraft remains grounded after deadly crashes in Indonesia and Ethiopia, the company added.

The airline’s load factor, showing how many seats are sold on each flight, stood at 86.1 percent for the month, lagging a forecast of 86.4 percent and down from 86.5 percent a year earlier.

$1 = 8.7257 Norwegian crowns Reporting by Terje Solsvik, Editing by Gwladys Fouche and Mark Potter

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