Airlines Norwegian Air Shuttle makes loss

  • Norwegian Air Shuttle

Norwegian low-cost carrier Norwegian Air Shuttle has reported a bigger than expected net loss.

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Europe’s third-largest low-cost airline reported its full year and fourth quarter 2017 results. The net loss was -299 million NOK (-£27.4 million) in 2017, while the earnings before interest, taxes and depreciations (EBITDA) was 60 million NOK (£5.5 million). In 2016 the carrier reported a profit of NOK 1.14 billion.

 “We are not at all satisfied with the 2017 results. However, the year was also characterized by global expansion driven by new routes, high load factors and continued fleet renewal. Through our global strategy, we contribute to local economic boost and increased employment at our destinations, as well as ensuring that more people can afford to fly - not least between the continents. In 2017, we received several major international customer awards, which would never have been possible without our dedicated colleagues at Norwegian,” said CEO Bjørn Kjos of Norwegian.

For the fourth quarter, the net loss was 919 million NOK (£84.4 million). The total revenue was more than 7.8 billion NOK (£716.5 million), an increase of 30 percent from the same period last year. The airline has made major investments in the fourth quarter related to cabin crew and pilot training for its wide- and narrow-body fleet.

In 2017, 32 new Boeing aircraft entered Norwegian’s fleet. The airline with its subsidiaries now operates 119 Boeing 737-800, six Boeing 787-8, 15 B787-9 and six new Boeing 737 MAX 8. Additionally, Norwegian has ordered 160 aircraft which will enter into service in the next years. With the order of 30 A321LR, the low-cost carrier has ordered its first Airbus aircraft, which should be used for long-haul operations.

Beside its bases in Europe, Norwegian has established a new South American subsidiary in Buenos Aires in Argentina. The airline has commenced operations in February 2018.

Source © Media.Norwegian.com

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