Norwegian sees losses narrow in first quarter | News


Norwegian has reported a net loss of 46 million Norwegian kroner, or £4.1 million, for the three months ended March 31st.

The figure represents a narrowing of losses from the same period last year, when the carrier lost £80 million.

The quarter was characterised by international expansion, strong passenger growth and higher fuel cost, the carrier said.

A successful private placement of shares was completed during the quarter, at Norwegian sought to reassure investors.

“In this quarter, we in particular see the effects of higher fuel costs.

“At the same time, we have doubled our fleet of Dreamliners and still manage to fill the aircraft, attracting more customers both in new and more established markets.

“Our long-haul operation is now well established, proving that customers want affordable fares on intercontinental routes,” said chief executive Bjørn Kjos.

The airline carried 7.5 million passengers in the first quarter, an increase of 12 per cent.

The capacity growth was 36 per cent and the load factor was 84.5 per cent.

Norwegian hopes its global growth strategy will provide economies of scale and lower unit costs.

During the first quarter, unit cost including depreciation and excluding fuel fell by five per cent.

International Airlines Group took a stake in the carrier earlier this month, with a view to a possible acquisition.

In response, Norwegian has received several inquiries, the carrier said.

A statement added: “The Norwegian board of directors has established a steering committee and engaged financial and judicial advisors to review the situation, handle relevant inquiries and to safeguard the interests of all shareholders.”

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