April 14, 2021

Norwegian closes 2018 with net losses of 150 million euros, 19% less

Norwegian closes 2018 with net losses of 150 million euros, 19% less


Updated:

The Norwegian low cost airline Norwegian has presented this Thursday a net loss of 150 million euros in 2018, 19% less than the previous year. A result that has been negatively influenced by the problems with the engines of its Dreamliner planes, losses in fuel coverage and tough competition, has piled into its balance the airline, for which the Spanish-British aviation group IAG was interested last year.

The net operating loss (ebit) instead, it has increased by 92% to 397 million euros. The gross operating profit (EBITDA) presented a loss of 225 million euros, when a year ago it had recorded a profit of 6 million euros. On the other hand, the turnover has amounted to 4,153 million euros, representing an interannual increase of 30%.

Norwegian has transported last year to more than 37 million passengers, 13% more; its load factor has been 85.8% and the cost per unit, excluding fuel, has been reduced by 14%.

The airline highlighted that it was seen forced to rent planes to avoid delays and cancellations on their intercontinental flights, but that has now closed an agreement with the motor manufacturer Rolls Royce that will have a positive effect in 2019.

"We hope that problems with engines will not affect the flights in future. In 2019 Norwegian's growth and pace of investments will be significantly reduced, and a series of initiatives have been launched to return to have a profitable model ", have pointed from the company.

In the fourth quarter the net loss has been multiplied by four up to 311 million euros, and also the ebit, with red numbers for 371 million euros. The ebitda also obtained a negative value of 319 million euros, almost five times worse than a year before.

The turnover has amounted to 996 million euros, which means a year-on-year rise of 23%.

Norwegian has suffered in recent weeks a sharp fall, of more than 30%, on the Oslo Stock Exchange, coinciding with the announcement by IAG that it ruled out a takeover bid for the company and that the airline itself announced that it would raise NOK 3,000 million (308 million euros) by issuing shares.

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