Norwegian Air projects ‘complex and unpredictable’ market despite cutting winter losses

The Norwegian Group of airlines cut traditional winter quarter losses while projecting a “complex and unpredictable” market with heighted fuel prices.

Operating losses for the owner of Norwegian Air and regional carrier Wideroe were trimmed from NOK 661 million (£48.5 million) in the equivalent period last year to NOK 220 million (£17.5 million). Pre-tax loss for the three months came in at NOK 459 (£36.4 million)  

The group said it delivered “a strong performance in the seasonally weakest quarter of the year” with 5.2 million passengers carried.

But the period saw the cancellation of flights to destinations in the Middle East due to the security situation in the region.

Highlights included a record load factor for a first quarter for Norwegian of 87.6%, a lower operating loss and an increase in the group’s liquidity position to NOK 14.2 billion (£1.1 billion).

“The figures demonstrate the group’s ability to deliver financial results underpinned by a focus on cost control and robust operational performance in an uncertain macroeconomic environment,” the Scandinavian airline group said. 

The results were positively impacted by a strengthened Norwegian krone, in addition to gains related to jet fuel hedges and the reduced price of EU emissions trading scheme allowances.

While the group noted a positive booking momentum, it pointed to an “uncertain macro outlook with increased fuel prices”.

Chief executive Geir Karlsen said: “While we are pleased to see that overall demand remains encouraging, we are navigating a complex and unpredictable market with both economic and political uncertainty. 

“Despite this, we delivered a positive development in the first quarter, with stable and reliable flight operations and good cost control.”

He added: “We are heading into the summer season with good momentum, driven by a continued positive booking trend across key parts of our network. 

“The trust our customers show us, recently confirmed when we were named ‘best domestic airline’ in Norway, is something we are very grateful for. 

“We will continue to earn that trust by delivering the best possible operational performance and customer experience.”