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Fourth-quarter loss drags Norwegian result

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Norwegian reports smaller full-year profit for 2013

Norwegian today reported its fourth quarter and full-year results for 2013, with a pre-tax profit (earning before tax) of NOK 437 million (€52.5 million) in 2013, down from NOK 623 million in 2012.

The company’s total fourth quarter result was NOK -283 million, weighed down by additional costs related to the start-up of the low-cost airline’s long-haul operation.

However, the airline put a positive spin on the results, emphasising that 2013 was the seventh consecutive year Norwegian had made a profit. Turnover in 3013 was NOK 15.6 billion, an increase of 21%.

The additional costs related to the start-up of the long-haul operation affected the results significantly, amounting to NOK 216 million for the full year. In the third quarter, these additional costs were NOK 101 million, in the fourth quarter NOK 45 million.

These included costs related to wet lease and additional fuel costs, as well as costs associated with accommodation, food and beverages for delayed passengers due to technical and operational problems with the long-haul operation.

TTG Nordic

[photo courtesy Norwegian]

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