Fuel price changes hit Norwegian hard

Norwegian loses almost a billion kroner in Q1
Changes in the price of fuel had a dramatic effect on Norwegian’s first-quarter figures, resulting in a Q1 loss of NOK 992 million (€107 million).
The low-cost carrier posted an underlying improvement in excess of NOK 400 million for the period, but sustained losses of NOK 528 million from forward jet-fuel contracts.
These contracts fix the price paid by airlines for fuel over an agreed period. They are a risk as they can result in losses if the cost of fuel dips below the contracted level. The airline also blamed exchange-rate fluctuations for the poor result, which compares to a NOK 777 million loss for Q1 2015.
Nevertheless, the airline sold 85% of its seats in this traditionally slow season, carrying six million passengers, up 17% year-on-year.
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