Hurtigruten hurt by European economies

Ferry line posts pre-tax loss of €40 million

Norway’s Hurtigruten ferry and cruise line has posted a pre-tax loss of NOK 301 million (€40 million), much bigger than its NOK 157 million loss for 2011. Revenues for 2012 stood at NOK 3.5 billion, slightly more than its 2011 revenues of NOK 3.3 billion.
The company blamed the sluggish European economies for a decline in bookings from its major markets, describing 2012 as a challenging year. It was unable to compensate for this drop by raising bookings from other markets. It also blamed extreme weather conditions for a number of cancellations between Bergen and Kirkenes.
The overall increase in revenues can be explained by a general price rise, simplified distribution and lower commission payments, Hurtigruten said.
Nevertheless, an explorer product offered on the ship MS Fram was positive for the year and operations to Spitsbergen showed encouraging improvement.
Cruise Industry News
[pictured: MS Fram; photo courtesy Hurtigruten]