Norwegian reports strong 2015 earnings rise

Norwegian saw 2015 net profit of NOK 75mn (€7.73mn)
Norwegian is reporting that its pre-tax result for 2015 improved by NOK 1.7 billion (€175 million) compared to the previous year. It saw a net profit of NOK 75 million (€7.73 million).
The figure was heavily influenced by an unrealised loss on fuel hedging for 2016 and 2017, which makes up NOK 800 million. Adjusted for this, the 2015 pre-tax result was NOK 875 million, a strong improvement compared to the airline’s loss of NOK 1.168 million in 2014.
The company reported high load factors during 2015, averaging at 86%, up 5 percentage points from the year before. Norwegian carried close to 26 million passengers during the year, a rise of 7% from 2014.
Total revenue was NOK 22.5 billion, an increase of 15%, from 2014. Production growth (ASK) increased by 5%, which the carrier says “illustrates a breather in the company’s expansion, explained by phasing out older aircraft whilst adding new aircraft to the fleet”.
“We enter 2016 with favourable fuel costs and one of the youngest fleets in Europe, which presents a significant competitive advantage,” said CEO Bjørn Kjos. “We see good demand for quality flights at affordable fares, but the unpredictable political decision to introduce passenger tax in Norway is creating an uncertain situation in this market. It is a paradox that the company with the lowest emissions seems to be punished the hardest.”
TTG Nordic


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