In controtendenza:Norwegian reports record full-year profit

[Manuel Fantoni]

Source ATWonline

Friday February 12, 2010 Norwegian Air Shuttle said it realized "the best annual result" in its history with a 2009 net profit of NOK446 million ($75.5 million) compared to earnings of NOK3.9 million in 2008.

"I am very pleased with reporting positive results in a time where the industry is facing challenging market conditions," CEO Bjorn Kjos said. "I am especially pleased with our cost reductions and improved competitiveness."

Full-year revenue for the Scandinavian LCC rose 17% to NOK7.3 billion, with turnover on domestic routes growing by a staggering 26% to NOK2.9 billion and international revenue increasing 12% to NOK4.4 billion. EBIT reversed from a loss of NOK338 million in 2008 to a NOK572 million profit last year.

Norwegian, which was awarded ATW's Airline Market Leadership Award in 2009 (ATWOnline, February 2009), reduced unit cost by 13% to NOK0.49. CASK excluding fuel stood at NOK0.36, down slightly from NOK0.37 a year ago. The company said it expects a further 20% reduction in CASK owing to introduction of new 737-800s. It will take delivery of 13 this year.

Annual passenger count jumped 18% to 10.9 million as it launched 63 new routes last year comprising 30 from Denmark, 18 from Sweden and 15 from Norway. Load factor was 78%, down 1 point, on an 18% hike in ASKs to 13.5 billion. It plans to grow ASKs 30% this year, mainly by replacing 737-300s with -800s. At year end it should operate 53 aircraft compared to 46 at the end of 2009.

Fourth-quarter net profit was NOK800,000, reversed from a NOK138 million deficit in the year-ago period. Group revenue rose 8% to NOK1.75 billion and operating profit of NOK7.6 million compared to a NOK199 million loss in the 2008 fourth quarter.

Separately, Norwegian announced the launch of service from Oslo and Stockholm to Helsinki Vantaa as part of a strategy "to become a strong player in the Nordic market." Flights from Oslo Gardermoen and Stockholm Arlanda start April 29. Frequency was not announced.


by Cathy Buyck