Norwegian may save billions on low oil prices
Norwegian Airlines could save billions on oil prices
A fall in oil prices could cut Norwegian’s fuel bill by almost three billion wrote Dagens Næringsliv (DN) newspaper.
Oil prices reached 86 USD in October, and until today prices have fallen by 30%.
30% cheaper fuel gives around 3.6 billion Norwegian kroner lower costs said Dagens Næringsliv, which referred to the airline’s last quarterly report.
Since the krone has weakened about five per cent against the dollar, it provides a loss of 850 million. In total, this will result in an annual saving of 2.7 billion kroner for the airline. This, however, depends on how much of the Norwegian consumption has been purchased at a fixed price.
Millions in savings could mean that Norwegian chief, Bjørn Kjos, can get more equity due to weaker profitability and high debt, given that oil prices do not rise wrote DN.
“The fall in oil prices is good news for all airlines, including us,” said Anne-Sissel Skånvik, communications director of Norwegian.
© NTB scanpix / #Norway Today
