Norwegian airline lost several billions toward end of 2018

The airline NorwegianThe airline Norwegian.Photo: Norway Today Media

Norwegian lost NOK 4 billion over the last three months of 2018 woite E24 news, who referred to the airline’s preliminary figures for the fourth quarter of 2018.

‘’Norwegian has never really had financial problems. We have been in a build-up phase and it costs to expand. But now we are done with most of the growth’’ said CEO, Bjørn Kjos on Tuesday according to E24.

Norwegian’s preliminary figures for the fourth quarter last year show that the company’s turnover was NOK 9.6 billion, up from NOK 7.8 billion in the same period in 2017. However, in the same period, profit before tax, interest and depreciation went from NOK 652 million to 3.11 billion.

According to E24’s calculations, Norwegian’s equity fell by NOK 3.58 billion, only 200 million above the minimum requirement.

‘’They lost NOK 1.8 billion on fuel security alone. The figures seem to be in line with my expectations’’ said analyst Preben Rasch-Olsen of Carnegie. The company has estimated that
expensive oil prices, rising growth, and a tougher market would lead to a more robust result.

The strong growth of Norwegian in recent years has affected the financial situation. Several analysts have expected that the airline would soon struggle to keep the terms of several of its loans. On Tuesday it became known that Norwegian raises NOK 3 billion in equity. With the share issue, the company should be able to control the conditions for its loans.

© NTB Scanpix / #Norway Today

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