Expansion pushes Norwegian Air to larger than expected loss
Norwegian Air suffered a worse than expected loss in the last 3 months of 2017 and ate into its cash reserves as the cost of expansion weighed. Unlike other budget airlines that focus on shorter routes, Norwegian is trying to crack the transatlantic market by undercutting established rivals but faces pressures to control costs and shore up its balance sheet. The company swung to a net loss of NOK919m (US$118m) from a year-ago profit of NOK197m, while analysts anticipated a quarterly loss of NOK598m. “We are not at all satisfied with the 2017 results,” CE Bjoern Kjos said, while adding that major investments made in 2017 had put the company on course for growth. “We truly hope 2017 will be the last year with loss. We are very optimistic for 2018. Bookings are looking good and cost is on track,” he said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-02-16/unaligned/expansion-pushes-norwegian-air-to-larger-than-expected-loss
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Expansion pushes Norwegian Air to larger than expected loss
Norwegian Air suffered a worse than expected loss in the last 3 months of 2017 and ate into its cash reserves as the cost of expansion weighed. Unlike other budget airlines that focus on shorter routes, Norwegian is trying to crack the transatlantic market by undercutting established rivals but faces pressures to control costs and shore up its balance sheet. The company swung to a net loss of NOK919m (US$118m) from a year-ago profit of NOK197m, while analysts anticipated a quarterly loss of NOK598m. “We are not at all satisfied with the 2017 results,” CE Bjoern Kjos said, while adding that major investments made in 2017 had put the company on course for growth. “We truly hope 2017 will be the last year with loss. We are very optimistic for 2018. Bookings are looking good and cost is on track,” he said. <br/>
