Norwegian Air swings to Q4 loss, expects strong demand ahead

Budget carrier Norwegian Air Shuttle reported a Q4 net loss on Thursday, citing high fuel costs and a strong US dollar, but said it expected strong demand ahead. The October-December net result swung to a loss of 119m crowns ($11.69m), from a profit of 112m a year earlier. Q4, normally a slow period for holiday travel, saw record-high fuel prices, a strong dollar and “sweeping industry challenges across European airports”, the airline said. Still, it maintained that the situation would improve. It said its capacity - as measured by available seat kilometres (ASK) - is expected to rise by 24% this year, while the revenue earned from each passenger would rise and the costs were likely to fall. For the summer of 2023, Norwegian plans to operate 81 aircraft, down from the 85 aircraft it had previously planned for. The budget airline had a total fleet of 70 Boeing aircraft in its fleet by year-end, up from 69 three months earlier. It has since announced it would lease six additional Boeing 737 MAX 8, from Air Lease Corporation (ALC), with delivery well ahead of the Northern hemisphere summer season. Norwegian emerged from government-backed bankruptcy proceedings in May 2021 after shedding much of its debt and transatlantic network. Flyr AS, a newcomer which emerged at the end of the pandemic curbs on air travel at the same time, filed for bankruptcy two weeks ago, having failed to raise enough cash to survive the winter season.<br/>