Norwegian slips into red for financial 2017 as expansion continues apace

Norwegian slips into red for financial 2017 as expansion continues apace

"We are not at all satisfied with the 2017 results".

Rapidly expanding Norwegian today blamed higher fuel prices and other "significant costs", including "passenger care", for its £27.4 million net loss past year.

The total revenue was 7.8bn kroner, a rise of 30 per cent on the same time a year ago, primarily due to the airline's aggressive expansion plans. "However, the year was also characterized by global expansion driven by new routes, high load factors and continued fleet renewal", said CEO Bjorn Kjos.

However, the airline insisted it was in a "far better position" this year, with stronger bookings and a better staffing situation.

Earlier this week, Norwegian said its growth was not letting up anytime soon, pledging to keep the United Kingdom at the heart of future expansion with aims to grow long-haul flights from the United Kingdom to Asia and more South America destinations.

After launching its London-to-Buenos Aires flight this week, Norwegian on Tuesday said it plans to introduce more routes to South America, as well as adding more destinations in the U.S. and Asia in coming years.

Today, analysts at Goodbody Stockbrokers said headline results "made pretty grim reading, as expected".

Shares in Norwegian Air were crashing on the Oslo Stock Exchange Thursday after the airline reported a large loss for the fourth quarter that was almost double what analysts had expected.

"This raises the critical question of how much of this investment-related inflation will really be recouped in the current year, with Norwegian growing capacity by 40 per cent in 2018 vs. the 25 per cent seen last year", they added.