Norwegian reports an operating profit (EBIT) of NOK 1,502 million for 2022

Norwegian reports an operating profit (EBIT) of NOK 1,502 million for 2022

Time Stamp: February 16, 2023 5:47 AM
Source Node: 1962161

Norwegian has reported its results for the fourth quarter of 2022 and the preliminary full-year results for 2022. For the full year of 2022, Norwegian delivered an operating profit (EBIT) of NOK 1,502 million. The airline limits losses before tax (EBT) to NOK 80 million in a quarter characterised by seasonally softer demand, demonstrating Norwegian’s ability to adjust capacity and conserve liquidity when moving from the busy summer season and into the quieter winter trading period.

For the fourth quarter of 2022, the company delivered an operating loss of NOK 39 million. Profit before tax (EBT) amounted to negative NOK 80 million in the quarter. Continued liquidity discipline led the company to conclude the year with a cash position of NOK 7.8 billion. At year-end, the Norwegian fleet comprised of 70 aircraft.

“We now close a chapter on 2022, a year where our operations have performed well, in spite of sweeping industry challenges across European airports. For the full year, we delivered an operating profit (EBIT) of NOK 1,502 million despite record-high fuel prices and a strong US dollar,” said Geir Karlsen, CEO of Norwegian.

In the fourth quarter of 2022, Norwegian had 4.6 million passengers, up from 3.1 million in the fourth quarter of 2021. Production (ASK) was 6.9 billion seat kilometres, while passenger traffic (RPK) was 5.7 billion seat kilometres. The load factor increased to 81.4 percent from 77.0 percent in the same period last year.

Most punctual Nordic airline

Punctuality was impacted by challenging weather conditions at several European airports. In the fourth quarter, the share of flights departing on schedule was 82.3 percent, down from 87.8 percent in the same period last year, but a significant improvement from 73.6 percent in the previous quarter. Regularity, the share of scheduled flights taking place, was 99.4 percent. Cirium, the global aviation consultancy, named Norwegian the most punctual airline in the Nordics and one of the most punctual airlines in Europe for 2022.

“Being the most punctual Nordic airline in 2022 is a true testament to the efforts of our many dedicated colleagues and an important reason why an increasing number of customers choose to fly Norwegian, both for their leisure and corporate travels. Our New Year’s sale campaign has exceeded all expectations with more than one million seats sold in only 14 days, a strong sign of the exciting year we have ahead of us,” said Karlsen.

Looking ahead to a successful 2023

Looking ahead, Norwegian is well-positioned to further solidify its position as a leading Nordic airline in 2023. Norwegian has more than 300 routes for sale across the Nordics and to attractive European destinations. With strong brand loyalty, a solid organisation and a robust financial situation, Norwegian is well-positioned to tackle short-term fluctuations in demand and to solidify its position as a leading Nordic airline.

To meet the anticipated strong demand going forward, the company has signed a Letter of Intent (LOI) for six Boeing 737 MAX 8 aircraft on lease from Air Lease Corporation (ALC) to be delivered ahead of the summer 2023 season. These leases will help to counteract delays from Boeing for other aircraft that were originally due for delivery this spring. For the upcoming summer season, the company expects to operate a total fleet of 81 aircraft.

16 February 2023

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