Norwegian Air Shuttle has reported a net profit of NOK322 million ($54 million) during the 12 months to December 31, 2013. Last year the budget carrier posted profits of NOK457 million.
CEO Bjørn Kjos commented that profits had been impacted by “teething problems” with its 787 aircraft and a “warm and sunny Nordic summer” had impacted July and August bookings. Profits were also curtailed by capacity investment and increased competitive pressure during the second half of 2013, Kjos said.
NAS carried 20.7 million passengers last year – a rise of 17% over last year – on the back of an increase in capacity as the fleet size rose from 68 in December 2012 to 85 at the end of 2013. As a result load factor fell slightly from 78.5% in 2012 to 78.3% last year.
Operating revenue rose to NOK15.6 billion from NOK12.9 billion in 2012, while operating profit more than doubled to NOK970 million from NOK403 in 2012.
Kjos plans “considerable capacity investment in 2014” with ASKs expected to increase by 40%, which includes long-haul operations, while short-haul capacity will be increased by adding more 737-800s to the fleet.
By the end of 2014, Norwegian will have a fleet of seven 787s, and will have retired all leased 737-300s and the oldest 737-800s.