The Norwegian Group swung to loss of 222.6 million Norwegian krone ($19.7 million) in the fourth quarter of 2024, compared to a fourth quarter profit of 152.8 million krone ($13.5 million) in 2023. The company's full year profits were 22% to 1.4bn krone ($124 million).
The company ended the year with 135 aircraft in its fleet, consisting of 86 for Norwegian and 49 for Wideroe. “Boeing has really started to produce and deliver aircraft,” said Norwegian CEO Geir Karlsen in the company's earnings call. The company has taken delivery of three aircraft so far in 2025 with the fourth expected ahead of the summer season. The company expects to take delivery of 11-13 aircraft this year.
“Even if Boeing are starting to deliver, they are not delivering at a pace that was planned,” Karlsen continued. “It means that in combination with the Airbus issues with the Pratt & Whitney engine, there will be less capacity coming into the market in total compared to how it looked a year or two ago.” Capacity is expected to be up 17% in the full year 2025.
The company ordered 50 737 MAX jets in 2022 with options for 30 more, with the first aircraft expected to be received in the fourth quarter this year.
Karlsen said the company will make a decision on the 30 options in the next six months. He said the options have more “attractive pricing” over the firm 50 aircraft.
During the quarter, Norwegian entered into agreements with three banks and lessors for the financing of the initial 18 aircraft from the 50 aircraft orderbook. In addition, it signed letters on intent with two more banks for additional seven aircraft.
Of the 25 aircraft, 13 will be owned and the remaining 12 will be subject to sale and leaseback transactions. For the quarter, the company reported consolidated operating revenues of 8.2bn krone ($726.4 million), up 39%. The revenues comprised of Norwegian's 6.4bn krone ($567.1 million) and Wideroe's 1.9bn krone ($168.4 million). The company's full year revenues totalled 35.3bn krone ($3.1bn), up 38%.
“That means on the fleet side we are comfortable for 2025 as well as for 2026,” said Karlsen.
However, weakened currency and reduced growth in capacity is set to impact the company's unit costs in 2025, expected to increase single digits.
Total operating expenses for the quarter totalled 7.1bn krone ($629.5 million), up from 4.7bn krone ($416.7 million) a year prior. In addition, full year operating expenses totalled 28.4bn krone ($2.5bn), up from 19.8bn krone ($1.8bn) a year prior.
The company noted that the weakening of the Norwegian krone against US dollar and the euro had impacted its fourth quarter results.
Capacity for the quarter was up 26% and up 19% for the full year. Revenue passenger kilometres (RPK) were up 25% for the quarter and up 19% for the year. Passenger numbers were up 31% in the quarter to 6.2 million and up 28% to 26.4 million for the year. Load factor was down 0.9 percentage point to 83.5% for the quarter and down 0.4 percentage point to 84.3% for the year.