Norwegian reports full-year 2019 net loss of NOK 1,609 million

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Norwegian has reported its full-year and fourth-quarter 2019 results. Year on year, unit revenue increased in nine consecutive months, driven by maturing routes and the optimization of Norwegian’s global route network. The punctuality has improved considerably during the past six quarters, and in the fourth quarter 2019 it was up 3.1 points to 82.6%.

Figures were negatively impacted by the global grounding of the Boeing 737 MAX aircraft and ongoing Rolls-Royce engine issues. The net loss was NOK 1,609 million in 2019, while the underlying operating result before ownership costs doubled to NOK 6.5 billion.

In 2019, Norwegian secured significant financial milestones that further strengthened the airline’s move to profitability. The internal cost-reduction program #Focus2019 delivered on target with cost reductions of NOK 2.3 billion for the full year and NOK 444 million in the fourth quarter. In addition, the company has postponed aircraft deliveries, sold aircraft, sold its shares in Norwegian Finance Holding and sold its domestic operation in Argentina as well as raised new capital to strengthen the liquidity.

Significant costs caused by the global grounding of the Boeing 737 MAX and the ongoing Rolls-Royce engine issues on the Dreamliner fleet meant the company was forced to wetlease additional aircraft to avoid cancellations and delays throughout the network.

The company’s total revenue in 2019 was NOK 43.5 billion, an increase of eight percent compared to 2018, driven by improved unit revenue and increased ancillary revenue per passenger. EBITDAR excluding other losses/(gains) of NOK 436 million (-118) in Q4 and NOK 6,468 million (3,165) in 2019

Norwegian’s shift in strategic focus from growth to profitability resulted in a production growth (ASK) of one percent while unit revenue increased seven percent. The load factor was 86.6% and more than 36 million customers chose to travel with Norwegian. (US$ = NOK 9.25 at time of publication.)

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