Norwegian Delivers Record NOK 2,232M Operating Profit in 2023

Friday, February 16, 2024

Norwegian Air Shuttle recently unveiled its financial outcomes for both the final quarter and the entire year of 2023. Throughout 2023, the airline achieved an unprecedented operating income (EBIT) of NOK 2,232 million, marking the most profitable year in its history. By the end of the year, its cash reserves had increased to NOK 9.5 billion. These results highlight the airline’s successful strategy of adjusting its operations for the seasonal dip in demand, maintaining its status as one of Europe’s top airlines for on-time departures and consistent service.

For 2023, the company’s operating margin hit a new peak at 9 percent. In the last quarter alone, Norwegian reported an operating income of NOK 328 million, with a pre-tax profit (EBT) reaching NOK 1,804 million for the year and NOK 208 million for the quarter. The airline’s fleet consisted of 87 aircraft by year-end, including 20 of the latest 737 MAX 8 models.

“I am thrilled to announce that Norwegian achieved all-time high profits for 2023. Our loyal customer base continued to grow, and we are grateful for their trust in us. Colleagues across the entire company have worked tirelessly to ensure operational excellence, ranging from the planning of our network and services to everyday execution,” said Geir Karlsen, CEO of Norwegian.

Passenger numbers and efficiency saw improvements, with 4.7 million passengers flying with Norwegian in the quarter, an increase from the previous year’s 4.6 million in the same period. The airline reduced its capacity by 32 percent compared to the previous quarter, aligning with the lower demand of the winter season, resulting in an 84.4 percent load factor, a 3 percentage point increase year-over-year.

Despite a slight decrease in punctuality to 81.5 percent due to winter conditions affecting operations, Norwegian’s dedication ensured nearly all passengers reached their holiday destinations. The airline was recognized by Cirium as Europe’s most punctual airline in October and ranked fifth for the entire year, also leading in regularity.

The start of the year saw Norwegian complete its acquisition of Widerøe, a regional airline with a fleet of 48 mostly turboprop aircraft. This move is set to enhance route offerings, operational synergies, and diversify Norwegian’s operations, particularly in public service obligations.

The integration of Widerøe into the Norwegian group is underway, promising a richer and more extensive service offering for customers, as highlighted by Karlsen.

Regarding dividends and future projections, the Board plans to suggest a dividend of NOK 0.60 per share for 2023 at the next annual general meeting, pending approval from debt holders. The company’s booking trends are positive, with a longer booking horizon providing better visibility for future operations. Norwegian anticipates a 12 percent increase in production for 2024, aiming for an operating income between NOK 2.5 and 3.2 billion.

The strategic acquisition of Widerøe ensures Norwegian’s position as a leading choice for Nordic travelers, valued for its reliability and expanding network. As the winter season progresses, Norwegian will maintain adjusted capacities, planning to expand operations and fleet size to about 90 aircraft by the summer of 2024, catering to the anticipated travel surge.

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