Norwegian cuts profit estimates for 2024 to USD 163 million due to weak kroner
Norwegian Air Shuttle revised its 2024 financial forecast, lowering its EBIT estimate to 1.85 billion NOK (USD 163 million) due to the depreciation of the kroner against the dollar. Despite rising costs and increased losses, the airline expanded its network with 40 new routes, reopened its Gran Canaria base, and completed the acquisition of Widerøe.
Norwegian Air Shuttle revised its financial forecast for 2024, lowering its estimate for operating profit (EBIT) to 1.85 billion Norwegian kroner (USD 163 million). This figure falls below the originally projected range of 2.1-2.4 billion NOK (USD 185-211 million).
The company attributes this adjustment to the depreciation of the Norwegian kroner, which ended the year at 11.35 NOK per dollar, compared to the earlier projection of 10.70 NOK. This change had a direct impact on operating expenses and adjustments to the balance sheet related to USD-denominated liabilities.
In the fourth quarter of 2024, net losses from “other results” amounted to 200 million NOK (USD 17.6 million), while cumulative losses for the year reached 290 million NOK (USD 25.5 million), significantly higher than the 35 million NOK (USD 3.1 million) recorded in 2023. Additionally, operating costs, including aircraft leases and depreciation, increased by 75 million NOK (USD 6.6 million) during the last quarter.
Despite these challenges, Norwegian maintains its forecast for a 4% increase in unit cost excluding fuel, measured in Norwegian kroner, in line with its original guidance.
Norwegian continued to expand its network of destinations in 2024. The airline launched 40 new routes for the summer season and resumed flights to Egypt, the United Arab Emirates, Spain, and Morocco. In total, Norwegian now operates 332 routes to 123 destinations.
The acquisition of Widerøe, completed in January 2024, further strengthened its domestic and regional network. Together, Norwegian and Widerøe transported over 26 million passengers during the year, reflecting increased demand after the pandemic. As part of its expansion strategy, Norwegian reopened its base in Gran Canaria in April 2024.
The company will present its full results for Q4 and the year 2024 on February 13, 2025.
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