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Norwegian reports strong improvement in earnings in 2015

Press Release   •   Feb 11, 2016 06:00 EST

(OSLO, FEBRUARY 11, 2016) Norwegian’s 2015 results are characterized by high load factors, continued fleet renewal and moderate capacity growth. The company reported a high load factor throughout 2015, which averaged at 86 percent. The pre-tax result improved by 1.7 billion Norwegian kroner ($200 million), compared with last year.

In 2015, the company reported a net profit of 75 MNOK ($8 million). The figure was heavily influenced by an unrealized loss on fuel hedging for 2016 and 2017, which makes up 800 MNOK. Adjusted for such unrealized hedging, the 2015 pre-tax results was 875 MNOK. This was a strong improvement compared to -1.168 MNOK the previous year.

The company’s total revenue was 22.5 BNOK - an increase of 15 percent. The production growth (ASK) increased by 5 percent, which illustrates a breather in the company’s expansion, explained by phasing out older aircraft whilst adding new aircraft to the fleet. The load factor remained high at 86 percent in 2015, up 4 percentage points from the year before. Norwegian carried close to 26 million passengers in 2015, an increase of 7 percent from 2014.

Fourth quarter 2015
For the fourth quarter, the underlying result increased by approximately 500 MNOK. The net loss before tax of 703 MNOK was mainly related to fuel hedging for 2016 and the depreciation of the Norwegian krone. By transferring Norwegian’s fleet to its subsidiary Arctic Asset Aviation Ltd. (AAA), the value of the aircraft has increased in line with the dollar. This has had a positive effect of 88 MNOK on the equity for the fourth quarter and 421 MNOK for 2015.

The company’s total turnover in the fourth quarter was 5.3 BNOK, an increase of 16 percent from the same quarter in 2014. Whilst the international traffic increased by 19 percent, domestic Scandinavian routes also improved with an increase of 5 percent. With few empty seats the load factor increased by 4 percentage point to 85 percent.

The airline carried 6.13 million passengers during the fourth quarter, which represents a passenger growth of 9 per cent.

“We enter 2016 with favorable fuel costs and one of the youngest fleets in Europe, which presents a significant competitive advantage. We see a good demand for quality flights at affordable fares, but the unpredictable political decision to introduce passenger tax in Norway is creating an uncertain situation in this market. It is a paradox that the company with the lowest emissions seems to be punished the hardest,” says CEO Bjørn Kjos.

For detailed information, please see pdf attached.

Media Contacts:
Chief Financial Officer Frode Foss, tel. +47 91 63 16 45
Chief Communications Officer Anne-Sissel Skånvik, tel + 47 97 55 43 44

Founded in 1993 and headquartered in Oslo, Norway, award-winning Norwegian Air Shuttle is the third largest low-cost carrier in Europe and the world’s seventh largest. Norwegian offers more nonstop European destinations from the United States than any other European airline with seamless connections across the continent. Norwegian offers 35 nonstop routes from the U.S. to London and Scandinavia, as well as six routes from the U.S. to the Caribbean. Onboard features include more legroom than most competitors and free in-flight Wi-Fi on short-haul routes. The airline carried 26 million passengers in 2015 on the world’s most modern and eco-friendly fleet to its network that stretches across Europe into North Africa and the Middle East, as well as long-haul flights to the U.S. and Southeast Asia – a total of 439 routes to 132 destinations. Over 5,500 people in Scandinavia, Europe, Asia, and the U.S. work for Norwegian. Follow @Fly_Norwegian on Twitter, join the discussion on Facebook and keep up with our adventures on Instagram. For more information on Norwegian and its network, visit norwegian.com.

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