Norwegian Air Shuttle ASA
NAS,
said Thursday that current booking trends are encouraging but visibility is somewhat low, as it reported a smaller-than-expected fourth-quarter net loss.
The low-cost carrier reported a net loss of 118.9 million Norwegian kroner ($11.6 million) compared with a profit of NOK111.8 million a year earlier, with earnings weighed by macroeconomic uncertainty, predominantly related to high fuel prices and a strong U.S. dollar, it said.
Total revenue rose 95% to NOK4.97 billion as it carried 4.58 million passengers compared with 3.14 million a year earlier.
A FactSet poll had expected a net loss of NOK546 million on revenue of NOK4.5 billion.
Norwegian said that for 2023 it is targeting production of 34 billion available seat kilometers–a measure of carrying capacity–with increased unit revenue and a reduction in unit cost excluding fuel of 5%-10% on the year.
High fuel prices and a strong U.S. dollar may weigh on 2023 earnings, but it is reducing exposure to higher fuel prices having hedged 25% of estimated fuel consumption for 2023.
Norwegian said it is currently increasing the total fleet from 70 aircraft to match increasing demand and to benefit from increasing scale. The company expects to operate a fleet of 81 aircraft during the peak summer season.
Write to Dominic Chopping at dominic.chopping@wsj.com
Credit: marketwatch.com