Norwegian has published its financials for 2023, reporting a company-record operating profit (EBIT) of NOK 2,232 million. This milestone reflects the airline’s strategic move to reduce capacity during the less busy winter season, showcasing its ability to adapt and thrive.
Norwegian Financials 2023
The airline’s end-of-year liquidity surged to NOK 9.5 billion, underscoring its financial health. Norwegian’s smart decisions throughout the year have paid off, cementing its status as one of Europe’s most punctual and reliable carriers.
The full-year operating margin hit an unprecedented high of 9 percent for the airline. In the fourth quarter alone, Norwegian achieved an operating profit of NOK 328 million. The profit before tax for the whole year climbed to an impressive NOK 1,804 million and, for the final quarter, reached NOK 208 million.
Norwegian’s modern fleet ended the year strong with 87 aircraft, including 20 advanced 737 MAX 8 planes, which are celebrated for their cutting-edge technology. This modern fleet enhances the flying experience and reinforces Norwegian’s commitment to innovation and sustainability.
“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.
Norwegian Serves More Passengers with a Higher Load Factor in Q4
Norwegian had 4.7 million passengers in the quarter, up from 4.6 million passengers in the fourth quarter of 2022. Production (ASK) was 7.1 billion seat kilometers, while passenger traffic (RPK) was 6.0 billion seat kilometers. Compared to the previous quarter, capacity was down 32 percent as the company reduced its production to match seasonally lower demand during winter. The quarterly load factor was 84.4 percent, up three percentage points from the previous year’s period.
Weather Impacts Norwegian’s Punctuality In Winter
The percentage of flights leaving on time was 81.5 percent, a slight drop from 82.3 percent the year before. Winter weather in December affected flight schedules at major airports. The airline worked hard to get almost all passengers home for the holidays despite this. Cirium, an aviation consultancy, awarded Norwegian Air Shuttle (DY) the title of Europe’s most punctual airline for October. It also placed fifth for overall punctuality in 2023. Additionally, Norwegian leads in Europe for consistent performance.
Widerøe Acquisition Completed
In January, Norwegian expanded its aviation business by acquiring Widerøe, a leading regional airline in Norway. This strategic move brought Norwegian a fleet of 48 mostly turboprop aircraft. By integrating Widerøe’s routes with its own, Norwegian aims to achieve considerable operational synergies. Additionally, this acquisition allows Norwegian to diversify further, thanks to Widerøe’s extensive commitment to public service obligation (PSO) flights.
“We are now in the process of onboarding Widerøe as part of the Norwegian group. I very much look forward to exchange decades of experience between the two airlines. This will enable us to go to the market with an improved and more comprehensive offering to our customers,” said Karlsen.
Norwegian Dividend and Financial Outlook
Norwegian’s Board of Directors proposes a dividend of NOK 0.60 per share for 2023 to the annual general meeting 2024. Distributing the dividend must be approved by holders of the company’s debt instruments. If the airline fails to obtain such approval, the Board will set aside the dividend amount in a fund for later distribution.
The airline reports encouraging booking trends. A longer booking curve compared to the two previous years gives improved visibility. For the full year of 2024, Norwegian forecasts an overall production (ASK) of around 36,000 million seat kilometers. That represents a growth of approximately 12 percent from 2023. The company projects profits for 2024 to improve and expects an operating profit (EBIT) to be in the range of NOK 2.5 to 3.2 billion.
Norwegian will keep a reduced capacity level for the remainder of the winter season in keeping with lower seasonal demand. In March, Norwegian will ramp up capacity into the busy travel season. The airline’s fleet will grow to approximately 90 aircraft for the peak summer 2024 season.
Norwegian reports its customers value the airline’s strong punctuality and the attractive and growing route network. The acquisition of Widerøe will enhance Norwegian’s status as a preferred travel partner in the Nordics.
Norwegian Financial Q4 2023 Report
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