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Norwegian reports best ever annual result with net profit of more than 1.1 billion NOK (£109million) in 2016

Global expansion driven by new routes, high load factors and continued fleet renewal, contributed to Norwegian’s best ever annual result, with a net profit of 1,135 million NOK (£109 million). The load factor was 88 per cent.

The net profit was 1,135 million NOK (£109 million) in 2016, while the operating profit (EBIT) was 1,820 million NOK. The results are influenced by Norwegian’s international growth, particularly on intercontinental routes, as well as increased presence in the UK and Spain.

The company’s total revenue was more than 26 billion NOK (£2.5 billion) – an increase of 16 per cent. The company took delivery of 21 brand new aircraft in 2016, contributing to a production growth (ASK) of 18 per cent. The load factor increased by 1.5 percentage points to 88 per cent. A total of 29.3 million passengers chose to travel with Norwegian in 2016, an increase of 14 per cent compared to the previous year.

For the fourth quarter, the net profit was 197 million NOK. The total revenue was more than 6.1 billion NOK, an increase of 15 per cent from the same period last year, primarily driven by international growth as well as an increased traffic in the Nordics. Just over 7 million passengers flew with Norwegian this quarter, a growth of 17 per cent. The load factor was 86 per cent.

Norwegian CEO Bjorn Kjos said: “We are very pleased to report our best ever results in a year of strong international growth, establishing operations in new markets and tough competition. Through our global strategy, we are contributing an economic boost and increased employment at our destinations, as well as ensuring that more people can afford to fly.

“We enter 2017 with the ambition to increase and strengthen our foothold in established markets, while simultaneously developing our route network in new parts of the world. This year, 32 brand new aircraft will enter service, including nine Boeing 787-9 Dreamliners. We will launch more than 50 new routes and recruit over 2,000 new colleagues worldwide.”

A key part of Norwegian’s 2016 growth has been rapid expansion in the UK market, with key UK milestones including:

–    Busiest ever year in UK with 4.5 million passengers – Norwegian flew 4.5m passengers to and from UK airports in 2016, including 4 million at London Gatwick.

–    10 new routes launched from UK airports in 2016 – these included new low-cost long-haul routes from Gatwick to Las Vegas, Oakland-San Francisco and Boston; new flights from Edinburgh and Manchester to Spanish city and sun destinations; and the UK’s only direct flights to Lapland’s capital Rovaniemi

–    Continued growth of low-cost long-haul in the UK – Norwegian’s long-haul network from London grew to 8 US destinations in 2016, fuelled by new routes and increased frequency on existing flights. Norwegian continued to offer the lowest direct flights to the US from just £135 one way, and also introduced the UK’s cheapest transatlantic premium travel with Premium cabin fares from £399

–    First British ‘tail fin hero’ – with Norwegian’s fleet boosted by 21 new aircraft in 2016, the airline also announced its first ever British tail fin hero. The ‘world’s number one storyteller’ Roald Dahl was announced as the first British tail fin hero, appearing on one of Norwegian’s brand new 737-800 aircraft in 2016. In early 2017, aviation pioneer Amy Johnson was announced as the 2nd British tail fin hero and a series of further British heroes are set to be announced later this year

–    US approval for Irish subsidiary – Irish subsidiary Norwegian Air International was finally granted a US Foreign Carrier Permit in 2016. This unlocks the door for rapid expansion of Norwegian’s transatlantic network, with new routes from Ireland and Scotland set to be announced in the coming weeks

–    New UK headquarters – as part of plans for significant UK growth, Norwegian established a new UK head office at London Gatwick in 2016. The new UK office is the airline’s first permanent workspace outside of Norway and is now home to key operational, technical and commercial staff involved in the airline’s UK operations

Date: February 20, 2017
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