DALLAS – Low-cost carrier (LCC) Norwegian (DY) has revealed a full-year return to profit after undergoing a significant financial restructuring. The airline emerged from government back bankruptcy proceedings in May 2021 after dropping its long-haul services to focus on its short-haul operations.
It posted an operating profit of NKr1.5bn (US$147m) for 2022. This followed a loss of NKr39m (US$3.7m) for Q4, which DY attributed to ‘seasonally softer demand.’ Indeed the airline had reduced capacity for this period by up to 30% compared to Q3.
In a briefing, DY CEO Geir Karlsen said, “We now close a chapter on 2022, a year where our operations have performed well, in spite of sweeping industry challenges across European airports. For the full year, we delivered an operating profit (EBIT) of NKr1,502m despite record-high fuel prices and a strong US dollar.”
Reuters is also reporting that Norwegian has increased its summer 2023 ticket prices by around 20% in a bid to attract higher-yielding business passengers. “We are seeing strong bookings into 2023,” Karlsen added. However, it remains aware that ‘demand for air travel may be impacted by the present high levels of inflation and increasing interest rates.’
The carrier has also reported that it ‘will continue to utilise its fleet flexibility by matching capacity to seasonal demand.’ This includes the addition of size Boeing 737-8s on lease from Air Lease Corporation (ALC), due to be delivered ahead of the summer 2023 season. It expects to operate a total of 81 aircraft for the peak summer season.
Featured Image: Norwegian Boeing 737-800 (EI-FJW). Photo: Alberto Cucini/Airways.