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Norwegian posts first loss in seven years

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Norwegian posts first loss in seven years
A Norwegian plane at Stavanger airport. Photo: Terje Pedersen/NTB scanpix
12:31 CET+01:00
Norwegian Air Shuttle on Wednesday posted a loss over a billion Norwegian kroner ($137m) for 2014, the first time it has failed to make a profit in seven years.
The company, which recently launched a major international expansion with a string of new long-haul routes, said the disappointing results were largely down to the 690m kroner it had lost over the year as a result of fuel hedging and adverse currency fluctuations. 
 
“There’s no doubt 2014 was a weak year for Norwegian,” CEO Bjørn Kjos said in a statement, stressing that 2015 was already looking much better. 
 
“Entering 2015, we see a satisfactory demand for quality flights at affordable fares and are already in the first quarter benefiting from the low oil price,” he said. “Still, there is no doubt that we need to further reduce our cost level in order to stay competitive.” 
 
The repeated delayed flights the company suffered at the start of 2014 as it launched long-haul routes to Thailand and the US cost the company 265m kroner, the company added in the statement. 
 
The delay in receiving a permit to operate in the US as a foreign air carrier had cost 117m kroner, while a Norwegian labour strike had cost 101m kroner. 
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