Norwegian loses billions in first quarter of 2017

Norwegian recorded significant losses in the first part of 2017, even though more and more passengers are flying with the low-cost Scandinavian airline.

Norwegian loses billions in first quarter of 2017
Norwegian CEO Bjørn Kos presents the airline's forst quarter results. Photo: Gorm Kallestad/NTB scanpix

The airline has added routes to its services in recent times, thereby increasing numbers of passengers, but this is not yet reflected in the airline’s profits, reports news agency NTB.

A loss of 1.5 billion Norwegian kroner ($117 million) was recorded during the first three months of 2017, on top of an 800 million kroner ($93 million) loss in the final quarter of 2016.

Norwegian CEO Bjørn Kos said that increased fuel charges, tough competition and an increase in the value of the Norwegian krone are all responsible in part for the poor results in the first part of the year.

“In this quarter we are particularly feeling the effects of high fuel charges in combination with a strong Norwegian krone against the British pound, euro and Swedish krone, which represent almost half of our turnover,” Kos wrote in a press release.

“Additionally the figures are affected by the fact that Easter did not fall in the first quarter, as it did last year,” the CEO continued.

READ ALSO: Norwegian doubles profits in second quarter of 2016

A total of 6.7 million passengers flew with the airline in the first quarter of this year, an increase of 14 percent, reports NTB.

As many as 39 new routes were launched by the company during the quarter, including flights connecting the United States with Ireland, Northern Ireland Scotland and Norway.