Feb 13 (Reuters) - Budget airline Norwegian Air Shuttle missed market expectations for its fourth-quarter operating profit on Friday and proposed a dividend of 0.80 Norwegian crowns per share.
Norwegian Air Reports Operating Profit Below Expectations Amid Rising Costs
Norwegian Air's Financial Performance Overview
Feb 13 (Reuters) - Budget airline Norwegian Air Shuttle said on Friday its operating result turned to a profit in the fourth quarter, but missed market forecasts due to higher than expected costs.
Impact of Increased Operating Costs
Increased air traffic control (ATC) and airport charges had a negative impact on operating costs compared to 2024, the carrier said in the earnings statement.
Forecast for Future Growth
The group's operating profit was 21 million Norwegian crowns ($2.2 million) in the quarter, well below a company-compiled consensus of 201 million crowns. In the same period last year, it had booked a loss of 93.2 million crowns.
Dividend Proposal
Total operating expenses excluding lease, depreciation and amortisation were 7.29 billion crowns, higher than the 7.03 billion crowns expected by analysts.
Norwegian's unit costs, or the average cost of flying an aircraft seat, rose 6% from a year ago to 0.80 crowns in the quarter. The airline expects its unit cost excluding fuel to rise by a low single-digit percentage in 2026.
The budget airline forecast overall production, or available seat kilometres, growth of 3% for its main Norwegian unit in 2026. The yearly ASK growth forecast for its domestic carrier Widerøe is about 4%.
Last year, Norwegian had only provided a capacity outlook.
The company also proposed a dividend of 0.80 crowns per share for the year.
($1 = 9.55 Norwegian crowns)
(Reporting by Vera Dvorakova in Gdansk, editing by Milla Nissi-Prussak)
