Norwegian Air delivered a robust operating profit (EBIT) of NOK 1,873 million for 2024, marking the second-best result in the company’s history.
The strong result came despite the fourth quarter seeing a negative operating result (EBIT) of NOK 93 million. The dip was primarily due to a weaker Norwegian krone against the US dollar.
Overall, the year was highlighted by the successful acquisition of Widerøe and significant capacity growth.
Passenger Growth and Capacity Expansion
The fourth quarter saw Norwegian Group carry 6.2 million passengers. Of these, 5.2 million flew with Norwegian, and 1.0 million with Widerøe. This represents a substantial increase compared to the same period in 2023. Norwegian added 480,000 passengers and Widerøe contributing an additional 126,000.
Norwegian significantly expanded its capacity (ASK) in the fourth quarter, increasing it by 19 percent. Widerøe also saw a four percent capacity increase.
Impressively, despite this substantial capacity growth, Norwegian maintained a strong load factor of 84.2 percent.
This was just slightly below the 84.4 percent achieved in the same period of 2023. Widerøe’s load factor also improved significantly, rising by nearly five percentage points to 72.9 percent.
For the full year 2024, Norwegian carried 22.6 million passengers, a ten percent increase from 2023. Widerøe also celebrated a milestone, carrying 3.8 million passengers and achieving a new passenger record in its 90-year history.
Positive Outlook Amid Widerøe Integration
“We are pleased with the hard work across the Group. We are encouraged by the year-on-year growth in passenger numbers,” said Geir Karlsen, CEO of Norwegian.
“This demonstrates the strong demand for our product and the appreciation our new and returning customers have for travelling with Norwegian. The increase in our business segment is encouraging.”
“We look forward to continuing to integrate Widerøe’s product offering to further enhance this segment.”
Karlsen also noted the positive progress in Boeing’s production, with Norwegian receiving three new 737 MAX 8 aircraft in 2024.
Operational Performance
Norwegian made significant strides in aviation sustainability during the fourth quarter. In October, the airline participated in the largest voluntary biofuel agreement in Norwegian aviation history, refueling a defense sector business trip with sustainable aviation fuel.
Furthermore, in December, Transport & Environment, an advocacy group, ranked Norwegian among the top three airlines globally for its commitment to sustainable aviation fuel.
While operational performance was impacted by adverse winter weather and other operational issues, Norwegian maintained a punctuality rate of 78.4 percent in the fourth quarter, with Widerøe achieving 77.5 percent. Regularity, the percentage of flights operating as scheduled, was 99.1 percent for Norwegian and 92.6 percent for Widerøe.
Shareholder Returns
The Board of Directors plans to propose a distribution of profits of NOK 0.60 per share for 2024 at the 2025 Annual General Meeting.
This distribution, totaling approximately NOK 580 million and representing a 48 percent payout ratio, will be paid out either as a dividend or through share buybacks.
This distribution is contingent upon certain conditions within the company’s debt instruments.
Looking Ahead to 2025
Norwegian anticipates having 88 aircraft in its fleet for the peak summer 2025 season and forecasts low single-digit production growth for the year.
“The upside of the weak local currency is that it brings about increased tourism to the Nordics,” Karlsen explained.
“Norwegian and Widerøe are uniquely positioned to capitalise on this. In 2025, we will therefore continue our work to improve our product offering and strengthen our efforts to reduce costs and increase efficiency.”
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