Norwegian Group closed 2024 with an impressive operating profit (EBIT) of NOK 1,873 million, securing its position as one of the airline’s most profitable years to date. Despite facing headwinds in the fourth quarter, including a NOK 93 million operating loss due to currency fluctuations between the Norwegian krone (NOK) and the US dollar, the company demonstrated resilience. A major highlight of the year was the successful integration of Widerøe, bolstering Norwegian Group’s market presence and expanding its operational capacity.

Passenger numbers surged in the final quarter, with 6.2 million travelers flying across the group’s network—5.2 million choosing Norwegian and 1.0 million flying with Widerøe. Compared to the same period in 2023, Norwegian carried 480,000 more passengers, while Widerøe added 126,000 new travelers. Norwegian’s capacity, measured in available seat kilometers (ASK), climbed by 19 percent, while Widerøe’s capacity grew by four percent. Even with this expansion, Norwegian maintained an impressive load factor of 84.2 percent, reflecting steady demand. Widerøe, meanwhile, saw a notable improvement, with its load factor increasing by nearly five percentage points to 72.9 percent.

For the full year, Norwegian welcomed 22.6 million passengers, a ten percent increase from the previous year. Widerøe set a historic benchmark, carrying 3.8 million passengers—the highest in its 90-year history. These milestones underscore Norwegian Group’s ability to scale operations while maintaining strong customer demand, reinforcing its position as a key player in the aviation industry.

“Overall, we are pleased with the hard work across the Group and are encouraged by the year-on-year growth in passenger numbers. 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, and we look forward to continuing to integrate Widerøe’s product offering to further enhance this segment. In addition, I am glad to see Boeing’s production progress, having received three new 737 MAX 8 this year,” said Geir Karlsen, CEO of Norwegian.

Norwegian Advances Sustainability Efforts and Prepares for 2025 Growth

The fourth quarter of 2024 marked a significant milestone in aviation sustainability. On 17 October, Norwegian played a key role in the largest voluntary biofuel agreement in the history of Norwegian aviation. This landmark initiative was commemorated with the first ceremonial refueling of the defense sector’s business travel flights using biofuel on Norwegian-operated routes. Further reinforcing its commitment to sustainable aviation, Norwegian was recognized in December by Transport & Environment, ranking among the top three airlines globally for its efforts in adopting sustainable aviation fuel.

Operationally, Norwegian maintained a punctuality rate of 78.4 percent during the quarter, while Widerøe recorded 77.5 percent. Regularity stood at 99.1 percent for Norwegian and 92.6 percent for Widerøe, though both carriers faced disruptions due to severe winter conditions and operational challenges.

Preparing for 2025 Expansion

Looking ahead, Norwegian is set to expand its fleet to 88 aircraft for the peak summer season in 2025. The airline anticipates a modest increase in production, with growth projected in the low single digits for the year, ensuring continued operational strength and strategic development in the aviation market.

“The upside of the weak local currency is that it brings about increased tourism to the Nordics. 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,” said Geir Karlsen.

Norwegian Proposes Profit Distribution for 2024 and Wins Legal Ruling on EU ETS Obligations

The Board of Directors plans to propose a profit distribution of NOK 0.60 per share for 2024 at the upcoming Annual General Meeting in 2025. This payout, amounting to a total of NOK 580 million and representing a 48 percent payout ratio, may be executed either through dividends or a share buy-back program. However, the final distribution remains subject to specific conditions outlined in the company’s debt agreements.

In a notable legal development, the Oslo District Court ruled in favor of Norwegian regarding its 2020 EU Emissions Trading System (ETS) obligations. The court determined that Norwegian has the right to meet these obligations by issuing a dividend and declared the imposed penalty of nearly NOK 400 million unlawful. If the ruling stands, Norwegian is entitled to a full refund of the penalty amount plus interest. However, the Ministry of Climate and Environment has appealed the decision, potentially extending the legal process.

The post Norwegian Group Delivers Strong 2024 Financial Results with NOK 1.87 Billion Profit, a 10% Rise in Passenger Traffic, and Widerøe’s Record-Breaking 3.8 Million Travelers appeared first on Travel And Tour World.