Norwegian Air Revises Earnings Guidance; Shares Take a Hit

Author: Addison Perry Updated: 01-13-2025 05:51 AM

Norwegian Air's Earnings Guidance Revision

Recently, Norwegian Air Shuttle announced a significant revision to its full-year earnings guidance, primarily due to escalating costs associated with a declining Norwegian krone against the U.S. dollar. This adjustment reflects the challenging environment within which the airline operates.

Impact of Currency Fluctuations

The ongoing depreciation of the Norwegian krone has led to a steep increase in operational expenses for Norwegian Air. In fact, the airline reported an additional 75 million Norwegian kroner—or approximately $6.5 million—in operating costs stemming from aircraft leases and depreciation during the last quarter.

Stock Performance

Full-Year Profit Outlook

Challenges from Aircraft Deliveries

Fleet Composition and Future Strategies

Considerations Moving Forward

Frequently Asked Questions

What caused the revision of Norwegian Air's earnings guidance?

The revision was primarily due to increased operational costs from the depreciation of the Norwegian krone against the U.S. dollar.

How has Norwegian Air's stock reacted to the announcement?

The stock fell by 6% following the announcement of the revised earnings guidance.

What is the new profit forecast for Norwegian Air in 2024?

Norwegian Air now forecasts a group operating profit of approximately 1.85 billion kroner for 2024.

What impact did the Boeing strike have on Norwegian Air?

The strike at Boeing resulted in delays in aircraft deliveries, which lowered Norwegian Air's growth expectations and capacity expansion plans.

What type of aircraft does Norwegian Air operate?

Norwegian Air operates an all-Boeing 737 fleet.

About The Author

Hello, I'm 30-year-old financial writer and expert Addison Perry, and I love to simplify the intricacies of the financial industry. I've committed myself over the years to deciphering the subtleties of investing techniques and economic trends and converting them into doable guidance that anybody can use. My goal with writings and books is to make money interesting and approachable so that readers may take charge of their financial futures.

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