Rapidly growing budget carrier Norwegian Air has today posted a bigger than expected fourth-quarter loss.
The airline also said its cash liquidity dropped to 4.04 billion Norwegian crowns ($520 million) from 5.57 billion crowns three months ago.
Norwegian is trying to crack the transatlantic market by undercutting established rivals but faces pressures to control costs and shore up its balance sheet to weather fierce competition.
The company's net result swung to a loss of 919 million Norwegian crowns from the year-ago profit of 197 million crowns, weighed down by the cost of its rapid expansion.
Analysts had anticipated a quarterly loss of 598 million crowns.
Full-year net loss came in at 299 million crowns, down from a profit of 1.14 billion in 2016.
"We are not at all satisfied with the 2017 results," chief executive Bjoern Kjos said in a statement, while adding that major investments made in 2017 has prepared the company for growth.
"Norwegian is far better positioned for 2018, with stronger bookings, a growing network of intercontinental routes complementing our vast European network and not least, a better staffing situation," he said.
Norwegian Air maintained expectations for 40% capacity growth in 2018 and an estimated range for its unit cost excluding depreciation, a key metric, of 0.39-0.395 Norwegian crowns.
The company's October-December operating profit before leasing and depreciation (EBITDAR) plunged to 387 million crowns from 1.36 billion crowns a year ago, while analysts on average had expected a profit of 871 million crowns.
After launching its London-to-Buenos Aires flight this week, Norwegian on Tuesday said it plans to introduce more routes to South America, as well as adding more destinations in the US and Asia in coming years.
