The extra fees tacked on to the fare for a flight with Norwegian Air are generating billions for the low-fare carrier. A closer look at the airline’s results delivered last week shows that there’s money to be made on serving coffee, reserving seats and checking luggage, for example.
Newspaper Aftenposten reported that Norwegian logged NOK 3.3 billion in revenues during the fourth quarter of last year from its charges for such extra goods or services that used to be standard on most airlines. In a quarter that otherwise dipped into the red by NOK 700 million, Norwegian’s revenue from extra charges was up 20 percent.
Norwegian’s head of communications Anne-Sissel Skåvik confirmed that the airline’s biggest income source is from packages sold to passengers, especially on Norwegian’s new intercontinental routes. On long-haul flights, passengers apparently find it more natural to order food and choose where they want to sit on the aircraft.
Norwegian’s operations were slightly profitable last year. Its overall loss of NOK 703 million was tied to the weaker Norwegian currency, the krone, and fuel costs.