Shares in Norwegian Air were crashing on the Oslo Stock Exchange Thursday after the airline reported a large loss for the fourth quarter that was nearly double what analysts had expected.
Newspaper Dagens Næringsliv (DN) reported that a poll of eight analysts had predicted a loss of between NOK 600 million and NOK 1 billion. Instead the loss landed at NOK 1.4 billion (EBT), while full-year results ended at a loss of just over NOK 1 billion.
“We are not at all satisfied with 2017 results,” the airline’s founder and chief executie Bjørn Kjos declared in a press release. The losses piled up despite a jump in total revenue, a new passenger record last year and a load factor of 87.5 percent, down just slightly from 87.7 percent the year before.
The airline tied the losses to the “extraordinary” costs of its expansion, with new routes and renewal of the airline’s fleet. Kjos claimed, however, that the global expansion “contributes to value creation and new jobs everywhere the airline flies.”
Investors were not impressed, sendng shares down 9.56 percent when the market opened. They recovered later but were still trading down on the Oslo Stock Exchange by 3.7 percent at mid-morning.