Investing.com — Norwegian Air Shuttle has revised its full-year earnings guidance due to an increase in costs, driven by a weakening of the Norwegian krone against the U.S. dollar in the fourth quarter. The company is set to publish its full-year results on Feb. 13.
Shares in the company fell 6% in Monday’s trading session.
The budget airline reported that the depreciation of its domestic currency has resulted in a 75 million Norwegian kroner ($6.5 million) surge in operating expenses, aircraft leases, and depreciation costs during the fourth quarter.
The company also noted that the weakening krone, which fell over 7% against the dollar in the fourth quarter, led to balance-sheet adjustments related to operating liabilities.
Consequently, Norwegian Air now predicts a group operating profit for the full year 2024 of approximately 1.85 billion kroner. This is a downward revision from its previous forecast of between 2.1 billion and 2.4 billion kroner.
This revised guidance follows the airline’s earlier announcement in October, where it had scaled back growth expectations due to a strike at Boeing (NYSE:), which resulted in further delays in the delivery of new aircraft.
Norwegian Air’s fleet is comprised entirely of Boeing 737 aircraft, and it had previously warned that the strike would lead to a smaller expansion of its fleet than anticipated, thereby impacting its capacity growth.
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