Norwegian airline posts Q4 loss on heavy investments

[NEW YORK] Norwegian Air Shuttle, the Scandinavian budget carrier, reported a loss for the fourth quarter and sharply lower profits for 2013 as a whole. The declines were the result of heavy investments in new long-distance aircraft and other expenses linked to its rapid and controversial expansion into South-east Asia and the United States.

Norwegian Air, Europe's third-largest low-cost airline by passengers carried, swung to a net loss of 196.8 million Norwegian kroner (S$40.7 million), from a net profit of 23.6 million kroner in the three months ended Dec 31. For the full year, net profit fell to nearly 319 million kroner, from 457 million in 2012.

Chief executive, Bjorn Kjos, attributed the weaker result to unfavourable exchange rates as well as to 216 million kroner in unanticipated costs linked to the start of direct flights to New York, Bangkok and Fort Lauderdale, Fla.