By Louise Rasmussen
COPENHAGEN (Reuters) -Budget carrier Norwegian Air reported a wider-than-expected operating loss in the first quarter on Thursday, partly due to a weak Norwegian krone, sending its shares lower, but repeated its 2024 guidance on the back of strong summer demand.
The carrier once flew transatlantic but straining under heavy debts and hit by the pandemic, it sought bankruptcy protection in 2020.
It emerged from bankruptcy protection in 2021 with a shrunk fleet and now focuses on its core Nordic market.
The airline's January-March operating loss (EBIT), excluding the acquisition of peer Wideroe, came in at 740 million crowns ($67.41 million), below the loss of 528 million forecast in a poll of analysts compiled by the company.
It said the result was negatively impacted by currency revaluation effects which resulted in a 126 million crowns net loss. The airline is based in Oslo but pays for many of its costs, such as jet fuel and airport fees, in dollars and euros.
The carrier did, however, manage to narrow the loss compared to the same period last year when it reported a 916 million operating loss.
Shares in the company were down 5% at 0837 GMT, lagging a flat Oslo benchmark index. The stock is up 58% over the past year, up 11% over the same period.
It is the first time Norwegian reports earnings including Wideroe after authorities approved the deal in December. Including Wideroe, the group reported an operating loss of 763 million crowns.
Norwegian still expects an EBIT for 2024 between 2.5 billion and 3.2 billion crowns, it said. It said that for the peak summer season, it expected "high demand".
"Current booking trends remain encouraging with many customers now booking their summer holidays," it said in a statement.