BA Boeing Co

By Dominic Chopping

Norwegian Air Shuttle ASA (NAS.OS) said Thursday that it sees around 500 million Norwegian kroner ($58.1 million) in extra costs this year from the grounding of its 18 Boeing 737 MAX 8 aircraft, as it posted a wider first-quarter net loss.

"We have had some productive meetings with Boeing where we have discussed how we can maneuver through the difficulties the MAX situation is causing Norwegian," Chief Executive Bjorn Kjos said.

The low-cost carrier said demand has been satisfactory entering the second quarter of 2019 and although advance bookings have been acceptable, they have decreased slightly due to the 737 MAX 8 grounding.

Norwegian widened its production growth guidance to 5%-10% in 2019 from 9% previously.

Late Wednesday, it said it had secured a deal with Boeing Co. (BA) to postpone the delivery of 14 of the aircraft that were originally due for delivery in 2020 and 2021. Meanwhile, Norwegian has also reached an agreement with Airbus SE (AIR.FR) to restructure the delivery schedule of their aircraft.

Together the deals will reduce Norwegian's capital expenditure for 2019 and 2020 by $2.1 billion.

The net loss in the period was NOK1.48 billion compared with a loss of NOK46 million a year earlier on revenue that rose 14% to NOK6.3 billion.

Norwegian carried 8.12 million passengers during the quarter compared with 7.48 million a year earlier, it said.

Write to Dominic Chopping at dominic.chopping@wsj.com; @domchopping @WSJNordics

(END) Dow Jones Newswires

April 25, 2019 08:00 ET (12:00 GMT)

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