Hurtigruten, the Norwegian company that operates coastal express ferry service between Bergen and Kirkenes and expedition type cruises on the 12,647 gross ton Fram, reported a net loss of NOK69.9 million last year compared to a prifit of NOK30.4 million in 2010.

A fire on board Nordlys burdened the results with NOK 20 million. “This vessel is being extensively repaired before returning to service in March 2012, and this work has an accounting effect of NOK 47 million,” the company said in a statement. 

Hurtigruten secured the very important public procurement contract for the Bergen-Kirkenes coastal service. In force from 1 January 2012, this contract with the government gives the company a good basis for profitable operation along the Norwegian coast.

Cruise nights are still progressing for round- trip passengers, with a growth of 7.2 per cent. Despite a very challenging year in operational terms, capacity utilisation has never been higher. It averaged 73.6 per cent for the full year, up from 69.1 per cent in 2010.

Attention was concentrated on increasing volume, and prices were on a par with 2010. The year was disappointing for port-to-port travel, primarily as a result of one-off incidents and extreme weather conditions. Such passengers declined in number by 4.3 per cent during 2011. Accidents, incidents and cancellations cost a total of NOK 105 million for the year.

 The fourth quarter in particular was affected by operational disruption from extreme weather. Port-to-port cruise nights fell by 19 per cent during the period because of weather- related cancellations. However, cruise nights for round-trip passengers rose by more than 10 per cent as a result of the commitment to the Hunting the Light winter programme and more direct charter flights from European markets.