Norwegian Air Shuttle (NAS) Q1 2025 earnings summary

Executive summary

• Q1 2025 ended with a negative EBIT of NOK 611 million, reflecting seasonally weak demand, adverse Easter timing, and operational challenges, partially offset by a NOK 589 million non-recurring gain from the purchase of 10 leased aircraft, which is expected to yield NOK 200 million in annual cost savings.

• Group revenue rose 7% year-over-year to NOK 6.6 billion, with passenger numbers up 7% to 5.1 million and strong liquidity at NOK 10.5 billion.

• Norwegian and Widerøe both reported passenger growth, with Norwegian capacity (ASK) up 16% and Widerøe up 17% year-over-year.

• Robust summer booking momentum, with 7% more seats sold and 2% more seats for sale than last year, and nearly 20 new routes launched.

• Program X and operational improvements are expected to drive long-term profitability, targeting NOK 1 billion+ profit improvement run rate by end of 2026.

Financial highlights

• Group EBIT was -NOK 611 million, with Norwegian at -NOK 568 million and Widerøe at -NOK 43 million; EBIT margin improved to -9.3%.

• Non-recurring gain of NOK 589 million from aircraft purchase; ancillary revenue per passenger up 10% year-over-year to NOK 190.

• Unit cost (CASK) down 11% year-over-year to NOK 0.54, with NOK 0.08 of the reduction from the aircraft purchase.

• Net interest-bearing debt improved by NOK 700 million year-over-year to NOK 5.1 billion.

• Cash and equivalents at NOK 9.4 billion at quarter-end, plus NOK 1 billion in financial investments.

Outlook and guidance

• Capacity growth forecast at 3% for 2025, with Q2 growth at 1%, Q3 at 2%, and Q4 at -3%.

• Bookings for summer are strong, with 7% more seats sold and stable yields, and no signs of macroeconomic uncertainty.

• CASK ex-fuel expected to increase mid-single digits in 2025 due to inflation and reduced production growth.

• Program X targets recurring profit improvement exceeding NOK 1 billion annually by end of 2026.