Norwegian Air beats first quarter loss estimates on costs
Norwegian Air Shuttle ASA (OSE:NAS) reported a first quarter operating loss of NOK 220 million on Tuesday, significantly better than analyst consensus of NOK 954 million, as the carrier benefited from lower fuel and non-fuel unit costs.
The airline posted revenue that beat expectations, driven by a 13% increase in passenger revenue per available seat kilometer and an 11% rise in ancillary revenue per available seat kilometer.
The operating result improved substantially from a loss of NOK 611 million in the same quarter last year, aided by a stronger Norwegian krone, jet fuel hedging gains, and reduced EU emissions allowance costs.
The company’s fuel bill declined NOK 408 million, with unit fuel costs down 19%. Shares rose 5.5% following the results.
Norwegian carried 4.2 million passengers in the quarter, achieving a record first quarter load factor of 87.6%, up 5.2 percentage points YoY.
The company maintained its fiscal 2026 guidance, projecting 3% capacity growth for the mainline operation and low single-digit increases in ex-fuel unit costs.
The airline confirmed its summer fleet of 95 aircraft and indicated capacity would grow 5% across the second through fourth quarters.
"While we are pleased to see that overall demand remains encouraging, we are navigating a complex and unpredictable market with both economic and political uncertainty. Despite this, we delivered a positive development in the first quarter, with stable and reliable flight operations and good cost control," said Geir Karlsen, CEO of Norwegian.
The company reported it has hedged 45% of jet fuel for the remainder of 2026 and said its "Program X" cost initiative is on track to deliver recurring annual profit improvement exceeding NOK 1.25 billion by year-end, up from a previous target of NOK 1.0 billion.
Forward booking loads are flat to ahead YoY with yields up on sold tickets. The net loss narrowed to NOK 361 million from NOK 757 million a year earlier.
Source: www.investing.com
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein