Key Financial Results
- Q1 EBIT: NOK -220 million (significant improvement from -NOK 568 million in Q1 2025)
- Underlying Improvement: NOK 432 million (excluding NOK 589 million non-recurring gain from 2025 aircraft acquisition)
- Program X Delivery: NOK 196 million in Q1 (on track for NOK 600 million full year 2026 target)
- Total Revenue: NOK 6.9 billion (+6% YoY)
- Unit Revenue: +13% YoY
- CASK-ex (adjusted): +2% (despite 6% capacity reduction)

Operational Highlights

Norwegian Mainline:
- Record Q1 load factor: 87.6% (5.2 points YoY)
- Passengers: 5.2 million (2% despite 6% capacity reduction)
- Yield: +5% YoY
- Regularity: 99.4%
- On-time performance: Top 10 in Europe (Cirium)
- Net Promoter Score: >50

Widerøe (Regional Subsidiary):
- Q1 EBIT: NOK 38 million (NOK 81 million improvement YoY)
- Load factor: 70.2%
- Passengers: 930,000 (2%)
- On-time performance: 87% (impressive given weather)
- Regularity: 97%
- Record 2025; positioned to beat it in 2026

Combined Network: Nearly 500 routes between both airlines

Balance Sheet & Liquidity
- Gross Cash: NOK 14.2 billion (includes short-term investments and NOK 2.6B deposit for Q3 bond repayment)
- Net Interest-Bearing Debt: NOK 4.4 billion (down from NOK 9.5 billion)
- Cash Build in Q1: NOK 4.1 billion (seasonal, driven by ticket sales)
- Equity Ratio: 19.1% (up from 18.2% end-2025)
- Financing Terms: Securing unprecedented attractive terms for spare engine financing (11 engines)
- Dividend: NOK 0.8 per share planned (pending AGM approval in May)

Fuel & Macro Environment

Hedging Position:
- 45% hedged for remainder of 2026 (combined group)
- Hedged against jet fuel (not crude oil) via swaps with banks
- Considering additional Q4 hedges; forward curve shows “massive backwardation” (~$1,000/tonne for Q4 vs ~$1,300-1,400 spot)
- Currency: ~50% hedged on USD (Widerøe also highly hedged)

Fuel Availability:
- Confident in supply visibility for near term
- No cancellations planned
- European jet fuel production capacity increasing
- Increased imports from US and Africa
- More crude oil entering market for refining
- Sourcing primarily from Scandinavia and Europe

Macro Benefits:
- Strengthening Norwegian krona vs USD (tailwind)
- ETS quota prices down from ~EUR 90/tonne to EUR 60/tonne
- Total macro benefit: NOK 415 million in Q1

Demand & Bookings

Current Trends:
- Very strong demand across network
- Peak in sales occurred in March (post-Iran war start) – unusual timing
- 300,000 more tickets sold vs same date last year (for May-August travel)
- Fare increases sticking – customers willing to pay more

Q2 Summer Season:
- Capacity: +5% YoY overall; +8-9% in June
- Load: Marginally behind April (Easter effect), flat to marginally below June, ahead in other months
- Yield: Ahead YoY most months except June (marginally behind)
- Overall: “Looking better than last year” in aggregate

Geographic Shifts:
- Demand shifted from Middle East to Western/Southern Europe (Mediterranean especially strong)
- Decline in Turkey and Cyprus bookings post-Iran war
- Increase in Southwest and South Europe

Middle East Impact & Network Changes
- Limited exposure: Dubai flights (3 Scandinavian capitals) canceled (normally winter-only)
- Tel Aviv and Beirut launches postponed/canceled
- Capacity reallocated to high-demand Mediterranean routes

Fleet & Growth

Current Fleet: 95 aircraft this summer → 104 over next few years (4-5% growth)
- Boeing 737 MAX 8 on order: 80 total (2 delivered, 78 remaining)
- Boeing delivering on schedule with improved visibility
- Optionality to grow faster by extending leases of scheduled-to-return aircraft

Fleet Strategy:
- Considering ownership vs leasing mix
- Likely to own >50% of fleet (more capital cost-effective)
- No Q1 deliveries as planned; next deliveries post-summer

Strategic Initiatives

Program X (NOK 1.25 billion target by end-2027):
- Q1 delivery: ~NOK 200 million (NOK 100M from 2025’s NOK 400M recurring, NOK 100M from 2026’s NOK 600M target)
- On target; may increase target beyond NOK 1.25B
- High internal focus; implemented throughout organization

Widerøe Focus 500: NOK 500 million profitability improvement target by end-2027 (vs 2024 baseline)

Technology & Distribution:
- New booking platform live on website (not yet on app)
- Interlining between Norwegian & Widerøe now available
- Transfer traffic between airlines growing; gaining market share

Corporate Market:
- Continuing push; Reitan contract going live June 2026

ETS Legal Case:
- Appeal filed to Norwegian Supreme Court
- Final outcome expected during 2026

2026 Guidance

Capacity:
- Full year: +3%
- Q2: +5%
- Q3: +3%
- Q4: +4% (increased from 2% previous guidance due to Norwegian Defense contract)

CASK (adjusted for NOK 858M one-off from 2025 aircraft acquisition):
- Low single-digit percentage increase vs 2025

Key Assumptions:
- Strong demand continues
- Fare increases hold
- No significant fuel supply disruptions

Competitive Landscape
Management noted competitors cutting capacity:
- SAS: 1,000 flights canceled
- Lufthansa: 20,000 flights canceled
- LOT Polish: Cancellations
- Competitors mostly at similar/lower hedge levels and increasing fares similarly

Labor Relations
Upcoming pilot negotiations in Norway and Denmark.

Overall, Norwegian emphasized strong operational execution, solid bookings, successful fare increases, healthy liquidity position, and confidence in navigating high fuel environment through hedging, cost control (Program X), and flexible capacity management.