Norwegian Air Shuttle (NAS) Q2 2024 earnings summary

Executive summary

• Q2 2024 ended with EBIT of NOK 593 million and profit before tax of NOK 477 million, with Norwegian contributing NOK 391 million and Widerøe NOK 202 million.

• Revenue grew 36% year-over-year to NOK 9.3 billion, driven by capacity expansion and Widerøe's inclusion.

• Passenger numbers rose 30% to 7.3 million, with Norwegian's ASK up 19% and Widerøe's load factor up 5.4 percentage points.

• Cash flow from operations was robust, enabling the establishment of an NOK 823 million dividend fund.

• Customer satisfaction reached a record NPS of 53, and on-time performance was the best among European airlines in May.

Financial highlights

• EBIT for Q2 was NOK 593 million; net profit was NOK 477 million, down from NOK 538 million year-over-year.

• Ancillary revenue per passenger increased, with group figures rising to NOK 1,194.

• CASK/unit cost excluding fuel reduced by 2% year-over-year, despite inflation and currency headwinds.

• Cash and cash equivalents at quarter-end were NOK 11.5 billion; net interest-bearing debt reduced by NOK 1.4 billion to NOK 4.4 billion.

• Equity ratio improved to 14.5%.

Outlook and guidance

• Full-year 2024 capacity growth expected at 12%, with Q3 and Q4 at 10% and 16% respectively.

• FY 2024 group EBIT guidance set at NOK 2.1–2.6 billion.

• Unit cost excluding fuel for Norwegian projected to increase by a low single-digit percentage versus 2023.

• Bookings for the remainder of summer and into fall are stable, with a recent uptick in demand.

• Growth in 2025 expected to slow due to Boeing delivery delays; fleet to exceed 90 aircraft by summer 2025.