Norwegian Air Shuttle (NAS) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record traffic and strong financial results, with group EBT at NOK 2,004 million and EBIT at NOK 2,128 million, including NOK 1,936 million from Norwegian and NOK 192 million from Widerøe.

• Passenger numbers reached 8.2 million, up 27% year-over-year, with Widerøe surpassing 1 million passengers for the first time.

• Group revenue rose 32% year-over-year to NOK 11.6 billion, with Widerøe contributing NOK 1.9 billion.

• Cash position at NOK 11.5 billion, up NOK 2.1 billion year-over-year, despite the all-cash acquisition of Widerøe.

• Operational excellence maintained with Norwegian regularity at 99.5% and Net Promoter Score of 47.

Financial highlights

• EBIT margin at 18.4% for the quarter; EBITDAR was NOK 3,573 million with a margin of 30.8%.

• Net profit for the quarter was NOK 2,004 million, with a net profit margin of 17.3%.

• Norwegian unit cost excluding fuel increased 8% year-over-year, impacted by wage inflation, wet lease, and FX.

• Wet lease costs reached NOK 133 million due to Boeing delivery delays.

• Equity ratio improved to 19%, up from 14.5% in the previous quarter.

Outlook and guidance

• FY 2024 group EBIT guidance is NOK 2.1–2.4 billion, with ASK production up 13% year-over-year.

• Growth into 2025 will be limited due to Boeing delivery delays and strike impacts; only 3-4 new aircraft expected before summer 2025.

• Focus for 2025 will shift to operational efficiency and cost control, with lower investment in new hires and capacity.

• CASK guidance for 2024 remains a low single-digit increase; no specific CASK guidance for 2025 yet.

• Forward bookings for Q4 and into 2025 are strong, with 60% of additional winter capacity already sold.