Norwegian Air Shuttle Asa Stock Earnings Reports

Norwegian reported a softer-than-expected Q2 driven mainly by a large one-off EU ETS ruling and elevated jet fuel prices. Excluding other losses, group EBIT was NOK 213 million. The company recognized a NOK 733 million non-recurring loss relating to an EU ETS legal case (cash impact ~NOK 330 million payable later this year). Jet fuel costs rose ~33% year-on-year and contributed materially to the weaker result, though Norwegian is ~50% hedged for the remainder of the year. Positives: underlying cost performance remains strong with CASK ex-fuel down ~5% YoY (Program X contributing to savings and >NOK 1.25bn target for 2026), Widerøe delivered strong operational and financial results (EBIT NOK 193m), punctuality and NPS improved (NPS 52.4), and liquidity/balance sheet are robust (total liquidity NOK 13.7bn, closing cash NOK 11.0bn after dividend). Management noted a mid‑June booking recovery and sold more tickets for Jul–Oct vs. last year; they expect a better H2 and have taken guidance on CASK ex-fuel to flat vs. prior low-single-digit improvement. Strategic: Norwegian announced acquisition of Nordic Leisure Travel Group (NLTG) for SEK 3.5bn + shares (plus potential bonus shares), aiming to become a leading Nordic holiday/tour operator, capture holiday-package synergies (flights + hotels + concept hotels) and improve utilization across Sunclass Airlines and Norwegian. Fleet deliveries continue as planned (first owned 737 MAX 8 delivered), and the company reports attractive financing access for fleet needs.