Norwegian Air's Q1 Performance#
Norwegian Air Shuttle ASA reported a first quarter operating loss of NOK 220 million, which was significantly better than analysts' expectations of NOK 954 million. The airline's improved performance was largely due to lower fuel and non-fuel costs.
Revenue Growth#
The airline's revenue surpassed forecasts, driven by a 13% increase in passenger revenue per available seat kilometer (RASK) and an 11% rise in ancillary revenue per available seat kilometer. Ancillary revenue includes income from services beyond ticket sales, such as baggage fees and onboard purchases.
Cost Management and Load Factor#
Norwegian Air's operating loss improved from NOK 611 million in the same quarter last year, aided by a stronger Norwegian krone, gains from hedging jet fuel prices, and reduced costs for EU emissions allowances. The airline's fuel expenses decreased by NOK 408 million, with unit fuel costs down by 19%. The company carried 4.2 million passengers, achieving a record first quarter load factor of 87.6%, which is a measure of how efficiently the airline fills seats.
Future Outlook#
The company maintained its fiscal 2026 guidance, projecting a 3% growth in capacity for its mainline operations and low single-digit increases in costs excluding fuel. Norwegian Air confirmed a summer fleet of 95 aircraft and indicated a 5% capacity growth from the second to the fourth quarters. CEO Geir Karlsen noted the ongoing challenges in the market but expressed satisfaction with the airline's stable operations and cost control. Additionally, the airline has hedged 45% of its jet fuel for the remainder of 2026 and is on track to exceed its profit improvement target through its cost initiative, "Program X."