DAVY VIEW

Norwegian delivered usual Q1 losses, with EBT of -NOK756m (consensus: -NOK976m, 2024: -NOK903m), the group operating margin improved to -9.3% (versus -12.4% in 2024). A non-recurring gain from purchase of leased aircraft was recorded in the quarter. Q2 capacity growth is limited (+1%), which should be supportive of unit revenues, but cost inflation remains key. Full year capacity is expected to be +3% year-on-year (yoy); full year profit guidance has not been given. The company has highlighted positive booking momentum for the key summer season (+7% yoy more tickets sold at this point in time for May to August travel) and is well hedged on fuel (70%) and USD (25%) for 2025; therefore, we don’t expect any material changes to our forecasts.