DAVY VIEW

Norwegian Air delivered an operating profit (EBIT) of NOK2728m (consensus: NOK2330m). Q3 load factor was up slightly despite 5% year-on-year (yoy) capacity (ASK) growth, while unit revenue declined 1% yoy, reflecting lower yields and a negative impact from the strengthening NOK. For winter 26/27, ticket sales are significantly ahead but winter fares are seeing some pricing pressure. For FY26, capacity is guided at +2% while unit cost ex-fuel is guided flat versus the prior year. For FY27, capacity is guided at +5%; however, Q1 2027 capacity has been reduced by above 5% compared to the original plan given elevated fuel prices. We expect FY26 consensus EBIT of NOK1260m to remain broadly unchanged given that the Q3 beat is largely offset by weaker pricing commentary for winter.