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• Earnings Before Tax: NOK477 million.

• EBIT: NOK593 million (NOK391 million from Norwegian, NOK202 million from Widere).

• Revenue: NOK9.3 billion, up 36% year-over-year.

• Widere Revenue Contribution: NOK1.8 billion.

• Passenger Growth: 7.3 million passengers, up 30% year-over-year.

• Load Factor: 82.4%.

• Capacity Growth: 19% compared to the same quarter last year.

• Cash Balance: NOK11.5 billion.

• Net Interest-Bearing Debt: Reduced by NOK1.4 billion to NOK4.4 billion.

• Equity Ratio: 14.5%.

• Ancillary Revenue per Passenger: Increased from NOK178 to NOK194.

• CASK Reduction: 2% year-over-year.

• Corporate Revenue Growth: 38% increase from the previous year.

• Fleet Size: 86 aircraft at the end of the quarter.

• Warning! GuruFocus has detected 3 Warning Signs with NWARF.

Release Date: July 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Norwegian Air Shuttle ASA (NWARF) reported a strong revenue growth of 36% to NOK9.3 billion for the second quarter, with Widere contributing NOK1.8 billion.

• The company achieved a reduction in CASK (Cost per Available Seat Kilometer) by 2% year-on-year, indicating improved cost efficiency.

• Norwegian Air Shuttle ASA (NWARF) maintained a high on-time performance, being rated the most punctual European airline in May by Cirium.

• The company has a robust cash balance of NOK11.5 billion, with a reduction in net interest-bearing debt by NOK1.4 billion.

• The integration with Widere is progressing well, with significant synergies expected to be realized in the coming winter and through 2025.

Negative Points

• The company experienced a softening in demand during the second quarter, impacting unit revenue which decreased by 5.6% compared to the previous year.

• Norwegian Air Shuttle ASA (NWARF) faced challenges with delayed aircraft deliveries from Boeing, leading to increased operational costs.

• The company had to engage in tough negotiations with pilot and cabin crew unions, resulting in higher-than-expected salary agreements.

• There was a negative impact from a weak local currency and slightly higher fuel prices than anticipated.

• The company had to reduce its guidance for 2024 due to the combination of market softening, increased costs, and operational challenges.

Q & A Highlights

Q: With many airlines increasing capacity to northern Norway, how important is the inbound market from Europe for Norwegian Air Shuttle? A: Geir Karlsen, CEO, noted that inbound traffic to Norway, especially to Troms, is increasing, with 75% of traffic being inbound. Norwegian is well-positioned to handle this capacity with its existing routes and the support of Widere for further connections.