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Norwegian Air exceeds profit expectations thanks to strong summer demand

Norwegian Air Shuttle, a budget airline, beat the market's expectations on Wednesday for its third quarter earnings. This was due to higher demand in its summer markets.

The operating profit of the carrier grew by 41% on an annual basis to 3,02 billion Norwegian crowns (US$300.70 millions) during the quarter July-September, exceeding a consensus estimate of 2.8 million crowns.

It said that the profit figure was the largest quarterly operating profit ever recorded by the airline.

The airline stated in its earnings report that "The Norwegian Group experienced robust demand trends throughout the summer and into the third quarter 2025" across all markets. The airline's unit costs, which are the average costs of flying an airplane seat, fell by 5% compared to a year ago. They were 0.64 crowns for the third quarter.

Norwegian's earnings report stated that it was able counteract cost pressure in part due to initiatives taken under its cost-saving programme, and the strengthening of the Norwegian crown against U.S. dollars. Although the airline industry has slowly recovered from its pandemic-induced slump, costs are still rising. Norwegian reported record passenger numbers in June, and a high load factor. In July it announced that its first dividend would be paid.

The airline, which operates primarily regional flights in Europe, has confirmed its capacity forecast of 37.500 million seat-kilometres by 2025. The unit cost, excluding fuel, is expected to remain unchanged in 2025.

(source: Reuters)