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Norwegian Air Q3 operating margin rises to 21.4% on summer travel demand

By Reuters News


Overview

  • Norway airline group's Q3 operating margin reached 21.4% amid strong summer travel demand

  • Group carried 8.75 mln passengers in Q3, with capacity and load factor rising yr/yr

  • Punctuality improved for both Norwegian and Widerøe compared to last year


Outlook

  • Norwegian forecasts winter season production to increase marginally from last year

  • Company expects full-year 2026 production (ASK) growth of 2% for both Norwegian and Widerøe

  • Norwegian forecasts underlying unit cost excluding fuel to remain unchanged in 2026 vs 2025


Result Drivers

  • COST CONTROL - Norwegian Group cited continued focus on cost control as supporting financial results

  • OPERATIONAL PERFORMANCE - Co said strong operational performance during peak summer travel season contributed to results

  • PUNCTUALITY IMPROVEMENT - Both Norwegian and Widerøe reported improved punctuality, which the company highlighted as a driver of performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EBIT Margin

21.40%

Q3 Load Factor

88.50%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the airlines peer group is "buy."

  • Wall Street's median 12-month price target for Norwegian Air Shuttle ASA is NOK12.50, about 11.9% above its October 27 closing price of NOK11.18

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Oct 27 - Finnair Q3 revenue rises on strong travel demand; raises guidance

  • Oct 26 - JetBlue Airways Q3 revenue rises on strong yields

  • Oct 26 - Dutch airline KLM extends Middle East flight cancellations throughout winter


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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