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

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

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

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(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.)