Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Norwegian Air Shuttle New — Q3 2024 Earnings Presentation
22 slides from Norwegian Air Shuttle Asa's earnings presentation, Oct 25, 2024
Slide 1: Presentation of third quarter 2024
Presentation of third quarter 2024 25 October 2024
Slide 2: Q3 profit before tax NOK 2,004 million; Boeing delays impacting growth
Q3 profit before tax (EBT) Boeing delays impacting NOK 2,004 million growth ● group operating profit (EBIT) NOK 2,128 million ● delivery delays worsening with Boeing strike – Norwegian EBIT NOK 1,936 million ● 2025 growth forecasted to slow significantly – Widerøe EBIT NOK 192 million – forecasting
Slide 3: Number of passengers in third quarter: 8.2 million
Number of passengers in third quarter (group) 8.2 million (+27% YoY) Load factor 88.0% (+1 p.p.) 78.0% (+5 p.p.) (change YoY) Norwegian capacity (ASK) +10% Q3 2024 11.5bn (YoY) Q3 2023 10.4bn Q3 operating performance (Norwegian) Punctuality Regularity • close to zero cancellations in peak season • C
Slide 4: Delivering on record strong summer
Delivering on record strong summer Norwegian Traffic – PAX per month, load factor and yield 10 0.0% 95.0% 92.5% Strong traffic with increased capacity 1.04 90.0 % 86.0% 85.0% 85.8% 85.2% • Q3 capacity +10% YoY, load factor improving 84.4% 83.2% • improved performance on new routes launched in spring
Slide 5: Widerøe record traffic
Widerøe record traffic 10 0.0% 95.0% 90.0 % Widerøe Traffic – PAX per month and load factor 83.6% 85.0% Record traffic with stable capacity • Q3 capacity down 2% vs. last year 76.8% 76.5% 80.0% • historic first with quarterly passengers above 1 million 500 75.0% 73.5% 70.4% 69.4% 70.0 % 67.2% Unit r
Slide 6: Satisfactory booking momentum into winter season
Satisfactory booking momentum into winter season Norwegian 7-day rolling sales figures (PAX) – All markets1) New winter destinations well received • new winter warm routes including Dubai and winter holidays from Europe to Northern destinations • diversified bookings across destinations and travel m
Slide 7: Financial results for Q3 2024
Financial results for Q3 2024
Slide 8: Quarterly financial highlights
Quarterly financial highlights Revenue • group revenue increasing to NOK 11.6 billion – up 32% vs. last year – Widerøe contribution NOK 1.9 billion • Norwegian capacity up 10% and improved unit revenue – total unit revenue up 2% from Q3 last year • Norwegian ancillary NOK 211 per pax – up from NOK 1
Slide 9: Revenue development
Revenue development Quarterly total operating revenue (NOK million) Capacity, PAX and load increase in quarter • Norwegian capacity (ASK) up 10% vs. Q3 2023 • load factor and yield marginally higher YoY with capacity increase and 2% longer avg. sector 1 1 2 121 Reduction in other revenue • normalisi
Slide 10: Operating profit (EBIT) development
Operating profit (EBIT) development Quarterly EBIT (NOK million) Capacity increase and higher unit revenue • Norwegian operating revenue +11% YoY 121 19 1 29 1 Costs impacted by inflation and ccy • unit cost excl. fuel NOK 0.44 – up 8% YoY 00 • weak NOK against USD impacting cost lines 192 • increas
Slide 11: Group P&L
Group P&L Q3 2024 Q3 2023 Chng. NOK million (Group) (Norwegian) (YoY) Passenger revenue 9,759 7,229 Ancillary passenger revenue 1,558 1,285 Other revenue 277 261 Total operating revenue 11,594 8,776 +32% increased volumes and Widerøe inclusion Personnel expenses 2,044 1,001 additional flying FTEs, w
Slide 12: Robust balance sheet
Robust balance sheet 30 Sep. 30 Jun. Chng. Net interest-bearing debt NOK million 2024 2024 (QoQ) Intangible assets 2,618 2,622 30 Sep. 30 Jun. Chng. Tangible assets 18,452 18,951 NOK million 2024 2024 (QoQ) Total non-current assets 21,503 22,031 Cash & equiv. 11,457 11,498 -41 Receivables 4,049 5,61
Slide 13: Neutral cash flow in quarter
Neutral cash flow in quarter Quarterly cash flow (NOK million) Forward booking working capital effect • lower forward bookings and normalised holdback ic et e ay ent • seasonally lower bookings 21 Excess liquidity e ating acti ities e cl • placed on deposits and money-market funds 2 0 tic et e ay en
Slide 14: The way forward
" gitehomn | Dubai
Slide 15: Boeing aircraft delays impacting growth
Boeing aircraft delays impacting growth Countering Boeing delivery delays Fleet estimate until 2026 • worsening aircraft delays following Boeing machinist strike – upcoming deliveries delayed more than one year ~9 • Norwegian incurring short-term costs for wet-lease – receiving partial compensation
Slide 16: Navigating through current environment
Navigating through current environment Macroeconomic factors • consumer confidence with robust demand – real-wage growth and falling interest rates • weak local currency against USD and EUR – increasing cost for key input factors including fuel • fuel price – Norwegian hedged 70% for current year an
Slide 17: Harvesting from investments and initiatives
Harvesting from investments and initiatives – reduced 2025 growth enabling streamlining of organisation Capturing revenue Accelerating cost Widerøe – succeeding opportunities initiatives with synergies • New Distribution Platform roll-out • European top on-time • increasing competitiveness – improve
Slide 18: Outlook & summary
Outlook & summary
Slide 19: Outlook
Outlook FY 2024 Q4 Capacity growth1) 13% 18% FY 2023 FY 2024 Group operating profit (EBIT)2) NOK 2.1 – 2.4 billion $ Norwegian unit cost excl. fuel2) Low single-digit % increase vs. 2023 1) Available seat kilometres (ASK) vs. same period last year 2) Assuming average market rates for period of jet f
Slide 20: Third quarter performance; growth impacted by delivery delays
Third quarter performance • strong traffic performance amidst capacity growth – Norwegian improving significantly from Q2 – Widerøe with record passenger performance • unit cost impacted by aircraft delays and cost inflation • cash position NOK 11.5 billion – NOK 836 million in dividend fund Growth
Slide 21: norwegian
norwegian x<
Slide 22: Disclaimer
Disclaimer Certain statements included in this presentation contain forward-looking statements, such as statements of future expectations. Although the statements o ided a e based on t e best easonable assu tions of anage ent of No wegian i uttle “No wegian” t e state ents are based on a number of a
Norwegian Air Shuttle New — Q3 2024 Earnings Presentation on 6ix