Norwegian Air reports Q2 operating loss on high fuel costs
Norwegian Air reports Q2 operating loss on high fuel costs
Overview
Norway airline group's Q2 EBIT margin was 2%, with operating result impacted by higher costs
Unit cost excluding fuel fell 5% yr/yr as cost control measures continued
In June, company agreed to acquire Nordic Leisure Travel Group, pending EU competition clearance
Outlook
Norwegian sees third-qtr production (ASK) up 5% versus same period last yr
Norwegian expects full-yr production (ASK) to rise about 3%
Widerøe forecasts 2026 production (ASK) to increase by 2%
Result Drivers
HIGHER FUEL COSTS - Co said increased fuel prices weighed on Q2 operating result
EU ETS OBLIGATION - Supreme Court decision on EU ETS for 2020 negatively affected Q2 results
EASTER TIMING - Earlier Easter this year contributed to lower load factor and weaker financial results
Company press release: ID:nObiX0Vzra
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 EBIT Margin |
| 2.00% |
|
Q2 Load Factor |
| 82.50% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and 1 "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 NOK17.00, about 26.7% above its July 13 closing price of NOK13.42
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
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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.)