Norwegian Air Shuttle ASA

Earnings Release • Oct 25, 2024

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Norwegian Air Shuttle ASA

Third quarter 2024 financial report

• ◼ Quarterly profit before tax (EBT) NOK 2,004 million
• ◼ Norwegian 10% capacity growth and improved load YoY
• ◼ Strong Widerøe performance – first ever quarter above 1 million passengers
• ◼ Cash position NOK 11.5bn – up 2.1bn YoY despite Widerøe all-cash acquisition
• ◼ Close to zero cancellations in peak season – regularity 99.5%

The Norwegian Group delivers third quarter operating profit (EBIT) of NOK 2,128 million in quarter characterised by strong passenger growth across the group

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision

The Norwegian Group today reported its results for the third quarter of 2024. The figures demonstrate the group's ability to deliver good financial results characterised by capacity growth for Norwegian and improving load factors for both airlines within the group.

For the third quarter of 2024, the Norwegian Group delivered an operating profit (EBIT) of NOK 2,128 million, corresponding to an operating margin of 18.4 percent. Profit before tax (EBT) amounted to NOK 2,004 million for the quarter. The liquidity position was NOK 11.5 billion at quarter-end, unchanged from the previous quarter and up 2.1 billion from last year. The Norwegian fleet comprised 86 aircraft at quarter-end, of which 22 aircraft were latest technology 737 MAX 8 aircraft. The Widerøe fleet comprised 49 aircraft.

The Norwegian Group had 8.2 million passengers in the quarter, of which 7.2 million were passengers of Norwegian and 1.0 million of Widerøe. Compared to the same period last year, the number of passengers increased by 690,000 and 99,000 for Norwegian and Widerøe, respectively. For Norwegian, production (ASK) increased by 10 percent to 11.5 billion seat kilometres, while for Widerøe the production was reduced by 2 percent. The quarterly load factor for Norwegian was 88.0 percent, up 0.6 percentage points from the same period last year. For Widerøe, the quarterly load factor was 78.0 percent, an improvement of 4.6 percentage points from last year.

For Norwegian, punctuality measured by share of flights departing on schedule was 74.2 percent in the quarter, down from 80.1 percent in the same period last year. While heavily congested European air space and ATC restrictions negatively impacted punctuality this quarter, 95.1 percent of all flights arrived within 60 minutes of scheduled arrival time. Regularity, share of flights taking place was 99.5 percent for Norwegian. For Widerøe, punctuality in the quarter was 90.9 percent, while regularity was 96.4 percent.

Norwegian rolled out its new distribution platform in a selective number of smaller markets during the third quarter. The platform will improve distribution capabilities and decrease distribution cost, in addition to enabling full interlining with other airlines It will be rolled out to Norwegian's largest markets in the coming months.

In September, the Swedish government announced it would abolish the country's aviation tax from July of 2025. The welcome move is aimed at reducing fares for travellers and to increase demand.

Norwegian's initial summer programme for 2025 was launched in September with a total of 308 routes to a wide range of attractive destinations.

Norwegian was recently named best low-cost carrier in the Danish Travel Awards 2024. At the Frequent Traveler Awards, Norwegian Reward was named 'Best Earning and Redemption' programme in Europe. In August, it was announced that members of a competitor loyalty programme would be offered status match to enjoy all the benefits of Norwegian Reward Priority.

Well prepared for the winter season

To match production to seasonal fluctuations in demand, Norwegian has reduced capacity by 25 to 35 percent for the upcoming winter season, compared to the end of the third quarter. Growth for 2025 is forecasted to slow from the forecasted capacity growth of 13 percent for 2024 due to aircraft delivery delays from Boeing, delays which are expected to worsen due to the Boeing strike. For the summer of 2025, the Norwegian fleet is currently forecasted to increase to around 90 aircraft, compared to the current fleet of 86 aircraft.

Customers of Norwegian and Widerøe value the group's operational performance and the attractive and growing route network. The acquisition of Widerøe and the linking of highly complementary route networks will further ensure that the airlines remain preferred travel partners throughout the Nordics. The upcoming launch of Spenn, the joint platform for loyalty programmes together with Strawberry, the hotel and hospitality chain, will further support the group's attractive customer offering.

Group consolidated key financial figures

	Q 3	Q3 2023		YTD	YTD 2023		FY 2023
(unaudited in NOK million)	2024	Norwegian*	Change	2024	Norwegian	Change	Norwegian
Operating revenue	11,593.8	8,775.6	32 %	27,084.7	19,621.9	38 %	25,539.3
EBITDAR	3,572.7	3,141.2	14 %	5,720.3	4,555.1	26 %	5,754.1
EBITDAR excl other losses/(gains)	3,576.3	3,149.9	14 %	5,814.2	4,619.5	26 %	5,789.2
Operating profit (EBIT)	2,128.1	2,170.3	-2 %	1,958.6	1,904.4	3 %	2,232.1
EBIT excl other losses/(gains)	2,131.7	2,179.0	-2 %	2,052.5	1,968.8	4 %	2,267.2
Profit (loss) before tax (EBT)	2,004.2	2,049.6	-2 %	1,577.9	1,596.1	-1 %	1,803.9
Net profit (loss)	2,004.2	2,039.1	-2 %	1,577.8	1,584.1	0 %	1,736.9
EBITDAR margin	30.8 %	35.8 %		21.1 %	23.2 %		22.5 %
EBIT margin	18.4 %	24.7 %		7.2 %	9.7 %		8.7 %
EBT margin	17.3 %	23.4 %		5.8 %	8.1 %		7.1 %
Net profit margin	17.3 %	23.2 %		5.8 %	8.1 %		6.8 %
Book equity per share (NOK)				7.4	6.4	15 %	6.0
Equity ratio (%)				19.0 %	19.6 %	-0.6 pp	18.9 %
Cash and cash equivalents				11,457.2	9,391.1	22 %	9,477.9
Net interest-bearing debt				3,883.3	4,318.3	-10 %	4,547.5

*Consolidated financial figures for the periods prior to 2024 do not include Widerøe.

Traffic figures and ratios

		Q3 2024		Q3 2023			YTD 2024		YTD 2023		FY 2023
(unaudited ratios in NOK)	Group	Norwegian Widerøe		Norwegian Change*		Group	Norwegian Widerøe		Norwegian Change*		Norwegian
Yield - total	1.07	0.95	3.86	0.93	15 %	1.05	0.90	4.15	0.89	18 %	0.89
Unit revenue - total	0.94	0.83	3.01	0.82	15 %	0.89	0.77	2.99	0.75	18 %	0.75
Unit cost		0.68		0.63	7 %		0.72		0.70	3 %	0.72
Unit cost excl fuel		0.44		0.41	8 %		0.49		0.47	5 %	0.48
Ancillary revenue per passenger	190	211	41	198	-4 %	175	197	43	181	-3 %	179
ASK (million)	12,085	11,508	577	10,446	16 %	29,621	28,047	1,574	25,190	18 %	32,322
RPK (million)	10,577	10,127	450	9,133	16 %	25,033	23,899	1,134	21,366	17 %	27,383
Passengers (million)	8.20	7.17	1.03	6.48	27 %	20.23	17.43	2.81	15.89	27 %	20.61
Load factor	87.5 %	88.0 %	78.0 %	87.4 %	0.1 pp	84.5 %	85.2 %	72.0 %	84.8 %	-0.3 pp	84.7 %
Average sector length (km)	947	1,360	295	1,329	-29 %	863	1,294	277	1,238	-30 %	1,222
Number of aircraft	135	86	49	85	59 %	135	86	49	85	59 %	87
Fuel consumption (1,000 mt)	239	222	17	205	8 %	591	543	48	503	17 %	645
CO2 per RPK		69		71	-2 %		72		74	-3 %	74
CO2 per seat			34					32

*Changes relate to group for periods in 2024 vs. Norwegian for periods in 2023.

Group financial review

The Norwegian Group ("the group") consists of Norwegian Air Shuttle ASA ("Norwegian") and Widerøe AS ("Widerøe"), together with affiliated subsidiaries. Following Norwegian's completed acquisition of Widerøe, consolidated financials include Widerøe from 12 January 2024. Consolidated financials for the periods prior to 2024 do not include Widerøe.

The Norwegian Group has experienced strong demand trends across markets this summer and through the third quarter of 2024. Demand in the third quarter increased markedly from the same period last year, while the load factor and yield increased both for Norwegian and Widerøe. The third quarter results are also affected by macroeconomic factors, predominantly relating to volatility in the price of jet fuel and in foreign exchange rates.

EBITDAR for the group was NOK 3,573 million in the third quarter of 2024, of which NOK 366 million related to Widerøe and group internal eliminations, compared to NOK 3,141 million in the third quarter of 2023. EBITDAR excl. other losses/(gains) was NOK 3,576 million, compared to NOK 3,150 million in the same period last year. Other losses/(gains) amounted to a net loss of NOK 4 million and primarily relates to currency effects from the translation of monetary operating assets and liabilities.

Operating profit (EBIT) for the group was NOK 2,128 million, of which NOK 192 million related to Widerøe, compared to NOK 2,170 million in the same period last year. The group operating margin was 18.4 percent, compared to 24.7 percent in the same period last year. Operating profit (EBIT) excl. other losses/(gains) was NOK 2,132 million, compared to NOK 2,179 million in the same period last year.

Profit before tax (EBT) for the group was NOK 2,004 million, of which NOK 174 million related to Widerøe, compared to NOK 2,050 million in the same period last year.

Revenue

Total operating revenue for the group in the third quarter of 2024 increased to NOK 11,594 million, of which NOK 1,875 million related to Widerøe, compared to NOK 8,776 million in the third quarter of 2023. Passenger revenue was NOK 9,759 million, compared to NOK 7,229 million in the same period last year, and includes revenue from the Norwegian government related to Widerøe's public service obligation (PSO) routes. Ancillary passenger revenue was NOK 1,558 million, compared to NOK 1,285 million in the same period last year. Other revenue primarily relates to the sale of ground handling services to thirdparties, transport of freight, commission from in-flight sales and revenue from the loyalty programme 'Norwegian Reward' and amounted to NOK 277 million in the quarter.

Operational expenses

Total operating expenses excluding aircraft lease, depreciation and amortisation for the group amounted to NOK 8,016 million in the third quarter of 2024, compared to NOK 5,634 million in the third quarter of 2023. Total operating expenses adjusted for other losses/(gains) amounted to NOK 8,012 million. Expenses for aviation fuel amounted to NOK 2,938 million, compared to NOK 2,308 million in the same period last year. Expenses for aviation fuel corresponded to 37 percent of total operating expenses excluding aircraft lease, depreciation and amortisation, down from 41 percent in the same period last year.

Lease and rental expenses

Aircraft lease, depreciation and amortisation for the group amounted to NOK 1,445 million in the third quarter of 2024, compared to NOK 971 million in the third quarter of 2023.

Financial items

Net financial items for the group amounted to negative NOK 124 million in the third quarter of 2024, compared to negative NOK 121 million in the third quarter of 2023. Interest expenses amounting to NOK 285 million for the quarter included NOK 189 million in interest expenses on lease liabilities recognised according to IFRS 16. Other financial income (expense) amounted to a net gain of NOK 68 million in the quarter.

Norwegian segment

This segment includes Norwegian with affiliated subsidiaries and excludes Widerøe with its affiliated subsidiaries.

Traffic development

Passenger demand for air travel with Norwegian grew significantly across markets into the busy summer travel season, prompting a significant increase in the number of passengers and an increased unit revenue compared to the same period last year. Capacity measured by available seat kilometres (ASK) increased by 10 percent compared to the third quarter of 2023 as the company operated new routes, to new destinations and additional frequencies. Load factor and yield increased moderately compared to the same period last year.

For the third quarter of 2024, Norwegian had 7.2 million passengers, 690,000 more passengers than in the third quarter of 2023. Production (ASK) for the quarter was 11,508 million kilometres, up 10 percent from the same period last year. Passenger traffic measured by revenue passenger kilometres (RPK) was 10,127 million kilometres, up 11 percent from the same period last year. The quarterly load factor was 88.0 percent, up 0.6 percentage points from the same period last year. The average sector length was 1,360 kilometres, an increase of 2 percent compared to the same period last year.

At the end of the third quarter of 2024, Norwegian's fleet comprised 86 aircraft, all Boeing 737 aircraft of which 22 were latest technology 737 MAX 8 aircraft. During the quarter, no aircraft were delivered to Norwegian and no aircraft were redelivered to lessors. Including wet-lease operations, 86 aircraft were on average utilised during the quarter. Each aircraft was on average utilised 12.5 block hours per day, up from 12.3 block hours per day in the same period last year.

Operating performance

Punctuality, share of Norwegian's flights departing on schedule, was 74.2 percent in the third quarter of 2024, down from 80.1 percent in the third quarter of 2023. Punctuality this quarter was negatively impacted by heavily congested European air space and ATC restrictions. Share of flights arriving within one hour of scheduled arrival time was 95.1 percent. Regularity, share of flights taking place, was 99.5 percent this quarter, marginally down from 99.6 percent in the same period last year. Cirium, the global aviation consultancy named Norwegian Air Shuttle (DY) Europe's fifth most on-time airline in both August and September.

Norwegian financial review

EBITDAR for Norwegian was NOK 3,207 million in the third quarter of 2024, compared to NOK 3,141 million in the third quarter of 2023. EBITDAR excl. other losses/(gains) was NOK 3,205 million, compared to NOK 3,150 million in the same period last year. Other losses/(gains) amounted to a net gain of NOK 2 million and primarily relates to currency effects from the translation of monetary operating assets and liabilities. Operating profit (EBIT) was NOK 1,936 million, compared to NOK 2,170 million in the same period last year. Profit before tax (EBT) was NOK 1,830 million, compared to NOK 2,050 million in the same period last year.

Total operating revenue for Norwegian increased to NOK 9,718 million from NOK 8,776 million in the same period last year. Passenger revenue was NOK 8,062 million, while ancillary passenger revenue was NOK 1,516 million. Other revenue primarily relates to commission from in-flight sales and revenue from the loyalty programme 'Norwegian Reward' and amounted to NOK 140 million, compared to NOK 261 million in the same period last year. Other revenue was in the third quarter of 2023 positively impacted by the expiration of CashPoints issued during the COVID-19 pandemic.

Unit revenue including flight related ancillary revenue was NOK 0.83, up from NOK 0.82 in the same period last year. Yield including flight related ancillary revenues was NOK 0.95, compared to NOK 0.93 in the same period last year. Ancillary revenue per passenger was NOK 211 in the quarter, compared to NOK 198 in the same period last year.

Total operating expenses excluding aircraft lease, depreciation and amortisation for Norwegian was NOK 6,507 million in the quarter, compared to NOK 5,634 million in the same period last year. Total operating expenses adjusted for losses/(gains) amounted to NOK 6,508 million. Expenses for aviation fuel amounted to NOK 2,680 million, corresponding to 41 percent of total operating expenses excluding aircraft lease, depreciation and amortisation.

Aircraft lease, depreciation and amortisation amounted to NOK 1,271 million in the quarter, compared to NOK 971 million in the same period last year. The increase is predominately a result of fleet growth and the replacement of older 737-800 NG aircraft with latest technology 737 MAX 8 aircraft that have significantly lower fuel burn. Costs related to external wet-lease capacity sourced to counter aircraft delivery delays amounted to NOK 133 million in the quarter, costs that were partially offset by compensation for delivery delays.

Unit cost, which excludes other losses/(gains) and includes aircraft lease, depreciation and amortisation, amounted to NOK 0.68 in the quarter, an increase of 7 percent from the same period last year. Unit cost excluding fuel amounted to NOK 0.44, an increase of 8 percent from the same period last year.

Net financial items amounted to negative NOK 105 million in the quarter, compared to negative NOK 121 million in the same period last year. Interest expenses amounting to NOK 259 million for the quarter included NOK 178 million in interest expenses on lease liabilities recognised according to IFRS 16. Other financial income (expense) amounted to a net gain of NOK 63 million in the quarter.

Widerøe segment

This segment solely relates to Widerøe with affiliated subsidiaries.

Traffic development

Passenger demand for Widerøe in the third quarter of 2024 developed significantly positive from the same period last year. The number of passengers increased by 11 percent, while the load factor increased by almost 5 percentage points.

Widerøe had 1,030,000 passengers in the quarter, up 99,000 passengers from the third quarter of 2023. The quarter marked the first in Widerøe history with more than 1 million passengers, while September marked a monthly record with close to 360,000 passengers. Production (ASK) for the quarter was 577 million kilometres, a reduction of 2 percent from the same period last year. Passenger traffic (RPK) was 450 million kilometres, up 4 percent from the same period last year. The quarterly load factor was 78.0 percent, up 4.6 percentage points from the same period last year. The increase in load factor was predominately a result of an improved load factor on Widerøe's commercial non-PSO route network.

At the end of the third quarter of 2024, the total Widerøe fleet comprised 49 aircraft, 46 De Havilland Dash 8 turboprop aircraft and three Embraer E190-E2 jets. The fleet was unchanged from the end of the previous quarter.

Operating performance

Punctuality, share of Widerøe's flights departing on schedule, was 90.9 percent in the third quarter of 2024, compared to 90.1 percent in the third quarter of 2023. Regularity, share of flights taking place, was 96.4 percent this quarter, compared to 97.0 percent in the same period last year.

Widerøe financial review

EBITDAR for Widerøe was NOK 366 million in the third quarter of 2024. Operating profit (EBIT) was NOK 192 million, while profit before tax (EBT) was NOK 174 million.

Total operating revenue for Widerøe was NOK 1,945 million in the quarter. Passenger revenue was NOK 1,697 million and includes government revenues from PSO operations. Ancillary passenger revenue was NOK 42 million. Other revenue was NOK 206 million and is predominately comprised of the sale of ground handling services to third-parties and Norwegian, transport of freight, in addition to sale of wet-lease airline services to other airlines.

Unit revenue including compensation for PSO operations and flight related ancillary revenue was NOK 3.01. Yield including compensation for PSO operations and flight related ancillary revenue was NOK 3.86.

Total operating expenses excluding aircraft lease, depreciation and amortisation for Widerøe was NOK 1,579 million in the quarter. Expenses for aviation fuel amounted to NOK 259 million.

Aircraft lease, depreciation and amortisation amounted to NOK 174 million in the quarter.

Net financial items amounted to negative NOK 18 million in the quarter. Interest expenses amounting to NOK 26 million for the quarter included NOK 10 million in interest expenses on lease liabilities recognised according to IFRS 16. Other financial income (expense) amounted to a net gain of NOK 5 million in the quarter and primarily consisted of unrealised currency effects.

Group financial position and liquidity

The majority of aircraft assets for the Norwegian Group are accounted for in USD, creating a natural hedge against USD denominated financing when translated into NOK.

For information related to recognised assets and liabilities in relation to the acquisition of Widerøe completed in the first quarter of 2024, please refer to note 31 in Norwegian's Annual Report for 2023.

Net interest-bearing debt at the end of the third quarter of 2024 amounted to NOK 3,883 million, compared to NOK 4,318 million at the end of the third quarter of 2023. Compared to the previous quarter, net interest-bearing debt decreased by NOK 520 million, predominately a result of principal repayments for leased aircraft. Included in net-interest bearing debt is the zero coupon Retained Claims Bonds, amounting to NOK 2,812 million at the end of the quarter. A total of 135 aircraft were accounted for in the balance sheet through leased and owned aircraft, of which 86 aircraft related to Norwegian's fleet and 49 to the Widerøe fleet.

Equity amounted to NOK 7,111 million at the end of the quarter, up from NOK 6,178 million at the end of the same period last year.

Non-current assets

Total non-current assets amounted to NOK 21,503 million at the end of the third quarter of 2024, compared to NOK 17,596 million at the end of the third quarter of 2023 and NOK 22,031 million at the end of the previous quarter.

Intangible assets amounted to NOK 2,618 million at the end of the quarter and included NOK 1,990 million in deferred tax assets.

Tangible assets amounted to NOK 18,452 million at the end of the quarter, compared to NOK 14,765 million at the end of the same period last year and NOK 18,951 million at the end of the previous quarter, and was predominately comprised of owned aircraft, right-of-use assets for leased aircraft and prepayments for ordered aircraft. Prepayments for ordered aircraft amounted to NOK 3,236 million and relate to the purchase order of 50 Boeing 737 MAX 8 aircraft due to be delivered from 2025.

Current assets

Total current assets amounted to NOK 16,012 million at the end of the third quarter of 2024, compared to NOK 13,924 million at the end of the third quarter of 2023 and NOK 17,628 million at the end of the previous quarter.

Cash and cash equivalents amounted to NOK 11,457 million at the end of the quarter, corresponding to an increase of NOK 2,066 million from the end of the same period last year and a decrease of NOK 41 million at the end of the previous quarter. Included in cash and cash equivalents is NOK 836 million set aside for in a dividend fund for later distribution. Please refer to Note 9 in this report for further information.

Non-current liabilities

Total non-current liabilities amounted to NOK 16,145 million at the end of the third quarter of 2024, compared to NOK 15,199 million at the end of the third quarter of 2023 and NOK 18,580 million at the end of the previous quarter. The reduction from the previous quarter was predominantly due to the maturity of 50 percent of the Retained Claims Bond in September of 2025 becoming current.

Non-current lease liabilities amounted to NOK 8,856 million at the end of the quarter, compared to NOK 8,484 million at the end of the same period last year and NOK 9,490 million at the end of the previous quarter.

Current liabilities

Total current liabilities amounted to NOK 14,260 million at the end of the third quarter of 2024, compared to NOK 10,142 million at the end of the third quarter of 2023 and NOK 15,347 million at the end of the previous quarter.

Air traffic settlement liabilities amounted to NOK 5,233 million at the end of the quarter, up from NOK 3,888 million at the end of the same period last year. Air traffic settlement liabilities were down NOK 2,524 million from NOK 7,758 million at the end of the previous quarter in accordance with projected seasonality.

Other current liabilities amounted to NOK 5,307 million at the end of the quarter, of which CashPoint liabilities amounted to NOK 550 million.

Equity

Equity at the end of the third quarter of 2024 amounted to NOK 7,111 million, compared to NOK 6,178 million at the end of the third quarter of 2023 and NOK 5,732 million at the end of the previous quarter. The corresponding equity ratio was 19.0 percent. Compared to the previous quarter, the equity ratio increased by 4.5 percentage points.

Group cash flow

Cash and cash equivalents amounted to NOK 11,457 million at the end of the third quarter of 2024, an increase of NOK 2,066 million from the end of the third quarter of 2023. Compared to the previous quarter, cash and cash equivalents decreased by NOK 41 million.

Cash flow from operating activities

Cash flow from operating activities in the third quarter of 2024 amounted to positive NOK 1,113 million, compared to positive NOK 1,212 million in the third quarter of 2023. Air traffic settlement liabilities decreased by NOK 2,524 million during the quarter while receivables decreased by NOK 1,407 million, predominately due to EU ETS allowances surrendered to settle the group's obligations for 2023. Other adjustments amounted to negative NOK 1,130 million during the quarter. Other adjustments primarily relate to the settlement of EU ETS obligations in addition to finance items, changes in other assets, other liabilities and non-cash effects included in profit before tax.

Cash flow from investing activities

Cash flow from investing activities in the third quarter of 2024 amounted to negative NOK 385 million, compared to negative NOK 77 million in the third quarter of 2023.

Cash flow from financing activities

Cash flow from financing activities in the third quarter of 2024 amounted to negative NOK 766 million, compared to negative NOK 1,096 million in the third quarter of 2023.

Risk and uncertainties

The Norwegian Group is exposed to several risk factors such as market risk, operational risk, financial risk, liquidity risk and climate-related risks. Future demand for air travel is dependent on sustained consumer and business confidence in key markets. Demand for air travel is subject to strong seasonal variations. Adverse effects in relation to the onset of pandemics or unforeseen security events may impact the company's operations.

The current macroeconomic environment is uncertain with volatile energy and fuel prices, inflationary pressure, fluctuations in foreign exchange rates, the ongoing war in Ukraine, escalating tensions in the Middle East as well as potential impacts of disruptions in the global supply chain. Such factors may have a significant impact on the group's business and financial result. The company has reduced its exposure to fluctuations in fuel prices through derivative contracts. Norwegian has hedged 70 percent of estimated jet fuel consumption for the remainder of the current year and approximately 45 percent for 2025, while Widerøe has hedged 80 percent for the remainder of the current year and approximately 50 percent for 2025. The average hedging price level is close to current market prices for both airlines.

In the event of industrial actions, operations may be affected, causing disruptions for customers and affect the company's financial performance.

For additional explanations regarding risks and uncertainties, please refer to the following sections in the company's Annual Report 2023: Financial risk and risk Management section and the going concern section of the Board of Director's report, Note 2: Financial risk and Note 28: Contingencies and legal claims. Note 13 to this interim report includes updates to contingencies and legal claims.

Outlook

The Norwegian Group is forecasting a group operating profit (EBIT) for 2024 to be in the range of NOK 2.1 to 2.4 billion, including Widerøe. The company is also forecasting unit cost excluding fuel for Norwegian to increase by a low single-digit percentage compared to 2023. The forecasts are based on average market rates for the year*. These forecasts are uncertain, and the company is mindful of changes related to consumer sentiment, aircraft delivery delays and the general macro environment that may significantly affect these forecasts.

For the full-year of 2024, Norwegian is forecasting an overall production (ASK) of approximately 36,500 million seat kilometres, corresponding to a growth of 13 percent from 2023. The year-onyear production growth is forecasted at 18 percent for the fourth quarter of 2024. To match production to the seasonally lower demand during the winter season, Norwegian has reduced capacity for the upcoming months by 25 to 35 percent compared to the end of the third quarter. Growth for the full-year of 2025 is expected to slow compared to 2024 due to aircraft delivery delays from aircraft manufacturer Boeing. The strike among Boeing union members from September is expected to exacerbate the delivery delays, but the final effect of the Boeing strike remains uncertain. The Norwegian fleet is currently projected to increase to around 90 aircraft for the summer of 2025, up from the current fleet of 86 aircraft.

While current booking trends have slowed in accordance with seasonality, the booking momentum for the fourth quarter is encouraging across the group, both for leisure and business travel. Visibility for the first quarter of 2025 and thereafter remains limited, as is expected this time of the year. For the winter season ahead, Norwegian is operating new leisure routes including to Dubai and Egypt, in addition to routes from European cities to popular winter holiday destinations Tromsø and Evenes. The group is also attracting an increasing number of customers travelling for business purposes, travellers that place an extra high value on strong operational performance.

With strong brand loyalty, a highly skilled organisation and a solid financial platform, the group is well-positioned to tackle potential short-term fluctuations in demand and to solidify its position as a leading airline group in the Nordics. The addition of Widerøe to the group supports the company's strong customer proposition and outlook through the enabling of seamless travel across an improved route network offering.

Condensed interim financial statements

Consolidated income statement

	Q 3 Note 2024	Q 3 2023	YTD 2024	YTD 2023	Full Year 2023
(unaudited in NOK million)
Passenger revenue	9,758.9	7,228.9	22,704.9	16,034.5	20,616.6
Ancillary passenger revenue	1,558.0	1,285.3	3,545.5	2,883.4	3,699.6
Other revenue	276.8	261.5	834.3	704.0	1,223.1
Total operating revenue	3 11,593.8	8,775.6	27,084.7	19,621.9	25,539.3
Personnel expenses	2,044.2	1,001.0	5,896.8	2,992.1	4,025.1
Aviation fuel	2,938.3	2,308.5	7,201.2	5,898.1	7,714.7
Airport and ATC charges	1,085.7	892.2	2,710.9	2,158.7	2,769.5
Handling charges	779.8	663.1	1,939.2	1,624.2	2,134.2
Technical maintenance expenses	334.1	170.4	902.4	520.2	697.6
Other operating expenses	830.2	590.5	2,612.9	1,809.0	2,409.1
Other losses/(gains)	3.6	8.7	93.9	64.4	35.1
Total operating expenses excl lease, depr. and amort.	8,015.9	5,634.4	21,357.3	15,066.8	19,785.2
Share of net loss/(profit) of joint venture	5.1	0.0	7.1	0.0	0.0
Operating profit excl lease, depr. and amort. (EBITDAR)	3,572.7	3,141.2	5,720.3	4,555.1	5,754.1
Aircraft lease, depreciation and amortisation	1,443.8	970.8	3,761.7	2,650.8	3,522.0
Operating profit (EBIT)	2,128.1	2,170.3	1,958.6	1,904.4	2,232.1
Interest income	93.4	72.3	272.4	155.9	231.3
Interest expense	285.2	226.6	851.3	601.5	848.0
Other financial income (expense) 9	67.9	33.6	198.2	137.3	188.5
Net financial items	-123.9	-120.7	-380.7	-308.3	-428.2
Profit (loss) before tax (EBT)	2,004.2	2,049.6	1,577.9	1,596.1	1,803.9
Income tax expense (income)	0.0	10.5	0.1	11.9	66.9
Net profit (loss)	2,004.2	2,039.1	1,577.8	1,584.1	1,736.9
Net profit (loss) attributable to:
Owners of the parent company	2,004.2	2,039.1	1,577.8	1,584.1	1,736.9
Basic earnings per share (NOK)	2.04	2.09	1.53	1.59	1.70
Diluted earnings per share (NOK)	1.78	1.81	1.40	1.41	1.54

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Consolidated statement of comprehensive income

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

Consolidated statement of comprehensive income
	Q 3	Q 3	YTD	YTD	Full Year
(unaudited in NOK million)	2024	2023	2024	2023	2023
Net profit (loss) for the period	2,004.2	2,039.1	1,577.8	1,584.1	1,736.9
Actuarial gains and losses	-3.0	0.0	-3.0	0.0	-20.3
Currency translation differences	-33.3	-24.4	105.7	153.7	112.8
Gains/(losses) on cash flow hedges	-643.7	635.2	-219.3	404.5	31.4
Hedging (gains)/losses reclassified to profit or loss	53.0	-179.9	-61.8	-104.4	-169.8
Total comprehensive income for the period	1,377.3	2,470.1	1,399.3	2,037.9	1,690.9
Total comprehensive income attributable to:
Owners of the company	1,377.3	2,470.1	1,399.3	2,037.9	1,690.9

Consolidated statement of financial position

(unaudited in NOK million)	Note	30 SEP 2024	30 SEP 2023	31 DEC 2023
ASSETS
Intangible assets		2,618.0	2,125.3	2,161.7
Tangible assets	7	18,451.5	14,765.4	15,016.4
Other non-current assets		433.7	704.9	328.2
Total non-current assets		21,503.3	17,595.6	17,506.2
Inventory		505.4	227.6	259.6
Receivables and other current assets		4,049.4	4,305.3	3,306.3
Cash and cash equivalents	9	11,457.2	9,391.1	9,477.9
Total current assets		16,012.0	13,924.0	13,043.8
TOTAL ASSETS		37,515.2	31,519.6	30,550.0
EQUITY AND LIABILITIES
Shareholders' equity	10	7,110.9	6,178.5	5,772.6
Total equity		7,110.9	6,178.5	5,772.6
Non-current debt	8	11,621.7	11,983.8	12,312.1
Other non-current liabilities		4,523.1	3,215.1	3,504.8
Total non-current liabilities		16,144.8	15,198.9	15,816.9
Air traffic settlement liabilities		5,233.3	3,888.2	3,202.5
Current debt	8	3,718.8	1,725.5	1,713.3
Other current liabilities		5,307.4	4,528.5	4,044.7
Total current liabilities		14,259.5	10,142.2	8,960.5
TOTAL LIABILITIES		30,404.4	25,341.2	24,777.4
TOTAL EQUITY AND LIABILITIES		37,515.2	31,519.6	30,550.0

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Consolidated statement of cash flow

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

	Q 3	Q 3	YTD	YTD	Full Year
(unaudited in NOK million)	2024	2023	2024	2023	2023
OPERATING ACTIVITIES
Profit before tax
	2,004.2	2,049.6	1,577.9	1,596.1	1,803.9
Paid taxes	-0.7	-0.3	-68.2	-1.0	-1.7
Depreciation, amortisation and impairment	1,357.4	968.7	3,648.9	2,591.7	3,533.8
Changes in air traffic settlement liabilities	-2,524.3	-2,527.6	1,747.0	1,339.6	654.0
Changes in receivables	1,406.9	257.0	-314.0	-1,852.1	-1,217.1
Other adjustments	-1,130.3	464.4	-65.3	645.6	484.7
Net cash flows from operating activities	1,113.1	1,211.8	6,526.3	4,319.9	5,257.5
INVESTING ACTIVITIES
Purchases, proceeds and prepayment of tangible assets	-351.0	-62.7	-860.1	-264.4	-495.1
Purchase of subsidiaries, net of cash acquired	0.0	0.0	-1,000.0	0.0	0.0
Other investing activities	-34.2	-14.0	-86.5	-43.8	-82.8
Net cash flows from investing activities	-385.3	-76.7	-1,946.5	-308.2	-577.9
FINANCING ACTIVITIES
Loan proceeds	15.6	0.0	61.2	152.1	289.6
Principal repayments	-534.2	-917.9	-1,955.0	-2,077.1	-2,511.9
Financing costs paid	-247.3	-178.4	-737.5	-501.0	-745.1
Net cash flows from financing activities	-765.9	-1,096.3	-2,631.3	-2,425.9	-2,967.4
Net change in cash and cash equivalents	-38.0	38.8	1,948.5	1,585.7	1,712.2
Foreign exchange effect on cash	-3.1	3.1	30.9	46.4	6.6
Cash and cash equivalents at beginning of period	11,498.3	9,349.3	9,477.9	7,759.0	7,759.0
Cash and cash equivalents at end of period	11,457.2	9,391.1	11,457.2	9,391.1	9,477.9

Consolidated statement of changes in equity

(unaudited in NOK million)	YTD 2024	YTD 2023	Full Year 2023
Equity - Beginning of period	5,772.6	4,203.4	4,203.4
Total comprehensive income for the period	1,399.3	2,037.9	1,690.9
Share issue	19.5	291.5	293.4
Perpetual bonds issue and conversions	-19.5	-291.5	-293.4
Interest payment on perpetual bonds	-65.3	-68.0	-128.6
Equity change on employee options	4.3	5.2	6.8
Equity - End of period	7,110.9	6,178.5	5,772.6

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Notes to the condensed interim financial statements

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

Note 1 Accounting principles

The condensed consolidated interim financial statements comprise Norwegian Air Shuttle ASA and its subsidiaries (the company). Norwegian Air Shuttle ASA is a limited liability company incorporated in Norway. The consolidated financial statements of the company for the year ended 31 December 2023 are available at www.norwegian.com.

These unaudited condensed consolidated interim financial statements have been prepared in accordance with the rules and regulations of Oslo Stock Exchange and International Accounting Standard (IAS) 34 Interim Financial Reporting. They do not include all the information required for full annual consolidated financial statements and should be read in conjunction with the consolidated financial statements for the company for the year ended 31 December 2023.

The accounting policies applied by the company in these condensed consolidated financial statements are the same as those applied by the company in its consolidated financial statements for the year ended 31 December 2023.

Judgments, estimates and assumptions

The preparation of condensed consolidated interim financial statements is in accordance with IFRS and applying the chosen accounting policies require management to make judgments, estimates and assumptions which affect the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical figures and various other factors which are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the company's accounting policies and the key sources of estimation uncertainty, were the same as those that applied to the consolidated financial statements for the period ended 31 December 2023.

The going concern basis of accounting is adopted in preparing these interim financial statements. Refer to the Risk and Uncertainties section of this Interim Report for further information.

Acquisition of Widerøe

On 12 January 2024, the Norwegian Group has acquired Widerøe, a regional carrier in Norway. For detailed information on the acquisition of Widerøe, please refer to Note 31 to the consolidated financial statements for 2023.

Widerøe is consolidated in the group from 12 January 2024. Comparative financial information for periods prior to 2024 presented in this report have not been adjusted to include Widerøe.

Acquisition-related expenses of NOK 12 million are included in other operating expenses in the consolidated income statement for the first three quarters of 2024.

Impairment

The company assesses whether there are any indications that its assets may be impaired at the end of each reporting period. There are no impairment indicators during the reporting period.

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Note 2 Risk

Sensitivity Analysis

(unaudited in NOK million)	Effect on costs
1% increase in jet fuel price	30
1% increase in USD against NOK	127

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

The sensitivity analysis for changes in the jet fuel price is based on expected consumption for the 12-months period from quarterend after cash flow hedging effects. The sensitivity analysis for changes in USD against NOK is based on total operating expenses excluding other losses/(gains) and including interest expense for the 12-months period from quarter-end and incorporates jet fuel hedging effects. Exposure to currencies other than USD is substantially offset through revenues in the same currencies.

Note 3 Revenue

Passenger revenue comprises only ticket revenue, while ancillary passenger revenue is other passenger related revenue such as optional extras. Other revenue primarily relates to revenue from handling services, commission from in-flight sales and revenue

from the loyalty programme 'Norwegian Reward'. Passenger related revenue per country is based on the starting point of customer journeys.

Operating revenue by country

handling services, commission from in-flight sales and revenue
Operating revenue by country
	Q 3	Q 3		YTD	YTD		Full Year
(unaudited in NOK million)	2024	2023	Change	2024	2023	Change	2023
Norway	5,275.6	2,945.0	79 %	13,605.8	7,254.8	88 %	9,693.4
Spain	1,488.9	1,350.9	10 %	3,475.5	3,065.3	13 %	4,089.8
Denmark	1,106.6	1,005.7	10 %	2,508.3	2,271.6	10 %	2,926.0
Sweden	871.0	794.3	10 %	2,139.8	1,949.2	10 %	2,496.4
Italy	388.5	354.9	9 %	649.5	590.4	10 %	710.0
United Kingdom	361.2	333.4	8 %	819.3	776.6	5 %	1,026.2
France	334.1	293.4	14 %	566.4	517.7	9 %	614.6
Greece	254.2	262.5	-3 %	355.4	359.2	-1 %	416.4
Finland	230.3	260.8	-12 %	636.3	679.0	-6 %	934.5
Croatia	191.1	195.1	-2 %	239.8	240.7	0 %	267.8
Other	1,092.3	979.4	12 %	2,088.5	1,917.4	9 %	2,364.1
Total operating revenue	11,593.8	8,775.6	32 %	27,084.7	19,621.9	38 %	25,539.3
Total outside of Norway	6,318.2	5,830.6	8 %	13,478.9	12,367.1	9 %	15,845.9

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Note 4 Segment information

The Executive Management team reviews the company's internal reporting to assess performance and allocate resources. Executive Management has determined the group's operating segments based on these reports.

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

Executive Management considers the airlines Norwegian and Widerøe as two separate operating segments.

Performance is measured by Executive Management based on the operating segments' earnings before interest, tax, aircraft lease, depreciation and amortisation (EBITDAR).

The table below includes separate financial information for the group and its two operating segments. Financial information for the group and Widerøe would be approximately the same if Widerøe had been acquired on 1 January 2024.

Prior to the first quarter of 2024, the group consisted of only one operating segment, which is Norwegian. For comparative period financial information for the group, please refer to the consolidated income statement in this report.

			Q3 2024 YTD 2024
(unaudited in NOK million )		Group Norwegian	Widerøe	Elimination		Group Norwegian	Widerøe	Elimination
Passenger revenue	9,758.9	8,062.4	1,696.5	0.0	22,704.9	18,115.5	4,589.4	0.0
Ancillary passenger revenue	1,558.0	1,515.8	42.2	0.0	3,545.5	3,425.3	120.2	0.0
Other revenue	276.8	140.3	206.2	-69.7	834.3	373.0	643.3	-181.9
Total operating revenue	11,593.8	9,718.5	1,945.0	-69.7	27,084.7	21,913.7	5,353.0	-181.9
Personnel expenses	2,044.2	1,275.0	769.2	0.0	5,896.8	3,684.6	2,212.2	0.0
Aviation fuel	2,938.3	2,679.7	258.6	0.0	7,201.2	6,515.0	686.2	0.0
Airport and ATC charges	1,085.7	991.2	94.5	0.0	2,710.9	2,449.7	261.2	0.0
Handling charges	779.8	727.6	113.5	-61.3	1,939.2	1,799.4	285.2	-145.5
Technical maintenance expenses	334.1	223.1	111.3	-0.2	902.4	589.6	313.2	-0.4
Other operating expenses	830.2	611.8	226.6	-8.1	2,612.9	1,911.0	737.7	-35.8
Other losses/(gains)	3.6	-1.7	5.3	0.0	93.9	84.7	9.5	-0.2
Total operating expenses excl lease, depr.				-69.7				-181.9
and amort.	8,015.9	6,506.6	1,579.0		21,357.3	17,033.9	4,505.3
Share of net loss/(profit) of joint venture	5.1	5.1	0.0	0.0	7.1	7.1	0.0	0.0
EBITDAR	3,572.7	3,206.7	366.0	0.0	5,720.3	4,872.7	847.7	0.0
Aircraft lease, depreciation and amortisation	1,444.6	1,270.8	173.8	0.0	3,761.7	3,285.1	476.5	0.0
Operating profit (EBIT)	2,128.1	1,935.9	192.2	0.0	1,958.6	1,587.5	371.1	0.0
Interest income	93.4	91.0	2.5	0.0	272.4	265.0	7.4	0.0
Interest expense	285.2	259.1	26.0	0.0	851.3	770.4	80.9	0.0
Other financial income (expense)	67.9	62.8	5.1	0.0	198.2	200.6	-2.4	0.0
Net financial items	-123.9	-105.4	-18.4	0.0	-380.7	-304.9	-75.8	0.0
Profit (loss) before tax (EBT)	2,004.2	1,830.5	173.7	0.0	1,577.9	1,282.6	295.3	0.0
Income tax expense (income)	0.0	0.0	0.0	0.0	0.1	0.1	0.0	0.0
Net profit (loss)	2,004.2	1,830.5	173.7	0.0	1,577.8	1,282.5	295.3	0.0

Note 5 Information on related party transactions

For detailed information on related party transactions, please refer to Note 27 to the consolidated financial statements for 2023. There have been no significant transactions with related parties during the first three quarters of 2024.

Note 6 Earnings per share

Note 6 Earnings per share
	Q 3	Q 3	YTD	YTD	Full year
(unaudited in NOK million)	2024	2023	2024	2023	2023
Profit attributable to the owners of the company before PIK interest	2,004.2	2,039.1	1,577.8	1,584.1	1,736.9
Payment-in-kind interest on perpetual bonds recognized in equity	-37.7	-30.5	-104.4	-97.2	-126.3
Profit attributable to the owners of the company after PIK interest	1,966.5	2,008.6	1,473.4	1,486.9	1,610.7
Basic earnings per share (NOK)	2.04	2.09	1.53	1.59	1.70
Diluted earnings per share (NOK)*	1.78	1.81	1.40	1.41	1.54
Specification of weighted average number of shares used in calulation of basic and diluted EPS Ordinary shares for basic EPS Perpetual bonds for diluted EPS Share options Weighted average number of ordinary shares diluted Antidilutive instruments that might become dilutive in	963,880,462 162,544,019 69,727	961,523,687 164,387,017 - 1,126,494,208 1,125,910,704	963,339,406 163,219,525 213,337 1,126,772,268	935,385,575 190,530,022 -	947,827,373 178,838,433 - 1,125,915,597 1,126,665,806
future periods not included in calculation of the diluted earnings per share for the period Share options	4,416,853	4,755,116	4,273,243	4,755,116	4,486,580

*Shares which might become dilutive in future periods are only included in the calculation of diluted earnings per share in case they would reduce basic earnings per share for the period if they had been issued at the beginning of the period. Potentially dilutive shares which would increase basic earnings per share if they had been outstanding at the beginning of the period are considered antidilutive. They are not included in the calculation of diluted earnings per share for the period.

Note 7 Tangible assets

	30 SEP	30 SEP	31 DEC
(unaudited in NOK million)	2024	2023	2023
Predelivery payments	3,236.4	3,186.7	3,072.1
Owned aircraft, parts and installations on leased aircraft	3,952.5	1,316.7	1,415.4
Right-of-use assets aircraft and parts	9,974.9	9,545.2	9,818.4
Aircraft, parts and installations	13,927.5	10,861.9	11,233.8
Other tangible assets owned	763.6	384.7	391.1
Right-of-use assets other	524.1	332.1	319.3
Other tangible assets	1,287.7	716.8	710.5
Total tangible assets	18,451.5	14,765.4	15,016.4
Total right-of-use assets	10,499.0	9,877.3	10,137.8

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Note 8 Borrowings

	30 SEP	30 SEP	31 DEC
(unaudited in NOK million)	2024	2023	2023
Bond issue	1,342.1	2,563.6	2,622.3
Aircraft financing	1,423.4	864.8	936.7
Lease liabilities	8,856.2	8,483.8	8,688.8
Other non-current debt	0.0	71.6	64.3
Non-current debt	11,621.7	11,983.8	12,312.1
Bond issue	1,472.2	0.0	0.0
Aircraft financing	109.3	86.5	84.2
Lease liabilities	1,881.4	1,601.2	1,591.4
Other current debt	255.9	37.8	37.7
Current debt	3,718.8	1,725.5	1,713.3
Total borrowings	15,340.5	13,709.4	14,025.3

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

Note 9 Dividend funds

An extraordinary general meeting in December 2023 authorised the Board to distribute dividends of up to NOK 0.25 per share for 2022. In May 2024, the general meeting authorised a dividend of NOK 0.60 per share for 2023. Distribution of dividends for both 2022 and 2023 is subject to approval from holders of the company's debt instruments. Until such approval is obtained, the company has set aside the amount and invested it in several

money market funds, all with investment grade ratings. The total amount, including interests, was NOK 836 million at the end of the third quarter. The amount is included in the line-item Cash and cash equivalents in the Consolidated statement of financial position as of 30 September 2024.

Note 10 Shareholder information

20 largest shareholders at 30 September 2024:

Name	Country	Number of shares	Percent
1 Geveran Trading Company, Ltd.	Cyprus	135,813,236	14.1 %
2 Folketrygdfondet	Norway	83,360,832	8.6 %
3 Sundt AS	Norway	50,597,265	5.2 %
4 Ballyfin Aviation Limited	Ireland	31,472,703	3.3 %
5 DNB Asset Management AS	Norway	31,185,383	3.2 %
6 Nordnet Bank AB.	Norway	29,544,398	3.1 %
7 Nordea Funds Oy	Finland	24,497,328	2.5 %
8 Silver Point Capital, L.P.	United States	24,092,031	2.5 %
9 Avanza Bank AB	Sweden	18,535,424	1.9 %
10 Handelsbanken Kapitalförvaltning AB	Sweden	14,725,216	1.5 %
11 KLP Fondsforvaltning AS	Norway	12,502,018	1.3 %
12 Holmen Fondsforvaltning AS	Norway	12,200,000	1.3 %
13 American Century Investment Management, Inc.	United States	11,138,399	1.2 %
14 BlackRock Institutional Trust Company, N.A.	United States	10,722,968	1.1 %
15 Brumm AS	Norway	10,096,560	1.0 %
16 HSBC Bank Plc	United Kingdom	7,225,791	0.7 %
17 Swedbank AB	Sweden	6,906,300	0.7 %
18 Acadian Asset Management LLC	United States	6,728,689	0.7 %
19 HSBC Continental Europe S.A.	Germany	6,622,434	0.7 %
20 UBS Switzerland AG	Switzerland	6,076,174	0.6 %
Top 20 shareholders		534,043,149	55.4 %
Other shareholders		429,837,313	44.6 %
Total number of shares		963,880,462	100.0 %

In the first nine months of 2024 there have been two conversions of perpetual bonds, where a total of NOK 19.5 million have been converted. The company have issued total 2,109,556 new shares

in these conversions. Norwegian Air Shuttle ASA had a total of 963,880,462 shares outstanding as of 30 September 2024. There were 80,095 shareholders at the end of the third quarter of 2024.

Note 11 Fair value estimation

(unaudited in NOK million)	30 SEP 2024	30 SEP 2024	31 DEC 2023	31 DEC 2023
	Carrying		Carrying
	amount	Fair value	amount	Fair value
Financial assets at fair value through profit or loss	38.2	38.2	16.1	16.1
Financial assets at fair value through OCI	0.0	0.0	36.9	36.9
Financial assets at amortized cost	15,118.4	15,118.4	11,642.4	11,642.4
Total financial assets	15,156.6	15,156.6	11,695.4	11,695.4
Financial liabilities at fair value through OCI	441.5	441.5	176.1	176.1
Financial liabilities at amortized cost	19,415.0	19,359.7	17,164.6	17,090.9
Total financial liabilities	19,856.5	19,801.2	17,340.7	17,267.0

The company's financial assets and liabilities are measured at fair value in the statement of financial position based on the fair value measurement levels below:

Level 1

The fair value of financial instruments traded in active markets is based on quoted market prices of the reporting date. A market is regarded as active if quoted prices are readily and regularly available and represent actual and regular occurring market transactions on an arm's length basis. The group had one financial instrument in this category at 30 September 2024 and 31 December 2023, Norwegian Block Exchange.

Level 2

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. Financial instruments in level 2 include

forward contracts classified as derivatives. The fair value of forward commodity contracts is determined using mark to market values from financial institutions. Spot prices in the mark to market calculations are based on mid-prices as set by the financial institutions at the reporting date.

Level 3

If one or more of the significant inputs are not based on observable market data, specific valuation techniques are applied. The group had two financial instruments in this category at 30 September 2024, investments in Norsk e-Fuel AS and Pilot Flight Academy AS (31 December 2023: one financial instrument, investment in Norsk e-Fuel AS). No changes in fair value have been recognised for these investments after initial recognition.

The following table presents financial assets and liabilities measured at fair value:

	30 SEP 2024		31 DEC 2023
(unaudited in NOK million)	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Financial assets
Derivative financial assets, non-current	-	-	-	-	-	-
Derivative financial assets, current	-	-	-	-	36.9	-
Total financial assets at fair value through OCI	-	-	-	-	36.9	-
Investment financial assets, non-current	3.7	-	34.5	3.7	-	12.4
Total financial assets at fair value through profit or loss	3.7	-	34.5	3.7	-	12.4
Financial liabilities
Derivative financial liabilities, non-current	-	92.6	-	-	67.4	-
Derivative financial liabilities, current	-	348.9	-	-	108.7	-
Total financial liabilities at fair value through OCI	-	441.5	-	-	176.1	-

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Note 12 Quarterly data

	Q 1	Q 2	Q 3	YTD
(unaudited in NOK million)	2024	2024	2024	2024
Passenger revenue	5,126.0	7,820.0	9,758.9	22,704.9
Ancillary passenger revenue	730.9	1,256.6	1,558.0	3,545.5
Other revenue	287.5	270.0	276.8	834.3
Total operating revenue	6,144.4	9,346.6	11,593.8	27,084.7
Personnel expenses	1,774.1	2,078.5	2,044.2	5,896.8
Aviation fuel	1,669.6	2,593.3	2,938.3	7,201.2
Airport and ATC charges	609.9	1,015.3	1,085.7	2,710.9
Handling charges	486.7	672.6	779.8	1,939.2
Technical maintenance expenses	281.1	287.2	334.1	902.4
Other operating expenses	895.9	886.8	830.2	2,612.9
Other losses/(gains)	126.0	-35.7	3.6	93.9
Total operating expenses excl lease, depr. and amort.	5,843.2	7,498.1	8,015.9	21,357.3
Share of net loss/(profit) of joint venture	0.0	2.0	5.1	7.1
Operating profit excl lease, depr. and amort. (EBITDAR)	301.1	1,846.5	3,572.7	5,720.3
Aircraft lease, depreciation and amortisation	1,063.8	1,253.3	1,444.6	3,761.7
Operating profit (EBIT)	-762.6	593.2	2,128.1	1,958.6
Interest income	84.3	94.7	93.4	272.4
Interest expense	278.9	287.2	285.2	851.3
Other financial income (expense)	53.8	76.5	67.9	198.2
Net financial items	-140.8	-116.1	-123.9	-380.7
Profit (loss) before tax (EBT)	-903.4	477.1	2,004.2	1,577.9
Income tax expense (income)	0.1	0.1	0.0	0.1
Net profit (loss)	-903.5	477.1	2,004.2	1,577.8

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Note 13 Contingencies and legal claims

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

On 21 September 2021, the Norwegian Environment Agency concluded in an administrative ruling that the cram down of claims in the Examinership and Reconstruction does not apply to the company's obligation to surrender emission allowances under EU ETS (see Section 9.6.2 "Environmental regulations") for emissions predating 18 November 2020. The contemplated market value of such allowances is approximately NOK 285 million at the end of the third quarter of 2024. The Reconstructor determined that the Reconstruction applies to the company's obligation to surrender emission allowances as a different view would have given preference to the EU ETS regime, which the current insolvency legislation does not facilitate. Therefore, the company was unable to comply with the Norwegian Environment Agency's demand of the company surrendering emissions allowances. The lack of compliance caused the Norwegian Environment Agency to impose a penalty of approximately NOK 400 million on the company. The company appealed the decision, but on 16 December 2022 the Ministry of Climate and Environment decided to uphold the Norwegian Environment Agency's decision. The company, supported by its advisors and the Reconstructor, are of the view that the company's obligation to surrender emission allowances for emissions pre-dating 18 November 2020 can be settled by paying dividend of 5 percent introduced under the Reconstruction and the decision to impose a penalty of NOK 400 million is invalid. On this basis, the company filed a statement of claim to Oslo District Court on 9 January 2023.

In June 2023, Oslo District Court decided to submit the case to the EFTA Court for consultation on the EU/EEA law implications of the matter. The EFTA Court provided an advisory opinion in August 2024, stating that "Article 12(2a) of Directive 2003/87/EC ["EU ETS Directive"] of the European Parliament and of the Council establishing a system for greenhouse gas emissions allowance trading within the Union must be interpreted as precluding national legislation from providing that the obligation to surrender emissions allowances may be settled by dividend in a compulsory debt settlement in connection with the restructuring of an insolvent company". The company takes note of the advisory opinion; however, the company is of the opinion that the EFTA Court's assessments and conclusion are not a correct interpretation of the EU ETS Directive. Subsequently, the

Note 14 Events after the reporting period

There have been no events subsequent to the reporting period that might have a significant effect on the financial report for the third quarter of 2024.

proceedings in the Oslo District Court will resume between 23 and 29 October 2024, and the Oslo District Court is obliged to interpret and apply the EU ETS Directive independently.

Effective 21 March 2024, regulation 23 December 2004 concerning mandatory quotas and the trading of emission allowances for greenhouse gases (the Allowance Regulation) (Nw.: klimakvoteforskriften) implementing Regulation (EU) 2023/2904 require "compliance status A" in the EU greenhouse gas emission trading registry for transfers of free allowances. Currently, NAS holds "compliance status B" as the group's obligation to surrender 372,000 emission allowances for 2020 emissions was settled through dividends in accordance with Norwegian insolvency law during restructuring negotiations. The Norwegian Environment Agency contends that the obligation to surrender allowances cannot be settled by dividend in insolvency proceedings. Although the relationship between Norwegian insolvency law and the Allowance Regulation is unclear, NAS believes that the obligation to surrender emissions allowances for 2020 emissions has been settled and that NAS should be awarded free allowances. The liability for allowances related to CO2 emissions in the first three quarters of 2024 is measured based on the assumption that the group will receive free allowances for 2024. The liability per 30 September 2024 would be higher by approximately NOK 325 million if NAS expected not to receive free allowances for 2024. Fuel cost would accordingly be higher by NOK 325 million for the first nine months and by NOK 129 million for the third quarter of 2024.

The legal issue concerning treatment of emission allowances in insolvency has never been tried in court before. As a consequence of the Reconstruction, the amount corresponding to the contemplated market value of such allowances was crammed down and the company has a provision of NOK 15 million at the end of the third quarter of 2024. The company has paid the ETS penalty fee in 2023 and will seek a return of this amount plus interest following a final conclusion.

There are no other significant additions or changes to the information regarding contingencies or legal claims presented in Note 28 to the consolidated financial statements for 2023.

Definitions

Alternative performance measures

Norwegian Air Shuttle's financial information is prepared in accordance with International Financial Reporting Standards (IFRS). In addition, the company presents alternative performance measures (APM). The APMs are regularly reviewed by management and their aim is to enhance stakeholders'

understanding of the company's performance. APMs are calculated consistently over time and are based on financial data presented in accordance with IFRS and other operational data as described in the table below.

Measure	Description	Reason for including
Operating profit (EBIT)	Earnings before net financial items and income tax expense (income)	Enables comparability of profitability regardless of capital structure or tax situation
EBIT excl. other losses/(gains)	Earnings before net financial items and income tax expense (income), adjusted for other losses/(gains)-net	Enables comparability of profitability regardless of capital structure or tax situation, excluding effects for certain volatile operating expenses
EBIT margin	EBIT divided by total operating revenue	Enables comparability of profitability relative to operating revenue
EBITDAR	Earnings before net financial items, income tax expense (income), depreciation, amortisation, impairment and aircraft leasing expenses	A measure of operating performance that enables comparison between airlines as it is not affected by the method used to finance aircraft
EBITDAR excl. other losses/(gains) /	Earnings before net financial items, income tax expense (income), depreciation, amortisation and impairment, aircraft	A measure of operating performance that enables comparison between airlines as it is not affected by the method used to finance aircraft, excluding effects for certain
Underlying operating result before ownership costs	leasing expenses and share of profit (loss) from associated companies, adjusted for other losses/(gains)-net	volatile operating expenses
EBITDAR margin	EBITDAR divided by total operating revenue	Enables comparability of profitability relative to operating revenue
Profit (loss) before tax (EBT)	Earnings before income tax expense (income)	Enables comparability of profitability regardless of capital structure or tax situation
EBT excl. other losses/(gains) and impairment	Earnings before income tax expense (income), adjusted for other gains/(losses) and impairment costs	Enables comparability of profitability regardless of one-off impairment losses, excluding effects for certain volatile operating expenses
EBT margin	EBT divided by total operating revenue	Enables comparability of profitability relative to operating revenue
Net interest-bearing debt	Non-current debt plus current debt less cash and cash equivalents	Measurement of the ability to pay all debt with available cash and cash equivalents, if all debt matured on the day of the calculation. It is therefore a measure of the risk related to the company's capital structure
Other losses/(gains)	Gains and losses from translation of working capital in foreign currency and net gain or loss from sale of fixed assets	Included as a specification to operating expenses to separate certain volatile effects from other operating expenses
Operating expenses excl. leasing, depreciation and amortisation	Total operating expenses not including aircraft lease expense, depreciation, amortisation and impairment	A measure of operating expenses that enables comparison between airlines as it is not affected by the method used to finance aircraft
Operating expenses excl. other losses /(gains), depreciation and lease	Total operating expenses not including other losses/(gains) depreciation, amortisation, impairment and lease expenses	A measure of operating expenses that is not affected by other losses/(gains), depreciation, amortisation, impairment and lease expenses

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Alternative performance measures - Reconciliations

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

	Q 3	Q 3	YTD	YTD	Full Year
(unaudited in NOK million)	2024	2023	2024	2023	2023
Operating profit (EBIT) to EBIT excl other losses/(gains)
Operating profit (EBIT)	2,128.1	2,170.3	1,958.6	1,904.4	2,232.1
- Other losses/(gains)*	3.6	8.7	93.9	64.4	35.1
EBIT excl other losses/(gains)	2,131.7	2,179.0	2,052.5	1,968.8	2,267.2
EBITDAR to EBITDAR excl other losses/(gains)
EBITDAR	3,572.7	3,141.2	5,720.3	4,555.1	5,754.1
- Other losses/(gains)*	3.6	8.7	93.9	64.4	35.1
EBITDAR excl other losses/(gains)	3,576.3	3,149.9	5,814.2	4,619.5	5,789.2
Net profit (EBT) to EBT excl other losses/(gains) and impairment
Profit (loss) before tax (EBT)	2,004.2	2,049.6	1,577.9	1,596.1	1,803.9
- Other losses/(gains)*	3.6	8.7	93.9	64.4	35.1
EBT excl other losses/(gains) and impairment	2,007.8	2,058.3	1,671.8	1,660.5	1,839.0
Net interest bearing debt
Cash and cash equivalents			11,457.2	9,391.1	9,477.9
Aircraft financing			12,270.3	11,036.4	11,301.1
Other IB debt			255.9	109.4	102.0
Retained Claims bonds			2,814.3	2,563.6	2,622.3
Net interest-bearing debt			3,883.3	4,318.3	4,547.5

*Other losses /(gains) is defined in table above and is a part of operating expenses, see consolidated income statement.

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Other definitions

Item	Description
Aircraft lease expenses	Variable lease and rental expenses not capitalized as part of right-of-use assets on aircraft, including both dry leases and wet-leases
Ancillary revenue per passenger	Ancillary passenger revenue divided by number of passengers
ASK / Production	Available seat kilometres. Number of available passenger seats multiplied by flight distance
Average sector length	Total flown distance divided by number of flights
Book equity per share	Total equity divided by number of shares outstanding
CO2 per RPK	Amount of CO2 emissions divided by RPK
CO2 per seat	Amount of CO2 emissions divided by available passenger seats
Constant currency	A currency exchange rate that excludes the impact of exchange rate fluctuations from comparable period, e.g. 2023 as comparable period
Equity ratio	Book equity divided by total assets
Fuel consumption	Aviation fuel consumed, presented in metric tons
Load factor	RPK divided by ASK. Describes the utilization of available seats
Number of aircraft	Fleet of aircraft owned and leased at the end of the reporting period, excluding aircraft on wet-lease
Passengers	Number of passengers, including no-show
RPK	Revenue passenger kilometres. Number of sold seats multiplied by flight distance
Unit cost	Total operating expenses, excluding impairment and other losses/(gains)-net, divided by ASK
Unit cost excluding fuel	Total operating expenses, excluding impairment, other losses/(gains)-net and aviation fuel expenses, divided by ASK
Unit revenue - ticket	Passenger ticket revenue divided by ASK
Unit revenue - total	Passenger ticket revenue and flight related ancillary revenue divided by ASK
Yield - ticket	Passenger ticket revenue divided by RPK. A measure of average fare per kilometre
Yield - total	Passenger ticket revenue and flight related ancillary revenue divided by RPK. A measure of average passenger revenue per kilometre

◼ Year-end cash position NOK 9.5 billion and NOK 0.60 per share dividend provision Norwegian Air Shuttle ASA

Mailing address P.O. Box 113

Telephone +47 67 59 30 00 Internet norwegian.com

NO–1366 Lysaker Visiting address Oksenøyveien 3, Fornebu Organisation number NO 965 920 358 MVA

◼ Delivering Q4 profits with earnings before tax (EBT) NOK 208 million

• Katrine Gundersen Director, employee representative Henrik Fjeld Chief Operations Officer Eric Holm Director, employee representative Tore Jenssen CEO Widerøe

Board of directors Group management

Svein Harald Øygard Chair Geir Karlsen Chief Executive Officer Lars Rahbæk Boilesen Director Hans-Jørgen Wibstad Chief Financial Officer Karina Deacon Director Magnus Thome Maursund Chief Commercial Officer Stephen Kavanagh Director Guro H. Poulsen Chief People Officer

Katherine Jane Sherry Director Anne-Sissel Skånvik Chief Communications Customer & Public Affairs Officer Torstein Hiorth Soland Director, employee representative Knut Olav Irgens Høeg Chief IT & Business Services Officer

Investor relations

Jesper M. Hatletveit investor.relations@norwegian.com VP Investor Relations norwegian.com/us/about/company/investor-relations/

Financial calendar 2024

25 October Q3 2024 Results 6 November Monthly traffic data October 5 December Monthly traffic data November

Financial calendar 2025

7 January Monthly traffic data December 6 February Monthly traffic data January 13 February Q4 2024 Results 6 March Monthly traffic data February 4 April Monthly traffic data March 11 April Annual report 2024 7 May Monthly traffic data April 8 May Q1 2025 Results 14 May Annual General Meeting 5 June Monthly traffic data May 4 July Monthly traffic data June 11 July Q2 2025 Results 6 August Monthly traffic data July 4 September Monthly traffic data August 6 October Monthly traffic data September 22 October Q3 2025 Results 6 November Monthly traffic data October 4 December Monthly traffic data November