Norwegian Air Shuttle ASA

Earnings Release • Jul 11, 2025

Presentation of second quarter 2025

11 July 2025

– laying the basis for a sustainable profitable airline

High customer value at low cost of delivery

• leading in Europe on OTP with close to zero cancellations
• strong customer satisfaction and brand recognition
  • capturing market share for corporate travel
  • Norwegian Reward with attractive benefits
• centred on route profitability – adding profitable routes one by one
• numerous initiatives to lower costs and manage seasonality
• significant scope to lower aircraft ownership cost
  • more robust finances provide opportunities
  • multiple initiatives implemented through 2025

Growth through complimentary business ventures

• Widerøe acquisition completed January 2024
  • 100% cash acquisition at P/E ~2
  • strong customer proposition with seamless interlining
  • scope for growth e.g. on inbound
• Spenn – Norwegian initiated establishment of a leading Nordic loyalty platform
  • Strawberry and Reitan Retail partners and co-owners
  • significant business build with 100 partners across Nordics

Group revenue (NOK billion)

2

– at the end of the first leg, starting on the second

2021 • emergence from reconstruction • NOK 825m cash to repayment of dividend claims 2022 • NOK 30m Retained Claims Bonds (RCB) buy-back 2023 • NOK 351m RCB buy-back • NOK 468m early redemption of NAS13 bond 2024 • NOK 68m RCB buy-back 2025 Q1 – Q3 • NOK 900m conv. bond buy-back - call exercise for full amount • NOK 3,156m deposit for RCB instalments Credit repayment timeline (excl. lease payments, interest and loan amortisations) 2025 Q3 onwards • payment of inaugural dividend • delivery of future annual dividends Sum NOK 5.8 billion

Pandemic-era rescue with positive return

• Norwegian government with crucial rescue loan during pandemic – ensuring workplaces and future of local aviation industry
• taxpayer contribution with positive nominal return
  • participated in business upside through convertible loan
  • profit realised via convertible loan buy-back and subsequent share sale
  • remaining creditor position secured with deposit
• sole state funding ever received in company history – now repaid

Today marks a shift as dividends now can be delivered

• capital structure fit-for-purpose
  • call and buy-back of subordinated convertible bond
  • depositing RCB outstanding amount in Q3 enabling dividends
• distribution of dividend fund – NOK 0.90 per share dividend
  • 2024 dividend utilised for convertible buy-back, positive for shareholders by reducing diluted number of shares by 6 percent
  • distribution of dividend fund from 2022/23 plus investment return now in August

Highlights for Q2 2025

Q2 profit before tax (EBT) NOK 1,055 million

• group operating profit (EBIT) NOK 1,250 million
  • Norwegian EBIT NOK 1,021 million
  • Widerøe EBIT NOK 229 million
• significant results improvement
  • EBT improved NOK 577 million YoY
  • operating margin 12.2% vs 6.4% last year
• cost level impacted by increased ATC and airport tariffs from year-end

Strong core operations

• Norwegian with record Q2 unit revenue
  • capacity growth slowed to 1%
  • load factor up 3% YoY
• Widerøe delivering traffic records
  • load factor up 4% YoY
  • all-time high with 1.1 million passengers
  • June delivering record monthly revenues

Preferred travel partner – direct, not connect

• 350 Norwegian routes on sale across attractive network
  • over 100 Widerøe routes
• operational excellence with few cancellations
  • Norwegian OTP 86%, up 5 p.p. YoY
  • regularity 99.7%, close to zero cancellations
• strong customer satisfaction vs. peers
  • Net Promoter Score (NPS) at 50
• most direct routes from Nordics to rest of Europe
• capturing corporate market share
• Spenn expanding with attractive offering

Long-term fleet decisions with sound economics

• transaction to acquire 11 spare engines – latest technology CFM LEAP-1B
  • deliveries schedule for 2027/28
  • –operational resilience in cost-reducing way
• purchase of 3 leased Boeing 737-800 – non-recurring gain NOK 260m for Q3
  • recurring annual savings

Strong balance sheet enabling for dividend

• liquidity position increased to NOK 13.8bn – financing in place for Q1 purchase of 10 aircraft
• capital structure fit-for-purpose
  • call and buy-back of sub. convertible bond
  • deposit for outstanding amount of RCB bond
• dividend NOK 0.90 per share to be paid in August

Second quarter 2025

Load factor (change YoY)

Passengers in second quarter 2025 (group)

Load factor (change YoY)

Norwegian capacity (ASK)

99.7%

Punctuality

Regularity

million seat kilometres (+3% YoY)

Widerøe capacity (ASK)

Norwegian – record Q2 traffic

80.0%

90.0%

Norwegian Traffic – PAX per month, load factor and yield

88.4%

Successful ramp-up to summer season

• close to zero cancellations

Strong quarterly traffic

• capacity growth (ASK) slowed to 1% YoY vs. 16% in Q1
• record high Q2 unit revenue
  • load factor 85.2%, up 3 p.p. YoY
  • yield up 6% YoY
• positive Easter timing effect vs Q2 last year

Record June traffic

• highest June load post 2019

Widerøe – setting passenger records

Widerøe Traffic – PAX per month and load factor

85.0%

90.0%

95.0%

100.0%

Record traffic in quarter

• 1,078,000 passengers up 8% YoY and highest ever
• load factor increased to 74%

81.1%

• June record high monthly passengers and revenue

Increasing interline traffic with Norwegian

• annual interlining traffic flows up close to 40%
• enhanced distribution from Q3

Widerøe significant results contribution

• EBIT NOK 229 million – up NOK 27m YoY

Norwegian – robust booking momentum

Continuous strong booking momentum post Easter

• diversified bookings across destinations and travel month

Capacity growth reduced

• low single-digit percentage growth YoY during summer season
• harvesting from 2024 investments in network growth

Booked revenue – Travel July to October2)

7,000,000,000

Booked load ahead vs. last year

• Norwegian 9% more tickets sold vs. last year at corresponding date for July to October travel
• Widerøe sold tickets up double-digit % YoY for same travel period

Norwegian yield on sold tickets up YoY for July to Oct.

Corporate travel – continued growth in 2025

Corporates choosing Norwegian

• Avinor reports corporate travel in Norway still below 2019 – domestic corp. travel down 11%, abroad down 15%*
• from corporates and travel agents we speak to: – 50% or higher share of travel with Norwegian
  • highly value Norwegian's on-time performance, frequency and regularity
• onboarding new SMEs and larger corporates – over 1,200 new corporate agreements signed ytd. – growth in all sales channels
• contract signed with Swedish state/Kammarkollegiet – contract covering domestic travel for up to four years

Key initiatives ahead

• Widerøe travel with seamless end-to-end connectivity
  • full distribution and interlining online in Q3
• Norwegian Reward Priority
  • attractive benefits including priority boarding, seat choice, luggage and coffee
  • improving seamless flow of benefits
• now live with FuelChoice product for Biofuel tickets for corporates – four larger corporates signed up with more coming shortly

Norwegian corporate passengers

Revenue

• group revenue NOK 10.3 billion up 10% vs. last year – Widerøe contribution NOK 2.0bn with strong traffic
• Norwegian record high Q2 unit revenue
  • capacity (ASK) growth down to 1%
  • total unit revenue up 10% YoY, 3 p.p. increase in load factor
  • ancillary revenue NOK 205 per pax, up 5% YoY

Quarterly result

• group EBIT NOK 1,250 million, significant improvement YoY
  • Norwegian EBIT NOK 1,021m
  • Widerøe EBIT NOK 229m
  • operating margin 12.2%, second strongest Q2 in company history
• strengthening NOK against USD gives positive results effect – other losses/gains NOK 194m due to translation of USD denominated operating liabilities
• Norwegian unit cost ex. fuel NOK 0.50 – up 7% YoY – cost level impacted by increasing ATC and airport tariffs from year-end

Balance sheet

• strong liquidity position NOK 13.8 billion – completed financing of 10 aircraft acquired in Q1
• NOK 1.5bn convertible bond fully redeemed – call exercise and NOK 640m buy-back at 140%, reducing dilution from share conversion
• NOK 0.90 per share dividend to be paid in August
  • primarily funded by dividend fund
  • depositing outstanding amount of Retained Claims Bond

Revenues – record strong Q2 traffic

Quarterly total operating revenue (NOK million)

Norwegian Q2 traffic

• capacity growth (ASK) 1% vs. Q2 2024
• Unit revenue up 10% from last year – load factor up 2.8%

Easter timing

• Easter falling in Q2 this year vs. in Q1 last year – reversal of negative Q1 effect

Widerøe with strong contribution

• June monthly revenue record
• growth in passengers 8%
• 19% share of group operating revenue

Operating profit (EBIT) – significant improvement

Quarterly EBIT (NOK million)

Significant improvement in traffic YoY

• Improved unit revenue and Easter timing

Countering cost inflation

• significant cost increase for ATC and airport charges following tariff changes at year-end
• unit cost excl. fuel up 7% YoY
  • Q2 cost development in accordance with projection

Non-recurring effects for FX

• other losses/gains gain 194 million in Q1 due to FX revaluation

Widerøe significant results contribution

• EBIT NOK 229 million, up 27m YoY

Group P&L

NOK million	Q2 2025	Q2 2024	Chng. (YoY)
Passenger revenue	8,664	7,820
Ancillary passenger revenue	1,370	1,257
Other revenue	255	270
Total operating revenue	10,289	9,347	+10%	Improved load factor and yield
Personnel expenses	2,096	2,079
Aviation fuel	2,576	2,593		NOK 105m increase with reduced ETS allowances and increased SAF mandate
Airport and ATC charges	1,235	1,005	+23%	increased ATC and airport charges from year-end
Handling charges	705	673
Technical maintenance expenses	321	284
Other operating expenses	940	901
EBITDAR excl other losses/(gains)	2,420	1,813
Other losses/(gains)	-194	-36	-159	balance sheet translation effects from NOK strengthening
EBITDAR	2,615	1,848
Aircraft lease, depreciation and amortization	1,359	1,253
Operating profit (EBIT)	1,250	595	655	significant improvement YoY
Net financial items	-191	-116
Profit before tax (EBT)	1,055	477
Income tax expense (income)	123	0	123	eff. tax rate 12% due to exp. utilisation of unrecognised tax assets
Net profit (loss)	932	477	454

Robust balance sheet

NOK million	30 Jun. 2025	31 Mar. 2025	Chng. (QoQ)
Intangible assets	2,356	2,421
Tangible assets	21,891	21,095	+796	delivery of three leased
Total non-current assets	24,682	23,980		aircraft
Receivables	5,184	4,305
Financial investments	1,052	1,035
Cash and cash equivalents	12,738	9,421	+3,317	financing 10 aircraft acquired
Total current assets	19,508	15,283		in Q1, operating cash flow
Assets	44,190	39,254
Equity	5,914	6,150
Non-current debt	15,248	12,013	+3,235
Other non-current liabilities	5,045	3,814
Total non-current liabilities	20,293	15,828
Air traffic settlement liabilities	8,563	8,312	+3%	bookings high with season,
Current debt	3,439	3,523		up 10% YoY
Other current liabilities	5,981	5,441
Total current liabilities	17,983	17,276
Liabilities	38,276	33,103
Equity and liabilities	44,190	39,254
Equity ratio (%)	13.4	15.7	-2.3 p.p.

Net interest-bearing debt
NOK million	30 Jun. 2025	31 Mar. 2025	Chng. (QoQ)
Cash & equiv.	12,738	9,421	+3,317
Financial Investments	1,052	1,035
Aircraft financing	15,806	12,471	+3,335
Other IB debt	88	185
Retained Claims Bonds	2,793	2,880
NIBD	4,897	5,080	-184

• NIBD impacted by addition of 3 aircraft on lease and financing of 10 aircraft purchase in Q1 – 90 aircraft in Norwegian and 51 at Widerøe

• Reducing dilution through redemption of NOK 1.5bn convertible bond

– exercise of call option and NOK 640m buy-back at 140% – dividend for 2024 utilised for convertible bond buy-back, topping-up NOK 321m, reducing dilution by 6%

• NOK 0.90 per share dividend to be paid in August – primarily funded by NOK 874m dividend fund from 2022/23, topping up with NOK 76m for new shares issued – depositing for outstanding amount in Retained Claim Bonds (RCB) enabling dividend

Cash flow in quarter

Quarterly cash flow (NOK million)

Bookings elevated with seasonality

• positive working capital effect with normalised and low holdback

Excess liquidity

• placed on deposits and money-market funds
• cash balance not inc. NOK 1,052m in fixed-income fund investments
• rate-of-return above 5%

Boeing prepayment – significant portion already paid in

• prepayment to date NOK 3.1bn
• 2025 prepayments below NOK 100m (excl. options)

The way forward

Executing on long-term fleet strategy

Boeing deliveries developing positively

• three aircraft on lease delivered in Q2
  • six aircraft delivered ytd., up from two last year – recent deliveries ahead of revised schedule
• order for 50 Boeing 737 MAX 8 aircraft
  • first aircraft from own order due in Q4
  • decision on 30 additional aircraft option in coming months
  • attractive pricing

Utilising balance sheet for smart fleet decisions

• purchase of 11 CFM LEAP-1B spare engines
  • securing operational resilience in cost-efficient manner
  • deliveries due in 2027 and 2028
• purchase of 3 Boeing 737-800 leased aircraft
  • following purchase of 10 aircraft in Q1
  • non-recurring gain NOK 260 million for Q3 plus recurring cost savings
  • in process of securing long-term financing

Lowering ownership cost

• Norwegian improved credit standing - experiencing high demand for financings
• improving future cost of financing – balancing cost of capital vs. cash flow

Aircraft deliveries and trade tensions

• market remains impacted by OEM delays and engine issues – net positive for supply/demand balance and yield environment
• trade tensions between US and key trading partners, incl. EU – closely monitoring situation and options

Norwegian fleet estimate until 2026

Program X to deliver by end 2026:

• underlying recurring profit improvement in excess of NOK 1 billion p.a.*
• sustained increase in EBIT margin (%)

*) baseline 2024 for Norwegian (excl. Widerøe) at constant FX and jet fuel

What we have done so far in 2025:

• fleet control through acquisition of aircraft and spare engines
• on-time performance (OTP) with significant improvement
• rollout of new distribution platform
• realisation of additional Widerøe synergies

Results:

• significant underlying results improvement YoY
• reduced inflationary pressure on endogenous cost items

Examples of what we are doing going forward:

• operations asset performance – fuel consumption savings – crew efficiency
• cost reductions overhead rightsizing – efficiency via automation
• commercial interlining – partnerships

Outlook

	FY 2025	Q3	Q4
Capacity growth1)	c. 3%	c. 2%	c. -3%
Norwegian unit cost excl. fuel2)	Low to mid single-digit % increase

1) available seat kilometres (ASK) vs. same period 2024 2) vs. 2024 assuming current foreign exchange rates

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