Good morning, and welcome to the first quarter 2026 presentation for the Norwegian Group. My name is Jesper Hatletveit, and I'm the VP of Investor Relations here at Norwegian.

Today's presentation will be held by our CEO, Geir Karlsen, and our CFO, Hans-Jørgen Wibstad. The presentation will be followed by Q&A from the audience and the web.

Please go ahead, Geir.

Thank you, Jesper. Good morning to everyone.

Also good morning to the ones listening in online. It's a beautiful morning in Oslo, the sun is shining.

The low season is behind us, and we are looking forward to a summer season that is going to be hectic, and we are going to fly a lot, and the demand is looking very promising. Let's start by having a look at the first quarter of this year.

EBIT negative of 220 million. This is a significant improvement from the same quarter last year.

Very happy to see that Program X is really starting to deliver: 196 million in this quarter. I will come back to a little bit more details on Program X a little bit later.

Very strong traffic growth in the quarter. It's a record first quarter load factor in Norwegian at 87.6%.

We have a volatile macro situation, not at least on the fuel side, but at the same time in Norwegian we are 45% hedged. We have seen tailwind on the FX, meaning that the Norwegian krone on the relative has gotten stronger.

Also very helpful that the ETS quota prices has come down from the low €90s a ton down at the 60s for the quarter, which is obviously helping. The underlying cost excluding fuel is 2% up.

I will come back to the guiding for the full year a little bit later. Widerøe, talking about operational excellence, is delivering a great quarter when it comes to the daily operation on both punctuality, on-time performance improved to 87%, which is impressive in a very difficult part of the year.

Also regularity at 97% with all the weather we are experiencing in the markets where Widerøe is flying. I can see that they have both the CFO and the CEO in Widerøe in the room here today, and I have to say that great job to you and all your colleagues in Widerøe.

Also regularity in Norwegian, 99.4%. We have always said that we are going to fly the network we have for sale, meaning we have very few cancellations.

This is another example of that. Cirium, we are still top 10 in Europe when it comes to punctuality.

I would like to be on top five, but that is difficult, especially in the low season with all the weather we are experiencing up here in the north. Close to 500 routes in combination between the two airlines.

Net Promoter Score, that is the feedback from our customers, is at very high levels at more than 50. Also very good to see that Widerøe is really moving up the ladder when it comes to the NPS score.

As we say, why connect when you can fly direct, meaning that we are the airline in the Nordics with most direct routes from the Nordics to Europe. We are continuing to push on the corporate market as we have been doing for quite a while, and we are very much looking forward to bringing and welcoming [Raiton?]

on board, coming live during June this year, during the next couple of months. Finally, I have been talking about a new distribution platform now for almost two years.

Finally we are live, and we can now offer interlining with Widerøe, for example, where you can now actually book a combination of Norwegian and Widerøe on Norwegian's website. You cannot do it on the app yet, but that will come.

Balance sheet: we are continuing to work on the balance sheet. Cash position increased during the quarter to 14.2 billion.

Net debt reduced to 4.4 billion. When we are seeking financing these days, we are seeking financings for the spare engines that we bought, 11 engines, and looking at the terms and conditions that we received from 20 to 30 banks, it is at levels terms-wise that we have never seen in Norwegian before.

The credit Norwegian is performing well, and we are finally getting extremely attractive terms when it comes to financing our assets. We are planning to pay dividend, 0.8 NOK per share based on an approval from the upcoming AGM.

We do expect that that will be approved, and then we will pay out the dividend. We are having a very volatile situation when it comes to the fuel side due to the situation in the Middle East, but we have, as I will go through a little bit later, hedged 45%, and we have also seen an uptick in demand, especially into the western and southern part of Europe.

We think that that demand has shifted from the Middle East to these destinations. We have filed an appeal to the Supreme Court in Norway on the ETS case, and we do expect that we will have final outcome of that case during the year.

A little bit on numbers: 5.2 million passengers in the quarter, that's 2% up compared to the same quarter last year, and that is on a capacity reduction actually on both airlines: 6% down in Norwegian, 2% down in Widerøe. Very happy to see the high load factor in Norwegian up 5 percentage points to 87.6%.

It's a record, as mentioned. I have to say again, when it comes to on-time performance and regularity in Widerøe, very impressive, very impressive.

Punctuality in Norwegian is actually down 3 percentage points, mostly due to weather conditions in the markets we were flying during the quarter, but on regularity, still at very high levels and very close to our targets. A little bit on the winter traffic: this is a graph that we show every quarter, and as you can see, we have a lot of seasonality in Norwegian.

A little bit flatter curve in Widerøe, but this shows how we flex between the different seasons. By that, we are keeping a relatively stable load factor, which is very important.

We are 6% down on capacity in this quarter compared to the same quarter last year, but we are flying 2% more passengers, and again, a historic high Q1 load factor. Not at least, a very nice development on the yield, up 5% compared to last year.

With a 6% capacity reduction, we're quite happy with the results, and it seems like we hit where we wanted pretty well. We are now moving into the peak season where we expect to carry much more passengers, and hopefully then also we will see a nice development both in load and on yield.

Looking at the same for Widerøe, very good to see the load factors coming up over the last couple of months: 70.2% load, 930,000 passengers, up 2% as well. Then, as mentioned a couple of times now, the performance operationally has been absolutely fantastic in Widerøe during the quarter.

Normally, this is also then giving good results on the bottom line, and very happy to see that Widerøe is delivering an EBIT positive of 38 million, which is 81 million improvement from the same period last year. Widerøe had their record year in 2025.

I think we have a great chance of actually beating that in 2026. Keep up in Widerøe.

Looking at the bookings going forward: to the left on the top there, it shows 7-day rolling sales figures on numbers of passengers. That's all markets, all destinations, and travel when you want.

Normally, this curve will show that we have a peak in sales in the New Year sale that we have every year. Special thing this year is that we have actually a peak in March, and this is after or post the Iran situation.

Very interesting to see. Then it flattens out, calmed down, and then you see the typical Easter effect.

Easter is earlier this year than last year, that's why you see the dip in the red line there, and you see the comparable one is the blue coming a few weeks later. Also good to see that the curve as per today is higher than last year.

We saw a decline in bookings after the situation in Iran, especially in Turkey and in Cyprus, but we also saw an increase in demand, as mentioned, in the southwest and south of Europe, when this happened. All in all, I think I could say that it looks promising for the months to come.

I'll come back a little bit to details on it. We are ready for the summer season.

We have all the crew we need. We have all the aircraft we need.

Everybody is ready for a busy summer season. Capacity-wise, we are up 5% compared to last year for the second quarter as a whole, but we have increased the capacity especially in June with 8% to 9%.

If you look at the booked revenue, this is travel from May to August, on load, we are marginally behind in April. That is mostly due to the Easter effect.

We are flat to marginally below on load in June as well, but have in mind we have 8% to 9% capacity growth. On the other months, we are ahead of last year.

We have, as per today, sold 200,000 tickets more than the same date last year. I would say it looks very comfortable when it comes to the load.

On yield, we are ahead of last year on most months. The exception is again June, where we are marginally behind, but hopefully we can catch up and get in front of the line when we end June.

I think all in all, very happy with the bookings going forward. We have a capacity increase compared to last year, and it seems like the increases in fares that we have put in place—and we have increased the fares due to the situation, not at least on the fuel side—it seems like this is sticking with the customers.

They're actually willing to pay more for a ticket today, probably because they understand the situation that we are in with fuel prices that has increased a lot. A little bit about the macro situation: the production that Norwegian has had to the Middle East has been kind of limited.

Yes, we have been flying to Dubai from the three capitals in Norway, Sweden, and Denmark. That is obviously now cancelled.

Normally we just fly it in during the winter time, and that is cancelled. We had a plan to start up to fly to Tel Aviv and to Beirut.

That is also postponed and cancelled for the time being. This is the capacity that we have been moving over to high-demand routes in Europe, flying typically down to the Mediterranean, where you are seeing a very strong demand these days.

45% hedged for the remainder of the year. This is combined for the two airlines, Norwegian and Widerøe.

We are hedged against the jet fuel, not against the crude oil, and we are doing it by doing swaps where the counterparts typically are banks. Then that is out there.

When it comes to availability of fuel, I have been reading a lot in the media lately about how big of a problem this is going to be. Looking at the situation today from Norwegian, we are quite confident that we will get the fuel we need as long as we can have visibility today.

We are talking to our suppliers all the time, and as per today, there is no signs from at least them that there will be a lack of fuel in the short term. What we are seeing is that we are actually sourcing our fuel mostly from Scandinavia and some part of Europe.

We are seeing that the European producers of jet fuel is increasing their capacity. We're also seeing that the import of fuel into Europe is increasing both from the US, and it's also increasing from Africa.

It's also more crude oil coming into the market, giving the refineries the optionality to actually produce more fuel. For the time being, we are quite comfortable on the fuel situation, and we haven't cancelled anything.

We are not planning to cancel anything either, and then we will just follow the situation very closely obviously and then to have a look at the fuel situation. Again, we are seeing a very strong demand, very healthy bookings, and we have increased the fares, and to some extent this is compensating for the fact that we have seen higher fuel prices.

Hans-Jørgen.

Thank you, Geir. Good morning, everyone.

Nice to see you here. I will as usual go through the Q1 results in somewhat more detail, starting with revenues, which are up 6%, as Geir said, to 5.8 billion.

That's pretty strong on the basis of an ASK, which is down 6%, and that's reflecting the unit cost increase that I will talk about a little bit later. Widerøe coming in with a nice 1.9 billion.

As Geir also mentioned, there is traffic improving across the group. We see that we have been able to optimize the winter production in a very nice way, taking down the capacity, the ASK, by 6%, with the impact of that partially being that the unit revenue is up quite a big increase by 13% year over year, both on higher load factor and yield.

Of course there is a Easter impact in March of that, but overall, also looking at March, February, and January in combination, it is a strong figure. Again, Widerøe delivering a nice 2% increase.

Looking at the operating result, negative 220 million. It's not nice to report a negative figure, but seasonally this is a very strong figure, and it's a very significant improvement from last year, nearly 400 million, and that's without taking into account the non-recurring impact of the acquisition of 10 aircraft in 2025, which had an impact of nearly 590 million.

The underlying improvement is bigger than it looks at the direct EBIT comparison. Looking at the Norwegian EBIT, negative 259, and then with Widerøe coming in with a nice profit.

That's really good, and as we've talked about several times, Widerøe's operational and business model is less seasonal than it is with Norwegian. That's a good combination.

As also mentioned before, we have some macro tailwind or advantages from a strengthening Norwegian krone versus the US dollar. We have attractive hedges that have helped us in this quarter, and also the ETS price coming down.

There is some tailwind on the kind of macro elements, and then which also has an impact on this OGL, other gains and losses, of 284 million. I think the important thing though, and I will come back to that, is the underlying improvement, which is significant, which also results in a unit cost which is up only 2% on the basis of an ASK which is down 6%.

That's kind of a number which is better than we have seen historically, and really gives a strong signal that there is good cost control in Norwegian, partially due to Program X, but also hard work, of course, across the whole group. That's really good to see.

Also the financial strength has improved during the quarter. We came out of the year with a strong balance sheet, but it has further improved during the quarter with 14.2 billion of gross cash at the end of the quarter.

Some of that is linked to the short-term investments, and also deposit for the outstanding bond, which is due for a payment in the third quarter, 2.6 billion, and thus having then the net interest-bearing debt, which is an important KPI for us, is down to 4.4 billion at the end of the quarter. Equity ratio going up.

Also from a balance sheet point of view, coming out of the quarter with a further strengthened balance sheet compared with where we were one quarter ago. A further deep dive into the revenue side.

We see that the Norwegian part is up 6% on revenues, and it can be explained by, first of all, there is a volume impact, reduced ASK, but that again has the positive impact on yield development, which has a significant positive, that's 5%, and load factor 5.2%, which then brings us to a revenue in Norwegian of 5.1 billion. On top of that, obviously, a nice number from Widerøe at 1.8 billion, bringing the total revenue to 6.9 billion.

Then maybe even more interesting is to look at the EBIT bridge, how we go from a loss in first quarter of last year of 568 million to a loss in Norwegian, that is, of 259 million, and again taking into account that the 569 million is including a non-recurring gain of 589 million, which is represented on the red bar there. Obviously, both Geir and myself talked about the macro benefit from lower ETS, strengthened Norwegian krone, and also the hedges, representing 415 million.

The most important thing is to focus on the underlying improvement, 432 million, which is the result of all the initiatives from Program X across the group, bringing this kind of underlying benefit to our results. This is as we had expected, but it is really good to see it coming through in the numbers.

Part of that, just as an example, are the recurring gains from the acquisition of 13 aircraft out of leases last year, but there are also a number of other initiatives across the group that actually adds up to the 432, obviously including also the top-line increases that we talked about on the revenue side. Then also as mentioned before, Widerøe with a very nice increase, 38 million from last year, and then we ending up with a group EBIT of 220 million as a loss, again a significant improvement from previous quarter, especially taking into account the non-recurring impact last quarter.

I think we talked a lot about the P&L so far, but just to summarize: operating revenues up by 5%; personnel expenses naturally up as always, 5% controlled; aviation fuel, we have the impact of the macro benefits, the hedges, and also slightly lower ASK impacting that figure. We're seeing that the airport charges and ATC charges is down more than 10%.

That's because of good negotiations, good results from the airports. We're seeing handling charges down, partially due to lower ASK, but also good deals on handling, good control of the cost.

Technical expenses also, maintenance expenses also down. Overall, a good control of the cost, and it's really good to see that this is kind of our ambitions to have a really good cost control is we see that in the numbers.

Aircraft depreciation obviously up a bit, and that's again because of the non-recurring element in Q1 last year, it's not comparable figures. Then net financial items a little bit up, that's mostly to do with unrealized losses on currencies relating to our cash balances in US dollars.

Overall, a good performance, and a profit before tax then of 459 million minus versus 756 million lost in the same quarter last year. A few final words on the balance sheet in somewhat more detail.

We can see that the total size of the balance sheet is increasing. That's mostly to do with the cash, which is building 4.1 billion of cash build during the quarter.

That's seasonal, but it's really good to see that number. It's driven largely by ticket sales, but also a strong cash flow from operations.

We see the equity going up by 1.4 billion. Why is that?

Yes, because we have a mark-to-market value of our hedges of more than 2 billion, and you will see that in the other comprehensive income, which for some of you is interesting, but it's a technicality, but that is booked directly towards equity, which then increased our equity ratio from the end of the year from 18.2% to 19.1%. This is the net interest-bearing debt that we have talked about a few times: 4.4 billion, down from 9.5 billion, driven by lower lease debt liabilities, somewhat nearly 1 billion, and then of course the build-up of cash during the quarter.

No aircraft deliveries in Q1, as planned, but as Geir said, we have a fleet ready for the summer season, we're well positioned for that important season for us as we move forward. Again, we will pay dividend in May, subject to AGM approval.

We think that will go through, we're very happy to be able to distribute some cash to our dear shareholders. Just finally on the cash flow, I think we talked a lot about that.

Starting, this is the pure cash going up by 4.1 billion, and that's excluding the fixed income fund of 1.1 billion nearly, and deposit against the outstanding bond, which is due in the third quarter next year, of 1.5. Ticket prepayment 3.6 billion, seasonally strong ticket sales.

Other operating activities, investment activities largely in Widerøe, but just at normalized level of about 400 million. Repayment of debt, regular debt on the aircraft, 857 million, and then finally then ending up with a pure cash balance of 11.6 billion.

A strong performance on the balance sheet, good cash flow, as expected, we are well placed going into the summer season. Thank you.

It's

all yours.

Okay. Let's look at the fleet for a little while.

Look at the beautiful aircraft to the left with the new logo on, so that is how these aircraft will look when we have really started to take delivery of brand-new 737 MAX 8 aircraft. We have 80 aircraft on order, as you all know.

Two of them have been delivered, 78 remains. The fleet schedule will be as you can see here on the bars, where we have 95 aircraft during this summer, and it's increasing to 104 during the next couple of years.

That is 4% to 5% growth, which is not aggressive at all, but we have the optionality where we can grow more than this if we want to, by then extending the leased aircraft that are scheduled to be redelivered to their owners, and thereby we have a fantastic optionality. I love it, where we can grow in line with the market.

Then we will see how the market develops. Boeing as such is delivering on schedule, and that is great.

The visibility towards Boeing is much better today than during the last couple of years. We have the aircraft we need, as Hans-Jørgen also said, for the summer.

The next delivery is post the coming summer, and we are now also considering the mix on how we are going to finance these aircraft: how many should be owned, and how many should be leased. As it looks today, we will probably own more than 50% of the fleet, because that is more attractive capital cost-wise.

That's the fleet, not much news this quarter on this side. A few words on Widerøe.

Operational excellence, we have been through. Looking at the bookings in Widerøe for the current quarter, the second quarter, is well ahead, that's what we can say, year over year.

We have been working since we became the best friends of Widerøe to work on the cost synergies. We have taken out a lot of cost synergies already.

This is an ongoing work, and will be for the next year or two. We are also looking into how we can optimize the fleet utilizations between and across the two airlines.

We have done and taken some steps. We will probably take more steps to make sure that we are as efficient as absolutely possible, also giving our customers a better product than what we are doing today.

We are seeing the interlining traffic between Norwegian and Widerøe, it has been growing since the day we took over Widerøe, and it continues to grow. We are taking kind of market share on that transfer traffic.

Also again, very happy that we are finally live with the new booking platform in Norwegian, and as you can see on the right-hand side, you can now book a combination of Widerøe and Norwegian on our website, not yet on the app, but that will come very soon. Norwegian has the Program X.

Widerøe has something similar, they call Focus 500. 500 means that they are targeting a 500 million improvement, underlying improvement in profitability out of 2027, and that is compared to a baseline in 2024.

Looking at what they have been delivering so far, I'm very confident that the team and the colleagues in Widerøe will be able to deliver this over the next year or two. That is on top of what we are doing in Norwegian when it comes to Program X.

Talking about Program X, not much news to share this quarter. As mentioned last time, we had 900 million non-recurring, that's when we bought all these aircraft, and we have 400 million recurring in 2025.

We have said that we are going to find another 600 million effect in 2026. I have also said that we delivered close to 200 million in the first quarter of 2026: 100 of those 200 is coming from the 400 from last year, and 100 is coming from the 600 we will find in 2026.

I would say that Program X is on target. We are delivering, that is already shown in the figures in the fourth quarter, and then let's see down the road if we can up the target of 1.25 billion out of 2027.

The split on the areas we are working on is shown on the right-hand side here. It is more or less the same as we showed in the last quarter.

Program X has a very high focus internally, and is now implemented throughout the whole organization, and it's also linked up to the overall strategy for the company, and it's really, really starting to deliver. When it comes to capacity, 3% for the year, and then you can see the second, third, and fourth quarter.

If you remember last guiding we gave on capacity, I think Q4 was 2%. We have increased the capacity in the fourth quarter, partly because of the contract we have with the Norwegian defense, and that's the changes we have done on capacity.

We have decided to keep the guiding on CASK, meaning that we are saying low single-digit percent increase versus prior year, that is adjusted then for the one-off effect we had last year where we acquired all these aircraft, and it's listed down here, it's adjusted by 100 858 million as such, so that's what you have to compare it to. To summarize, I think we are in a good place.

Yes, we are struggling with high fuel prices. We have increased the fares.

It seems like this is sticking with the customers, they're willing to pay slightly more for a travel. We have seen a peak demand actually post the Iran situation.

It seems like the southern and southwest of Europe is very attractive. I have guided and said something about both load and yield.

I think in as an aggregate, this summer as per today is actually looking better than last year, there is no signs of demand coming off. Then we will all have to follow how the situation in Iran evolves, and how that will affect the fuel prices.

We have also used this quarter to increase the hedges on currency, we are now 50% hedged approximately on US dollars. Have in mind that Widerøe is also having a quite high hedge percentage, both on fuel and on currencies, we are both airlines somewhat protected against what we are seeing in the market.

I think that ends the presentation, Jesper.

Yes. I think we also get Hans-Jørgen up here.

Moving over there. We'll then start with some questions from the audience.

There. Anders Jacobsen, Arctic.

Several of your competitors have closed down capacity due to high fuel prices. Is this impacting you in any way?

Probably. Now we have seen at least I think of these three airlines cancelling: one is SAS, 1,000 1,000 routes or flights; Lufthansa 20,000; we are seeing LOT in Poland cancelling, obviously it's probably having an effect.

Difficult to say how much. Yes.

Hans-Jørgen.

Hans Jørgen Elnæs, WinAir. If you look beyond the summer peak months, into the autumn, and into the winter season '26/'27, in a continued situation with a high jet fuel price, and then on top of that, a falling demand, can you give some top-line ideas on how you plan on mitigate this in terms of production, cost, revenue, and the load factor?

Looking into, let's say the summer is kind of taken care of if you can say that. Into the fall, based on what we are seeing in the booking curves, it's actually quite promising what we are seeing today, and internally we have actually upgraded our forecast for the second half just very recently.

If you look at the forward curve on fuel, as Hans Jørgen, it's a massive backwardation. If you would like to today, let's say from August, September to the end of the year and to hedge the fuel, you could probably do that maybe even below $1,000 a ton, compared to a spot price today I'm guessing is somewhere between $1,300 and $1,400 a ton.

That is what we are up against, and we are thinking about should we just put on some hedges for the fourth quarter. As you saw, we have actually increased the capacity in the fourth quarter compared to what we said a quarter ago, so that should tell you that it's looking quite promising.

We will probably put on more hedges for the second half this year, at least to take down the risk if this Iran situation should continue. There is nothing wrong with the demand as it looks today, but obviously booking curve is relatively short, visibility into the fall is not very high.

Okay. We'll then move on to some questions from the web.

We'll start with one from Ole Martin Westgaard, DNB Carnegie: "Are you able to compensate for the rising fuel cost in higher ticket prices? How do you see your competitors responding?"

It seems like the closest competitors are more or less in the same situation as us. Some of them might even be lower on hedge than us.

It seems like most of these closest competitors have increased the fares. As mentioned here today, it seems like the passengers are actually accepting that the fares are higher, and because the demand is still very strong.

We'll then move on to a couple of questions from Andrew Lobbenberg, Barclays: "Strong Widerøe performance in the quarter. Was anything unusual in the Q1 numbers, would you say?

Just a question on how the PSO contracts work. Is there any trigger that we get compensated for higher fuel price?"

There was many questions in one. Something unusual, no.

This is

a

strong, very strong performance. As mentioned, Widerøe is also quite high hedged both on fuel and on currency.

Other than that, if the fuel should stay at very high levels in a very long time, yes, there are clauses in the PSO contract where you can renegotiate it, but that has not been done so far. This is I would say a relatively clean quarter for Widerøe.

Final question from him: "What are the next steps on labor negotiations? Any big upcoming negotiations on the crew base side?"

We have negotiations with our pilots both in Norway and in Denmark this coming fall. Then

we'll move on to some questions from Petter Nystrøm, ABG. "On slide 15, you show a prepayment of 3.6 versus 3.8 billion last year, lower prepayment this year.

Any key insights to this, Hans-Jørgen? Easter effect and so on?"

No, not really. It's just as planned.

There is no particular reason for that variation. I think things are just as we have planned it for.

Yeah.

Okay. I'll then ask if there's any more questions from the audience.

No? Then we'll conclude the session.

Thank you very much.

Thank you very much.