Good morning, and welcome to the second quarter presentation for the Norwegian Group. My name is Jesper Hatletveit, and I am 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 a Q&A from the audience and the web.

Please go ahead, Geir.

Thank you very much, Jesper. Good morning to everyone.

Also good morning to the ones listening in from the web and online. I'd like to start with saying that this quarter was coming out a little bit weaker than what we expected, and I will come back to the details on it.

Excluding other losses, we delivered NOK 213 million in EBIT. The traffic numbers, number of passengers is growing, especially with Widerøe, where Widerøe had a record month historically with more than 400,000 passengers in a month.

We had the Easter effect, as we all know. We also had the Iran situation where we saw a peak in the oil prices, and the oil prices are up 33% year-on-year.

We also lost a so-called EU ETS case, and we are booking a loss of NOK 733 million in the quarter. That was a disappointment, we don't really understand the conclusion.

Part of that is the whole thing is non-recurring, obviously, only part of it is cash as well. On the positive side, we are reducing the CASK with 5% year-over-year.

Operational excellence is important. Norwegian punctuality 86.4%.

Widerøe impressive, 94.2%. We are canceling very few flights as always, we were rated as the most punctual airline in May in Norwegian.

Close to 500 routes. Why connect when you can fly direct?

It's still the case. We are the airline with most direct routes from the Nordics to Europe.

NPS score, I will come back to in more detail, but very high figures. Very happy to see that REMA 1000 came into the Spenn platform in June, I will also come back to details on that.

Also live with the new sales platform, distribution platform, we can now offer interlining sales between the two airlines, Widerøe and Norwegian, it's already starting to give results. Even if we had a softer quarter, the liquidity position in the company is very comfortable, NOK 13.7 billion, the balance sheet is something that we are continuing to work with.

We have taken delivery of our first owned 737 MAX 8. We have in total taken delivery of two aircraft from the order that we have with Boeing.

We are extremely attractive when it comes to the financial community and financing sources. We also spent a little bit of time purchasing one leased aircraft back into Norwegian, we have booked a gain of NOK 95 million.

Huge transaction done in the quarter where we are acquiring NLTG, Nordic Leisure Travel Group. This is a complementary acquisition where we are now able to offer an additional product to our dear passengers, including hotels, attractions, activities and so on.

We are buying NLTG for SEK 3.5 billion in addition to 300 million shares, and we have a bonus portion of 30 million shares depending on the share price development in Norwegian in the fourth quarter. We are targeting to close this transaction in the fourth quarter of 2026, where Strawberry, Altor and TDR, the owners of NLTG today, will be significant shareholders then in Norwegian.

Traffic figures, 7.8 million passengers in the quarter. That is up 3%.

On capacity, we are 5% up in the quarter in Norwegian, divided in 3% in April, 5% in May, and 8% in June. Widerøe is up 3%.

As you can see, the load factors in both companies are slightly down, and that is a result of the slight softening that we saw during the quarter in the markets. Operationally, I think we are doing very well.

I would say especially Widerøe with high figures both on punctuality, regularity up from last year, while Norwegian is more flat but with high figures as well. Very pleased with the operational performance in both companies.

What did really happen in the second quarter? As you can see, we are into the peak season now, flying more and more passengers month by month, 2.4 million in June.

Yields are up, loads are up. But at the same time, the unit revenue came in lower than what we expected.

What happened is that first we had the Iran situation, where we saw a peak in the fuel price. Unfortunately, we had to increase the ticket prices.

It didn't stick really in the market demand-wise as we had hoped for but it partly compensated for the increased fuel prices. We had a lot of media speculations on the availability of fuel due to the Iran situation, which also had an effect on the booking.

Even if Norwegian did quite well in the World Cup in football, that World Cup period did also have an effect on the bookings. All in all, slightly weaker unit revenue compared to what we expected.

Widerøe, the same, or not the same actually. Widerøe didn't see the same as we saw in the second quarter.

A nice step up in the number of passengers, increased to 1.1 million passengers in the month, 2% up. And then again, the historical record monthly passenger figures of 404,000 passengers a month.

Very high performance operationally, both on punctuality and regularity. And we are also seeing a very strong interlining traffic between the two airlines, with 33% growth year-over-year compared to the same quarter last year.

Even if Widerøe is probably not 100% happy with how they delivered on EBIT, I am quite happy with NOK 193 million for the quarter, looking at the market and how it's developed. How does it really look going forward?

As you can see on the top left side, you can then see the softening we saw into the second half of April through May, and into June. That is the softening of the market.

But you can also see that in the third quarter, we are up 5% on capacity, 6% in July alone. You can see a kind of shift in the middle of June where the red line is picking up.

That's where we saw the bookings coming back to a more normal level. As such, you can say that in, let's say mid-June, it bottomed out the market, and now we are back on track again to some extent.

You can see that in the last couple of weeks, the bookings are coming down. That's very normal.

That's what we see every year in July when people are actually going on holidays, but you're coming off from a higher level. We hope that bookings into the fall is becoming stronger, and that is actually what we are seeing as well.

Looking at the right side there, you can see that on booked revenue, we are above 2025, and we have sold more tickets for all these months from July to October as per today compared to last year. I'm happy to see that especially September and October is looking quite solid.

On the yield side, we are selling tickets on a flat yield, more or less, for the months to come. It seems like we have been catching up a little bit on what we lost in the second quarter into the third quarter, and I think the third quarter for the two airlines will be relatively good.

Happy to see that it has turned around to some extent. Corporate offerings.

Looking at the Avinor figures that just came out, the corporate market is actually not back compared to the pre-pandemic. Domestic rates, 12% below.

Internationally, it's actually 20% below what it was in 2019. As you can see on the right-hand side, our corporate revenues are up 6%.

That is a combination of number of passengers, but it's also including a higher yield. We are quite happy with it.

It means that we are definitely not losing market share. We are still grabbing market share in this market.

That is a push we will also try to focus on going forward. When we are talking with the large corporates, more and more of them are saying that they are now flying more than 50% with Norwegian, and that's very happy to see.

We are continuing to sign up state contracts this quarter with DFØ, [Non-English content] here in Norway and Kammarkollegiet in Sweden. This is another two contracts in addition to all the contracts that we have signed up during the last 12-18 months.

Widerøe is delivering a strong, solid corporate offering with a very high portion of business travelers, and that will continue as well going forward. Spenn is really moving these days.

3.1 million Spenn earners so far, 7.6 billion Spenn earned. The brand awareness is moving in the right direction now at 59% in Norway.

Very happy to finally welcome REMA 1000 into the Spenn community. Reitan Retail in total have two million daily customer transactions on an ongoing basis.

This is bringing a volume into the Spenn community that is very different to what it was before they joined. We are also seeing on weekly sign-ups into the Spenn community has increased 10x since Reitan came into the platform.

Very promising and very exciting to see how this is developing. The main aim for actually developing this Spenn platform is to create what I call real loyalty.

That's why it's extremely nice to see that the frequent flyers flying with Norwegian today, they are to a larger extent also now choosing Strawberry as their hotel partner, and this is a clear trend we are seeing and also an evidence that we are actually now starting to create real loyalty. Very exciting to see development, how this develops over the next months.

NPS, Net Promoter Score, is also having a very nice development since 2023 from 38.5 to 52.4. This is a very high focus in both airlines, Widerøe and Norwegian.

We are doing well. 52.4 is a really strong result.

We do know what matters the most for our customers, and you can see it on the slide. Punctuality.

Arrive on time. We are very punctual in Norwegian, and we are very punctual in Widerøe, and we have been punctual for quite a while, and we aim to continue that.

The second most important is our ability to help when things go wrong. Unfortunately, sometimes things go wrong, and we're also progressing there in a very nice way.

As I've said many times, we have the best crew, the best both in the air and on the ground in the industry, and they are performing very well in general, and especially now in the peak season that we are in the middle of. NPS is moving definitely in the right direction.

Hans-Jørgen?

Thank you, Geir. Good morning, everyone.

I will go through the financial results for the second quarter of 2026 in more detail. It's a quarter which is strongly impacted by two main factors.

One is the EU ETS loss that we had to take. The other one is the elevated fuel prices.

Those two factors alone impact the result versus last year by nearly NOK 1.6 billion. I'll do a little bit of a more deep dive.

As Geir said, the revenue is up 1% with Widerøe contributing a nice NOK 2.1 billion. We see a capacity ramp-up, where we have the ASK up 5% versus last year, and we have, as mentioned earlier, a negative impact of Easter being in the first quarter versus last year, where it was in the second quarter, thus impacting the unit revenue by about -6% in April alone.

That has quite a big impact on top of the softening of the market that Geir just went through, that we saw through the second quarter. Group EBIT, excluding other losses, NOK 213 million.

Results strongly impacted by NOK 817 million in total in other losses relating to the EU ETS case, which I'll come back to in a minute. The FX translation losses due to the sudden weakening of the Norwegian kroner in June.

The Norwegian kroner weakened by approximately 7% in June, and that has a direct translation effect on our balance sheet item. Widerøe, nice EBIT of NOK 193 million, and net profit for the group at NOK -555 million after tax.

Again, we saw this extremely high increase in the jet fuel. That was as expected, but we're seeing that going up by 33% year-over-year.

That is a key contributing factor to the relatively poor results compared with the same quarter last year. We have seen the jet fuel prices coming down during the quarter towards the end of the quarter, with the recent turmoil in the Middle East and recent events there, it's still come back up a little bit again.

We'll just have to see and wait. We are hedged about 50%, a little bit more than 50% for the remainder of the year, so we have a cushion, but of course, jet fuel is a factor for us.

Very strong cost performance with the CASK or unit cost excluding fuel going down 5% versus the same period last year. Some tailwind on the FX part with the Norwegian kroner strengthening compared with last bit, even without taking that into account, we have an improvement in our CASK of a significant level.

Very happy to see the overall strong cost performance, partially driven by Program X and a strong effort by the whole organization. Strong, robust financial position also after dividend for the year, and we're coming out of the quarter with NOK 13.7 billion of total liquidity.

A few words on the unexpected loss of the EU ETS obligation. We had a strong win in the Oslo District Court.

The matter was appealed by the government to the Borgarting Court of Appeal, where we lost, surprisingly, we appealed to the Supreme Court, and the whole case was actually rejected by the Supreme Court, surprisingly to us, but also to our strong team of legal advisors. We unfortunately will have to record a loss of NOK 733 million.

We've already paid the fine earlier, a couple of years ago, NOK 400 million. In terms of cash impact, it's only, or it's relative to the total size, it's a NOK -330 million, which is payable later this year.

That's highly manageable, but we're very surprised of this loss. In our view, in the view of Norwegian, in the view of our legal team, a strong team of legal advisors, there were more than one, Norwegian was unable to fulfill its ETS obligation during the reconstruction.

That's the whole background. A surprising event for Norwegian, but it has quite a big one-off non-recurring impact for the results for the second quarter.

A few more words on the revenue side. Stable revenues up 1%.

We have a volume increase, ASK increase of 5.4%, yield decrease, load factor decrease of 2.7%, total unit revenue down 5% for the quarter of a quarter. Ending up with a revenue of NOK 8.4 billion for Norwegian in the second quarter of 2026, adding NOK 2 billion of revenues from Widerøe leaves us with a total revenue of NOK 10.4 billion.

I think this one is a really good one. It strongly illustrates the point.

This is an exceptional quarter in terms of, let's say, one-offs and with the fuel, compared with last quarter, with a fuel driving an increased fuel price of a fuel cost of NOK 837 million. With a change to other losses, including the EU ETS loss of NOK 733 million and negative translation effects due to the sudden weakening of the Norwegian kroner in June at a total of NOK 1.007 billion.

Those two combined is NOK 1.8 billion, which is largely the total difference, the weakening from second quarter 2025 to second quarter 2026. Operating expenses is up basically following the increase in ASK capacity levels, so that's as expected.

We have a slight improvement in the depreciation amortization lease that's due to our acquisition of one aircraft, which we have a gain of NOK 95 million. The weakening of the U.S.

dollar has also an impact on the cost for our depreciation, which is denominated in U.S. dollars.

Widerøe then adding with a nice profit EBIT of NOK 193 million, which leaves us with a group EBIT for the quarter of NOK -603 million. Little bit more on the details on the top line and the P&L.

Ancillary revenues having a nice increase. Total increase 1%.

We're seeing that the cost level, as mentioned, we have a good cost performance. Personnel expenses going up at a level as expected.

Strong increase, as we talked about several times in the fuel cost, more than NOK 800 million or 33%. We're seeing actually airport and ATC charges at the same level as last year, despite an ASK increase of 5%.

Handling charges at same level as last year. Technical maintenance cost at the same level as last year, underlying our strong cost performance for the quarter.

Other operating expenses slightly up. We have the big ticket item that we've talked about many times now.

Other losses, one with a delta or change from last year, NOK 1.011 billion. Aircraft lease and depreciation improved by NOK 203 million, NOK 95 million from the aircraft acquisition gain, and the impact of the stronger Norwegian kroner on our U.S.

dollar cost there. Which leaves us with a profit before tax of NOK -761 million, meaning a quarter which is not financially on a P&L basis a strong quarter.

We have a tax income of NOK 206 million, which leaves a net profit of NOK -555 million for the quarter. Robust balance sheet.

Despite having a relatively poor quarter in terms of our P&L, we're coming out of the quarter with a robust balance sheet. We're seeing the total assets is actually down from NOK 47.5 billion in Q1 to NOK 46.9 billion or NOK 47 billion at the end of the second quarter.

Aircraft assets slightly up because we acquired one aircraft and we took delivery of another aircraft. The cash is coming down a little bit, NOK 548 million.

That is after dividend payment of NOK 841 million. A good cash flow performance for the quarter, which is also seasonal due to the ramp-up of the activity level in the second quarter.

Happy to see that the air traffic settlement liabilities is up 1% from last year. That is pre-booked tickets evidencing that we have sold more tickets than we had at the same time earlier or last year.

Just one word on the equity side. The book equity is down NOK 2.4 billion.

It's slightly higher than the results. That's due to the mark-to-market development on our fuel hedges.

With the fuel price coming down versus the end of Q1, the market value of the hedges also has a reduced value. We're still coming out with an equity ratio at a good level and a robust balance sheet.

Net interest-bearing debt only slightly up, driven by, again, cash and equivalents going down largely because of the dividend payment of NOK 841 million, and the aircraft financing going up with the acquisition of taking delivery of one aircraft and actually buying or to lease one aircraft. Finally, a couple of words on the total on the cash flow, as mentioned, the cash balance going down by NOK 548 million.

Ticket prepayments at a stable level. Operating activities contributing NOK 1.5 billion.

Investing activities slightly higher than it has been in the previous quarter with the acquisition of one owned aircraft, and then a purchase of another aircraft at a lease. Financing activities NOK -1 billion, including the dividend payment, ending up with a closing cash balance of NOK 11.0 billion.

A very healthy level for the business and happy to see that. This is going just as expected.

The excess liquidity receiving good return, that's also an important thing. We have also NOK 1.1 billion on fixed income fund and NOK 1.5 billion deposited against the outstanding bond, which is due and payable in September.

By the end of September, we are essentially a debt-free company with the exception of the aircraft financing. That's going just as expected.

We're also having a good position when it comes to our delivery, our initial 80 order delivery from Boeing, where we have already paid in NOK 3.6 billion of prepayments, which leaves a net expected remaining payments before 2028 of less than NOK 500 million. Overall, we are in a healthy financial situation.

We, as Geir mentioned, we're receiving very attractive financing offers for the fleet. We're coming out of the quarter and into the remaining part of 2026 and 2027 in a very strong financial position.

Thank you.

Okay. The way forward, I think when you are talking about bookings, as mentioned, we feel that the booking momentum was turning around to some extent in the middle of June.

Now looking more promising from July and into the fall again. Very happy to see that September, October is also looking relatively strong also compared to last year.

The holiday market, as I call it, is a market that we have been looking at for quite a while. Actually, the last one and a half to two years.

This company, Nordic Leisure Travel Group, is a company we have been studying in depth during the last six months, I would say. We did acquire the company, as you know, in June.

This is what is sadly a leading Nordic hotels and leisure travel company. This is us buying ourself into this market.

This is a market that has been growing over the last years. This is also a market that we expect to continue to grow.

We are running a part of Norwegian called Norwegian Holiday. We will be the leading tour operator travel company in the Nordics overnight, the day we take over this company.

They have approximately 1.3 million hotel guests a year, converted into passengers and the number of flights that is 2.6 million, the way we count it on a round trip basis. It is a company with SEK 17 billion in revenue.

It is a company with 26 concept hotels, it is also including an airline called Sunclass Airlines with 12 aircraft on both narrow bodies and wide bodies. They have a market-leading digital platform where they have invested massively over the last years.

Award-winning brands included Spies in Denmark. You have Ving in Norway and Sweden.

You have Tjäreborg in Finland. You have Globetrotter, you have the airline, Sunclass Airlines.

They are offering more than 4,500 third-party hotels. They are the largest purchaser of hotel accommodation in Europe to Nordic travelers.

What we feel particularly interesting is the 26 unique concept hotels. These concepts are Sunprime, Sunwing, Ocean Beach Club, and LiveEz.

Looking at the profit engine in this company, it is 25% volume from these concept hotels, but it is 60% of the profits. We feel this particularly interested, we are going to develop this together with NLTG in the years to come.

The way we look at this is that we think this is a growing market. We think that this is a product offering where we can now offer our customers that they are already flying an additional product, a better product, we would like to take part of this segment as well.

NLTG is now getting access to European Nordic network, Norwegian network, in addition to 50 aircraft flying for Widerøe, that gives them the access to a much broader offering on the airline side to their customers. We are also, by doing this, able to offer a package where you can fly and you can live.

We can also, in the strategy long-term, develop these concept hotels on destinations where Norwegian is already flying a lot. Just take Spain as an example.

We are flying close to five million passengers to Spain every year. NLTG doesn't have any concept hotels on the mainland Spain.

That's a huge opportunity, we are also able to take out not only the synergies, but also adding value to the passengers, adding value to the profitability on both companies. We are going to make sure that 1+1 is more than two.

Looking at the synergies, just to say a few words on NLTG, this is a company with a very long history. This is a well-run company.

We have spent a lot of time studying this company, both the short-term strategy, the long-term strategy. We have got to know the management team, extremely experienced, deep knowledge into the hotel market, which we don't have in Norwegian.

That's what we are buying. I'm very excited about it, impatient when it comes to the competition authorities.

We hope to be able to close the transaction then by the end of this year. On the synergies, first, a little bit on the deal itself.

We are buying the company for SEK 3.5 billion in cash + 300 million in issued Norwegian shares. There is 30 million potential bonus shares, and that depends on the development of the stock price in Norwegian in the fourth quarter.

These shares, we start to issue them at NOK 17 a share up to NOK 20 a share. Altor, Strawberry, and TDR, which is the owners of NLTG today, will be significant shareholders in Norwegian.

They will have 180-day lockup from when we close the transaction. Altor and Strawberry will also be proposed for a board representation in Norwegian.

The SEK 3.5 billion will be financed with available funds. We have a quite comfortable cash position.

A potential new bond issues if we can do that at the right terms, and other potential sources. The EGM is already held.

The shareholders approved it by, I think it was 98.6% in favor. We are working with E.U.

Synergies. Obviously, we will be able to optimize the two networks, Sunclass Airlines and Norwegian, and there is a lot of positioning flights in Sunclass Airlines today.

We are able to help out reducing that. I think we can have the fleet and crew utilization massively up in combination.

Then you have the normal synergies when it comes to procurement, support functions, and so on. That is more or less the same process we have been through with Widerøe when we acquired Widerøe.

First of all, this is on the commercial side, a massive synergies when it comes to integrated flight and hotel holiday packaging, and then also developing the concept hotels on destinations where we are already flying a lot. So this is not about us having to get more passengers and having to create a new market.

This is passengers we are already flying. Now we are going to offer them a better product and an added product as such.

That was NLTG. The fleet, not much to report this quarter on the fleet.

As mentioned earlier, we have taken the first-owned aircraft out of two, and Boeing is delivering in accordance to schedule, and they are definitely back on track. We are now in the process where we are considering what to do after 2032.

Boeing and Airbus are more or less sold out for the next five years. So that is something we will have to consider.

We are also working with a fleet plan in Widerøe that will be finalized, I guess, during the year. That applies, first of all, to the commercial part of Widerøe.

Program X is also delivering in accordance to schedule. Not so much new this quarter other than the fact that the program has delivered 321 million during the quarter.

We have listed up a few of the items that is included. We are sticking to the guiding of more than NOK 1.25 billion out of 2026.

We will see by the end of this year when this program in reality is coming to an end, whether we should renew it and just continue in a different way, or whether we will then build this program into the synergy project with NLTG and with Widerøe. It is on schedule, and this is also part of the reason we are doing quite well on the cost side of the business.

That is also the plan to continue it for the next quarters to come. On guiding, on capacity, it's more or less the same as we saw last quarter.

I think it's a percentage down in Q4 from five to four. Very happy to say that we are taking the CASK guiding ex-fuel down a step from low single digit to a flat CASK compared to last year.

That shows that we are in control over the costs in Norwegian, of course, we can always do better, and that is also the aim. Very happy that we can take the guiding a step down.

Just to finalize this presentation, this is a part of Norwegian, the communication department, that has come up with a good idea during the World Cup. This is how we can be extremely creative, and you can create an activity level out there free of charge that is absolutely amazing.

We took British Airways to a small little challenge, saying that on the game between Norway and England, the one who wins or the one that loses would have to change the logo to the other airlines on our own Instagram account. Unfortunately, Norway lost, and we had to use the BA logo for a day.

That hurts, I think it was definitely worth it. The results, 1.5 million likes and reactions.

We have reached more than 150 million people with this. More than 500 media articles had been written on this story.

It's absolutely fantastic. We have to continue to do these things, and that is what Norwegian is all about when it comes to being creative.

I love it, I have to say. Thank you very much.

Thank you. If I can have Hans-Jørgen up to here as well, we'll continue to some questions.

We'll start with asking if there's any questions from the audience. Hans-Jørgen?

Key question for me, since we are so few here today. On Nordic Leisure Travel Group, are you considering also the opportunity to become an asset for growing their production during the winter season when you usually take down your own production and use some of your aircraft to fly into their program to utilize your fleet?

The same also in summertime, if there is more need for that and there is better payoff that you can use your fleet into an NLTG. Secondly, I see that Sweden now is very close on becoming your second-biggest market.

It surpassed Denmark, and it's very close to surpassing Spain, and then just behind Norway on your revenue side. There's been some talk in the media about expanding Widerøe operation into Sweden.

Can you tell us a little bit more what you're thinking about that? Is that to complement your own production or to take out some of your production and use Widerøe smaller aircraft, like SAS are doing turboprops in domestic Sweden?

The last is on.

Let's do the two first ones first, and then you can take the last one, Hans-Jørgen. When you look at NLTG, they have seasonality as well.

Do we, but there is less seasonality in NLTG than it is in Norwegian. I think the answer on your question is yes.

I think we have an opportunity, maybe especially on the shoulder seasons, on both sides. That applies also to when it comes to these concept hotels and whether we can develop destinations where it's more natural to fly more in the shoulder seasons.

When it comes to synergies between the two airlines, Sunclass Airlines and Norwegian, it is no doubt about the fact that there is a massive number of synergies there. Sunclass Airlines is having, it's not necessarily something wrong with it, but it's a lot of positioning flights, and the crew and fleet utilization can be much better, and we can help out with that.

I think, yes, there are definitely rooms. Winter season, yes, but maybe first of all, in the shoulder seasons where we have an opportunity.

Sweden, that is a different question. The fact is that the Swedish domestic market is definitely not back.

It's maybe only 60% back compared to the pre-pandemic. There are a lot of activities in Sweden today on the regulatory side, on the government side, where they are going to stimulate connectivity.

They are incentivizing now the population to start to fly more because it starts to hurt the value creation in Sweden in general. There's also a discussion in Sweden today where they're actually looking at what we have been doing here in Norway, which is absolutely fantastic in my opinion.

Namely, you're incentivizing, subsidizing Widerøe in order to create a flight offering in the way that we have in Norway today. Little bit of the problem, this is a long answer.

Little bit of the problem in Sweden today that you have approximately the same number of airports, 40, 42. While in Sweden, only 10 of them are government-owned, and all the others are not doing well.

I think there is a discussion in Sweden now where they could potentially, I'm not saying they are, but potentially move in the same direction as us. Even if they are doing all the right things in Sweden, in my opinion, south of Sweden has turned into a monopoly where BRA is now flying for SAS.

Is that an opportunity for Widerøe potentially? Absolutely.

It could also be a potential north of Sweden, if Sweden in general is going the same direction as what we have been doing here in Norway. I don't know if that was an answer.

Yeah. I think you're talking about PSO routes, right?

Yes, partly.

The last question is for you, and you talked of before. Is there any plan in the P&L to fuel costs and ETS emission costs as a line in the P&L?

Yeah. That's a question you have asked before.

Right now we are happy with the way it's presented. There is no specific plans to do that, but it's something we can consider because especially the ETS cost now is becoming a significant portion.

Previously, it was not such a large portion, but it is becoming a more significant part of the fuel line. It's something that we will consider over the next reporting periods, maybe from 2027, if we decide to go that route.

Okay. We will move on to some questions from the web.

We will start with Petter Nyström, ABG. How do you see yield and load factor trends in July and August versus September, October?

Are there any material differences?

Well, I think we just have to repeat what we said then, that we have sold more tickets for all these months than what we did on the same day last year.

Yeah. Okay.

On the month of July, can you share any insights on what is slightly softer demand than expected? Is there any differences if we look by regions, type of travel?

If we look over the network, it's kind of spread all over the network, I would say, the softening. As we mentioned here today, it is the speculation in the media on the availability of fuel.

It is the World Cup. It is the war that certainly have an effect.

We have had quite nice weather here in Scandinavia in June. That normally also have an effect on the bookings.

I think that in combination, that's probably the reasons.

Okay. Let's move on to some questions from Andrew Lobbenberg, Barclays.

Unicost. How much of your improved guidance is currency?

The NOK effect, leads, buyback gains, and what is new from Program X, once again?

We're taking down the CASK guidance or cost guidance by one notch to flat, and we're very happy to report that. First of all, we've taken out the one-offs, the non-recurring issues, both in 2025 and 2026, it's kind of comparing apples and apples.

The buyback gains are gone from those, yeah?

Yes. Exactly.

There is obviously an element of effects in that because of the strengthening of the Norwegian kroner. Maybe that is something like 2%-3% impact at the most.

That is the Q2 effect, not the full year effect.

Exactly. In the Q2, the impact of the FX is around 2%-3% on that improvement going of 5% on CASK.

About 2%-3% of that can be explained by FX.

Okay. Program X is obviously.

Program X obviously is also another factor.

Another question from Andrew. There was slightly a tense moment with the technicians negotiations back in July.

Second year that we've had issues with this working group. Any way we can avoid the tensions?

Well, this is tough negotiations every time, both with the technicians but also with other parts of the company. We don't have any other negotiations now during the summer months, but we have a couple during the fall.

Okay. Final question from Andrew.

How are we thinking in terms of long-term fuel hedging? Do we want to evolve more towards the hedge ratios that we see on the European peer level?

I think we don't want to speculate on our own portfolio. We've had great benefit of our fuel hedges during this year, impacting the Q2 numbers by more than NOK 500 million positive in isolation.

We will continue to monitor that very closely. We're at above 50% at the moment, and we will continue to monitor that as the fuel moves as we move forward.

Obviously very volatile at the moment. We're seeing fuel prices going a little bit up recently.

We're just doing our best to maneuver in that environment. We will always aim to have a sensible and balanced fuel portfolio.

Okay.

You can say that if you look at the forward curve today compared to one, two, three months ago, it's almost like the forward curve, which is in backwardation, by the way. It's kind of just moving to the right.

I think, it's fair to say that we will most likely put on more hedges for 2027 shortly.

Okay. I'll go final question from the web, from [Thomas Rafjord].

Coming plans for Spenn. Are we expecting to see a Spenn bank or financial partner there anytime soon, Geir?

What we can say on that, we are working on how we should develop financial services into either Norwegian or Spenn or both.

Okay. That's the final question I had from the web.

Any more questions from the audience? There are none, we conclude the session.

Thank you very much for attending.

Thank you.

Thank you.