Finance
Norwegian Air cuts capacity forecast due to delayed Boeing deliveries, shares drop
Published by Global Banking & Finance Review®
Posted on May 8, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 8, 2025
2 min readLast updated: January 24, 2026
Norwegian Air reduced its capacity forecast due to Boeing delivery delays, causing a 7% drop in shares. The airline reported a smaller-than-expected Q1 loss.
By vera dvorakova and Elviira Luoma
(Reuters) -Budget airline Norwegian Air reported a smaller-than-expected operating loss for the first quarter but cut its annual capacity guidance, sending its shares around 7% lower on Thursday.
The Oslo-listed carrier sees an overall capacity of about 37,500 million seat kilometres in 2025, corresponding to growth of 3% from last year. It had forecast growth of 4% when it last reported quarterly results.
The lower guidance is due to delayed aircraft deliveries from Boeing, it said.
Marcus Gavelli, an analyst at Pareto Securities, said in an emailed comment that the guidance cut likely reflected a more cautious approach to ensure yield growth.
He added that expectations for slightly higher costs might also weigh on the shares on Thursday.
Norwegian Air said its unit cost - the average cost of flying an aircraft seat - excluding fuel in 2025 was expected to increase by a mid-single-digit percentage compared to last year, assuming current foreign exchange rates.
In February, it had forecast annual unit cost excluding fuel to increase by a single-digit percentage.
The airline did not provide an annual guidance for its operating result. "We're also seeing our competitors being a little bit more reluctant now on guiding too much," CEO Geir Karlsen told Reuters in an interview.
Norwegian Air reported an operating loss of 610.9 million Norwegian crowns ($59 million) for the first quarter, while analysts polled by the company were expecting a much bigger loss of 976 million crowns.
It also managed to narrow the loss compared to the same period last year, when it reported 762.6 million crowns loss before interest and taxes.
The results were positively impacted by efficiency gains and initiatives implemented during the quarter, including the purchase of 10 previously leased Boeing 737-800 aircraft, as well as stronger Norwegian crown against U.S. dollar, it said.
($1 = 10.3475 Norwegian crowns)
(Reporting by Vera Dvorakova and Elviira Luoma in Gdansk, editing by Milla Nissi-Prussak and Eileen Soreng)
The main topic is Norwegian Air's reduction in capacity forecast due to delayed Boeing deliveries, affecting its shares.
The forecast was cut due to delayed aircraft deliveries from Boeing.
The market reacted with a 7% drop in Norwegian Air's shares.
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