Norwegian, which now includes the regional airline Widerøe, ended 2025 with significantly higher profits, as its decision to be more conservative with its capacity during the colder winter months has already yielded tangible results for the low-cost carrier.

Norwegian, as a group, ended 2025 with a net profit of NOK2.7 billion ($282.8 million), compared to NOK1.3 billion ($136.1 million) in 2024, with the group’s main carrier’s improving results driving the profit growth.

More conservative capacity deployment delivering results

One of the main changes Norwegian announced in its Q3 2025 results was that it would be more conservative with its capacity during the colder winter months, aligning its network with customer demand.

As a result, Q4 2025 capacity, measured in available seat kilometers (ASKs), was down across the group. Norwegian, the airline, reduced its capacity by 3%, resulting in higher load factors, yield, and unit revenue. Widerøe’s capacity increased year-on-year (YoY), with yield unit revenue also going up during the quarter.

In 2025, the group, as well as Norwegian and Widerøe individually, also improved their yields and unit revenues.

Q1 2026 capacity will also be 5% lower YoY, according to Norwegian.

Regulatory pressures on costs

The group, which welcomed two Boeing 737 MAX 8 aircraft in Q4 2025 and phased out two 737-800s during the quarter, estimated a NOK85 million ($8.9 million) impact from reduced European Union (EU) Emissions Trading Systems (ETS) allowances and increased sustainable aviation fuel (SAF) mandates.

(The EU has been increasing the percentage of allowances auctioned in aviation, with the goal of having all of the allowances being auctioned in 2026.)

Still, its overall quarterly costs rose 3.3% YoY, while annual operating expenses increased by 4.7%. Full-year ETS and SAF-related impacts totaled NOK407 million ($42.7 million), Norwegian highlighted, with yearly fuel costs rising by 2% YoY.

Another major operating cost driver was airport and air traffic control (ATC) charges, which increased by 21% YoY in 2025.

Growing 737 MAX 8 fleet

In addition to welcoming its first 737 MAX 8, which it ordered directly from Boeing in Q4 2025, and another during the quarter, the airline plans to welcome one more aircraft before the start of the peak travel season.

As such, Norwegian currently plans to operate 95 aircraft during the peak season, including 36 737 MAX 8 and 59 737-800s, five more compared to summer 2025. Then, it had 28 737 MAX 8 and 62 737-800 aircraft.

Norwegian said that it continues to evaluate additional lease extensions and opportunities to own more of its aircraft. In Q1 2025, the airline entered into an agreement to purchase 10 737-800s that it leases, and in Q3 2025, it reached an agreement for three additional 737-800s that it would own and not lease.

Both transactions resulted in an overall gain of NOK858 million ($90.3 million), reflecting “the purchase price the group achieved and the corresponding reduction of existing net lease balances, including maintenance accrual on leased aircraft.”

Geir Karlsen, the Chief Executive Officer (CEO) of Norwegian, concluded that the group is “well-positioned to capitalise on the increased interest in travel to the Nordics,” noting that in 2026, the company will focus on strengthening its products, reducing costs, and improving efficiency.