Norwegian beats profit forecasts but trims early 2027 capacity on fuel costs

CEO Geir Karlsen told Reuters the cut reflects higher jet fuel prices and the suspension of flights to Dubai and Tel Aviv. The company said it has reduced monthly capacity for the winter by 25% to 40% compared with October, and that booking trends remain encouraging, with tickets sold well ahead of a year earlier. Its load factor was 88.5% in the quarter.

Norwegian said it had hedged about 30% of its first-quarter 2027 fuel at around $660 per ton, Reuters reported. Karlsen said fares rose briefly after the war in Iran began before settling back because customers were not willing to pay the higher prices.

Why it matters: European budget carriers are weighing higher fares against demand from price-sensitive travelers as fuel costs stay elevated.