Norwegian Group will decide by autumn 2025 whether to exercise its 30 options in addition to an existing order for fifty B737-8 MAX from Boeing, according to CEO Geir Karlsen.
Providing an update on the airline's fleet expansion plans during a presentation of the group's fourth-quarter results on February 13, he said: "We have 50 aircraft on order [placed in 2022]. We will also take a decision during the next six months on the 30 options we have on top of the 50 aircraft, and the options have even more attractive pricing than the firm 50 aircraft."
In 2023, Karlsen said that the airline was likely to confirm the options for deliveries between 2028 and 2031.
He said the company had already received three aircraft deliveries this year (of which two are in service), all souced from lessors independently of the direct order from Boeing. It expects to take delivery of 11 to 13 more, bringing the fleet to 94-96 aircraft by the end of 2025.
He said the first eighteen B737-8s of the 50 firm-ordered ones had been secured with financing. "We are going to own thirteen out of the 25 aircraft arriving first, while twelve are done or are about to be done on sale-leaseback transactions,” Karlsen clarified. Those transactions ensure the airline's fleet needs for 2025 and 2026 are met.
However, he noted that deliveries from Boeing are slower than initially planned, while Airbus continues to face issues with Pratt & Whitney engines, affecting around 350 A320-200Ns worldwide. He believed this reduced capacity might extend the duration of deals in the market.
Norwegian's current fleet numbers six B737-8s and thirty-nine B737-800s operated through its Norwegian Air Shuttle AOC unit, according to ch-aviation fleets data, while sister carrier Norwegian Air Sweden AOC operates a further eighteen B737-8s and twenty-five B737-800s. Subsidiary Widerøe (WF, Bodø) operates a fleet of forty-five De Havilland Aircraft of Canada turboprops and three E190s.
According to Karlsen, further focus in 2025 will be on cost reductions and streamlining operations between Norwegian and Widerøe, following a period of growth with nearly 700 new hires last year. A newly launched profitability initiative running through 2026 will target both revenue and cost improvements. Additionally, Norwegian is working on a new distribution platform to enhance upselling, interlining with other airlines, and expanding partnership strategies.
Karlsen outlined a positive outlook for 2025, driven by expected wage growth, falling interest rates, and reduced inflation in Scandinavia, which he believed should boost demand. He described forward bookings as promising, with load factors and yields improving.
Norwegian Group, including Widerøe for the first time, posted an operating profit of NOK1.87 billion Norwegian kroner (USD168.4 million) in 2024, down from NOK2.2 billion (USD198 million) in 2023. Revenues increased to NOK35.3 billion (USD3.2 billion) from NOK25.5 billion (USD2.3 billion).
