Norwegian Air Shuttle Reports Record Q3 Profit Amid Strong Demand and Planned Capacity Cuts

Norwegian Air Shuttle reported its strongest-ever quarterly profits in Q3 2025, driven by robust summer demand across its markets and operational efficiencies. The airline achieved record passenger numbers, carrying 8.4 million passengers, and saw a 41% year-on-year increase in operating profit to 3.02 billion Norwegian crowns, surpassing market expectations. Despite this strong performance, the company plans to reduce winter capacity by 25% to 40% to better align with seasonal demand, while maintaining an optimistic outlook due to encouraging booking trends. Norwegian expanded its fleet with additional Boeing 737 MAX 8 aircraft and focused on sustainability efforts to reduce CO2 emissions. However, financial indicators such as a high debt-to-equity ratio and an Altman Z-Score in the distress zone suggest potential risks ahead. Overall, Norwegian's earnings highlight a resilient recovery in the travel sector, with implications for broader economic optimism and risk assets.