Norwegian Air Shuttle ASA (NAS) Earnings Call Transcript & Summary

Good morning, and welcome to the second quarter presentation for the Norwegian Group. My name is Jesper Hatletveit, and I am the VP of Investor Relations here at Norwegian. Today's presentation will be held by our CEO, Geir Karlsen; and our CFO, Hans-Joergen Wibstad. The presentation will be followed by a Q&A from the audience and the web. Please go ahead, Geir.

Thank you very much, Jesper. Good morning to everyone. Also, good morning to the ones listening in from the web and online. I would like to start with saying that this quarter was coming out a little bit weaker than what we expected, and I will come back to the details on it. But excluding other losses, we delivered NOK 213 million in EBIT. The traffic numbers, number of passengers is growing, especially with Widerøe, where Widerøe had a record month historically with more than 400,000 passengers in a month. We had the Easter effect, as we all know. We also had the Iran situation, where we saw a peak in the oil prices, and the oil prices are up 33% year-on-year. And we also lost a so-called EU ETS case, and we are booking a loss of NOK 733 million in the quarter. That was a disappointment, and we don't really understand the conclusion. Part of that is -- the whole thing is nonrecurring, obviously, and only part of it is cash as well. On the positive side, we are reducing the CASK with 5% year-over-year. Operational excellence is important. Norwegian punctuality, 86.4%; Widerøe, impressive, 94.2%. We are canceling very few flights as always, and we were rated as the most punctual airline in May in Norwegian. So up to 500 routes, why connect when you can fly direct is still the case. We are the airline with most Nordics to Europe. And PS score, I will come back to in more detail, but very high figures. Very happy to see that came into the Span platform in June, and I will also come back to details on that. Also live with the new sales platform, distribution platform, and we can now offer interlining sales between the 2 airlines, and Norwegian, and it's already starting to give results. Even if we had a softer quarter, the liquidity position in the company is very comfortable NOK 13.7 billion. And the balance sheet is something that we are continuing to work with. We have taken delivery of our first owned 737 MAX 8. We have, in total, taken delivery of 2 aircraft from the order that we have with Boeing. We are extremely attractive when it comes to the financial community and financing sources. And we also spent a little bit of time purchasing 1 leased aircraft back into Norwegian, and we have booked a gain of NOK 95 million. Huge transaction done in the quarter, where we are acquiring NLTG, Nordic Leisure Travel Group. This is a complementary acquisition, where we are now able to offer an additional product to our passengers, including hotels, attractions, activities and so on. We are buying NLTG for SEK 3.5 billion in addition to 300 million shares, and we had a bonus portion of 30 million shares, depending on the share price development in Norwegian in the fourth quarter. We are targeting to close the transaction in the fourth quarter of 2026, where Strawberry, Auto and TDR, the owners of NLTG today, will be significant shareholders then in Norwegian. Traffic figures, 7.8 million passengers in the quarter, that's up 3%. On capacity, we are 5% up in the quarter in Norwegian, divided in 3% in April, 5% in May and 8% in June. Widerøe is up 3%. But as you can see, the load factors in both companies are slightly down, and that is a result of the slight softening that we saw during the quarter in the market. Operationally, I think we are doing very well. I would say, especially Widerøe with high figures both on punctuality, regularity up from last year, while Norwegian is more flat, but with high figures as well. So very pleased with the operational performance in both companies. So what did really happened in the second quarter? As you can see, we are into the peak season now flying more and more passengers month by month, 2.4 million in June. Yields are up -- loads are up -- but at the same time, the unit revenue came in lower than what we expected. So what happened is that, first, we had the Iran situation where we saw a peak in the fuel price. Unfortunately, we had to increase the ticket prices. It didn't stick really in the market demand wise, as we had hoped for, but it partly compensated for the increased fuel prices. Then we had a lot of media speculations on the availability of fuel due to the Iran situation, which also had an effect on the booking. Then, even if Norwegian did quite well in the World Cup in football, that World Cup period did also have an effect on the bookings. So all in all, slightly weaker unit revenue compared to what we expected. Widerøe the same or not the same actually, Widerøe is not seeing the same as we are -- didn't see the same as we saw in the second quarter, a nice step-up in the number of passengers, increased to 1.1 million passengers in the month, 2% up. And then again, the historical record monthly passenger figures of 404,000 passengers a month, very high performance operationally, both on punctuality and regularity. And we are also seeing a very strong interlining traffic between the 2 airlines with 33% growth year-on-year compared to the same quarter last year. And even if Widerøe is probably not 100% happy with how they delivered on EBIT. I'm quite happy with NOK 193 million for the quarter looking at the market and how it's developed. So how does it really look going forward? As you can see on the top left side, you can then see the softening we saw into the second half of April through May and into June. That is a softening of the market. But you can also see that in the third quarter, we are up 5% on capacity, 6% in July alone. You can see a kind of shift in the middle of June where the line -- the red line is picking up, and that's where we saw the bookings coming back to a more normal level. And as such, you can say that in, let's say, mid-June, it bottomed out the market, and now, we are back on track again to some extent. So you can see that in the last couple of weeks, the bookings are coming down. That's very normal. That's what we see every year in July when people are actually going on holidays, but you're coming off from a higher level. So then we hope that bookings into the fall is becoming stronger, and that is actually what we are seeing as well. Looking at the right side there, you can see that on booked revenue, we are above 2025, and we have sold more tickets for all these months from July to October as per today compared to last year. And I'm happy to see that especially September and October is looking quite solid. On the yield side, we are selling tickets on a flat yield more or less for the months to come. So it seems like we have been catching up a little bit on what we lost in the second quarter into the third quarter. And I think the third quarter for the 2 airlines will be relatively good. Happy to see that it has turned around to some extent. Corporate offerings. Looking at the Avino figures that just came out, the corporate market is actually not back compared to the prepandemic. Domestically, it's 12% below. Internationally is actually 20% below what it was in 2019. But as you can see on the right-hand side, our corporate revenues are up 6%. That is a combination of number of passengers, but it's also including a higher yield. But we are quite happy with it. It means that we are definitely not losing market share. We are still grabbing market share in this market. That is a push we will also try to focus on going forward. When we are talking with the large corporates, more and more of them are saying that they are now flying more than 50% in Norwegian. And that's very happy to see. We are continuing to sign up state contracts this quarter with DF, Terranum steering here in Norway and 6 in Sweden. And this is another 2 contracts in addition to all the contracts that we have signed up during the last 12 months. Widerøe is delivering a strong solid corporate offering with a very high portion of business travelers, and that will continue as well going forward. Spen is really moving these days, NOK 3.1 million spen earners so far, NOK 7.6 billion spend earned. The brand awareness is moving in the right direction now at 59% in Norway. I'm very happy to finally welcome into the Span community. Write on retail in total had 2 million daily customer transactions on an ongoing basis. And this is bringing a volume into the Spen community that is very different to what it was before they joined. We're also seeing on weekly sign-ups into the spend community has increased 10x since write-down came in to the platform. Very promising and very excited to see how this is developing. The main aim for actually developing this Spen platform is to create what I call real loyalty. And that's why it's extremely nice to see that the frequent flyers flying with Norwegian today, there are, to a larger extent, also now choosing Strawberry as their hotel partner. And this is a clear trend we are seeing and also an evidence that we are actually now starting to create real loyalty. Very exciting to see development, how this develops over the next months. NPS, Net Promoter Score, is also having a very nice development since 2023 from 38.5% to 52.4%. This is a very high focus in both airlines. We deliver a Norwegian. We are doing well. 52.4% is a really strong result. We do know what matters the most for our customers, and you can see it on the slide, punctuality, arrive on time. We are very functional in Norwegian, and we are very punctual in Widerøe. We have been punctual for quite a while, and we -- we aim to continue that. The second most important is our ability to help when things go wrong. Unfortunately, sometimes things go wrong, and they are also progressing there in a very nice way. And then, as I've said many times, we have the best crews, the best both in the air and on the ground in the industry, and they are performing very well in general and especially now in the peak season that we are in the middle of. So NPS is moving definitely in the right direction. Hans-Joergen?

Thank you, Geir. Good morning, everyone. I will go through the financial results for the second quarter of 2026 in more detail. It's a quarter, which is strongly impacted by 2 main factors. One is the ETS loss that we had to take and the other 1 is the elevated fuel prices. And those 2 factors alone impact the result versus last year by nearly NOK 1.6 billion. I'll do a little bit of a more deep dive. As Geir said, the revenue is up 1% with Widerøe contributing in nice NOK 2.1 billion. We see capacity ramp up, where we have the ASK up 5% versus last year. And we have, as mentioned earlier, a negative impact of the Easter being in the second quarter versus -- sorry, in the first quarter versus last year, where it was in the second quarter, thus impacting the unit revenue by about minus 6% in April alone. So that has a quite a big impact on top of the softening of the market that Geir just went through that we saw through the second quarter. Group EBIT, excluding other losses, NOK 213 million, results strongly impacted by NOK 817million in total in other losses. -- relating to the EU ETS case, which I'll come back to in a minute. And then the FX translation losses due to the sudden weakening of the Norwegian kroner in June, the Norwegian kroner weakened by 7%, approximately 7% in June, and that has a direct translation effect on our balance sheet item. Then we draw a nice EBIT of NOK 193 million, and the group net profit for the group at NOK 555 million after tax. Again, we saw this extremely high increase in the jet fuel that was as expected, but we're seeing that going up by 33% year-over-year. So that is a key contributing factor to the relatively poor results compared with the same quarter last year. We have seen the fuel -- jet fuel prices coming down during the quarter towards the end of the quarter. But with the recent turmoil in the Middle East and recent events there, it still comes back up a little bit again. So we'll just have to see and wait. We are hedged about 50%, a little bit more than 50% for the remainder of the year. So we have a cushion, but it's -- of course, jet fuel is a factor for us. Again, very strong cost performance with the CASK or unit cost excluding fuel going down 5% versus the same period last year, some tailwind on the FX part with the Norwegian krona strengthening compared with last year. But even without taking that into account, we have an improvement in our CASK of a significant level. So very happy to see the overall strong cost performance, partially driven by program X and a strong effort by the whole organization. Strong, robust financial position also after dividend for the year, and we're coming out of the quarter with NOK 13.7 million of total liquidity. A few words on the unexpected loss of the EU ETS obligation. We had a strong win in the Oslo City Court, then the matter was appealed by the government to the mortgaging Court of Appeal, where we lost surprisingly, and then, we appealed to the Supreme Court and the whole case was actually rejected by the Supreme Court surprisingly to us, but also to our strong team of legal advisers. And then, we unfortunately will have to record a loss of NOK 733 million. We've already paid the fine earlier a couple of years ago, NOK 400 million. So in terms of cash impact, it's only or relative to the total size, it's a negative NOK 330 million, which is payable later this year. So that's highly manageable, but we're very, very surprised and of this cost. And in our view, in the view of Norwegian, in the view of our legal team, a strong team of legal advisers, there were more than one, we -- Norwegian was unable to fulfill its ETF obligation during the reconstruction. That's the whole background. So a surprising event for Norwegian, but it has quite a big one-off nonrecurring impact of the -- for the results for the second quarter. A few more words on the revenue side. Stable revenues, up 1%. We have a volume increase, ASK increase 5.4%, yield decrease, load factor decrease of 2.7%, total unit revenue down 5% for the quarter, quarter-over-quarter, ending up with a revenue of NOK 8.4 billion for Norwegian in the second quarter of 2026, adding NOK 2 billion of revenues from Widerøe leaves us with a total revenue of NOK 10.4 billion. I think this one is a really good one. It's sort of strongly illustrates the point. This is an exceptional quarter in terms of, let's say, one-offs. And it's with the fuel and compared with last quarter with the fuel driving an increased fuel price of -- fuel cost of NOK 837 million and then with a change to other losses, including the EU ETS loss of NOK 733 million and negative translation effects due to the sudden weakening of the Norwegian kroner in June and a total of NOK 1.7 billion. So those 2 combined is NOK 1.8 billion, which is largely the total difference, the weakening from quarter -- second quarter 2025 to second quarter of 2026. Operating expenses is up basically following the increase in ASK capacity level. So that's as expected. And then, we have a slight improvement in the depreciation and amortization lease. That's due to our acquisition of 1 aircraft, which we have a gain of NOK 95 million, and then, the weakening of the U.S. dollar has also an impact on the cost for our depreciation, which is denominated in U.S. dollars. Widerøe then adding to -- with a nice profit EBIT of NOK 193 million, which leaves us with a group EBIT for the quarter of minus NOK 603 million. A little bit more on the details on the top line and the P&L. Ancillary revenues having a nice increase, total increased 1%. We're seeing that the cost level, as mentioned, is we have a good cost performance. Personnel expenses going up at a level as expected. Strong increase, as we talked about several times in the fuel cost more than NOK 800 million or 33%. And then, we're seeing actually airport and ATC charges at the same level as last year despite an ASK increase of 5%. Handling charges at the same level as last year. Technical maintenance cost at the same level as last year, kind of underlying our strong cost performance for the quarter. Other operating expenses slightly up. Then, we have the big ticket item that we talked about many times now, other losses won with a delta or change from last year of NOK 1.11 billion. Aircraft lease and depreciation improved by NOK 203 million, NOK 95 million from the aircraft acquisition gain and then the impact of the stronger Norwegian kroner on our U.S. dollar cost there, which leaves us with, again, a profit before tax of minus a week low -- minus NOK 761 million, meaning a quarter which is not financially on a P&L basis a strong quarter. And then, we have a tax income of NOK 206 million, which leaves a net profit of minus NOK 555 million for the quarter. Robust balance sheet. We're -- despite kind of having a relatively poor quarter in terms of our P&L, we're coming out of the quarter with a robust balance sheet. We're seeing the total assets is actually down from NOK 47.5 billion in Q1 to NOK 46.9 billion or SEK 47 billion at the end of the second quarter. Aircraft assets slightly up because we acquired 1 aircraft, and we took deliver another aircraft. The cash is coming down a little bit, NOK 548 million. That is after dividend payment of NOK 841 million. So a good cash flow performance for the quarter, which is also seasonal due to the ramp-up of the activity level in the second quarter. Happy to see that the traffic settlement liabilities is up 1% from last year. That is prebooked or prebooked tickets, kind of evidencing that we have sold more tickets than we had at the same time earlier in -- or last year. And then just 1 word on the equity side. The book equity is down NOK 2.4 billion. It's slightly higher than the results and that's due to the mark-to-market development on our fuel hedges and with the fuel price coming down versus the end of Q1, then the market value of the hedges also has a reduced value. But we're still coming out with an equity ratio at a good level and a robust balance sheet. Net interest-bearing debt only slightly up, driven by, again, cash and equivalents going down largely because of the dividend payment of NOK 841 million and the aircraft financing going up with the acquisition of taking delivery of 1 aircraft and actually buying at least 1 aircraft. Finally, a couple of words on the total on the cash flow, as mentioned, going down by NOK 540 million, the cash balance going down by NOK 548 million. Ticket prepayments at a stable level, operating activities contributing NOK 1.5 billion. Investing activities, slightly higher than it has been in the previous quarter with the acquisition of 1 owned aircraft and then a purchase of another aircraft out of the lease. Financing activities minus NOK 1 billion, including the dividend payment and then ending up with a closing cash balance of NOK 11.0 billion, a very healthy level for the business and happy to see that, and as this is going just as expected. The excess liquidity, receiving a good return. That's also an important thing. And we have also NOK 1.1 billion on a fixed income fund and NOK 1.5 billion deposit against the outstanding bond, which is due and payable in September. So by the end of September, we are essentially a debt-free company with the exception of the aircraft financing. So that's going just as expected. And we're also having a good position when it comes to our delivery, our initial order delivery from Boeing, where we have already paid in NOK 3.6 billion of repayments, and which leaves a net expected remaining payments before 2028 of less than NOK 500 million. So overall, we are in a healthy financial situation. We, as Geir mentioned, we're receiving very, very attractive financing offers for the fleet, and we're coming out of the quarter and into the remaining part of 2026 and '27 in a very strong financial position. Thank you.

Okay. So the way forward, I think when you are talking about bookings, as mentioned, we feel that the booking momentum was turning around to some extent in the middle of June and now looking more promising from July and into the fall. Again, very happy to see that September, October is also looking relatively strong compared -- also compared to last year. The holiday market, as I call it, is a market that we have been looking at for quite a while, actually, the last 1.5 to 2 years. And this company Nordic Natural Travel Group is a company we have been studying in depth during the last 6 months, I would say. And we did acquire the company, as you know, in June. And this is what is Sadia leading Nordic hotels industrial travel company. And this is us buying ourself into this market. This is a market that has been growing over the last years. This is also a market that we expect to continue to grow. We are running some -- a part of Norwegian called Norwegian Holiday. This is us buying us into that capacity, and we will be leading tour operator, travel company in the Nordics overnight, the day we take over this company. They have approximately 1.3 million hotel guests a year converted into passengers and the number of flights that is NOK 2.6 million the way we count it on a round-trip basis. It is a company with the SEK 17 billion in revenue. It is a company with 26 concept hotels. And there is also including an airline called Sunglass with 12 aircraft on both narrowbodies and widebodies. And they have a market-leading digital platform where they have invested massively over the last years. Award-winning brands included Spec in Denmark. You have Ving in Norway and Sweden. You have Tjäreborg in Finland. You have Globetrotter, and you have the airline sun class. They are offering more than 4,500 third-party hotels. They are the largest purchaser of hotel accommodation in Europe to Nordic travelers. But what we feel particularly interesting is the 26 unique concept hotels. These concepts are it's Sun Prime, its Sun Ving, it's Ocean Beach Club, and its levies. And looking at the profit engine in this company, it's 25% volume from these concept hotels, 25% of the volume, but it is 60% of the profit. And we feel this particularly interested when we are going to develop this together with in the years to come. The way we look at this is that we think this is a growing market. We think that this is a product offering that -- where we can now offer our customers that we're already flying an additional product, a better product, and we would like to take part of this segment as well. NLPG is now getting access to European Nordic network, Norwegian network, in addition to 50 aircraft flying for Widerøe and then gives them the access to a much broader offering on the airline side to their customers. We are also, by doing this, able to offer a package where you can fly and you can live, and we can also, in the strategy, long term, develop these concept hotels on destinations, where Norwegian is already flying a lot. Just to explain as an example, we are flying close to 5 million passengers to Spain every year. NLPG doesn't have any concept hotels on the mainland Spain. That's a huge opportunity, and we're also able to take out not only the synergies, but also adding value to the passengers, adding value to the profitability on both companies. And we are going to make sure that 1 plus 1 is more than 2. Looking at the synergies. And just to say a few words on NLTG. This is a company with a very long history. This is a well-run company. We have spent a lot of time studying this company, both the short-term strategy, the long-term strategy. We have got to know the management team, extremely experienced and deep knowledge into the hotel market, which we don't have in Norwegian. So that's what we are buying. I'm very excited about it, very excited and impatience when it comes to the competition authorities, but we hope to be able to close the interaction then by the end of this year. On the synergies, first, a little bit on the deal itself. We are buying the company for SEK 3.5 billion in cash, plus SEK 300 million in issued Norwegian shares. There's 30 million potential bonus shares, and that depends on the development of the stock price in Norwegian in the fourth quarter. These shares will be -- we start to issue them at NOK 17 a share up to NOK 20 a share. Strawberry and TDR, which is the owners of NLTG today will be significant shareholders in Norwegian. They will have a 180-day lockup from when we close the transaction and then and Strawberry will also be proposed for our Board representation in Norwegian. The SEK 3.5 billion will be financed with available funds. We have a quite comfortable cash position, potential new bond issues if we can do that at the right terms and other potential sources. And again, the EGM has already helped. The shareholders approved it by -- I think it was 96% in favor. And then, we are working with EU. Synergies, obviously, we will be able to optimize the 2 networks, sunglass and Norwegian, and there is a lot of positioning flights in Sunglass today. We are able to help out reducing that. I think we can have the fleet and crew utilization massively up in combination. Then, you have the normal synergies when it comes to procurement, support functions and so on. That's more or less the same process we have been through with Widerøe when we acquired Widerøe, but then, first of all, this is on the commercial side and massive synergies when it comes to integrated flight and hotel holiday packaging and then also developing the concept hotels on destinations where we are already flying a lot. So this is not about us having to get more passengers and having to create a new market. This is passengers we are already flying. Now, we're going to offer them a better product and an added product as such. That was NLTG. The fleet, not much to report this quarter on the fleet. As mentioned earlier, we have taken the first owned aircraft out and delivering -- and Boeing is delivering in accordance to schedule, and they are definitely back on track. We are now in a process where we are considering what to do after 2032. Both Boeing and Airbus are more or less sold out for the next 5 years. So then -- so that is something we will have to consider. We are also working with a fleet plan in Widerøe that will be finalized, I guess, during the year, and then that applies, first of all, to the commercial part of the Widerøe. Program X is also delivering in accordance to schedule, not so much new this quarter other than the fact that the program has delivered NOK 321 million during the quarter. We have listed up a few of the items that is included. We are sticking to the guiding of more than NOK 1.25 billion out of 2026. And then, we will see by the end of this year, when this program in the reality is coming to an end, whether we should renew it and then just continue in a different way or whether we will then build this program into the synergy projects with NLTG and with Widerøe. But it is on schedule, and this is also part of the reason we are doing quite well on the cost side of the business, and that is also the plan to continue it for the next quarters to come. On guiding, we have -- on capacity, we have -- it's more or less the same as we saw last quarter. I think it's a percentage down in Q4 from 5% to 4% , but I'm very happy to say that we are taking the CASK guiding ex fuel down a step from low single digit to a flat CASK compared to last year. So that shows that we are in control over the cost in Norwegian, but of course, we can always do better, and that is also the aim, but very happy that we can take guiding a step down. And then, just to finalize this presentation. This is a part of Norwegian, the communication department that has come up with a good idea during the World Cup. And this is how we can be extremely creative, and you can create an activity level out there free of charge that is absolutely amazing. So we took British Airways to a small little challenge, saying that on the game between Norway and England, the 1 who wins or the 1 that loses will have to change the logo to the other airlines on our own Instagram account. Unfortunately, Norwegian -- sorry, Norway lost, and we had to use the BA logo for a day. That hurts. But I think it was definitely worth it. The results, 1.5 million likes and reactions. We have reached more than 150 million people with this. More than 500 media articles have been written on this story. So it's absolutely fantastic. We have to continue to do these things, and that is what Norwegian is all about when it comes to being creative. I love it, I have to say. Thank you very much.

Thank you. If I can have Hans-Joergen up to there as well, and then, we'll continue to see some questions.

We'll start with asking if there's any questions from the audience.

A few questions for me, since we have so few have today. On within Eastern Charu. Are you considering also the opportunity to be Comcast will grow our growing there production during like the winter season when you usually take down your own production and use some of your aircraft to fly into their program to utilize your fleet. And same also in some time, if you have -- if there is more need for that and the better payoff that we can use your fleet into NLGT. Secondly, on seat Sweden is very close on becoming your second biggest market. it surpassed Denmark, and it's very close to surpassing Spain and then just behind Norway on your revenue side. There's been some talk in media about expanding Widerøe operation into and you turn us a little a little more on what you're thinking about that. Is that to complement your own production or to take out some of your production and use the smaller aircraft, like as turboprops in domestic Sweden? And the last is on the...

Let's do the 2 first ones, and then you can take the last here again. When you look at NLTG, they have seasonality as well, so do we, but there is less seasonality in NLTG than it is in Norwegian. So I think the answer on your question is yes. I think we have an opportunity, maybe especially on the shoulder seasons, both on both sides, and that applies also to -- when it comes to this concept of hotels whether we can develop destinations where it's more natural to fly more in the shoulder seasons. When it comes to synergies between the 2 airlines, Sunglass and Norwegian, it is no doubt about the fact that there is a massive number of synergies there. Sunglass is having because that's how -- it's not necessarily something wrong with it, but it's a lot of positioning flights and the crew and fleet utilization can be much better, and we can help out with that. So I think, yes, there are definitely rooms. Winter season, yes, but maybe first of all, in the shorter seasons, where we have an opportunity. Sweden, that is a different question. The fact is that the Swedish domestic market is definitely not back. It's maybe only 60% back compared to the pre pandemic. There are a lot of activities in Sweden today on the regulatory side, on the government side, where they are going to stimulate connectivity, and they are incentivizing now the population to start to fly more because it starts to hurt the value creation in Sweden in general. And there's also a discussion in Sweden today, whether we're actually looking at what we have been doing here in Norway, which is absolutely fantastic in my opinion, namely Europe subsidizing in order to create a flight offering in the way that we have in Norway today. A little bit of the problem. This is a long answer, a little bit of a problem with Spen today that you have approximately the same number of airports, 40, 42. While in Sweden, only 10 of them are government owned, and all the others are not doing well. So I think there is a discussion in Sweden now where they could potentially -- I'm not saying they are, but potentially move in the same direction as us. Even if they are doing all the right things in Sweden, in my opinion, South of Sweden has turned into a monopoly, where is now flying for us, yes. Is that an opportunity for Widerøe potentially? Absolutely, but it could also be a potential north of Sweden, if Sweden, in general, is going in the same direction as what we have been doing here in Norway. I don't know if that was an answer.

[indiscernible].

Yes.

And then you're talking about...

Yes, partly.

And the North Western is smart talked -- is there any plan in the P&L to fewer costs and ETS emission costs as an online in the P&L.

Yes, that's the question you have asked before. Right now, we're happy with the way it's presented. There's no specific plans to do that. But it's something we can consider because the -- especially the ETS cost now is becoming a significant portion. Previously, it was not such a large portion, but it is becoming a more significant part of the fuel line. So it's something that we can -- that we will consider over the next reporting period, maybe from 2027 if we decide to go that route.

Okay. We'll then move on to some questions from the web. We'll start with -- how do you see yield and load factor trends in July and August versus September, October? Are there any material differences?

Well, I think we just have to repeat what we said then that -- we have sold more tickets for all these months than what we have done, what we did on the same day last year.

On the money, can you share any insights on what is slightly softer demand than expected? Is there any differences if we look by regions, type of travel. .

Look over the network is kind of spread all over the network, I would say, the softening. But as we mentioned here today, it is the speculation in the media on the availability of fuel. It is the World Cup. It is the war that certainly have an effect. We have had quite nice weather here in Scandinavia in June. That normally also have an effect on the bookings. So I think that's in combination, that's probably the reasons.