Norwegian Air Shuttle New

Good morning, and welcome to the fourth quarter 2025 presentation for the Norwegian Group. My name is Jesper Anderstedt, and I am the VP of Investor Relations here at Norwegian. Today's presentation will be held by our CEO, Geir Karlsson, and our CFO, Hans-Jürgen Wibstad. The presentation will be followed by a Q&A from the audience and the web. Please go ahead, Geir. Thank you, Jesper. Good morning. Good morning to all of you following this also online. It is a beautiful morning in Oslo. It's the winter holiday coming up. I heard on the news on the way in here that 80,000 people is leaving OSL today. And I know that quite a few of them are flying with Norwegians. It's a good day. Going to the highlights for the quarter and also a little bit on the full year of 2025. EBITDA of 21 million, that is an improvement from last year. We have seen passenger growth in both airlines in the quarter. And we are continuing to do well on what we call operational excellence. There we are seeing an improved regularity and punctuality for both airlines compared to the same quarter last year. On unit cost, as many of you know and remember, we have been guiding a flat cost for 2025 as a whole. And that's also where we ended up. That means that the Q4 cost is slightly up. But for the year, we are sticking to what we have been guiding over the last couple of quarters. 2025 as a whole, very good year. with an EBT of 3 billion NOK in combination between the two airlines, EBIT of 3.159 billion in Norwegian, and 585 million in Videre. That converts into an EBIT margin of 9.9%, which is historically strong for this company. We are continuing to grow our network. In 2026, we will fly close to 500 routes between the two airlines. We are continuing to be among the best airlines in Europe when it comes to punctuality, and we have very few cancellations, thereby the regularity is absolutely top notch, regardless of who you compare us to. I'm going to share a little bit of information on the MPS score. But we are also doing fine, and we are, after all, the airline with most direct routes from the Nordics to Europe. We are continuing to do well on the corporate side of the markets. I will share some details on that as well. Spen is starting to show results, and we are looking very much forward to bringing the Reitan Retail Group into Spen during the next weeks and a few months. Also nice to have taken delivery of the first of 80 aircraft that we have on direct order with Boeing. We took delivery of the first one in October. That means that we have 79 remaining deliveries that will take place from now until 2031. This is an aircraft that is, you know, brand new. They burn quite, you know, less fuel than the 727 NGs, 14 to 15%. And we are seeing a huge appetite from the leasing and financing community in order to finance these aircrafts at terms that we look upon as very attractive. We are, as mentioned many times, planning to own a significant share of this fleet ourselves, because it reduces the ownership costs for the years to come. Dividend is head news, I can see, this morning. We started to pay dividends, as you know, in 2025. The liquidity position at the end of the year, 10 billion, the liquidity position today is higher. We ended the year with an equity ratio of 18.2%. And we also spent quite a lot of time in 2025 to work on the balance sheets. As we remember, we acquired 13 aircrafts that were currently leased to Norwegian. And by that, we booked the profits. And we also are looking forward to having a recurring reduced ownership costs on these aircrafts as long as we keep them. We also repaid the corporate debt in 2025. And we distributed our first dividend for 2025 with a payout in 2026. We would like to pay 0.8 NOK per share in dividend. That converts into a payout ratio of 31%. And this is, of course, subject to an approval by the upcoming AGM taking place in May. I'm sure Hans-Jürgen will share a little bit more on that. Little bit statistics, 6.2 million passengers in the quarter, 0.4% up year on year. Very happy to see the load factor in, especially in Norwegian, 86%, 2% up. And also very happy to see the punctuality and regularity in both airlines, I would say massively up compared to the same quarter last year. And this shows that the efforts that we are putting in place on this area is starting really to have an effect. So now it's all about making sure that we can continue this strong performance in the quarters to come. Very happy about that. This is a chart that we have been showing you for quite a few quarters. This shows the seasonality that we are exposed to in Norwegian. It also shows that we are adjusting capacity between the seasons. And we did actually in the fourth quarter of 2025 reduce the capacity by 3%. That is because we thought that we were then more aligned with the demand, with the market as we saw it. And I think we did quite well. We saw a load factor, as mentioned, coming up to 86%. And we also saw the yield coming up with 4%. This trend has also continued into January, where we have seen a load-up 4%, and with a significant higher unit revenue. So all in all, we are happy with the last months, including January. I'll come back to the period in front of us. Also for Viderø, again, very happy with the operational performance, very strong quarter. More than 1 million passengers, up 2%. I'm very happy to see that Vidre in the fourth quarter is definitely contributing to the result for the four quarter, delivering an EBIT of 124 million. Also worth mentioning that Vidre had a great, a fantastic 2025 with their best results ever. Looking forward. To the left, seven days rolling sales figures on passengers. As you can see on the red line, we are ahead of the curve compared to 2024. That said, you know that we have reduced the capacity in the first quarter compared to the first quarter last year. And then we are going to ramp up into the second quarter, increasing the capacity with 6%. So have that in mind when you're looking at the curves. But we are very happy with the New Year's sales campaign. And the bookings are continuing to look promising into the rest of the low season and into the second quarter. Looking at the revenue on the right-hand side, this is travel from February to June. And as you can see there as well, we are ahead on the red curve there. We are ahead compared to the previous years. And if you look at March and April as one, because of the Easter effect, we could say that during the next months in total, we are up both on load and on yield. And that looks very promising, also heading into the last portion of the low season and into the spring and the summer season. So as for today... We have sold 250,000 tickets more than the same period last year. Yes, I know that we have a 6% capacity increase in Q2, but the load is up more than 6% heading into the second quarter. So it's looking promising for the months to come and into the high season. A little bit on the NPS score. As you can see, the NPS score has moved from 38.5 to 50.1 in 2025. NPS of 50 is a really strong factor. NPS is really a tool we use to measure loyalty, customer loyalty. And this shows that we have a strong, loyal and engaged customer base. We are spending a lot of time communicating with our customers. We know exactly what matters the most for our customers. On top of the list is punctuality. As I have mentioned, we are doing well in both airlines, I would say. Another one that is extremely important is our ability to help our customers when things go wrong. And unfortunately, sometimes things go wrong. And we have done massively improvements on that area as well during the last couple of years. Now it starts to have an effect on the NPS score. And of course, helpful staff, service-minded, friendly. We have a fantastic staff in Norwegian that applies both to our great colleagues flying in the air and as well as our colleagues on ground. Customer initiatives, obviously, punctuality, where we are doing great. And we have, as mentioned many, many times, very high regularity. We had close to zero cancellations. On the reward side, we are also performing well. Spend is starting to show results. And I think you should anticipate that we will come with news on the reward side during the next weeks and months. that I think will be attractive to our dear customers. And as well, on customer care, we are doing quite much better today than last year and the year before. And that is also starting to show results, not at least into the MTS. Corporate. Corporate is actually a little bit interesting, because it shows, if you look at the Avinor figures, It shows that the corporate market is definitely not back compared to the pre-pandemic levels. 60% below still. And a little bit interesting as well is that 2025 is actually showing a reduction in corporate travels, according to Avinor, by 2%. However, if we look at the Norwegian figures, we are up in 2025, both on number of passengers and the revenue. That shows that we are continuing to take a market share. The chart on the right hand side shows that we are up 8% on revenue and that includes both an increase in yield towards these passengers as well as an increase in number of passengers. So it includes both. When we are talking to the big corporates, more and more of these corporates are now saying that they're flying more than 50% of their travels with Norwegian. And they're also mentioning, you know, the importance of, as mentioned many times today, punctuality and regularity. We are also doing a bet in Sweden. The Swedish market is moving, I would say, in the right direction. Also happy to share that we signed a four-year contract with the Swedish government through Kammerkollegiet that started up in September 2025. And looking at the performance on that contract as of today, it looks promising. Initiatives ahead that we haven't taken out any effects of yet is the so-called new distribution platform that we are launching these days. This will also give us the ability to do interlining, proper interlining. And the first airline coming up is obviously Vidre, but it gives us also the ability to interline with others if we should wish so. So hopefully we can get live with that as soon as absolutely possible. So the corporate market is showing progress. We are continuing to take market share. And this is a focus area for both airlines in the months and quarters ahead because we think it is an attractive part of the market. It's high yielding. And it can also take down, you know, the variations between the different seasons.

Thank you, Geir. Good morning, everyone. Nice to see you here, and also the ones on web. So, I will go through the financial results for the fourth quarter, 25, in some more detail, as well as addressing some of the full-year results. As mentioned, revenues came in at 8.5 billion for the quarter, which is up 4% compared with the same period last year, and Vidro contributing a nice 2 billion to that number. What's driving that is really robust figures across the group. We're seeing that the unit revenue is up 6% year over year, both on the back of higher loads as well as higher yields. And then also Vidro having a good quarter. So, meaning that the quarterly operating results for the group ended at 21 million plus, which is up from a negative figure last year. And with, of course, as mentioned by Guy, Vidro contributing very nicely, and with Norwegian just marginally negative with 91, and then with Vidro with 124. Full year result, a great result for Norwegian earnings before 2021. before tax of 3 billion and 16 million. That's about 3 billion. Very happy to see that figure. EBIT margin of 9.9 per percent. And then going back to Vidra, a great result from Vidra. Significant improvement from last year. Last year, 2024, that is, was a good year. 2025, even better. And their actually bottom line result is 528 million before tax. So it's a good combination between the two Airlines. Unit revenue, full year unit revenue as guided previously at 0.5 kroner. Happy to see that figure. I think we've been quite predictable in our guidance. We've taken down the guidance through the year. and we're ending up exactly where we had hoped to be. I think it's good to see also that the cost control in the business during 2025 has been good. We have had very few surprises, and I think that really is encouraging for a strong organization to continue to deliver predictable cost levels. Needless to say, the unit or the CUSC is impacted by the transactions on the aircraft where we purchased 13 aircraft during the year. And then as a consequence of that, we reversed some of the maintenance research related to these leases. So that obviously impacts the CUSC, but a good level and as guided. So happy to see that. I think very important for 2025 was the cleanup of the balance sheet. We now, coming out of 2025, we really have a balance sheet which is well positioned for the activities ahead of us. We did repay the corporate debt, the legacy debt. We got rid of the convertible bond. We got cleared on the government ownership that held a portion of the convertible bond. So there now they sold out. We did the aircraft transactions, which is very good use of the balance sheet, bringing down the cost as we move forward. We came into the year with owning four aircraft. Now we own 17 aircraft, which is a really good – on the way to – on our ambition to own a much higher portion of the fleet. And finally, of course, that enabled us to pay a dividend last year, which we have worked very hard to do. so and then with all these transactions we're still coming out with a very robust balance sheet liquidity position of 10.1 billion that includes some some short-term investment and also deposit for the outstanding bond equity ratio a solid 18.2 percent and then very happy to announce the 0.8 kroner dividend equal to a payout ratio of 31 it's actually an increase of 33 from last year a total of 844 million. So happy to see that. And then we're sort of setting the stage for being a business that gives priority to dividend as we move forward, balancing the dividend amounts with the investment requirements. So, of course, very happy to have that and being our second dividend for the company. All right. So that's kind of the... Broader summary, revenues, obviously, we see from quarter to quarter last year coming from 6.4 billion for Norwegian to 6.6 billion, obviously driven by lower US, but we see the benefits of the lower capacity on the yields as well as the load factor coming up. Then just a small other factor bringing the total revenue to 6.6 billion, adding a very nice contribution from Vidra, and then ending up with a group revenue of 8.5 billion. A little bit of a deep dive into the P&L. On the top line, we can clearly see operating revenues going up by 4%. We're seeing that the cost lines are as expected. We have the personnel cost expenses, which are up as expected due to the salary increases, both particularly among the flying crew. So, no unexpected events there. We see the aviation fuel at a pretty stable level. We have the benefit of the weaker US dollar and also lower fuel price, but we also have additional costs relating to the ETS allowance, reduced ETS allowance and increased SAF mandate. The increase in the airport and ATC charges, that's well known. We talked about that for several quarters of 16% compared with the same period last year, bringing us down to an EBIT of 21 million that we just mentioned compared with a minus 93 last year. And then with a bottom line result of minus 16 versus minus 233 million last year. So, a good improvement. Of course, seasonally impacted by particularly on the Norwegian side with Bidru being kind of the stabilizing factor, having a more stable quarterly variation. So, overall, we're happy. It's a good fourth quarter for Norwegian. Looking at the full year, obviously very happy to see the earnings before tax of 3 billion and 16 million, just about 3 billion. Nice improvement on operating revenues, 7% personal expenses. We talked about that several times. Same on the aviation fuel. Some headwinds, some tailwind on that. And then the airport charges, as we've talked about so many times, going up by 21%. So a good result. Obviously aircraft lease depreciation and numberization. quite a bit down impacted by these 13 aircraft purchases where we reversed previous maintenance reserves relating to the leases, having kind of obviously a very positive impact on the depreciation line. Then we have the EBIT of 3.7 billion and the profit before tax of 3.016, a significant improvement from 2024. Balance sheet, this is between the quarters, not a big difference between each of the quarters. Really, total assets is literally the same. We did take delivery of two aircrafts in the quarter. impacting tangible assets slightly. But otherwise, other than that, no big differences. Seasonally down on the cash balance. I'll come back to that in a minute. But in a very strong position, and as Guy mentioned earlier, since the end of the quarter, since the end of the year, it's seasonally up as we always expected. So we are in a good position. Final comment on the balance sheet. We're happy to see that the group on the aircraft air traffic settlement liabilities, it's up by 6%. That's kind of proof that their sales is better than last year. And we're happy to see that number and that matches very well with the load curve and the load figures that Gary just mentioned. And then with a equity ratio of 18.2%, pretty much the same as at the end of the previous quarter. Net interest-bearing debts slightly up by 1.1 billion, driven by seasonal reduction in cash. and also the aircraft financing related to the delivery of the two aircraft. So total control of net interest, bringing that in a very good position. And we are, as a business, literally debt-free with the exception of the aircraft financing. There is a little bit of small debt in Vidra, but with that exception, you know, all these transactions that we actually undertook during 2025 has left Norwegian without corporate debt and that's a really good position to be in as we move into 2026 and the years beyond where we have a lot of deliveries and you know great financing deals ahead of us for the financing of the aircraft aircraft fleet fleet growth again going back to the dividend happy to see the that we can announce subject to AGM approval of course 0.8 kroner equal to a payout ratio of 31%, an increase of 33% compared with 2024, and kind of signaling a strong commitment from the Norwegian to shareholders that we would like to continue to have a dividend-friendly mindset on that, having a responsible level of dividend as we move forward. Final comments on the cash, I think we talked through that a lot, not very big variations, largely driven by normal seasonal variations with the cash going from, that is, this is the cash excluding the short-term interest investments as well as the money placed on deposit for the retained claim bonds. with the cash going from 7.8 or 7.9 billion to 7.4 billion, reduction in prepayments seasonal, good operational cash flow, normal level of investments, and then also normal level of financing activities in the quarter. It's also worth noting that we have prepaid to date 3.6 billion of the order book that we have with Boeing. And we have very, very limited remaining prepayments before 2028. 2028, less than 0.5 billion. So overall, we are in a robust financial situation. And I think 2025, also from a balance sheet point of view, and how we've been driving the debt levels down and getting rid of the corporate debt has been a good outcome, enabling us also to pay a dividend. All right.

Thank you. Okay. The way forward. To the left you can see a beautiful picture from when we took delivery of the first of the 80 aircraft in Seattle in October. We are very cost-conscious. We are not planning to do deliveries as glossy as that on all the aircrafts. This was a special location, and it's the first aircraft. And this aircraft also delivered with the new logo, the new Norwegian logo, which looks fantastic, I have to say. But on the aircraft side, these new 727 MAX 8s are burning less fuel, which is extremely important. It also delivers a better experience for the customers and for the employees in Norwegian with less noise. So it's just a better product on many areas. We are also very comfortable on the fleet that we need for the upcoming summer. We are having one delivery prior to the summer, which we expect to happen within the next few weeks. And then we are all set on the fleet side for what looks like a good summer coming up. I like the optionality that we have also on the fleet side. As you can see on the chart, we still have quite a few 737NGs. Most of them are leased. And looking at the growth for the coming years, building the fleet from 95 aircraft in the upcoming summer to 104, we have the flexibility of potentially extending the leased aircraft if we should wish so. And if the market allows, we could grow more aggressively. That's an optionality we like, and we like to play that in the next coming years. We have also done quite a few acquisitions during 2025 of the leased aircraft. And if opportunities come up on a similar basis, we are more than happy. welcoming that, and some time will show whether that will materialize. But that is the fleet side. I'm also going to share a little bit more on Program X this time. In 2025, Program X delivered 1.3 billion NOC. 900 of that is what we call non-recurring. The majority of that includes the profits that we booked on the acquisitions of the 13 aircraft. And the portion of that also is included in the 400 million, which is recurring and which will take down the ownership costs on these aircraft going forward. In 2026, we do expect to materialize 600 million in effect from program X. So in total, in 2026, you will have 1 billion recurring effects coming out of program X. If you take that $1 billion and look at the pie chart on the right-hand side there, that is how it divides. So 22% is applicable to the fleet side, you know, acquisitions of the aircraft. 32% is coming from the new distribution platform and the revenue opportunities that gives us. That also includes the interlining capabilities that that will bring. And we will start interlining with Vidry as soon as absolutely possible. Group synergies is synergies between the two airlines. That includes, you know, facilities. It includes organizational synergies and not at least the procurement synergies that we are seeing on the basis of the fact that we are – a bigger company with more power towards our vendors. Also, on the cost control, it includes, you know, the huge areas in the airline. It includes the whole fuel value chain. It includes the ground ops operation that is quite significant. It also includes another big area, which is crew efficiency and how we utilize our crew. And it also includes, as mentioned, you know, the whole value chain around fuel, not talking about the fuel price, but everything else related to fuel, including the handling of fuel, et cetera. We have, during the last quarter, been guiding more than one billion, in effect. in what you call possibility improvements. We are increasing that to more than 1.25 billion as per today, and then we will see during the next quarters how that delivers. So I would say that Program X is delivering in accordance to plan. I'm happy to kind of increase the guiding slightly this time. Outlook on capacity, 3% up for the year as a whole. We have reduced capacity in the first quarter, but then we are going into a ramp-up period for the remaining three quarters in 2026. On unit costs, we are saying low single-digit percentage increase versus prior year. But have in mind, comparing to prior year, we are adjusting for the non-recurring effect in COSC in 2025. So the basis for the low single-digit increase is a COSC of 0.52. We have been writing it at the bottom of the page, so have that in mind. All in all, 2025 was a good year. 2026 is also looking to be a quite good year for actually both airlines. Hopefully we can beat 2025. That ends the presentation, Jesper. Okay. Thank you. Hans-Jørgen as well, if you can come up. All right. We'll then start with some questions. We'll start with the audience.

Any questions here? We'll start with Hans-Jørgen. Winner. A few questions for me. Happy to note that you did your best year ever in 2025. Congratulations for that. Also very happy to learn that the new distribution platform is now soon in place. That is something we have been waiting for quite some time. And that will open up for able to sell into Vidra. Can you explain a bit about that? Does that only apply on your own booking engine, or will it go on the GDSE travel agent as one use? And will this also open up for interlining that other airlines, like long-haul airlines, Thai, Singapore Airlines, British Airways, or Fiannair, that you can do agreement with them so you can fly passengers to their points in and out of Europe, and how are your plans with that? Also, Wizz Air has recently tested what they call Wizz Glass, which is a kind of copy-paste of SIS, a new Europe business class product, where you block the middle seat. And this was a success, and Wizz Air this week informed that they will roll this out on all their routes in Europe. What is the Norwegian plans for this segment, as you are so keen on improving your corporate and premium leisure sales? And then the last one is on Starlink.

Many questions.

Starlink is Southwest. It will fit Starlink on all their 810 aircraft. Norwegian has a Wi-Fi system today, which is aircraft ground-based. Do you have any plans to migrate to Starlink? Because it seems like Starlink is going to be like a standard for the aviation and for the airlines going forward.

Let's start with the first one. Yes, you know, the new distribution platform is delayed. No doubt about that. But we are now currently, as we speak, running a so-called A-B testing where 50% of our customers is going to the new platform and 50% and then we will test the conversion. Hopefully that shows good results and then we can go live. in all the three, let's say, important markets, meaning Norway, Sweden, and Denmark. That will give us the ability to do interlining with Videre. That means that we will also be able to sell Videre on Norwegian's platform. We think that that will definitely have an effect, so do Videre. When it comes to interlining with, you know, when it comes to kind of the SAS portion of that, what we are seeing is that, you know, the transfer passengers between Vidre and Norwegian or Vidre or SAS is developing in the right direction for us, meaning that the transfer passengers going to SAS aircraft is going down, but it's going up for us. And that is, I would say, as expected. We are not planning to go the risk direction by blocking the middle seat. As you saw today, we had in the fourth quarter 86% load, which is very promising. That said, you know, I think you could say that what you're seeing in the, let's call it the ultra-low-cost market or low-cost markets, if you include the U.S., is the fact that the low-cost carriers are actually moving towards the legacy players, offering a more premium product. Not all the way, but partly moving in that direction. That is actually the position that we have today in Norwegian. So we are very happy with the position that we are currently having, where we feel that we are, where we think we are actually having a better product than the ultra-low-cost guys. So we are very happy about that. What was the last one? What about Starlink? Yes, we are seeing that a few players are making a lot of media attention on Starlink. I mean, We are upgrading our Wi-Fi system on board our aircraft. As for today, Starlink is not even certified for a 727 MAX. And then we will see down the road how we, you know, what we decide to do. But right now, we are staying with, you know, what we have. But on an upgraded version.

Just one comment before we go to the next one. You didn't answer my question on Norwegian's plans of interlining with other airlines outside the group. Is this anything that we can see in the near future to happen?

Yeah, first of all, you know, we would like to come into a position where we can actually do interlining, and we are now very close of being in that position. I've said earlier that we are in dialogue with a few of the airlines. that are currently flying into Scandinavia, and then we'll see. It depends on a few things, not at least a commercial agreement and whether that makes sense for us. It brings complexity into our operation, and we need to get paid for that complexity. So that is the status. Okay, moving to the next question.

Thomas? Yes, thank you. Thomas Helge from Danske. On airport and ATC costs, now that some airports have put out their price increases for this year compared to last, how much of an increase can we expect this year compared to 2025? But I have a follow-up question after that.

I'm sure you have. You know, this is a constant, you know, I would say dialogue that we have, first of all, here in Norway with Avinor. And they have had over the last couple of years quite aggressive, you know, cost increases, fee increases. For 2026, it looked quite bad during a period, but how we ended up was in a much better place, meaning it's single-digit increases on the fees. I've said many times that I think, you know, I think we need to be careful when we are looking at the cost level, for example, and the fees and the fee increases they are, you know, bringing on to us and other airlines in a way that we have to be careful so we're not kind of pricing us out of the market. And the fact is that, you know, neither us or SAS, which is our main competitor, is actually growing in Norway these days. And our new fees is a factor in that picture. So we are free to move aircraft where we want. And we have also been moving aircraft around in 2026 compared to 2025. So this is a constant. I'm calling it a dialogue.

It's a tough dialogue. Thank you. And then on the follow-up question regarding carbon quotes or prices, or actually regarding the need to acquire these quotes for 2026, have you hedged a portion of that, or do you pay kind of spot prices when needed?

The policy that we have is to stay current, so meaning that when you have been flying a month, you buy the quotes for that month, and then by that you're staying current, right, as we speak. we are more or less covered for 2025, because we have been expecting that the prices for those quotes to come down. And as we discussed with you this morning, what you have seen just during the last couple of weeks is that the price has come down from, let's say, mid-90s down to mid-70s. Why has that happened? Yes, because there is a speculation that that EU will postpone or even keep the free quotas, not for the airline industry, but for other industries. And that's why you are seeing a selling off of these quotas over the last weeks. That is an opportunity for us. Should we take the benefit of that opportunity and buy more? Maybe. Thank you.

So I think both on that area, also on the currency side, we have seen, as many of you have seen, the dollar weakening, I think. in both on the ETS and on the development of the strengthening of the Norwegian kronor weakening of the US dollar, which at the moment has a positive impact for Norway.

Okay, I then think we move on to some questions from the web. Start with Ole Mochten Vesko from DMV Carnegie. Can you comment on the current competitive landscape? And adding to that, how do you see industry capacity growth in 2026? Is there a risk that the capacity growth represents potentially any negative yield impact? I think the short answer on that, yes, but it's that the competitive landscape is, I would say, relatively stable in the markets where we are flying. Okay. We move over to, I think actually we move over to a question from Andrew Lobenberg there. A question from SAS specifically. Okay. growing quite a bit in Copenhagen. Do you see any pressure from that? I mean SAS is our main competitor and it's a constant fight between the two airlines. And yes, they are moving, they are focusing very much on Copenhagen. So what we need to do in Copenhagen is just to make sure that we are treated fair in kind of SAS's main hub. But the fact that they are moving towards Copenhagen as a hub also gives Norwegian an opportunity. And that's why we are coming up with a slogan, why connect when you can fly direct? And that is, it's a slogan, but it's an opportunity, big time. Another question from Andrew. The outlook for Vidra and Vidra margins into 2026 coming out of a strong 2025. How big of an impact or how big of a factor is the PSO subsidy? The PSO route is performing well. Also due to the fact that the ticket prices has been reduced by 50%, that continues into 2026. And then, you know, the opportunity that we have between the airlines is to make sure that the commercial part of Vidra can be even better aligned with the Norwegian network going forward so that we can actually increase the performance from the commercial part of Vidra. But looking into 2026, as mentioned here, of Norwegian and the bookings and how the market is developing, it looks equally as promising for Vidra in 2026 as 2025 turned out to deliver. Final question from Andrew. Outlook for cost of revenues given the current or the recent strengthening of the NOC?

Yeah, I think obviously the fact, as I mentioned, the quite significant weakening of the US dollar has a big impact on our cost base. We're hedged just about 20%, 25% at the moment at good levels. They've come further down. So I think that is something which has to go into the spreadsheets of the analysts to factor in a, should we believe in a continued weaker dollar, which a lot of analysts believe and also the consensus is, that should impact our task and also our cost level positively during 2026.

Have in mind that 40-45% of our costs is in US dollars. That converts into the fact that 10 cents on the NOC is more than 100 million on the bottom line NOC. And it's not only obviously on the cask, it's also the fuel.

Cask including fuel.

Then we move on to a question from Petter Nyström, ABG. Interest costs, it was a bit up in the fourth quarter. Is this a representative level for the coming quarters? And how is the interest cost impacted by new aircraft entering the fleet?

I mean, that is the answer to the question. We're adding aircraft, and that is really the reason for why interest costs are up. And so the net interest is coming, is developing, not negatively, but as expected on the cost side. So it's really only the impact of the additional aircraft that is impacting that. There may be some also currency fluctuations, particularly in Vidra, on the net financial costs. But overall, on the increase or changes in the aircraft fleet.

Okay. That's the final question we have from the web. I'll ask again if there are any questions from the audience. There are none, so that means that we conclude the session. Thank you very much. Thank you.