NORWEGIAN AIR SHUTTLE ASA

“Market opportunities from chronic physical climate change Opportunity Chronic physical climate changes, such as higher temperatures and more frequent heat waves could create new and expanded market opportunities for the Company. Increasing demand for travel to cooler climates could drive higher load factors on return flights to Scandinavia, offering the Company an opportunity to capitalise on this trend and enhance profitability in the medium and long term due to its market leading position in the region.”

Annual report 2024A · The company itself

“Demand for airline travel is subject to strong seasonal variations.”

Annual report 2024A · The company itself

“Impacts as a consequence of flight delays Negative impact The Company may directly impact its customers through its flight punctuality. Customers depending on the provision of services according to planned travel schedules may face financial and personal impacts from delays and other disruptive service issues over the medium and long term.”

Annual report 2024A · The company itself

“Norwegian’s foundation is a low-cost operating model. This model features low complexity, high reliability, and a rightsized and competitive cost base. It enables the Company to provide affordable fares while delivering returns to shareholders.”

Annual report 2024A · The company itself

“Norwegian will continue to leverage its brand value and customer satisfaction to be the preferred option for those who seek affordable air travel without compromising on quality. The combination of a competitive cost base and strong customer value offering has been, and will continue to be, Norwegian’s winning formula.”

Annual report 2024A · The company itself

“On 3 March, Norwegian announced an agreement to purchase 10 Boeing 737-800 aircraft that are currently on lease to Norwegian. The transaction was closed in the first quarter of 2025.”

Annual report 2024A · The company itself

“Norwegian’s network is an optimised short-haul network, developed and refined since 2002, with a core Nordic footprint. In recent years, Norwegian has optimised the route portfolio to a network of close to 350 routes, with the majority having historically performed well.”

Annual report 2024A · The company itself

“The Group had 26.4 million passengers in 2024, an increase of 28 percent from 20.6 million passengers in 2023.”

Annual report 2024A · The company itself

“Norwegian had 22.6 million passengers in 2024, up 10 percent from 20.6 million in 2023.”

Annual report 2024A · The company itself

“Widerøe had 3.8 million passengers in 2024, which was record-breaking in the 90-year’s history of the regional carrier. Compared to 2023, the number of passengers was up 11 percent from 3.4 million.”

Annual report 2024A · The company itself

“The Norwegian Group achieved NOK 1,873 million in operating profit (EBIT) last year, the second highest operating profit in company history, with total revenue reaching NOK 35.3 billion – a 38 percent increase compared with the previous year.”

Annual report 2024A · The company itself

“The Company operated a fleet of 82 leased 737 aircraft, 4 owned 737 aircraft, 46 owned Dash 8 turboprop aircraft and 3 owned E2 jets as at yearend 2024, to provide commercial passenger services, predominantly in Europe. The aircraft, the Company’s operations and its employees are based in Scandinavia, Spain, Latvia, the UK and Ireland.”

Annual report 2024A · The company itself

“The Company considers the interests, views and rights of its customers (consumers and end users) when setting its strategy and business model. This is largely in respect of the services it offers and the consumer protection it provides in delivering those services.”

Annual report 2024A · The company itself

“Labour disruptions, particularly strikes may lead to settlement costs, increased salary costs, customer claims and lost productivity. As well as reputational damage, impacting operational stability and customer trust.”

Annual report 2024A · The company itself

“Some differences in pay exist for employees that may, in some cases, be related to their gender. This can have a negative effect on employees’ morale, wellbeing and sense of self-worth over the short, medium and long term, with unequal pay being viewed as both unfair and inappropriate.”

Annual report 2024A · The company itself

“Impact from passenger violence and harassment against employees Negative impact Employees face real and ongoing negative impacts on their well-being due to harassment and, in some cases, violence from passengers. This issue affects all client-facing roles within the Company, including crew, office staff, press office, customer care and management.”

Annual report 2024A · The company itself

“The Company acknowledges the potential negative impact on cabin crew, pilots, technicians, ground handlers and other operational shift workers due to sleep disorders and psychological strain from night shifts, irregular schedules and the high-pressure nature of the airline industry. Disrupted sleep patterns can impair both physical health and mental well-being, affecting job performance and overall morale over the short, medium and long term.”

Annual report 2024A · The company itself

“While these agreements resulted in increased personnel cost across several markets, they also provide improved visibility for 2025 with a reduced risk of industrial action.”

Annual report 2024A · The company itself

“At yearend 2024, the Norwegian Group had 8,754 employees at its headquarters, support offices, and operational bases across Norway, Sweden, Denmark, Finland, Spain, Latvia, UK and Ireland.”

Annual report 2024A · The company itself

“In addition, key Tier 1 and Tier 2 suppliers provide inputs such as food, consumables, logistics services and office equipment and related services.”

Annual report 2024A · The company itself

“Value chain workers provide a range of products and services essential to the Company’s operations including ground handling, cleaning services, hotel accommodation, catering and the production of sustainable aviation fuel.”

Annual report 2024A · The company itself

“The Group has a strong focus on achieving increased labour efficiency through a crew-friendly network that allows for a right-sized base structure, which in turn enables high utilisation and low operational costs. Through a more streamlined organization and flexible agreements, the Group is well positioned to manage seasonal fluctuations in demand.”

Annual report 2024A · The company itself

“As interest rates and inflation look to have peaked in the Company’s key markets, customers are now generally expected to experience real wage growth and increasing disposable income. Norwegian recorded a 10 percent growth in the number of passengers for 2024, demonstrating that an increasing number of passengers have chosen to fly with Norwegian.”

Annual report 2024A · The company itself

“Future demand is dependent on sustained consumer and business confidence in key markets.”

Annual report 2024A · The company itself

“Norwegian will continue to leverage its brand value and customer satisfaction to be the preferred option for those who seek affordable air travel without compromising on quality. The combination of a competitive cost base and strong customer value offering has been, and will continue to be, Norwegian’s winning formula.”

Annual report 2024A · The company itself

“The Norwegian Group provides low cost travel solutions for its customers, economic benefits across its value chain and a return on investment for its shareholders.”

Annual report 2024A · The company itself

“The Company is a leading carrier for leisure-oriented traffic in the Nordics and has in recent years also been taking market share within the corporate travel market.”

Annual report 2024A · The company itself

“The Group has a strong focus on achieving increased labour efficiency through a crew-friendly network that allows for a right-sized base structure, which in turn enables high utilisation and low operational costs. Through a more streamlined organization and flexible agreements, the Group is well positioned to manage seasonal fluctuations in demand.”

Annual report 2024A · The company itself

“To support the organisation, a modernised and flexible IT platform will boost productivity through select IT investments, development of business centres, and rigorous supply chain management.”

Annual report 2024A · The company itself

““Program X” includes measures on revenue initiatives, further harnessing synergies with Widerøe and cost efficiency improvements through, amongst others, new technologies.”

Annual report 2024A · The company itself

“The Company is a leading carrier for leisure-oriented traffic in the Nordics and has in recent years also been taking market share within the corporate travel market.”

Annual report 2024A · The company itself

“The business area is responsible for sales activities towards corporate, leisure, cargo, and charter contracts.”

Annual report 2024A · The company itself

“Its key customer segments include corporate customers and leisure customers.”

Annual report 2024A · The company itself

“In October last year, we celebrated the first flight with biofuel on the Norwegian defence sector’s corporate travel contract. This was to date the largest voluntary biofuel agreement in Norway’s history, and amongst the first of its kind with NATO countries. The agreement, which spans four years from 2024, contains a blend of at least 15 percent biofuel on approximately 250,000 travels per year.”

Annual report 2024A · The company itself

“In total, we saw a 19 percent increase in corporate travel passengers with Norwegian last year and signed almost 3,000 new corporate agreements. On top of that, we onboarded Norway’s largest corporate contract with the Norwegian defence sector in February 2024.”

Annual report 2024A · The company itself

“Also in the third quarter, Norwegian started to roll out its new distribution platform in a few smaller markets. The platform will over the next couple of years improve distribution capabilities, in addition to enabling full interlining with other airlines, including Widerøe.”

Annual report 2024A · The company itself

““Program X” includes measures on revenue initiatives, further harnessing synergies with Widerøe and cost efficiency improvements through, amongst others, new technologies.”

Annual report 2024A · The company itself

“A key aspect of this strategy is the transition to renewable energy sources and low-carbon fuels. Sustainable Aviation Fuel (SAF) is one example where Norwegian and Widerøe have a key role in reducing aviation’s environmental impact by offering a cleaner alternative to traditional jet fuels.”

Annual report 2024A · The company itself

“The agreement, which spans four years from 2024, contains a blend of at least 15 percent biofuel on approximately 250,000 travels per year. This contract alone will reduce emissions from the defence sector’s flights by over 2,000 tonnes of CO2 each year.”

Annual report 2024A · The company itself

“The Company has a potential indirect impact on forced labour in its supply chain in relation to the production of SAF over the short and medium term.”

Annual report 2024A · The company itself

“Investments in Norsk e-Fuel, a key player in the transition to renewable aviation and sustainable fuels, lead the charge in contributing to decarbonizing in the aviation industry.”

Annual report 2024A · The company itself

“To support the organisation, a modernised and flexible IT platform will boost productivity through select IT investments, development of business centres, and rigorous supply chain management.”

Annual report 2024A · The company itself

“In January 2024, the Company completed the acquisition of Widerøe, a regional carrier based in Norway.”

Annual report 2024A · The company itself

“Its key customer segments include corporate customers and leisure customers.”

Annual report 2024A · The company itself

“The current macroeconomic environment is uncertain with volatile energy and fuel prices, inflationary pressure, fluctuations in foreign exchange rates with a weakening local Norwegian is subject to corporate governance reporting requirements according to the Norwegian Accounting Act, section 2-9, the Norwegian Code of Practice for Corporate Governance and the Continuing Obligations of Listed Companies as approved by the Oslo Stock Exchange Oslo Børs.”

Annual report 2024A · The company itself

“Expenses for jet fuel represent a substantial part of the Group’s operating costs, and fluctuations in the price of jet fuel influence the projected cash flows and operating expenses. The objective, for the jet fuel price risk management policy, is to safeguard against significant and sudden increases in jet fuel prices, whilst retaining access to price reductions.”

Annual report 2024A · The company itself

“The Company is dependent upon suppliers, predominantly from the EU and the US, for the sourcing and provision of aircraft, aviation fuels, components and related aviation services.”

Annual report 2024A · The company itself

“Repercussions from fuel blend regulation Transition risk The introduction of an EU-wide SAF blending mandate, aimed at reducing emissions from aviation, is likely to increase the price of jet fuel in the EU compared to other regions. The added fuel cost can both lower the profit margin of the Company and reduce demand in the medium term, depending on the price sensitivity of consumers and the competitive situation, which impact the Company’s ability to transfer the increased costs to customers.”

Annual report 2024A · The company itself

“Fuel consumption from crude oil and petroleum products (MWh) NA- 9,473,056 3.”

Annual report 2024A · The company itself

“Energy consumption from renewable sources including biomass Energy consumption from renewable sources includes SAF.”

Annual report 2024A · The company itself

“Operating in the aviation sector, with a European focus, means that key aspects of the Company’s strategy and approach to sustainability matters is heavily influenced by EU regulation.”

Annual report 2024A · The company itself

“The Company’s strategic goals to reduce the carbon intensity of its jet fleet and introduce fossil-free turbo prop aircraft (see E1-4) are driven in response to a range of drivers including market opportunities, regulation and customer awareness across all segments and markets.”

Annual report 2024A · The company itself

“Transition plan for biodiversity (E4-1) Consideration of biodiversity in strategy and business model The EU regulates sustainability criteria for SAF, including biofuel, through the Renewable Energy Directive (RED) and Refuel EU Aviation. Risk of biodiversity loss is explicitly covered within these regulations, which prioritises advanced biofuels derived from specific waste and residues, as well as synthetic aviation fuels.”

Annual report 2024A · The company itself

“The Norwegian Group faces several risks and uncertainties in a global marketplace, which has become increasingly uncertain with volatile energy and fuel prices, inflationary pressure, fluctuations in foreign exchange rates, and potential impacts of disruptions in the global supply chain, rising geopolitical tensions, economic tariffs, and the growing trend of protectionist policies.”

Annual report 2024A · The company itself

“In September, the Swedish government announced it would abolish the country’s aviation tax, effective from July 2025. The move is aimed at reducing all-in fares for travellers, and to stimulate demand.”

Annual report 2024A · The company itself

“Operating in the aviation sector, with a European focus, means that key aspects of the Company’s strategy and approach to sustainability matters is heavily influenced by EU regulation.”

Annual report 2024A · The company itself

“Norwegian operates a single aircraft type fleet with the Boeing 737-800 NG and the Boeing 737 MAX 8. By yearend 2024, the total fleet comprised 86 aircraft, 64 Boeing 737-800 NG aircraft and 22 Boeing 737 MAX 8.”

Annual report 2024A · The company itself

“The increase is predominantly a result of the inclusion of Widerøe, the replacement of older 737-800 NG aircraft with latest technology 737 MAX 8 aircraft, and cost for external wet-lease capacity.”

Annual report 2024A · The company itself

“We faced challenging weather, air traffic control congestions, inflationary pressure across cost items, a weakening local currency in especially the Norwegian and Swedish kroner, and other regulatory measures that put increased pressure on us and other European airlines.”

Annual report 2024A · The company itself

“The current macroeconomic environment is uncertain with volatile energy and fuel prices, inflationary pressure, fluctuations in foreign exchange rates with a weakening local Norwegian is subject to corporate governance reporting requirements according to the Norwegian Accounting Act, section 2-9, the Norwegian Code of Practice for Corporate Governance and the Continuing Obligations of Listed Companies as approved by the Oslo Stock Exchange Oslo Børs.”

Annual report 2024A · The company itself

“We faced challenging weather, air traffic control congestions, inflationary pressure across cost items, a weakening local currency in especially the Norwegian and Swedish kroner, and other regulatory measures that put increased pressure on us and other European airlines.”

Annual report 2024A · The company itself

“The current macroeconomic environment is uncertain with volatile energy and fuel prices, inflationary pressure, fluctuations in foreign exchange rates with a weakening local Norwegian is subject to corporate governance reporting requirements according to the Norwegian Accounting Act, section 2-9, the Norwegian Code of Practice for Corporate Governance and the Continuing Obligations of Listed Companies as approved by the Oslo Stock Exchange Oslo Børs.”

Annual report 2024A · The company itself

“We faced challenging weather, air traffic control congestions, inflationary pressure across cost items, a weakening local currency in especially the Norwegian and Swedish kroner, and other regulatory measures that put increased pressure on us and other European airlines.”

Annual report 2024A · The company itself

“As interest rates and inflation look to have peaked in the Company’s key markets, customers are now generally expected to experience real wage growth and increasing disposable income. Norwegian recorded a 10 percent growth in the number of passengers for 2024, demonstrating that an increasing number of passengers have chosen to fly with Norwegian.”

Annual report 2024A · The company itself

“Demand is rising with some markets reaching and exceeding pre-pandemic levels.”

Annual report 2024A · The company itself

“Future demand is dependent on sustained consumer and business confidence in key markets.”

Annual report 2024A · The company itself

“We faced challenging weather, air traffic control congestions, inflationary pressure across cost items, a weakening local currency in especially the Norwegian and Swedish kroner, and other regulatory measures that put increased pressure on us and other European airlines.”

Annual report 2024A · The company itself

“Delays are always caused by a combination of factors, but we know that we had more than the usual amount of challenging weather conditions, as well as ATC challenges and congestions at many key airports.”

Annual report 2024A · The company itself

“Market opportunities from chronic physical climate change Opportunity Chronic physical climate changes, such as higher temperatures and more frequent heat waves could create new and expanded market opportunities for the Company. Increasing demand for travel to cooler climates could drive higher load factors on return flights to Scandinavia, offering the Company an opportunity to capitalise on this trend and enhance profitability in the medium and long term due to its market leading position in the region.”

Annual report 2024A · The company itself

“The Norwegian Group faces several risks and uncertainties in a global marketplace, which has become increasingly uncertain with volatile energy and fuel prices, inflationary pressure, fluctuations in foreign exchange rates, and potential impacts of disruptions in the global supply chain, rising geopolitical tensions, economic tariffs, and the growing trend of protectionist policies.”

Annual report 2024A · The company itself

“Adverse effects in relation to the onset of pandemics or unforeseen security events may impact the Company’s operations.”

Annual report 2024A · The company itself

“The Company’s strategic goals to reduce the carbon intensity of its jet fleet and introduce fossil-free turbo prop aircraft (see E1-4) are driven in response to a range of drivers including market opportunities, regulation and customer awareness across all segments and markets.”

Annual report 2024A · The company itself

“The following impacts and risks have been identified as material for the Company Impacts associated with end user privacy Negative impact As an airline, the Company collects, uses and stores the personal data received from its passengers. This includes personal information that is legally required for the passengers to board and disembark flights, including, but not limited to personal identity and contact information and information regarding their visa status or other entry requirements in relation to their final destination.”

Annual report 2024A · The company itself

“Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources (MWh) NA- 24,187 6. Total fossil energy consumption from fossil sources (MWh) (calculated as the sum of lines 1 to 5) NA- 9,497,243 Share of fossil sources in total energy consumption (%) NA- 99% 7.”

Annual report 2024A · The company itself

“Value chain workers provide a range of products and services essential to the Company’s operations including ground handling, cleaning services, hotel accommodation, catering and the production of sustainable aviation fuel.”

Annual report 2024A · The company itself

“Ongoing access to finance at an affordable cost of capital is critical in terms of purchasing new and more fuel efficient aircraft.”

Annual report 2024A · The company itself

“Adverse effects in relation to the onset of pandemics or unforeseen security events may impact the Company’s operations.”

Annual report 2024A · The company itself

“The Company is dependent upon suppliers, predominantly from the EU and the US, for the sourcing and provision of aircraft, aviation fuels, components and related aviation services.”

Annual report 2024A · The company itself

“Value chain workers provide a range of products and services essential to the Company’s operations including ground handling, cleaning services, hotel accommodation, catering and the production of sustainable aviation fuel.”

Annual report 2024A · The company itself

“The Group has a leading position in the Nordic market for air travel. The Group operates short-haul point-to-point domestic and cross-border flights within the Nordics, and flights from the Nordics to key destinations in Europe and closely adjacent countries. Widerøe has a leading position for regional air travel, including public service obligation (PSO) routes and commercial routes, between small and medium sized airports across Norway.”

Annual report 2024A · The company itself

“Within the Nordics, the Company is the largest airline group measured on production (ASK) in Norway, and the second largest in Denmark, Sweden, and Finland. The route network is designed to maintain and further strengthen this position.”

Annual report 2024A · The company itself

“Norwegian’s commercial airline activities are operated through local bases in the following countries: Norway, Sweden, Denmark, Finland, Spain, and Latvia. During the first half of 2024, the Company opened a local base in Riga, Latvia.”

Annual report 2024A · The company itself

“Norwegian is the largest low-cost carrier in the Nordic market, the largest airline in Norway, and among the top two largest airlines in the other core markets: Sweden, Denmark, and Finland. It is a leading carrier for domestic air travel, travel between Nordic countries, and for travel to city and beach destinations across Europe and closely adjacent locations.”

Annual report 2024A · The company itself

“Red Handling carries out ground handling services in Spain, Copenhagen- and at Oslo Airport. Red Handling Spain SL provides ground handling services at Alicante Airport (ALC) and Málaga Airport (AGP), while Red Handling Norway carries customer facing services at Oslo Airport (OSL). In the first half of 2024, Red Handling Denmark began customer facing services at Copenhagen Airport (CPH).”

Annual report 2024A · The company itself

“Widerøe Ground Handling operates at 41 airports across Norway, employing approximately 2,000 people. Primarily a supplier to Norwegian and Widerøe, it also serves external customers at most airports.”

Annual report 2024A · The company itself

“The Company has a leading position in the Nordic travel market, operating a broad range of short-haul flights comprising of domestic routes within Norway, Sweden, Denmark and Finland, routes across the Nordic countries and routes from the Nordics to key European and closely adjacent destinations. Additionally, Widerøe operates routes from smaller and medium sized airports domestically in Norway and to a number of destinations in Europe.”

Annual report 2024A · The company itself

“The Group has a leading position in the Nordic market for air travel. The Group operates short-haul point-to-point domestic and cross-border flights within the Nordics, and flights from the Nordics to key destinations in Europe and closely adjacent countries. Widerøe has a leading position for regional air travel, including public service obligation (PSO) routes and commercial routes, between small and medium sized airports across Norway.”

Annual report 2024A · The company itself

“Norwegian’s commercial airline activities are operated through local bases in the following countries: Norway, Sweden, Denmark, Finland, Spain, and Latvia. During the first half of 2024, the Company opened a local base in Riga, Latvia.”

Annual report 2024A · The company itself

“Red Handling carries out ground handling services in Spain, Copenhagen- and at Oslo Airport. Red Handling Spain SL provides ground handling services at Alicante Airport (ALC) and Málaga Airport (AGP), while Red Handling Norway carries customer facing services at Oslo Airport (OSL). In the first half of 2024, Red Handling Denmark began customer facing services at Copenhagen Airport (CPH).”

Annual report 2024A · The company itself

“The Company has a leading position in the Nordic travel market, operating a broad range of short-haul flights comprising of domestic routes within Norway, Sweden, Denmark and Finland, routes across the Nordic countries and routes from the Nordics to key European and closely adjacent destinations. Additionally, Widerøe operates routes from smaller and medium sized airports domestically in Norway and to a number of destinations in Europe.”

Annual report 2024A · The company itself

“Within the Nordics, the Company is the largest airline group measured on production (ASK) in Norway, and the second largest in Denmark, Sweden, and Finland. The route network is designed to maintain and further strengthen this position.”

Annual report 2024A · The company itself