Norwegian to purchase 10 of its leased Boeing 737s in cost cutting move
March 4, 2025
In a move to secure its future fleet and save around £14 million per year, Scandinavian low-cost carrier, Norwegian, has agreed to acquire ten Boeing 737-800 aircraft that are currently part of its leased fleet. The transaction is due to close in Q1, 2025.
Representing a key step in securing Norwegian’s future fleet, by providing financial flexibility and reducing overall ownership costs, the move has been negotiated on favourable terms and will “deliver both short and long-term cost savings,” according to the airline’s CEO, Geir Karlsen.
He emphasised the “overall terms achieved are attractive for Norwegian and the transaction fits well with our long-term fleet and ownership strategy.”
Karlsen also noted that the aircraft, which are being acquired from an undisclosed lessor, are an “integral part of Norwegian’s existing fleet” which is comprised exclusively of Boeing aircraft, “and will continue to operate on the airline’s growing route network.”
The transaction will initially be funded through the company’s existing cash reserves, while the airline secures a long-term financing arrangement.
On completing the transaction, Norwegian anticipates a one-time gain of around NOK 570 million. This gain reflects the pricing achieved for the aircraft and the associated reduction in existing lease liabilities. In addition, the transaction is expected to yield recurring annual cost savings, net of financing costs, of approximately NOK 200 million.
In a statement released at the beginning of January, Norwegian confirmed in 2024 it carried over 22.6 million passengers (two million of which were new customers) and maintained its fleet of 86 Boeing 737-800 and 737 MAX 8 aircraft. It also acquired Scandinavia’s largest regional carrier and Norway’s oldest airline, Widerøe in 2024 and saw capacity growth throughout the year with various new routes and destinations.
