Norwegian Air - Prudent capacity cuts will continue into 2020

Davy Research
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Capacity cuts have been central to the stabilisation of Norwegian’s financial profile. In Q4, its production was down 19% year-on-year and its guidance of declines of 13-15% in 2020 is encouraging (previously: -10%). Norwegian, however, is not the only beneficiary from its pull-back of inefficient capacity as this also helps to prolong the currently favourable supply backdrop in Europe.