Norwegian Air Shuttle ( NWARF ) ASA (OTC:NWARF) has confirmed plans to acquire ten Boeing Co ( BA ) 737-800 aircraft, currently part of its leased fleet.

The agreement, scheduled to be completed by the close of the first quarter of 2025, is projected to provide considerable advantages for the airline’s operations moving forward.

This deal marks an important move towards securing the company’s future fleet, boosting financial flexibility. The purchase is intended to lower the total cost of ownership.

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“The overall terms achieved are attractive for Norwegian, and the transaction fits well with our long-term fleet and ownership strategy. The aircraft being acquired are an integral part of Norwegian’s existing fleet and will through this deal continue to operate across our attractive and growing route network. This move is expected to deliver both short and long-term cost savings, as well as provide additional flexibility for future fleet planning,” concludes CEO Geir Karlsen.

Norwegian Air will initially finance the purchase with its current cash reserves. Once the acquisition is finalized, the company intends to arrange long-term financing through various financial strategies.

The acquisition will generate a one-time profit for Norwegian, estimated at approximately 570 million Norwegian Krone (~$50.9 million). This gain stems from advantageous aircraft pricing and a reduction in current lease liabilities.

Furthermore, Norwegian expects to achieve annual savings of roughly NOK 200 million, after accounting for financing expenses. Norwegian maintains a fleet of 86 Boeing 737-800 and 737.

Price Action: NWARF shares closed lower by 4.22% at $22.72 on Friday.

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