Good morning, everybody. Welcome here to our Q3 presentation. It is now 8:30 A.M. sharp here in Oslo. We welcome all of you. My name is Niels Smedegaard. I am the Chairman of Norwegian. I will, together with the rest of the team, predominantly Geir Karlsen, our Acting CEO and CFO, but also our Head of Investor Relations, Tore Østby, our Communication Head, Sissel Skonhovd. We will take you through the next roughly 45 minutes. The program for this morning is a Q3 presentation by Geir. A lot of things has happened in this quarter. He will take you through those elements. I will take you into the near future, some of the things we have planned for 2020 and beyond. As I said, the quarter here, Q3, has been a pretty busy quarter for us. We have also had some success.
We will enlighten you on the much-discussed joint venture and a number of other things which we've been pleased with. Without further ado, I will hand over to you, Geir, to take us through Q3.
Thank you, Niels. I'll just start by going through some highlights on a big picture, what we are working on as part of the new strategy for the company. I will go through the Focus '19 program a little bit more detail later. As you have probably seen that we are delivering on target, actually a little bit above target. We are also increasing the guiding for this cost reduction program for the full year. Come back to the details on that. We are continuing to optimizing the route network. We have done a massive number of changes to the route network during the year. Also starting now to have an effect into the winter. You will also see that we have taken down the capacity during the coming winter, pretty much compared to last winter.
We are also reviewing and going through the organizational structure for the company, including the AOC structures, et cetera, which is now starting to give result or to show results for the company. We are continuing to work on the capital expenditures going forward. I think we are close to finalize on that process now. Of course, we have some uncertainty still on the MAX situation. We have restructured now the Airbus order. We finally got an agreement on this joint venture. We are trying to create room to align the deliveries going forward with the actual need that we have into our network. We are also continuing the fleet renewal program, meaning that we are selling off assets. These will then be replaced. This is first of all on short haul, as you know. These aircraft will then be replaced with the MAXs.
Ideally, we would have liked to sell off more of the NGs as for today. We have to be a little bit careful, then looking at when the MAXs are back in the air. To Q3, and the highlights there. We are seeing 8% revenue growth compared to the same quarter last year. As I said, on Focus '19, NOK 827 million actual for the third quarter. Taking it up to close to or in the area NOK 1.8 billion for the full year-to-date. EBITDAR is improved by 49% year-on-year, up to NOK 4.4 billion. I think this is actually the best EBITDAR in the company's history, at least so far. Again, to create financial headroom as we have been working on quite a lot during the year. We sold off the Bank Norwegian shares earlier.
We did a refinancing of the two maturing bonds. One was maturing by the end of this year and the other one next year. They are pushed two years out, approximately. We have entered into a joint venture with the CCB Leasing, China Construction Bank. Come back to the details on that. We have further reduced the CapEx during the quarter for the 2019 as a whole. Most of that is related to the MAX situation and the fact that we are not planning or we are not expecting any deliveries of these aircraft this quarter, meaning the fourth quarter. We are continuing to sell off aircraft, as I said, creating a net liquidity effect of approximately $50 million. That process is ongoing and will continue. Going through the capacity. We have 3% growth in capacity compared to same quarter last year.
What we are seeing in general now for the company is that the load factors are developing nicely and so is the yield. Looking at the booking curves going forward, that trend looks to continue on both those factors. Looking at the total network as for today. The U.S. is now the largest market by revenue generating and has been passing Norway. Interestingly now in September, for example, long haul is now pretty much exactly the same on capacity as short haul in seat kilometers. That is an interesting observation as such. Looking at the network, as you have probably seen during the last couple of weeks, we have now established a relationship with JetBlue, and we are in the process now of linking the IT systems together, also to develop an interlining agreement.
We expect this to come into action, where you can then book tickets on both airlines with a pass-through during, let's call it, first and into the second quarter next year. Firmly believe that this will absolutely give us traffic into a long-haul business, and we will obviously then also be able to offer flexibility on our longer passengers into the domestic market in the U.S. Also interesting to see that the easyJet cooperation is starting to develop further, and easyJet passengers is now filling up more than a Dreamliner a day out of London Gatwick. Financials. Looking at the third quarter, NOK 14.4 billion in revenues. It's an 8% increase in revenues compared to last quarter, mainly driven by increase in unit revenue. Still is also increasing. Looking at the cost side, on the technical side, you can see there is a cost of NOK 748 million.
That is lower than I think many of you expected. We have a one-off effect there of approximately NOK 300 million. That is a part of a, let's call it, a negotiation with vendors as such, taking us down to an EBITA of NOK 4.66 billion, down to an EBT of NOK 2.2 billion. IFRS effect here, the IFRS 16 effect, is NOK 285 million. Ex-IFRS, EBT would have been close to NOK 2.5 billion. When it comes to the MAX effect, I think last quarter we guided on NOK 700 million on the basis that the MAXs should be back in the air by, let's say, mid-October. As per Q3, that amount is approximately NOK 800 million, and we expect that the total net loss on the MAX situation by year-end will be in the area of NOK 1 billion.
These figures are year-to-date included in the financial as such, meaning close to NOK 800 million in loss. Looking at the year-to-date figures, NOK 34.6 billion, 13% revenue increase compared to last year. On handling charges especially, I would like to mention that due to the issues on the MAXs and also on the 787s, we have booked care and compensation cost, meaning EU 261, in the area of NOK 675 million actual by the end of the third quarter. EBITA of NOK 6.1 Billion, up from NOK 4.9 billion last year, so pretty nice increase there. An EBT of NOK 337. Worth to mention that in last year you had under net financial items, this non-cash event relating to the Bank Norwegian shares, which gave us a positive of NOK 2 billion. As such, that should be taken into consideration when you are comparing the two years.
IFRS effect is approximately NOK 650 million, ex-IFRS, the EBT would have been close to NOK 1 billion profit. Over to the revenue side. The RASK is up 3%, as I said. Little bit help on the currency side, on the income side. The other way around on the cost side, obviously. That is on 3% increased average sector length. Ancillary and cargo is still developing in the right way, this is one of the areas that we are focusing a lot on these days in order for that to even improve more than what it shows as per today. #Focus2019, NOK 827 million. As I said, we had a one-off effect of NOK 300 million, as I mentioned in the P&L. That is not included in these #Focus2019 numbers. That comes in addition to that as such.
We are guiding now on NOK 2.3 billion for the year with the aim of maybe being able to surprise on the upside when we are here in February. This is a massive team effort throughout the whole organization, there's a lot of hard work behind this hard work will continue throughout the year, not at least into next year, by the way. Looking at the cost side, it's still improving, meaning it's coming down. 6% lower unit cost this quarter compared to last year, same quarter, 9% in constant currency. The strong dollar, strong euro is definitely having an effect here, the underlying cost level in Norwegian is coming down, that we will do whatever we can in order for that trend to continue into 2020. I think there's a lot of capacity still to take out for the quarters to come.
If you look at a little bit more detailed on the cost side, you can see that everything is moving in the right direction. Except the depreciation, which is only currency related. You have also handling cost that is developing in the wrong direction. That is all about the care and compensation that we have been paying out to our passengers as a result of the situations both on the 787s and on the MAXs. Underlying, the cost development is having a good trend. Balance sheet. You can see that the asset is going up from NOK 69 to NOK 71.9. Most of that, or a lot of that, is related to currency. We have taken one delivery of a 787 during the quarter, but we also sold two 737s. It's all about the currency, really.
The currency is up 6.7% on the dollar against the NOK in Q3, 4.6% year-to-date. Investment. That is the part of the Bank Norwegian shares that we still have, that will be then sold during the current quarter. Equity is NOK 5.2 billion as for today. You can also see that the current debt is going down due to the fact that we have refinanced the two bonds, which is now classified as long-term debt. You can see, we are still pretty high at receivables. That relates to partly the credit card acquirers. We are in the process of onboarding a couple of new acquirers these days, which will be very helpful now through the winter and into the peak sale season that we will enter during the next couple of months. Cash flow. You can see the traffic liabilities is coming down.
That is pretty normal due to the fact that we have a lot of passengers traveling through the summer. That is a higher portion than what we're actually selling. Pretty seasonal, very normal. We have net investing activities of NOK 2.8 billion positive. That relates to the sale of the 737s. It relates to the sale of the Bank Norwegian shares and so on. It's a positive figure. Principal repayments. Part of that is repayment of debt on aircrafts sold. It's also an IFRS effect where we are paying down on the lease debt of close to NOK 900 million, and then the regular one, close to NOK 600 million in repayment of debt. On the financing cost, IFRS effect there this quarter is in the area of NOK 530 million. It takes us down to net changes of NOK 1.2 billion by the end of the quarter.
Outlook. Looking at the fleet plan. You have seen during at least two, three quarters, we have taken down the growth. We are guiding growth by the end of 2019 at 0%. Last quarter, we said 0%-5%, it's continuing to come down. We expect by the end of this year to have 156 aircrafts in our fleet, and then it will increase by nine during next year. We're expecting to take four 787s next year. The fifth one will be pushed out in time. We are expecting to take 16 MAXs. That's more or less the 16 MAXs that were scheduled to deliver this year. We are planning the winter season without the MAXs being up in the air again. By that we mean, we think that we will, at the earliest, see MAXs flying during late March as it looks now.
That might change, obviously. We have sold quite a few aircraft during the year. Three of these will be delivered in Q1 2020, and then we have eight redeliveries of leased aircraft during 2020. All in all, we will increase by nine aircraft. We have also taken down the CapEx, as you can see on the left top side, in 2019 from NOK 1.2 billion-NOK 1 billion. We have a slight increase next year due to the fact that a lot of the MAXs will be pushed into next year. I think that's on the fleet side. On the environmental side. This is a high focus in Norwegian and has been for a while. As you know, we have an average fleet age of less than four years in our fleet. We are definitely one of the most competitive ones on fuel burn.
We are burning in the area of 20% less than the world average. Even more than that on long haul. On CO2 emissions per passengers, we are very competitive. If we compare ourselves with, let's call it a local competitor, we are close to 30% lower than them, which is good. We are also running several projects these days on the environmental side. As you can see on the right-hand side there. One of them is what we call green landings, where we are cooperating with airports, especially Gardermoen in Oslo, where we are cooperating with the aim of then reducing the fuel burn and making landings more efficient with regards to CO2 emissions. On the joint venture. We have been guiding on this now for a year, and finally we can say that we have a concluded deal, which is really nice.
This is a relationship that we have been developing over the last year. We have already done two transactions more on the financing side with the same company. This is now a joint venture that is established. The board is set with directors, and this will be a joint venture that will own, to start with at least, 27 aircraft, all Airbuses. The first delivery is scheduled to come already in January next year. Norwegian will have a 30% ownership in this company. CCB will finance 100% of all the aircraft, including PDPs. By that, Norwegian will have a short-term cash effect. When we take delivery of these aircraft into Norwegian, we will turn around and sell it into the JV. This JV will have a marketing responsibility, meaning that we will place these aircraft into the market together.
By this, we have created a vehicle that gives us flexibility. We could sell, and I think we will sell more aircraft into this company. We can even lease aircraft from this company into Norwegian, which is not the plan A, though, but at least it gives us flexibility. I think it is 27 aircraft as per today. I think that this will just be a start of a long-lasting strategic relationship with CCB. On CapEx, we are taking out of our own balance sheet, close to $1.5 billion by doing this. This will also take care of all the Airbus deliveries up to the end of 2023. A little bit on guiding. As I said, we are guiding ASK to be close to 0% in 2019. The unit cost remains unchanged at NOK 31, NOK 0.31.
We have to increase it slightly on including fuel due to the fuel cost and not at least on the currency side. #Focus2019, NOK 2.3 billion for the year, up from NOK 2 billion. EBITDAR, due to the headwind on currency and fuel, we are guiding that now down to NOK 6.5 billion for the full year. Just to summarize, what we have done during the last quarters, very few quarters or through the year. #Focus2019 is delivering NOK 1.8 billion year to date, NOK 2.3 billion for the full year. We have restructured most of our forward deliveries. We have reduced CapEx by NOK 22 billion, isolated to 2019 and 2020. We have sold off the Bank Norwegian shares. The remaining portion of that liquidity-wise will come in the fourth quarter. We have refinanced the bond of NOK 3.4 billion in total with two years.
We have signed an LOI with JetBlue, a relationship that will start up during the first half of 2020. Firm believer of that one. We have sold off 17 aircraft during the year, giving us NOK 1.6 billion in liquidity. Finally, the joint venture will give us a vehicle going forward with a lot of flexibility, and it takes down the CapEx. All this is as part of giving us a financial headroom for the next 12-24 months in order for us to focus on what is the absolute most important in this company, and that is to turn around the underlying business and the route network and to make sure that Norwegian on a 12 months rolling basis will be profitable. By that, Niels, I will give the word over to you.
Thank you, Geir. As you have just heard, we have been quite busy, actually. Geir and his team has been quite busy throughout the third quarter, also giving the best ever result for Norwegian. I would like to use this opportunity to thank Geir and his team and the rest of the employees in Norwegian for their tremendous effort. It has really been hard work, I have to say the hard work is not over. We need to take pretty bold moves in order to realize the full earnings potential of Norwegian. The efforts which has been done with #Focus2019 will be reinforced by some pretty bold action for Norwegian in the coming period.
We're not just talking about a one-year effort, we are talking about a transformational journey we will embark on, that is not building on just some quick ideas, we have systematically assessed the potential in Norwegian. We have during latter part of July, all of August and September, invited in two, three handfuls of global airline experts, having seen a wide range of airlines all over the world and have assisted them through the years, matched that team up with 30 of our own specialists in Norwegian, they have deep dived into all of the areas of our company. The good news is that we have found significant opportunities in order to improve the company. This is not to blame anybody or say it's wrong what has been done in the past. Norwegian has been through a tremendous growth period.
I think it's a unique story which has been created in Norwegian, but we are not the first airline or the first company for that matter, who's forced to look at itself in a different matter when you've had growth like this. We have, based on all of this work, lots of discussions, together created a plan we call the Program NEXT. As I said, this is a transformational program, which will last at least two to three years. This is not driven by consultants. It is driven by the management team of Norwegian, supported by the board. We are starting right now, actually, we have started a couple of weeks ago with the implementation of this program, and we are committed to make the necessary changes.
It'll be a tough road for us, and it will be a different Norwegian coming out of this, but it will be a stronger Norwegian at the end of the day. What we are doing is we are changing the growth focus as has been demonstrated in the incredible years of 2015, 2016, 2017, and 2018 with these huge growth rates. The company realized end of last year that it needed to change the direction, focus on profitability. They implemented Focus 2019 with all of the significant effects you've just heard about. Those were not to decline the effort, but those were the low-hanging fruits. What we now do is to go into the engine room of the company, and we will have to fundamentally change how we work together, how we run and operate Norwegian. There are three headlines.
There is bold moves on the network, and Geir has already alluded to some of the things which are impacting this year. I'll come back to the size of these moves. It is to drive best-in-class RASK, focus on the top line, and there's a number of things we can do better there. Of course, we have to continue to focus really hard on the cost side of the company. This program has a significant potential, and we have quantified that potential and are sharing it here today with you. We are at the end of 2021, targeting a run rate of at least NOK 4 billion in run rate end of that year. A significant impact, and it's coming on top of what was just shown here on Focus 2019.
It'll be on top of the NOK 2.3 billion we aim to deliver at the end of this year. It will come both from the top line, it'll come from the cost side and a combination and doing things smarter. We will, of course, share much more around this program when we are back here in February with the Q4 result for 2019. Do not go now back home and throw in NOK 4 billion for 2020. We will help you and assist you as we develop this plan and the timing of the various elements when we come back in February. Just to shed a little bit more light on what are we talking about here when we talk bold moves. We'll continue to reassess and optimize and fortify our network.
The things we have in pipeline, the decisions we have made or are about to make will impact our RASK with 10%. We will move it 10% down for the year 2020. It'll be, as you can see, a completely different scenario for Norwegian as what you have been used to. This will have, of course, consequences throughout the company. We'll also implement new digital tools and capabilities into the organization in order to improve our revenue. We think we can, and we will take near-term actions both on how we price our products, the inventory, how we handle that, and the product itself. We are, for various reasons, leaving Norwegian kroner or dollars or euros on the table right now, and we need to invest not only in aircraft but also in the right systems within Norwegian to optimize our top line.
We'll, of course, also focus hard on the operation, both for our customers, our passengers, so they get a better product, higher reliability, but also to drive off cost. On-time performance will continue to be a measure, but also how we schedule our flights, the tail numbers, how we pair it with the crew, all of those elements will be part of how we will drive out costs. We need a better cooperation between the various areas within Norwegian. We have been geared to managing this incredible growth for a number of years, and that tends to create decisions in silos that you are under such pressure to get places to fly your aircraft, crew to manage, maintenance, catering, et cetera.
We have not always been as good and effective in coordinating between the various departments what we are doing, and we believe there is a huge potential to drive out cost if we do things a little bit differently. Then, of course, we need to rightsize our cost base like any other company. The main thrust here will be on the procurement side by professionalizing our vendor management and again, improve the internal collaboration and processes. We think we can drive out significant cost. This is not something where we are targeting just one group or audience or stakeholder. This will be everybody associated with Norwegian as a partner, as a supplier. It will be administration. It will be throughout the company.
We will have to take the necessary actions in order to improve the profitability of Norwegian and release this earnings potential we do have in the company. Of course, also, a very important point, strengthen the liquidity of the company. That was just a little bit of what we have started and what we will spend a tremendous amount of effort on in the years to come. We are committed to this change in the board. We have discussed with management. There is total alignment, even though there will be tough decisions, and we will be criticized for closing down routes or doing other things, but it is necessary for us, and there is no way around it. Again, total commitment to this. We look forward to updating you again in February.
We will give indications what it means for 2020 and some of the steps and actions we have been taking and what we will take as we go forward. This concludes our presentation, and we will now hand over to Q&A, and I think, Tore, you will manage this session.
Thank you, Niels. We open up for Q&A. Since this is a live webcast, we will ask you to wait for the mic, please limit the questions to two per person. Thanks. Kenneth?
Thank you. Kenneth Sivertsen from Pareto. Two questions is difficult to keep it, there's many questions to put it up. We'll start with, obviously, Q2 was great and better than expected. Does it include other one-off items and maintenance you mentioned? FX, have you taken a gain there? That's the first question. Second, if you could provide us a split on the investment that adds up to some NOK 2.7 billion. I just want to know what that includes. Let's leave it, my two.
Go ahead. The answer on the first question is no, there's no more one-offs as such. On the NOK 2.7, well, we can take it offline, but I'm happy to do it now. It's related to one 787, NOK 749 million. It's two sold 737s, which is NOK 457 million. It's the sale of the Bank Norwegian shares, NOK 1.3 billion, and it's PDP of NOK half a billion.
Sture.
Carl Zunne, Norne Securities. Next week, Boeing's CEO will be dragged before Congress. His lobbyists and lawyers have been avoiding that for two years. They said that, "Just wait until everything comes on the table, and then we'll see we're clean." Now all the messages are coming out. They're not clean. In this position, you are letting go of your Airbuses. There's a lack of planes in the U.S. Southwest Airlines that use only 737s, he says, "I don't know what to do now." American Airlines that also uses Dreamliners, they have a massive need of planes. Why can't you now sell planes to? You got four Dreamliners coming next year. Why don't you sell them to American Airlines and realize a profit? You got far too many planes. You're the least profitable airline in the planet, almost.
The bold action is right in front of you. There's never going to be a better market to sell Boeing planes in the U.S. You haven't mentioned it with one word yet.
Well, I don't think it's that easy to sell off, especially 787s. This is four aircraft. We were scheduled to take five aircraft next year. We will take delivery of the four. The last one is not implemented yet, meaning that they haven't started to build it. The four others, they have started to build it. We have our own seat configuration. If we are going to sell this to someone else, it needs to be reconfigurated. The market today is working in a way that in order to reconfigurate an aircraft like that, it will take 18 to 24 months. It's extremely expensive. That is part of the situation that the complexity, especially on the long-haul aircraft. If you're talking short haul, it's a completely different story.
Also the market for selling off long-haul aircraft is much less liquid than on short haul. It's a little bit more complex than just turning around and selling off four of these aircraft.
If you have a buyer at a profit, give us a call. We are, I think, in the same place as you, but as Geir says, it is not that easy for the long-haul planes. Of course, we keep a very close eye on this.
Sigurd Aune. I have a question about joint venture with China, Chinese bank. Do you think it's a risk to face some restriction in USA during the trade war when you cooperate with China? One question about JetBlue. Will it be possible to buy JetBlue tickets with cash points?
The first question, we don't anticipate that this will be a problem for us regarding the trade war. This is aircraft coming out of Airbus, first of all, and we are still towards Airbus. We are still the buyer, and this joint venture, it will be an Irish company, and then it will be just as a company that is having aircraft and being able to lease them out, could go to the Chinese market, but could also go to the international market as such.
Casper?
Casper. Sorry. First of all, now we will just develop an interlining agreement, meaning that you will be able to book tickets with JetBlue or Norwegian both ways. We haven't got into the discussion yet on how to connect the reward program into this interlining agreement. We'll have to come back to that.
We have a question from Ole Martin Westgaard at DNB over the web. Can you comment more on the equity gain on the JV and the impact on liquidity?
Well, as we are saying in the press release, we have a capital expenditure effect in the area of $1.5 billion, that includes an equity effect. We are not guiding on the equity effect per aircraft, we are by saying that we are selling these aircraft with a profit. For a few reasons, we are not able to guide on the exact effect. I think the liquidity effect, first of all, in the short term, will be the fact that CCB will come in through the JV and finance, PDP finance, as we call it, all these deliveries. The liquidity effect to start with will be the fact that we will get back the liquidity that we have already paid into Airbus.
At delivery of each aircraft, we will sell it into the JV and then realize the profits as such, aircraft by aircraft over time.
On the long-haul side, the growth to the U.S. seems impressive. Could you tell us something about profitability? It seems to me from the outside that you have some real potential here, as alluded to earlier. How is 2019 turning out, and how would you think on long-haul business going forward?
Well, you know that we are not guiding on what you're asking for here. What we can say is that if you are looking at the RASK development, it is definitely moving in the right direction. That is also what we are seeing now for the next coming months on both RASK and yield. I think we could also say that if we compare the long-haul business to the short-haul business, relatively spoken, long haul is now developing better. I think that's what we can say.
Thank you. One final from me. With the growth you are targeting, minus 10% next year, it should have some impact on the yields. I think the number of seats added to the Nordic market in the winters will be negative now. Obviously, negative growth, less seats, perhaps prices should come up, but could you tell us something about your forward bookings now?
Well, I can say the forward bookings are looking good. They are better than last year. I think the fact that we are guiding RASK down, and despite the fact that we are actually taking delivery of four Dreamliners, is also due to the fact that we do expect, especially on the long-haul side, on this inspection regime that we have on the Dreamliners, that we will have aircraft parked throughout the year. We will have seven Dreamliners parked through the winter. That is part of a, let's call it a deal that we have with Rolls-Royce. We have been trying to stagger the maintenance cycles into the winter when we don't have that need for that capacity compared to the summer.
I think also on the MAX side, it's difficult to anticipate today when these MAXs are coming back again, and we have to be very careful in that situation on how many aircraft we are selling off. We will continue to sell off a few more NGs in the short term. That is a puzzle that we are trying to put together. I think the easy part here is to take down the capacity by just taking down capacity. The challenging part is to make sure that we can take out the cost side associated with that capacity. That's the real challenge, both into this winter and definitely into 2020.
Hans-Jørgen Elnæs, Widerøe. The credit acquirers still sit on a significant part in our cash flow. Can you give some color on the negotiation going forward on this situation?
Well, I think as we have said a few times, also we went into quite much detail on this when we refinanced the two bonds. We have since February this year, been paying down in the area of 4.5 to 5 billion NOK to these credit card acquirers. As for today, we have a high holdback. At the same time, this kind of bottomed out during the summer as we see it. We have already just now, we have been onboarding new credit card acquirers, we are in the process of onboarding two new credit card acquirers now towards the Christmas season and into the winter, when we have the peak sale. The credit card acquirers, that has been an issue for Norwegian. It still is an issue. We need more capacity. We will get more capacity going forward.
That is obviously an area that we are putting a lot of efforts into in order to create more capacity. We have a need for credit card capacity in the winter in the area of one billion NOK, less than half during the summer. This is very critical for us. We are seeing a light in the tunnel and we have just recently signed up new agreements with new credit card acquirers. When we are coming out of third quarter with, I would say, relatively good results, not good enough, but it's relatively good. This will also help that situation.
That said, we are planning now, let's say for the quarters to come, on the basis that we will still have higher holdbacks than what we have had historically, and that is part of the plan and also part of the reason that we are freeing up liquidity by the message that we went through. Obviously, to look around and what happened with Thomas Cook and others doesn't help that situation. The only thing we can do now is to make sure that we are getting into a forecastable situation and then things will solve itself.
A question from James Hollins, BNP Paribas. Have you hedged any fuel for 2020 yet? The second question, can you confirm that the maintenance cost reduction in Q3 is due to a one-off, and how will that be going forward?
Well, the last one first. The one-off that we are seeing, well, the cost reduction is a one-off. I guided on approximately NOK 300 million. It's a one-off. The guiding as such, let's say the guiding going forward is what we have guided on now on CASK. What was the other question, Tore?
Hedge on-
Oh, sorry. Yeah. No, today we are not hedged for 2020. We are very low hedged towards the end of the year. We are considering this very carefully these days. Historically, Norwegian has been hedging, let's say up to 50% of the capacity 12 months going forward. Today you can hedge for 2020 in the area of $605, $610 a ton. This is something we are looking very carefully into. We have hedging lines and we can do it. Looking at our competitors, most of them are hedged in the high 600s with a high percentage. I think you might see us start to hedge now for 2020, at least a portion of it.
The final question from the web, from Jaakko Tyrväinen of SEB. How are we cutting winter season capacity between long haul and short haul, and which areas of the network will be most affected?
I don't think we want to get into this now. Of course, the teams are working hard on this, and we'll make the appropriate choices here. As we make those decisions, we'll communicate it to the surrounding world. Until we are firm on that, we will not guide on any of this here.
If there are no more questions, we will thank you all for coming here, and hope to see you in February again.
Thank you.