Processing line-by-line and in real-time can be convenient for some applications of line-scanning hyperspectral imaging technology. Some types of processing, like inverse modeling and spectral analysis, can be sensitive to noise. The MNF (minimum noise fraction) transform provides suitable denoising performance, but requires full image availability for the estimation of image and noise statistics. In this work, a modified algorithm is proposed. Incrementally-updated statistics enables the algorithm to denoise the image line-by-line. The denoising performance has been compared to conventional MNF and found to be equal. With a satisfying denoising performance and real-time implementation, the developed algorithm can denoise line-scanned hyperspectral images in real-time. The elimination of waiting time before denoised data are available is an important step towards real-time visualization of processed hyperspectral data. The source code can be found at http://www.github.com/ntnu-bioopt/mnf. This includes an implementation of conventional MNF denoising.