Norse Atlantic records loss in Q1 but anticipates strong forward bookings

Norse Atlantic reported a revenue of $40 million with a decrease of 14% amounting to $6 million from Q4 of 2022, citing reduced capacity and revenue per passenger, partly compensated by increased aircraft sublease revenue. The airline recently released its financial statement for Q1 of 2023. The airline reported net accounting loss of $71 million, impacted by $19 million non-cash lease accounting cost, and down by $4 million or 6% from prior quarter due to lower revenues. Cashflow from operations was negative $22 million in Q1.

The airline collected a total cash of $42 million at the end of Q1 of 2023 which grew to almost $50 million towards the end of May 2023. The airline performed a repair offering, which it completed post-quarter end, raising NOK 150 million gross.

Norse upgraded to Euronext Expand Oslo Stock Exchange, a regulated market towards the end of quarter.

The airline carried 110,263 passengers in Q1 of 2023 with a load factor of 54%. The airline recorded an increased tread in load factor with 67% in April and over 70% estimated for May and expected to significantly increase from June and through the summer.

Commenting on a difficult Q1, Bjørn Tore Larsen, Founder and CEO, Norse Atlantic said: “We knew Q1 2023 would be challenging financially as we had limited flying during that period, which is traditionally a lower demand season, however, we focused our efforts on ensuring that everything was in place for what promises to be a great summer ahead.”

Norse will serve 12 destinations in summer 2023 season which includes five European connected to seven US cities and plans to add new routes to Thailand, Barbados and Jamaica towards winter.

Norse Atlantic commenced routes on UK AOC and its inaugural route to Paris towards the end of Q1. The airline’s main focus was working towards the planned ramp-up during June, more than doubling production, so that all aircraft are generating revenue by July 1.

"Demand for transatlantic travel is strong. We are looking forward to the coming peak summer season as that will be the first time, we have all aircraft generating revenue, and we maintain our goal of delivering the lowest cost as well as the highest ancillary revenue per passenger in the industry,” commented Larsen while anticipating strong future recovery.

The airline is all set to become the largest transatlantic operator from London Gatwick from July.