Norse Atlantic Airways revenue increased by 152% quarter-on-quarter (QoQ) to US$100.1 million in the second quarter of 2023, with an 86% increase in passengers carried to 204,564. Yields have also increase on a revenue per passenger basis, which rose by 89% QoQ to $422. Available Seat Kilometres (ASK) were by 51% QoQ due to planned ramp-up as Norse brought more aircraft into production.
Norse posted the first quarterly positive EBITDAR of $2.2 million since its inception, with June as its first profitable month.Load factors showed strong development during the quarter, with monthly average load factors of 67%, 72% and 82% in April, May and June respectively. The positive development continued post quarter end with an average load factor of 85% in July, said the airline.
Norse generated $19.0 million of cash from operations in the quarter, an increase of $39.8 million QoQ. Total cash held at quarter end was $59.1 million.
Norse made good on its November promise to shareholders that it would perform a repair offering, which it completed during the quarter, raising NOK 150 million gross (US$14.1 million).
Norse upgraded to Euronext Expand at Oslo Stock Exchange, a regulated market, during the quarter
"Q2 marked a significant period of ramping-up as we inaugurated new destinations in the US and Europe,” said CEO, Founder and largest shareholder, Bjørn Tore Larsen. “Additionally, more of our fleet of fuel efficient Boeing 787 Dreamliners were brought into production. By the end of Q2 the airline had more than doubled capacity, with June being our first month of increased production, and notably our first month generating bottom-line profits. Q3 is expected to be our first financial quarter generating a profit. The move to profitability is driven primarily by having all 15 aircraft generating revenue for the first time, from 1st July; 10 of which are operating for Norse and five generating revenue through sublease income.”
Norse also passed a milestone during Q3 surpassing one million booked passengers. “By providing affordable air fares on competitive and established routes to key primary airports and destinations, we allow more people to explore the world and enjoy the experience of long-haul travel whether for leisure or business. Norse will be the first truly low-cost profitable long-haul airline," said Larsen.