Norse Atlantic Airways has reported its first-ever second-quarter operating profit, boosted by a record-high load factor and passenger growth.
The airline posted an EBIT of $4 million for three three-month period, reversing previous losses, as passenger revenue rose 27% compared to the same quarter in 2024. A 97% load factor and a 36% increase in passengers helped to lift overall performance.
Norse Atlantic reported a net loss of $6 million, narrowing from previous quarters, with a cash balance of $24 million at the end of June. Unit revenue (PRASK) rose 8%, while available seat kilometres (ASK) increased 18%.
During the quarter 11 787-9 aircraft operated on Norse’s own network, while one flew on a long-term lease with IndiGo. Five more aircraft are expected to transfer to IndiGo for aircraft, crew, maintenance and insurance (ACMI) operations, pending regulatory approvals.
By early 2026, Norse plans to reduce its scheduled fleet to six aircraft, with the remainder generating steady income via ACMI, aimed at reducing market exposure and improving cash flow predictability.
Despite some softness in the transatlantic market this summer, the carrier reported strong forward bookings, particularly for its fall and winter services to Asia and Africa. It also renewed a winter charter agreement with P&O Cruises for two additional seasons, transporting cruise passengers between the UK and the Caribbean.
The airline has also mandated Arctic Securities, Pareto Securities, and SpareBank 1 Markets to arrange investor calls beginning August 19, ahead of a planned $30 million senior unsecured convertible bond issue.
The two-year bond, subject to market conditions, will be fully guaranteed by a consortium comprising Songa Capital AS, B T Larsen & Co, and funds managed by Borea Asset Management.
Proceeds from the issue will be used to refinance existing debt and for general corporate purposes, the company said.
Completion of the bond sale is contingent on shareholder approval at an extraordinary general meeting (EGM) scheduled for September 9.
The company said it has already secured irrevocable commitments to vote in favour of the deal from its two largest shareholders, Songa Capital and B T Larsen & Co.