Norse Atlantic reports second quarter earnings

Norse Atlantic Airways reported revenues of $164.8 million in the second quarter of 2024, up 65% compared to the same period last year. It recorded an operating loss of $22.3 million, slightly less of a loss than last year's $26.2 million. The company reported a net loss of $31.9 million, improving from last year's net loss of $35.1 million. ""The company is working on a revised business plan that may imply more of the fleet’s capacity and revenue being locked into longer term contracts, leaving Norse with a business model carrying lower market risk going forward,"" said Norse Atlantic CEO and founder Bjorn Tore Larsen. ""Norse is currently in negotiations with several airlines regarding multi-year contracts for fleet allocation, some of which would have an impact from the end of 2024 if they materialise. Such business plan may also imply significant cost reductions."" The company added it will focus on its most mature and profitable routes in a more ""down-sized network"" during the summer as well as winter period. "" The company may be reliant on securing more financing through debt or equity, or a combination of the two, for it to be able to execute on its revised business plan,"" it said in its report. ""The size of the capital need would be dependent on the details of the revised business plan, the financial outcome of the remainder of the summer season, as well as development in expectations on the future development of market risks such as general demand and jet fuel prices."" Capacity, measured in available seat kilometres, had more than doubled. In addition, it took delivery of two 787-9s from sublease, bringing its operated aircraft from 10 to 12. Its total number of aircraft in its fleet was 15 at the quarter's end. Passenger numbers nearly doubled to 406.3 million, while load factor was up from 75% last year to 82% in the second quarter of 2024. Cost per available seat kilometre was down from 7.39 cents to 5.34 cents. At the end of the quarter, its book equity was a negative $178.2 million and held $23.7 million in cash and cash equivalents as of the quarter's end.