Norse Atlantic is planning to confirm its summer 2023 schedule soon with a possible routes' expansion, eyeing rising passenger demand. The airline is planning to operate 10 aircraft at the peak of summer 2023 to cash in on the demand with increased operations out of London Gatwick. Besides the airline is also planning to ramp up cabin and flight crew recruitment in 2023, ahead of its expanded summer schedule.
Norse expects load factor and yield to increase across its network from October 2022. Following the decision in September to remove excess capacity on certain US routes and to operate Los Angeles routes on a seasonal basis, Norse is expecting a positive increase in load factors and an uplift in yield across its network during the winter months.
Norse also plans to operate direct point-to-point flights between UK and US, subject to further regulatory approval.
Bjorn Tore Larsen, CEO Norse Atlantic Airways, said: “We have taken swift action to adjust our winter schedule and remove excess capacity from our network in light of lower expected demand, high fuel prices, and rising global inflation. The flexibility provided by our power-by-the-hour aircraft lease agreements has allowed Norse Atlantic to lower cash burn over the winter period in anticipation of ramping up operations for a strong summer 2023 season. We are pleased that bookings for our remaining core winter routes remain strong and that ticket sales have been increasing as we expand our distribution network.”
Norse has currently taken delivery of 13 of the 15 aircraft it has secured on flexible, low-cost, long-term lease arrangements, four of which are currently subleased out, guaranteeing a fixed profit for the term of the sublease agreements; Norse Atlantic is also in negotiations to sublease the fifth aircraft for 18 months.
Showing a steady growth in passenger traffic Norse clearly shows a 33% increase in the September 2022 flight schedule as compared to August 2022. 75% of operated flights arrived within 15 minutes of the scheduled arrival time, marking an improvement of more than four percentage points compared to the previous month. Norse Atlantic carried 62,749 passengers in September, representing a 7% increase compared to the previous month. The load factor for September was 56%, a decrease compared to the preceding month linked to excess capacity on specific routes in the network.
Norse has power-by-the-hour lease agreements across the fleet throughout the winter, which provides aircraft utilisation flexibility at no cost. The airline said that Cargo has continued to perform well month on month and they expect this trend to continue on core routes throughout the winter as the airline becomes more established in certain key markets.