Norse Atlantic Airways has slashed its first-quarter losses, bringing down its operating loss for the period by 90% and its net loss by more than 75%.
It is aiming to deliver full-year profitability for 2025 following a revision of its business model, under which it intends to offset seasonal fluctuations by leasing part of its fleet of 12 Boeing 787-9s.
Norse recently agreed to damp-lease up to six 787s – half of its fleet – to Indian budget carrier IndiGo, the first of which commenced services in March.
Under the agreement Norse will still have 11 787s flying for its own scheduled network during the summer before the remaining jets for IndiGo are transferred over the second half and into early 2026.
“We believe this represents a good balance between securing year-round fixed revenue from [wet-lease] and maximising the possibilities in our scheduled network,” says chief executive Bjorn Tore Larsen.
Norse generated $125 million in revenues for the quarter, of which half was derived from passenger fares and ancillaries.
IndiGo’s damp-lease and other charter revenues contributed $28.8 million, with $3.6 million sourced from cargo.
Norse also benefited from a on-off gain of $28.7 million from the early redelivery of its three 787-8s.
All three aircraft had been subleased to Spain’s Air Europa but Norse opted to phase out the variant last year, leaving it with the 12 787-9s.
But chief financial officer Anders Jomaas, speaking during a first-quarter briefing on 21 May, pointed out: “Even when you disregard the one-time gain on redelivery of the -8 aircraft…this is [a revenue] improvement of $18 million.”
Jomaas says the carrier has recorded a “massive” increase in financial performance, attributing it not only to the lease activity but also increased passenger numbers and higher fares.
As part of the revised business plan, the company
Larsen says Norse is still wary of uncertainties. “We don’t want to underplay that part of the picture. This is definitely a volatile market,” he says.
“But I think we’ve never see such a strong outlook from our side as we’re doing now. Despite seeing pressure on prices, we’re seeing that compensated by load factors.”
Norse generated an average load factor of 95% over the quarter, a figure it claims is “world-leading”.
It states that the transition to the ‘dual-strategy’ business model will enable it to reduce the overall cost of operating a “more focused” scheduled network.
Norse says it is working to optimise crew bases and crew utilisation, while it expects a gradual impact from cost-saving measures from the second quarter. It forecasts annual cost reductions and efficiency gains of $40 million from 2026.
