28 Aug 2024 07:00 CEST

Issuer

Norse Atlantic ASA

· Revenue increased by 65% to USD 164.8 million
· 406,306 passengers carried in Q2 2024, up 99%
· Load factor increased by seven percentage points to 82%
· Revenue of USD 380 per passengers during quarter, compared to USD 425 in Q2
2023
· Continued revenue growth from ACMI and charter
· Number of flights operated during quarter was 1,531, up 89%
· Strong operational performance as 99.5% of planned flights were completed
during the quarter
· Lower unit cost with CASK ex fuel being down 35%
· Total cash held at end of quarter was USD 23.7 million
· Revising business strategy, aiming to secure long-term charters and
significant cost reductions
· Improved credit card terms secured post quarter-end
· Expect to be available on GDS in 2024

"The second quarter was a successful period for Norse from a growth perspective.
Available Seat Kilometres was up 105%, the number of flights increased 89% and
passengers were up 99% compared to the second quarter of 2023, while load factor
increased by seven percentage points to 82%.

As previously guided in the market update released on 2 July, the second quarter
was impacted by lower fare levels across the industry, with revenue per
passenger down 11% compared to the same quarter the prior year. Following a
strong Transatlantic market in summer 2023, many airlines increased capacity for
2024, leading to the softening of fares and impacting all carriers serving that
market.

From end of May we increased our fleet of own operated aircraft from 10 to 12 as
we took delivery of two 787-9s from sublease as planned, which represented a
capacity growth of 20%. This has created further economies of scale across the
business and helped drive unit cost reduction in the second quarter. We expect
to see CASK further decrease in the third quarter.

Recently we agreed improved terms with our credit card payment providers that
had effect from August.

As Norse's fantastic people are doing their utmost to deliver a successful
summer season for our millions of valued customers, we are also evolving our
business strategy to maximize profitability and balance risks. Part of this
improvement has already started with a growing proportion of capacity being
dedicated to ACMI and charter flying. The third quarter is dominated by flying
our own network, but from Q4 and through the winter season we are planning to
fly at least half of our operated capacity on ACMI and charter contracts.

We are making an important improvement to our distribution strategy and will
join the Global Distribution System (GDS), where we expect to be available in
2024. Once on the GDS, our inventory will be available to be sold by corporate
and leisure travel agents globally, significantly increasing the population that
will be able to purchase our great value tickets with Norse. We will remain
steadfast that the cheapest tickets will always be on our website.

The Company has agreed in principle to commercial terms with one of its lessors
to streamline the fleet by redelivering three Boeing 787-8 aircraft in 2024. The
three 787-8s have the shortest lease term remaining and have been subleased by
the Company. The agreement will result in Norse having a uniform, flexible and
cost-efficient fleet of 787-9 aircraft only. The transaction is expected to
result in a significant accounting gain. Completion of the early redelivery is
subject to completion of formal documentation and execution of the aircraft
redeliveries.

Furthermore, the Company is working on a revised business plan that may imply
more of the fleet's capacity and revenue being locked into longerterm contracts,
leaving Norse with a business model carrying lower market risk going forward.
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 materialize. Such business plan may also imply significant cost
reductions. Norse will share further updates from the outcome of the process
later in the fall, " said Bjorn Tore Larsen, CEO and Founder Norse Atlantic
Airways.

For further information please see attached Q2 2024 report and Q2 2024
presentation.

Contacts:

Investor contacts: Anders Hall Jomaas, CFO, Anders.Jomaas@flynorse.com

Media contacts: Philip Allport, Senior Vice President Communications,
media@flynorse.com

This information is subject to the disclosure requirements pursuant to Section 5
-12 the Norwegian Securities Trading Act and the Euronext Growth Rule Book part
II.

Norse Atlantic Airways is an airline that offers affordable fares on long-haul
flights, primarily between Europe and the United States. The company was founded
by CEO and major shareholder Bjørn Tore Larsen in March 2021. Norse has a fleet
of 15 modern, fuel-efficient and more environmentally friendly Boeing 787
Dreamliners that serve destinations including New York, Los Angeles, Las Vegas,
Miami, Orlando, Bangkok, Cape Town, Oslo, Athens, London, Berlin, Rome and
Paris. The company's first flight took off from Oslo to New York on June 14,
2022.


626389_Norse_2024_Q2_Presentation.pdf
626389_Norse_2024_Q2_Report.pdf

Source

Norse Atlantic ASA

Provider

Oslo Børs Newspoint

Company Name

NORSE ATLANTIC ASA

ISIN

NO0012885252

Symbol

NORSE

Market

Euronext Expand