Norse Atlantic ASA: Q3 2024 Another quarter of strong year-on-year passenger growth and reduced unit costs

29 Nov 2024 07:00 CET

Q3 2024 headlines (comparatives for numbers being Q3 2023):

· Revenue increased by 8% to USD 222.0 million
· 514,913 passengers carried, increased by 18%
· ASK increased by 20% to 4,275
· Load factor increased by three percentage points to record heights of 86%
· Revenue of USD 406 per passenger during the quarter, compared to USD 438
last year
· Number of flights operated during the quarter was 1,813, up by 17%
· Strong operational performance as 99.3% of planned flights were completed
during the quarter
· CASK ex fuel reaching lowest-ever level at 3.55 compared to 3.63 last year
· Total cash held at end of quarter was USD 25.3 million
· Revised business strategy being realized as a longer-term ACMI contract is
materializing, and cost reductions are on the way

"The third quarter brought Norse to record heights on revenue, production and
load factors. Available Seat Kilometers was up 20%, the number of flights
increased 17% and passengers were up 18%, all compared to the third quarter of
2023, while load factor increased by three percentage points to 86%, being the
highest level achieved in any quarter of the Company's history.

Revenue also reached new heights as they came in at USD 222.0 million, 8% above
third quarter last year. As already reported by the Company, yields during
Summer have however not been at satisfactory levels, and revenue per passengers
came in at USD 406, compared to USD 438 last year.

From an operational perspective, we are happy to see that the Company's
organization continues to take on growth in a great manner. The Company's fleet
held in own operations grew by two aircraft and hence 20% into the summer
season, being well reflected in ASK growing by 20%. Operational performance was
strong as 99.3% of all planned flights were completed during the quarter.

As already announced, the Company has agreed commercial terms with one of its
lessors to streamline the fleet by redelivering three Boeing 787-8 aircraft in
2024. The transaction is expected to be completed around the end of the fourth
quarter.

Over the last few months, we have been working on a revised business plan
developing ACMI and charter as more of a separate business area, side-by-side
with, and complementary to the operations in our own scheduled network. Norse
therefore is happy to announce that the Company in the form of a detailed letter
of intent in principle has agreed commercial terms with a reputable
international airline for a longer-term ACMI/wet lease agreement for the full
capacity of six aircraft, two aircraft being deployed in February 2025 and
additional four aircraft being deployed in September 2025. The arrangement is
subject to final agreements, mutual corporate approvals and regulatory
approvals. Subject to such regulatory approvals, the expected minimum contract
value is USD 462 million, and with additional upside if aircraft utilization is
above minimum levels. In addition to this longer-term contract, Norse will
continue to assign capacity to seasonal and ad hoc ACMI/charter contracts.

The agreement as contemplated with this tier one international airline confirms
the strong market potential of long-term ACMI/charter, and it will represent a
new era for the Company, now locking in more of the fleet's capacity and revenue
into longer-term contracts, leaving Norse with a business model carrying lower
market risk going forward. Assigning capacities to this longer-term contract
potentially secures significant revenues, but also allows for cost reductions,
and to build a revised and sustainable business model of Norse Atlantic
Airways," said Bjorn Tore Larsen, CEO and Founder of Norse Atlantic Airways.

For further information please see attached Q3 2024 Report and Q3 2024
Presentation.

A video presentation of the Q3 2024 results can be found here:

https://channel.royalcast.com/landingpage/hegnarmedia/20241129_4/

For further inquiries, please contact:

· Investors: Anders Hall Jomaas, CFO, anders.jomaas@flynorse.com
· Media: Christina Carare, Communications Manager,
christina.carare@flynorse.com

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation (MAR) and is subject to the disclosure requirements
pursuant to MAR article 17 and the Norwegian Securities Trading Act section 5
-12.

This stock exchange announcement was published by Christina Carare on the time
and date provided.

More information:
Access the news on Oslo Bors NewsWeb site

633466_Norse_2024_Q3_Report.pdf
633466_Norse_2024_Q3_Presentation.pdf