Norse Atlantic Airways Reports First Quarter 2024 Net Loss of $62.8 Million
- Joe Breitfeller
- May 14, 2024
- 3 min read
Norse Atlantic Airways has reported first quarter 2024 net loss of $62.8 million on a 97 percent year-over-year increase in revenue to $78.2 million. At March 31, 2023, the carrier had 33.2 million in cash.
On Tuesday (May 14, 2024) Norse Atlantic Airways ASA reported their first quarter financial results for the period ending March 31, 2024. The carrier reported a first quarter net loss of $62.8 million on a year-over-year increase in revenue of 97 percent to $78.2 million. Norse Atlantic’s first quarter total revenue per available seat kilometer (TRASK) was 4.52 cents, up from 3.52 cents in Q1 2023, while cost per available seat kilometer (CASK) was 4.05 cents, down from 5.30 cents during the same period last year. Costs excluding fuel (CASK-ex) totaled 5.14 cents, down 28 percent compared to the first quarter of 2023.
In Tuesday’s announcement, Norse Atlantic Airways’ Founder and CEO, Bjørn Tore Larsen, said,
“The first quarter has shown major improvement on all metrics compared to the first quarter of the previous year. ASK was up about 72% year-on-year, and load factors increased by 19 percentage points with improved revenues per passenger. Norse Atlantic continued to demonstrate robust operational excellence as 100 % of the quarter’s scheduled planned flights were completed as planned.
“This winter we have developed seasonal strategies, with more emphasis on holiday destinations and charters. Norse Atlantic managed a record high of 107 charter flights during the quarter. We will refine this strategy further for next winter, with several longer-term contracts secured or under negotiation.
“We are looking forward to the busiest summer season so far in Norse Atlantic´s short history. During the summer the fleet of aircraft operated in Norse’s own network increases from 10 to 12 aircraft, representing a capacity growth of 20%.
“Norse will continue to focus on careful and profitable growth. We are happy to see that our footprint in the market has increased as the network expands to include Athens this summer, Las Vegas from the fall, and a new continent as Cape Town joins the network in the winter. Our goal is to see CASK continuously decreasing year-on- year for each quarter. Norse remains steadfast in its commitment to achieve the lowest CASK in the Transatlantic market. Norse is on a path towards year-round profitability, and a successful summer 2024 is the next important stepping-stone on that journey.”
During the period, Norse carried 201,462 passengers, up 83 percent compared to the same period last year, with an average load factor increase of 19 points to 73 percent. At the end of the first quarter, the carrier had cash totaling $33.2 million, and following the quarter, the company secured a $20 million revolving credit facility, providing an additional liquidity buffer before the busy summer season. To view a video presentation of Norse Atlantic Airways’ First Quarter 2024 financial results, please click here.
Founded in March 2021 by major shareholder and CEO Bjørn Tore Larsen, Norse Atlantic Airways offers affordable transatlantic and European flights. The airline’s first flight between Oslo and the U.S. departed on June 14, 2022. The company’s head office is located in Arendal, Norway, and Norse has a second office in London. Norse has a fleet of 15 modern, fuel-efficient Boeing 787-9 Dreamliners. The carrier offers service to New York, Los Angeles, Las Vegas, Orlando, Miami, Bangkok, Oslo, Athens, London, Berlin, Rome, Paris and Cape Town.
Source: Norse Atlantic Airways/Cision
