Norse Atlantic Airways reported a second-quarter loss as revenue of $132 million fell short of a $1.65 billion forecast, while EBITDA deepened to negative $8 million. The Oslo-listed carrier’s shares traded near a 52-week low of $0.37 after a $41.7 million bridge loan was repaid in early July.
The airline’s load factor remained high at 97%, but average revenue per passenger rose 20.2% year-over-year to $447, supported by a 24% increase in total revenue per available seat kilometer. Charter and ACMI segment revenue jumped to about $45 million from roughly $6 million a year earlier, while cargo revenue per flight climbed 32% to $7,400.
Operating cash flow turned negative at $29 million for the quarter, and free cash adjusted to $25 million after the bridge loan repayment, leaving the company with a current ratio of 0.36. Additional fuel costs surged 90% year-over-year to $21 million, with fuel expenses 1.9 times higher than in the same period last year.
Norse reduced capacity by 31% per aircraft in the quarter, cutting uneconomic routes to limit losses. Flight disruptions tied to engine issues and traffic congestion cost the airline approximately $2.5 million. Non-fuel unit costs rose 57% year-over-year, while gross profit margin stood at 17.41%.
The company’s June rights issue generated $99 million in net proceeds, with about $50 million retained for general corporate purposes after repaying overdrafts and settling lessor obligations. A $50 million cost-reduction program under Project Falcon is expected to yield savings through the second half of 2026, with full benefits materializing in 2027.
Norse operates a uniform fleet of 12 Boeing 787-9 Dreamliners, with six aircraft under ACMI contracts during the quarter. The airline’s strategic review has advanced into formal discussions with multiple parties under confidentiality agreements, with potential outcomes including a sale, merger, or partnership.
Chief Executive Eivind Sæther described the quarter as challenging, citing high fuel prices, weaker demand, and industry-wide pressures, while noting progress in liquidity and unit revenue improvements. Chief Financial Officer Anders Karlsen highlighted the 24% year-over-year increase in TRASK, attributing it to network optimization.
