Norse Atlantic Airways reported a 24% rise in network revenue per available seat kilometer to 6.2 in the second quarter of 2026, as the airline navigated a 28% increase in jet fuel prices that peaked near $225 per barrel during March and April.
Total revenue fell 35% year-over-year to $132 million, while EBITDAR narrowed to a negative $8.4 million from a positive $3.6 million in the same period of 2025. The company’s own network segment posted an EBITDAR loss of $20 million, though its charter and ACMI business generated $11.7 million in EBITDAR, up from $2.3 million a year earlier. EBIT totaled a negative $27.3 million, compared with a positive $4.4 million in Q2 2025, as earnings before tax reached negative $70.5 million, including a $32.9 million non-cash loss on early convertible bond conversion.
Operational metrics reflected deliberate capacity reductions. The airline operated 1,331 flights in the quarter, down 23% year-over-year, carrying 345,630 passengers, a 38% decline. Load factor remained steady at 97%, matching the prior-year period. Available seat kilometers per aircraft fell 31% versus Q1 2026, with total network capacity dropping from 355 million ASK per aircraft in Q2 2025 to 235 million in Q2 2026.
Fuel, oil and emissions costs totaled $41 million, a 27% decrease from the prior year due to reduced flying, though the average jet fuel price remained 28% higher than in Q1 2026. Revenue per passenger rose 20% to $447, while cargo revenue per flight increased 32% to $7,400. Charter revenue surged 7.4-fold to $45 million, supported by six aircraft operating under ACMI agreements, up from one in Q2 2025. IndiGo’s ACMI contract cancellations led to an estimated $2.5 million in lost revenue.
Liquidity pressures prompted a June 2026 rights issue that raised approximately $100 million in net proceeds. Roughly $50 million was allocated to pay down overdraft facilities and settle lessor and supplier obligations, while $30 million covered negative Q2 cash flow. The airline’s adjusted cash position stood at approximately $25 million at quarter-end.
Norse Atlantic also secured a $52 million senior secured financing agreement in May, issued at 95% of par with a 15% fixed interest rate maturing in May 2027. The facility includes a 3% equity value fee provision for lenders upon a change of control or sale. The company’s Project Falcon initiative targets $50 million in comprehensive cost reductions.
Forward guidance indicates continued capacity discipline. Q3 network capacity is planned down about two-thirds year-over-year, while Q4 capacity is set to decline nearly 30% to expand winter-sun routes to Thailand and add capacity on Europe-New York and Orlando services. Advance bookings for Q3 and Q4 2026 show fares more than 15% higher than the same periods in 2025, with load factor build tracking prior-year levels.
