Norse Atlantic Airways reported a wider second-quarter loss as soaring fuel costs eroded gains from higher unit revenue, underscoring the strain on long-haul low-cost carriers amid volatile energy markets. The Oslo-listed airline posted a net loss of $70.5 million for Q2 2026, compared with a $4.4 million profit a year earlier, as total revenue declined 35% to $132 million.
Passenger revenue fell 56% to $124.6 million despite a 97% load factor, reflecting a 64% reduction in capacity measured by available seat kilometers. Unit revenue per available seat kilometer rose 24% to a record $6.2, while average revenue per passenger increased 20% to $447. Cargo revenue, however, climbed 32% to $7,400 per flight.
Cost pressures intensified as jet fuel prices surged nearly twofold from a year ago, briefly nearing $250 per barrel in April amid Middle East tensions. Total fuel and emissions expenses fell 27% to $41 million only because of sharply lower capacity, but the airline incurred an additional $21 million in fuel costs compared with Q2 2025. Non-fuel unit costs jumped 57% to $5.4 per available seat kilometer, driven by higher maintenance and operational expenses.
Operational metrics showed a 62% drop in fuel burn to 1,331 flights carrying 345,630 passengers, down from 1,731 flights and 553,086 passengers a year earlier. Network operations generated $87 million in revenue but posted a negative $20.1 million EBITDAR, while the charter and ACMI segment contributed $45 million in revenue and $11.7 million in positive EBITDAR, up sharply from a year ago.
Liquidity improved slightly after a June rights issue raised roughly $100 million, with $50 million used to reduce debt and settle obligations. The company also secured a $52 million senior secured financing agreement at a 15% fixed interest rate, maturing in May 2027. Adjusted cash stood at $25 million at quarter-end, though free cash before a $41.7 million bridge loan repayment was $67 million.
CEO Eivind Sæther described the quarter as "one of the financially worst apart from the pandemic" for the airline industry. The company has initiated a strategic review and launched Project Falcon, a cost-reduction program targeting $50 million in annual savings by 2027. Capacity is slated to expand from four aircraft in Q2 2026 to seven by Q2 2027, with new routes including Europe-Thailand and winter services to New York and Orlando.
IndiGo’s termination of an ACMI agreement disrupted operations earlier in the year, reducing block hours per aircraft to 246 in March before recovering to 406 hours by June, with an estimated $2.5 million negative impact.
