Norse Atlantic reveals first-year financial woes in 2023 figures
Gary NoakesThe UK’s newest transatlantic carrier, Norse Atlantic Airways, has revealed a 2023 loss of $168.6 million despite quadrupling its revenue and significantly increasing flights.
In its first full year of operation, the budget transatlantic carrier saw revenue jump from $104.3 million in 2022 to $439.4 million in 2023, while flight numbers rose from 1,451 to 4,002.
Despite this, the carrier was only able to reduce its losses slightly from 2022’s deficit of $175 million.
The airline’s average fare was $304 compared with $215 the previous year, while ancillary sales per passenger rose from $47 to $83. Average load factors increased from 62% to 74%.
The carrier ended 2023 with cash totalling $54.8 million, compared with $69.7 million a year earlier.
“The first half of the year was marked by limited activity as Norse ramped-up from the end of May and through June, ahead of the peak summer months and onwards," said the airline. "As expected, the first half of 2023 therefore was a loss-making period.”
It added: “The Norse brand has now become more established across international markets, and the airline has gradually increased the booking period into late 2024. Tickets have also become available on a greater number of platforms.”
In November, the airline completed a private placement of new equity capital totalling $55 million. A share offering in January secured another $6.5 million.
Norse also appointed investment bank Seabury Securities to seek “strategic investors” and commercial partners, including other airlines. The carrier said it did not have any fuel hedging in place.
Norse has 15 Boeing 787s, with 10 operational, including one spare. Another five are leased, two of which will re-enter the fleet this summer. The carrier has reduced the number of US destinations it serves from the UK and struck a deal with Nigeria’s Air Peace to fly from Gatwick to Lagos this summer.
’Lessons learnt’
Chief executive Bjorn Tore Larsen said: “When planning ahead for the winter and summer seasons in 2024, Norse has capitalised on lessons learnt in 2023.
"Among our priorities will be careful route selection, capturing unreleased fare potential, increasing load factor and developing further business opportunities within cargo and charter operations."
Larsen added the carrier “will turn more and more towards pursuing opportunities in the charter market as a supplement to own scheduled flights".
However, he stressed: "During the summer season the main focus will remain to serve Norse’s own network."
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