Norse Atlantic ASA

Q2 revenue was $132 million, EBITDA was negative $8 million, and load factor was 97%. TRASK increased 24% year over year, average revenue per passenger rose to $447 from $372 last year and $380 in 2024, cargo revenue per flight increased 32% to $7,400, and non-fuel CASK increased 57%. Charter and ACMI revenue increased from approximately $6 million to $45 million, while EBITDAR in that business rose from $2.3 million to $11.7 million. On liquidity, the June rights issue generated approximately $99 million in net proceeds; about $20 million was used to repay the overdraft facility and about $30 million was paid to lessors and suppliers. Operating cash flow was -$29 million, reported free cash was $67 million at quarter end, and adjusted cash after the July bridge-loan repayment was approximately $25 million. Management also said it secured a $52 million senior secured financing agreement. Forward-looking, Norse expects double-digit growth in fares and strong load-factor build in coming quarters, plans increased winter capacity to Thailand, and additional winter capacity to New York and Orlando, while keeping fleet allocation flexible.

Eivind Roald said Q2 was a bad quarter financially, but framed the actions taken as part of a broader transformation toward a sustainable long-haul airline. He emphasized capacity discipline, record unit revenues in the core network, stronger commercial flexibility, and a cost-cutting program that is still rolling through the business. He also highlighted the formal strategic review, saying multiple parties have shown strong interest and that possible outcomes include a sale, merger, or partnership.

Anders Jomaas said the quarter’s weak profitability reflected lower own-network production and elevated fuel prices, despite strong load factor and improved unit revenue metrics. He pointed to $21 million in additional fuel costs, a 1.9x higher average fuel price than last year, and a 62% decline in fuel burn due to lower flying, while noting non-fuel CASK rose 57% because fixed costs were spread over fewer ASK. He also detailed liquidity moves: roughly $99 million net proceeds from the rights issue, $20 million used to repay the overdraft, $30 million paid to lessors and suppliers, operating cash flow of -$29 million, and adjusted cash of about $25 million after the July bridge-loan repayment, alongside the new $52 million senior secured financing agreement.

There was no formal analyst Q&A in the transcript, so the most notable management commentary centered on the operational and strategic questions likely on investors’ minds. Management addressed the IndiGo ACMI exit, saying the operation’s economics changed materially in 2026 and that the returned aircraft create new ACMI, charter, and selective own-network opportunities. They also discussed the strategic review, saying it has advanced into a formal process with strong interest from multiple parties and direct engagement ongoing.