· Norse remained in early start-up phase in Q1 and the moderate flying activity
during the seasonally low winter months impacted the quarterly earnings
· Norse commenced flights on Norse's UK AOC and had its inaugural flight from
Paris at the end of Q1
· Final summer 2023 routes made available for sale during Q1
· Main focus has been working towards the planned ramp-up during June, more
than doubling production, so that all aircraft are generating revenue by 1st
July
· Norse will become the largest transatlantic operator from London Gatwick
from 1[st] July
· 110,263 passengers carried in Q1, resulting in a load factor of 54%
· Q1 revenues of USD 40 million, down USD 6 million (14%) from prior quarter
due to reduced capacity and revenue per passenger, partly compensated by
increased aircraft sublease revenue
· Q1 net accounting loss USD 71 million, impacted by USD 19 million non-cash
lease accounting cost, and down USD 4 million (6%) from prior quarter due to
lower revenues
· Cashflow from operations was negative USD 22 million in Q1.
· Increase in ancillary sales through the quarter; Norse aims to become the
highest ancillary revenue per passenger airline globally
· Total cash at end Q1 of USD 42 million (USD 50 million at end May)
· As communicated in November 2022 in relation to a private placement at the
time, Norse made good on its promise to smaller shareholders that it would
perform a repair offering, which it completed post-quarter end, raising NOK 150
million gross (USD 14 million)
· Norse upgraded to Euronext Expand Oslo Stock Exchange, a regulated market,
post-quarter end
· Load factors increasing post-quarter end, with 67% in April, over 70%
estimated for May and expected to significantly increase from June and through
the summer
· Strong forward sales momentum through the quarter continued post-period end;
based on all tickets sold as of 25 May, average net fare on tickets already sold
are 84% and 101% higher per passenger in Q2 and Q3 than was achieved in Q1,
respectively
· Norse will serve 12 destinations in summer 2023 season - five European
connected to seven US cities - and adds new routes from winter to Thailand,
Barbados and Jamaica
· Ready for increased production to a fully operational fleet ahead of peak
summer 2023
CEO, Founder and largest shareholder, Bjørn Tore Larsen:
"Over the past two years we have built a transatlantic airline that focuses on
value to both customers and shareholders alike. By providing affordable air
fares when compared to our competitors we allow more people to explore the world
and enjoy the experience of long haul travel whether for leisure or business.
"We knew Q1 2023 would be challenging financially as we had limited flying
during that period, which is traditionally a lower demand season, however, we
focused our efforts on ensuring that everything was in place for what promises
to be a great summer ahead.
"Demand for transatlantic travel is strong. We are looking forward to the coming
peak summer season as that will be the first time we have all aircraft
generating revenue, and we maintain our goal of delivering the lowest cost as
well as the highest ancillary revenue per passenger in the industry.
"Our sought-after aircraft are locked-in at fixed aircraft lease rates that are
about half of current market rates, we have all the approvals and airport
landing rights we need for now, additionally we have a fantastic team of
employees who deliver the very best service for our customers every day. It is
from this point onwards that we will see sustained value creation as Norse
becomes a profitable long-haul, low-cost airline."
For further information please see Q1 2023 report and company update
presentation attached.
Contacts:
Investor contacts: Ben Boiling, CFO, ben.boiling@flynorse.com
Media contacts: Philip Allport, Senior Vice President Communications
media@flynorse.com
Norse Atlantic Airways is a new airline that offers affordable fares on long
-haul flights, primarily between Europe and the United States. The company was
founded by CEO and major shareholder Bjørn Tore Larsen in March 2021. Norse has
a fleet of 15 modern, fuel-efficient and more environmentally friendly Boeing
787 Dreamliners that serve destinations including New York, Los Angeles, Fort
Lauderdale, Orlando, Washington DC, San Francisco, Boston, Oslo, London, Berlin,
Rome and Paris. The Company's first flight took off from Oslo to New York on
June 14, 2022.
This information is subject to the disclosure requirements pursuant to Section 5
-12 the Norwegian Securities Trading Act and the Euronext Growth Rule Book part
II.