Norse Atlantic Airways is extending the sublease of some Boeing 787s to improve its revenue amid a wary outlook for capacity in the future.
A total of four Boeing 787 Dreamliners have had their sub-leases extended. However, the length of this extension varies depending on the aircraft type.
Norse says three 787-8s have had their sublease extended through 2025, with a view of having these aircraft arrive back into the Norse operations the following calendar year.
Meanwhile, the Boeing 787-9 has been extended only for two months; the airline will welcome this unit back in May 2024 to utilise it during the summer schedule.
Norse Atlantic sees subleasing as a means to increase cash and give its Boeing 787s that may not be required use at the moment. Air Europa, per fleet data utilising the aircraft.
This extension to the sublease agreements for four of our Dreamliner aircraft provides a further opportunity to increase secured total cash profit during the lease period.Bjørn Tore Larsen
The Nordic airline is still relatively new to the industry and has, at times, struggled with seasonal demand, which has resulted in significant network shifts to ensure long-term sustainability.
While new, the airline still wants to grow, and these Boeing 787s on sublease contracts will eventually be required for deployment on the airline’s mainline network, but that isn’t now.
If including the sublease aircraft, Norse Atlantic Airways has a fleet of 15 787s agreed to during the airline’s early days. Norse took advantage of the collapse of Norwegian’s long-haul operations and spare 787s to launch a similar network.
For the 2024 summer season, Norse predicts solid demand levels. However, it’ll only operate with 12 Boeing 787s. 2025 is when they expect to tentatively build up their capacity to a fully operational fleet of 15 units.
Seasonal demand has long affected Nordic airlines, especially those operating a low-cost transatlantic service model. The primary challenge for these companies has been finding ways to generate cash when peak demand drops.
Fleet data indicates that Norse currently has 4 Boeing 787s in service. Further network data highlights the airline is operating only 59 flights in February, with 5 destinations offered.
Typically, the airline reduces its network during the winter months to limit losses and prepare for the busy summer months.
This winter schedule, the airline looked to fly towards warm-weather destinations in a strategy shift to try and increase revenue and mitigate typical losses during the period.