Norse Atlantic Airways Posts Massive Loss

Daniel Fowkes
29 Feb 2024
· Airlines 
Norse Atlantic Airways has posted a massive loss for 2023, however, says that it has a clear pathway towards profitability now.

Norse Atlantic Airways posted a major loss of $169 million for the full-year 2023, slightly down from the $175 in 2022.

The latest posting is further negative news about an airline that analysts argue will always struggle to be profitable operating a business model that has significant risks associated.

However, despite these significant losses, the airline says it has a clear pathway towards profitability, which will reach year-round.

Norse Atlantic 2023 Results

The airline saw revenues hit $439 million, up from the $104 million for the 2022 financial year, thus representing an improvement.

Load factors increased 12% points towards 74% across 2023, meanwhile total revenue per passenger also increased by over $120 in the space of a year.

These improvements are noticeable and see the airline in certain departments continuing with an upward trajectory, however, there are other pressing concerns.

Q4 marked the completion of Norse’s first full year of operations, in which the Company carried almost one million passengers across 4,000 flights. Our robust operational excellence was clearly demonstrated as more than 99.5% of all scheduled flights were completed as scheduled despite growth in both the summer and winter schedules compared to the previous year.

Bjorn Tore Larsen, CEO and Found Norse Atlantic Airways

Norse Atlantic Struggles

Launching in 2022, Norse Atlantic Airways is one of the newer airlines to join the market and, since its conception, has encountered its fair share of struggles.

However, despite these struggles, Norse Atlantic has always attempted to offer the best possible service at the lowest prices.

Norse Atlantic operates a business model offering low-cost fares with long-haul flights, its bread and butter. The airline exclusively operates with a fleet of Boeing 787 Dreamliners.

While Norse says it isn’t Norwegian 2.0, the airline was birthed off the back of Norwegian removing its fleet of 787s and essentially ending all long-haul travel. In its place, Norse came into the market.

During the busy summer months, Norse has performed well, with strong demand forecasted for the 2024 summer season. However, problems begin to arise when the weather begins to get worse and summer concludes.

Norse isn’t alone in struggling to make money during the low points in demand. Over the past year, the company has attempted to make money by leasing operations, adjusting its route network, and implementing other initiatives.

Despite these iniaitives, it has struggled, which shouldn’t necessarily be a shock as its operations and thus results aren’t out of the ordinary. That said, the airline believes it has a clear pathway to profitability after multiple years of raking in losses, and time will tell whether it can turn the corner.

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