Norse Atlantic ASA (NORSE) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 load factor of 95%, with a 51% year-over-year increase in passengers flown and a 23% rise in revenue, excluding a $28.7M aircraft redelivery gain.

• Net loss narrowed to $14.9M from $62.8M year-over-year, supported by a new commercial strategy and dual ACMI/network model.

• Strategic shift toward charter operations, securing long-term contracts and reducing market risk, with six firm ACMI contracts signed with IndiGo.

• Pre-sales and bookings for summer 2025 are robust, with tickets sold up 14% and average ticket net price up 4% year-over-year.

• Completed transition to a uniform fleet of 12 Boeing 787-9 aircraft, with expanded ACMI contracts.

Financial highlights

• Q1 2025 revenue was $125.3M, including a $28.7M one-off gain from aircraft redelivery; EBITDAR reached $15.0M, and net loss was $14.9M, a significant improvement from $62.8M loss in Q1 2024.

• Operating cash flow improved to $30.1M from $3.2M year-over-year; end-of-quarter cash was $25M, with available liquidity of $31.3M.

• Book equity stands at negative $225.4M, reflecting $168M in non-cash lease accounting costs.

• Lease liabilities reduced to $827.7M following aircraft redeliveries; all 12 aircraft under fixed lease terms.

• Cargo revenue contributed $3.6M, and charter/ACMI income reached $28.8M in Q1 2025.

Outlook and guidance

• Aiming for full-year 2025 profitability, supported by secured revenue streams from long-term ACMI charters and cost efficiency initiatives.

• Cost reduction plan targets $40M in annual savings, with effects expected from Q2 onward and further impact from operational shifts to Riga.

• Summer and Q2–Q4 2025 bookings, load factor, and PRASK are trending well above prior year.

• Fleet strategy focuses on balancing ACMI and own network to reduce market risk and maximize profitability.