Norse Atlantic ASA (NORSE) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw 66% year-over-year revenue growth, record unit revenues, and improved profitability despite a sharp rise in jet fuel prices from Middle East conflict starting February 28th.

• Load factor reached a record 99%, with strong commercial momentum and a transition to a dual ACMI and own network model, stabilizing earnings and reducing fuel price exposure.

• Strategic review launched with J.P. Morgan to explore partnerships, mergers, or other alternatives.

• Proactive capacity adjustments, dynamic allocation, and accelerated cost reduction initiatives supported resilience.

Financial highlights

• Revenue increased 66% year-over-year to $160.3 million, driven by route optimization, pricing, and ACMI growth.

• EBITDAR turned positive at $5.8 million, up from a loss of $13.7 million last year.

• Net loss after tax was $24 million, compared to $14.9 million loss in Q1 2025.

• Operating cash flow remained positive; free cash at quarter-end was approximately $5 million.

• Book equity at March 31, 2026, was negative $283.8 million.

Outlook and guidance

• Forward bookings for Q2 show fares over 20% higher year-over-year, with Q3 pricing about 10% ahead and lower network capacity.

• Strategic review underway, including potential sale, merger, or partnership, with J.P. Morgan Securities appointed as advisor.

• Project Falcon targets up to $50 million in annualized cost reductions, with significant savings expected by end of 2026.

• Focus on high-growth markets in Asia and Africa, shifting away from competitive transatlantic routes.

• Own 2026 profit guidance suspended due to fuel price volatility and market disruptions.