Norse Atlantic ASA (NORSE) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 load factor of 97% and 36% year-over-year passenger growth, with a 27% increase in passenger revenue and first-ever Q2 operating profit of $4.4 million.

• Revenue increased to $202.6 million in Q2 2025, up 23% from the prior year.

• Transitioned to a dual business model, expanding ACMI/charter operations and renewing key agreements with P&O Cruises and IndiGo.

• Forward bookings and pre-sales for winter are significantly above last year, indicating strong demand.

• Awarded best long-haul value airline in Northern Europe by Skytrax in 2025.

Financial highlights

• Q2 2025 EBIT turned positive at $4.4 million, reversing a $22.3 million loss in Q2 2024; EBITDA/EBITDAR reached $23.1 million.

• Net loss for Q2 narrowed to -$5.5 million, with end-of-quarter cash at $24 million and available liquidity at $44 million.

• Cash flow from operations over the last 12 months improved to +$110 million from -$15 million a year ago.

• Revenue per passenger was $372, slightly down year-over-year due to lower ancillary revenue.

• Book equity at June 2025 was negative $231.2 million, reflecting accumulated non-cash lease accounting costs.

Outlook and guidance

• Targeting full-year 2025 profitability, supported by strong forward bookings and cost initiatives.

• Planning to increase production capacity by 24% in Q2 next year, with higher aircraft utilization and load factors expected to remain above 90%.

• Five additional aircraft to be transferred to IndiGo for ACMI operations by early 2026, reducing market risk.

• Cost and efficiency initiatives expected to yield annual savings of $40 million from 2026.

• Strategy focuses on secured revenue, reduced risk, and network optimization.