Norse Atlantic ASA (NORSE) Q3 2025 earnings summary

Executive summary

• Achieved record revenue and passenger numbers in Q3 2025, with load factor above 90% for four consecutive quarters, reflecting a successful data-driven commercial strategy and transition to a dual ACMI/own network model.

• Transatlantic market softness led to lower ticket prices, impacting revenue per passenger.

• Non-recurring costs from a maintenance incident and backdated personnel salaries affected profitability.

• Financial position was strengthened through a $30 million convertible bond issue and an $11 million equity raise.

Financial highlights

• Q3 2025 operating revenue was $249.8M, up from $222.0M in Q3 2024; passenger revenue was $210.5M, other revenue $39.3M (including $20.1M insurance claims).

• EBITDAR was $21.4M, EBIT at $2.7M; net loss after tax was $7.8M.

• Operating expenses rose to $228.4M, including $9M in non-recurring items and $20.1M reimbursed by insurance.

• Personnel costs rose 22% YoY due to wage increases, CBA negotiations, and IndiGo training.

• Free cash and cash equivalents at period end were $11.7M, with total cash at $26M.

Outlook and guidance

• Will not achieve 2025 profitability ambition due to market softness and non-recurring expenses.

• Completion of the dual strategy business model (ACMI and own network) is expected early next year, with ACMI and charter contracts providing stable, year-round revenue.

• Cost reductions and efficiency gains are projected to reach $40M annually from 2026.

• Booking trends and route optimization indicate positive effects for future quarters.