Norse Atlantic ASA (NORSE) Q4 2024 earnings summary

Executive summary

• Achieved a record 92% load factor in Q4 2024, up 22 percentage points year-over-year, with a 46% increase in passengers to 338,000 and a 30% rise in revenue to $123 million.

• Net loss for Q4 narrowed to $34.5 million from $64.3 million in Q4 2023, with December marking the first profitable winter month.

• Secured long-term ACMI/charter contracts with IndiGo for up to six aircraft, with four confirmed to start in 2024–2025, reducing market risk and securing fixed revenue.

• Fleet harmonization underway, with early redelivery of three 787-8s to focus on a uniform 787-9 fleet.

• Ended Q4 with $22.9 million in cash and an undrawn $6.3 million revolving credit facility.

Financial highlights

• Q4 2024 revenue reached $123.1 million, up 30% year-over-year, with full-year revenue at $588.1 million.

• Operating expenses increased 3% to $126 million; personnel expenses rose 18%.

• EBIT for Q4 2024 was negative $25.3 million, a significant improvement from negative $56.9 million in Q4 2023.

• Positive operating cash flow of $20 million in Q4, compared to negative $21 million in Q4 2023.

• Book equity at period end was negative $210 million, with $164 million in accumulated non-cash lease costs.

Outlook and guidance

• 2025 sales and load factors are trending well ahead of last year, with sales up 56%, tickets sold up 38%, and average ticket price up 13% year-to-date.

• Cost reduction initiatives targeting $40 million in annual savings, with a 50% SG&A reduction expected by Q3 2025.

• Strategic reorientation to a dual ACMI/network model, with a resized fleet of 12 787-9s and focus on profitable scheduled routes.

• ACMI contracts expected to reduce seasonality and market risk, securing more fixed revenue.

• Pre-sales on routes trending above prior year, with stable or slightly higher ticket pricing.