Norse Atlantic Airways, the upstart Oslo-based airline with ambitions of becoming a profitable low-cost long-haul carrier, has reported a full-year loss of nearly $169 million for 2023, on top of the $175 million loss it incurred in 2022.
Founded by Bjørn Tore Larsen, the airline acquired a fleet of second-hand Boeing 787 Dreamliners, which once belonged to Norwegian before it abandoned its transatlantic dreams to stave off financial collapse.
But while Norwegian is finding renewed success and financial stability with its short-haul operation, Norse Atlantic is once again trying something that many others have failed – making low-cost transatlantic air travel profitable.
So far, it might be too early to tell whether Larsen’s gamble could pay off, although the airline said on Wednesday that it “sees a clear path to profitability on a year-round basis”.
For low-cost airlines like Norse, where demand is highly seasonal, one of its biggest challenges has been how to make the airline profitable during the much quieter winter months when tourists aren’t travelling between North America and Europe.
Norse Atlantic has been trying to partly address that issue by broadening its route network with seasonal destinations, while Larsen is hopeful that a drive for charter and wetlease operations will become a steady money spinner.
Larsen said on Wednesday that the airline would focus on its own route network only during the summer months, while the charter market, cargo and other seasonal opportunities would hopefully balance the books for the rest of the year.
Liquidity could, however, still prove a challenge for Norse Atlantic, and the airline says it is still weighing up several ‘strategic options’ put forward by equity investor Seabury Securities, which has also been appointed as Norse Atlantic’s investment banker.
