Norse Atlantic Airways is crediting its new commercial strategy for slashing losses, as it seeks to balance its scheduled operation with wet-lease activity.
The carrier is focusing on a fleet of 12 Boeing 787-9s after opting to return all three of its 787-8s to lessors.
Two of the 787-8s were returned in February and Norse expects the third to be gone by the end of March. The redeliveries of the jets, which Norse itself had not operated, will result in a “significant positive accounting impact”, it says.
Of its remaining 12 aircraft, all 787-9s, Norse has already damp-leased one to Indian carrier IndiGo, and has newly agreed to provide another three in the second half of this year.
This means it will have 11 aircraft on its own scheduled operation this summer, but eight in the longer term.
“We believe this represents a good balance between securing year-round fixed revenue from [wet-lease] and maximising the possibilities in our scheduled network,” says chief executive Bjorn Tore Larsen.
Harmonisation of the 787 fleet and the leasing arrangement with IndiGo are part of a strategy unveiled in August last year, intended to offset seasonal fluctuations and improve the loss-making airline’s financial position.
Norse believes the measures are already taking effect, almost halving net losses for the fourth quarter of 2024 – during which it achieved a 92% load factor, up from the prior 70% – and even generating a “standalone” profitable December.
Over the full year the airline made a net loss of $135 million, although this was an improvement on the previous figure of $169 million.
Revenues for the year reached $588 million.
Norse says the new business model will carry “lower market risk”, and allow it to focus more on “proven and profitable routes”.
It will reduce the cost of operating the “slimmer” scheduled network. “Efforts are also ongoing to secure benefits from better optimisation of crew bases and crew resource utilisation,” it adds.
As part of the cost-cutting Norse has also opened new offices in the Latvian capital Riga, to take over certain services previously carried out at its Arendal headquarters.
