Norse Atlantic faces financial struggles despite increased passenger numbers

Norse Atlantic Airways faced significant financial challenges during the third quarter of 2024, a period typically favorable for airlines. The company reported a net loss of $6.3 million, a stark contrast to the $1.6 million profit achieved in the same quarter of 2023. Despite operating at peak summer capacity, Norse Atlantic's performance was hindered by increased expenses and reduced unit revenue.

The airline operated with 12 aircraft for scheduled flights while subleasing three to other carriers. Although total revenue improved by 8.3% to $222 million, expenses rose by more than double that rate, increasing by 19.3%. Passenger fares and ancillary revenues accounted for 93.3% of total income, with additional earnings from aircraft crew maintenance and insurance (ACMI) services rising significantly from $282,000 in Q3 2023 to $2.8 million.

However, ACMI revenues remained a small fraction of overall income at just 1.3%. Norse Atlantic has confirmed a wet lease agreement involving six aircraft—40% of its fleet—with an undisclosed carrier as part of its strategy to enhance off-peak season revenue.