Release Date: May 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Norse Atlantic ASA (NRSAF, Financial) achieved a record-high load factor of 95% for the quarter.
- The company reported a 51% year-on-year increase in the number of passengers, rising from 201,000 to 304,000.
- Revenue increased by 23% in the company's own network, excluding a $28 million gain, with significant growth in the charter segment.
- Norse Atlantic ASA successfully signed six long-term leases with IndiGo, securing profitability for 50% of its fleet.
- The company reported a positive EBITDAR of $15 million, a significant improvement from the previous year's loss.
Negative Points
- Despite improvements, Norse Atlantic ASA reported a net loss of $14.9 million for the quarter.
- The company is facing a volatile market with pressure on prices and capacity issues.
- Punctuality has been affected by air traffic control issues, airport congestion, and weather conditions.
- The book equity is negative $225 million, reflecting accumulated non-cash lease accounting costs.
- There is a double cost base due to building new functions, impacting cost reduction efforts in the short term.
Q & A Highlights
Q: Is the IndiGo contract reported in charter revenue and charter flights?
A: Yes, the IndiGo contract is included in the charter revenue. We started the contract on March 1, and initially, we are flying one aircraft between Delhi and Bangkok on a daily basis. As we gradually deliver more aircraft to IndiGo, this will increase as part of the revenue. – Bjon Larsen, CEO and Anders Jomaas, CFO
Q: How has the load factor and passenger numbers changed compared to last year?
A: We achieved a record-high load factor of 95% across the quarter, with a 51% increase in the number of passengers from 201,000 to 304,000 year-on-year. – Bjon Larsen, CEO
Q: What are the financial highlights for this quarter?
A: We reported a revenue of $125.3 million, including $28.7 million of one-offs from the redelivery of three 787-8s. EBITDAR was positive at $15 million, and the net loss was $14.9 million, a significant improvement from a $62.8 million loss in the same quarter last year. – Anders Jomaas, CFO
Q: What strategic decisions have been made regarding the fleet?
A: We have shifted part of our business into charter operations, securing long-term leases with IndiGo for six aircraft. This strategy secures profitability for 50% of our fleet and reduces market risk. – Bjon Larsen, CEO
Q: What are the cost reduction plans moving forward?
A: We aim to reduce costs by approximately $40 million, focusing on SG&A and crew base alignment. We expect to see the effects of these reductions starting in Q2. – Bjon Larsen, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
