Q2 2026 Norse Atlantic ASA Earnings Call Transcript
Key Points
- Record high unit revenues with TRASK up 24% year-over-year, driven by successful network high-grading.
- Strong load factor of 97%, indicating robust passenger demand for Norse Atlantic ASA (NRSAF)'s product.
- ACMI and charter revenue surged to USD45 million from USD6 million, with EBITDAR up to USD11.7 million.
- Executing Project Falcon cost program, with SG&A down 46% and savings expected to ramp up in H2 2026 and fully materialize by 2027.
- Strategic review advanced to formal process with strong interest from multiple parties, including potential sale, merger, or partnership.
- Negative EBITDA of USD8 million and a challenging quarter overall, with net loss impacted by a USD32.9 million non-cash IFRS charge.
- Sharp reduction in production led to a 57% increase in non-fuel CASK, spreading fixed costs over fewer available seat kilometers.
- Elevated fuel prices added USD21 million in extra costs, with average fuel price 1.9 times higher than last year.
- ACMI operations underperformed due to Middle East disruptions and engine issues, causing lower block hours and a USD2.5 million negative impact.
- Adjusted free cash position was only approximately USD25 million after repaying a USD41.7 million bridge loan, necessitating a USD52 million senior secured financing.
Welcome everyone and thank you for joining the North Atlantic second quarter 2026 presentation. As you are aware of, we are in a very challenging period for the entire airline industry with conflicts impacting air traffic and travel demand. Today we will take you through the actions we have taken to navigate these challenges and to position North for the future, including the ongoing strategic review. We have reduced capacity where the economics did not work and delivered record unit revenues in our.
I believe this shows that we offer a great product to our passengers. However, the sharp reduction in production, our fixed cost base and higher fuel prices impacted profitability. Our ACMI operations were also affected with lower than planned production and longer flight durations on the IndiGo operation.
Overall, this has been a bad quarter for Norse from a financial perspective and we will need to implement further measures to reduce our costs. In this situation, we are strongly focused on executing on our strategy
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