Norse Atlantic bolsters finances with investment and long-term aircraft leases

Norse Atlantic Airways has secured $15 million in new capital has it enters into the winter season.

Confirmation of the equity and debt investment by founding shareholder B T Larsen & Co came as the long-haul low fares carrier agreed to wet lease out six of its 15 Boeing 787 Dreamliners for an expected $462 million to an unnamed “reputable International airline”.

Two aircraft are expected to be deployed in February 2025, with an additional four expected in September 2025.

Norse will continue to assign capacity to seasonal and ad hoc charter contracts in addition to this long-term agreement.

Founder and chief executive Bjorn Tore Larsen said: “The agreement as contemplated with this tier one international airline confirms the strong market potential of long-term ACMI/charter, and it will represent a new era for the company, now locking in more of the fleet’s capacity and revenue into longer-term contracts, leaving Norse with a business model carrying lower market risk going forward. 

“Assigning capacities to this longer-term contract potentially secures significant revenues, but also allows for cost reductions, and to build a revised and sustainable business model of Norse Atlantic Airways.”

The deals came as the carrier, which operates a network of transatlantic routes from Gatwick, reported an 8% year-on-year rise in revenue to a record $222 million in the summer quarter.

However, Norse Atlantic that yields during the summer “have not been at satisfactory levels” with revenue per passenger down to $406, compared to $438 last year.

Passenger carryings rose by 18% over the same period last year, with the load factory improving by three percentage points to 86%.

The number of flights operated rose by 17% to 1,813.