Norse operational update – Load factor increases in October and planned reduction of specific winter routes implemented
Arendal, 8th November 2022: Load factor increased to 60 per cent in October, an increase of four percentage points compared to the previous month. Winter network reductions, implemented late October, will have a further positive impact on load factor and yield during the season.
Norse Atlantic is pleased to confirm that the core summer 2023 schedule will be announced later this week allowing customers to book ahead for their summer travels. Further destinations will be announced in December and the New Year, expanding the airline’s Summer 2023 network.
During the month of October, the US Department of Transport proposed to grant Norse Atlantic UK Ltd a foreign air carrier permit. Following the recent issue of a UK Air Operator Certificate by the UK Civil Aviation Authority, this historic milestone will pave the way for the company to commence direct transatlantic operations between the United Kingdom and the United States. The US DOT highlighted that Norse Atlantic UK had demonstrated that it was a financially and operationally sound business; it was also concluded that it was clearly in the interest of US citizens that Norse UK be allowed to operate.
“The quick and decisive action to scale down our network in line with demand and to focus on core routes for the winter season puts Norse Atlantic in a much stronger position during the months ahead. We are very pleased to see that certain core routes on our current network are now reaching 85 per cent load factor with forward bookings also continuing to show a positive trend,” said Bjorn Tore Larsen, CEO Norse Atlantic Airways.
Norse Atlantic Airways signed a term sheet for sublease of a fifth aircraft in October, a Boeing 787-8, for a total lease period of 18 months. The agreement will increase total cash profit during the sublease period and is in addition to the previously announced four aircraft that have been subleased. During the month the airline additionally received the sixth and final Boeing 787-9 from lessor BOC Aviation Limited signifying the conclusion of the delivery schedule from the company.
Cargo revenues continue to be a key income stream for Norse and the average cargo revenue per operated flight increased 12 per cent compared to September and 60 per cent compared to August, while on an aggregate basis total net cargo revenue was flat month-on-month and up 82 per cent compared to August.
During October, Norse Atlantic Airways operated a total 307 flights, which represents a nine per cent decrease compared to September, while there was 14 per cent decrease in the available seat kilometres flown month-on-month following a planned reduction in the network as we head into the winter season. 75 per cent of operated flights arrived within 15 minutes of the scheduled arrival time, the same as the prior month.
Norse Atlantic carried 60,836 passengers in October, representing a three per cent decrease compared to the previous month as a result of the nine per cent reduction in number of flights.
Contacts:
Investors: CFO, Ben Boiling, ben.boiling@flynorse.com
Media: SVP Communications, Philip Allport, philip.allport@flynorse.com