Flyr AS — Capital/Financing Update 2022

Oct 4, 2022

Flyr takes forceful action to reduce cash burn and adjusts its winter schedule

Flyr takes forceful action to reduce cash burn and adjusts its winter schedule

Flyr is taking important steps to reduce cash burn to prepare the company for

the challenging winter season ahead. Several popular European destinations will

remain on offer, while domestic routes in Norway will be reduced to a minimum.

The Company will gradually increase its route offering during the spring and

summer of 2023.

"We are entering a demanding winter season where discretionary consumer spending

is expected to decrease significantly following the recent interest rate hikes,

high general cost inflation and record high energy prices. This is hard-hitting

to the airline industry and Flyr as a Company, and will result in reduced demand

for air travel. This, together with the lasting high jet-fuel prices, leaves us

with no other option than to adjust our route offering for the coming winter

season. Unfortunately, this also forces us to furlough several of our dear

colleagues. However, our goal is to put in place voluntary arrangements to

retain as many as possible. By implementing these measures, we will be well

positioned to ramp-up with full force for the coming spring and summer," said

CEO Tonje Wikstrøm Frislid of Flyr.

The Company is targeting a temporary cost reduction of up to 50 percent this

winter, with an estimated reduction in cash burn through the winter of

approximately NOK 400 million.

From November to March, Flyr will operate routes to several popular European

destinations, including Alicante, Malaga, Las Palmas, Barcelona, Roma, Paris,

Nice, Berlin and Brussel. The Company will also offer flights from Oslo to

Bergen and Trondheim, as well as "Christmas Routes" between several cities in

Norway in December.

"We have experienced satisfactory demand on our routes to European holiday

destinations and will maintain a selection of popular destinations for the

coming winter. At the same time, we must admit that it has taken longer than

expected to build loyalty among business travellers on domestic routes in

Norway, where the incumbent carriers maintain large market shares. Development

of solutions for distribution through travel agencies, where the majority of

business travellers book their flights, has also taken too long. Moreover, it

has not been to our advantage that the government in Norway has contributed

billions of NOK in covid-19 related financial aid to our main competitors," said

Wikstrøm Frislid.

Guests who have purchased tickets on cancelled flights will be contacted

directly. All routes currently on sale from April 2023 and onwards will be

operated as planned.

"We fully understand the frustration that our guests may be experiencing as a

result of potentially changing travel plans. All affected guests will be

contacted directly to be re-booked to another flight, or to be refunded," said

Wikstrøm Frislid.

Voluntary arrangements

In order to reduce cash burn, Flyr will put non-profitable routes on hold, and

maintain sufficient personnel to operate 5-6 aircraft during the winter. Our

decision to make use of furloughs is based on thorough assessments and in

dialogue with union representatives. We will arrange town hall meetings,

department meetings and follow-ups with all employees over the coming days.

Employees may be furloughed full-time or part-time in several stages, depending

on how the situation develops. The Company aims to put in place voluntary

arrangements to reduce the extent of furloughs.

Back in full force for summer season 2023

In the coming months, Flyr will continuously evaluate the demand for air travel.

In a situation where demand picks up faster than anticipated, Flyr will be able

to ramp-up and increase its route offering. This entails that employees may be

brought back to work on short notice.

"Feedback provided by our guests thus far has been overwhelmingly positive,

proving that we represent something new to the industry. We have achieved this

by utilizing technology that simplifies booking through mobile platforms; by

offering direct and permanent employment in the actual airline in Norway; by

being available to our guests when they need assistance; and by prioritizing our

guests, for example by offering complimentary water, coffee, and tea on all

flights. We look forward to welcoming our guests on board this winter, as well

as the coming spring and summer," said Wikstrøm Frislid.

Investor meetings

Flyr has engaged the financial advisors Arctic Securities AS, Carnegie AS and

Sparebank 1 Markets to conduct meetings with both existing and potential new

investors. The purpose of these meetings is to discuss potential financial

instruments to strengthen the Company's financial position. With more than

300,000 members in Flyr's loyalty programme, Flyr+, and 1.6 million guests on

board since launch, there are still significant interest in Flyr's concept and

attention to what Flyr has delivered up to now. The actual conversations are

performed on the basis of the revised business plan.

For further information please contact:

Brede Huser, Chief Financial Officer

Phone: +47 99 16 99 74

Email: brede.huser@flyr.com

About Flyr

Flyr is a Norwegian based low-cost carrier with a demand driven business model

and a primary focus on the Norwegian market. The company targets a modern,

digital, and efficient setup to ensure high operational efficiency through

simplicity, optimized resource utilization and smart use of technology. Flyr AS

is listed at Euronext Growth under the ticker FLYR.

To learn more, please visit

www.flyr.com (https://eur05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fww

w.flyr.com%2F&data=05%7C01%7Cthomas.roenningen%40flyr.com%7C900cb57e0cf343d5c7540

8daa5f1ced5%7C9690ff2d0d52402e8160137e6dfd3f64%7C0%7C0%7C638004755220354882%7CUnk

nown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn

0%3D%7C3000%7C%7C%7C&sdata=ynWKmsHwEJ9pjfR0Mf91FwgRveQUgbznVHLa2NeTrj0%3D&reserve

d=0).

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements according

to section 5-12 of the Norwegian Securities Trading Act. The information was

prepared by Brede Huser, CFO at Flyr AS, on 4 October 2022 at 16:45 CEST.