Norse Atlantic ASA

Earnings Release • Oct 10, 2022

­­Norse operational update - Positive future booking trend on core winter routes

­­Norse operational update - Positive future booking trend on core winter routes

Arendal, 10th October 2022: Norse Atlantic Airways expects load factor and yield

to increase across its network from October. Following the decision in September

to remove excess capacity on certain US routes and to operate Los Angeles routes

on a seasonal basis, Norse Atlantic Airways expects a positive increase in load

factors and an uplift in yield across its network during the winter months.

The company continues to have Power by the Hour lease agreements - meaning the

company only pays for an aircraft when it is flying - across the fleet

throughout the winter, which provides aircraft utilisation flexibility at no

cost. Norse has currently taken delivery of 13 of the 15 aircraft it has secured

on flexible, low cost, long-term lease arrangements, four of which are currently

subleased out, guaranteeing a fixed profit for the term of the sublease

agreements; Norse Atlantic is also in negotiations to sublease a fifth aircraft

for 18 months.

The changes to the company's winter network will not result in redundancies. The

company looks forward to ramping up cabin and flight crew recruitment in 2023,

ahead of its expanded summer schedule.

Norse Atlantic is pleased to confirm that the core summer 2023 schedule will be

announced early November, with flights available to book through to October

2023. Other routes will be announced in due course. The company expects to have

10 aircraft in operation at the height of the summer season including a greater

presence out of London Gatwick.

Additional distribution channels have been recently introduced, including

Skyscanner, Finn.no, Travelfusion and, most recently, Google Flights, which have

resulted in an immediate positive increase in forward bookings. During the

winter season traffic from the US to Europe is expected to remain strong with

the net effect of the strong US dollar against the Euro and the British Pound

encouraging early booking patterns.

During the month of September, the UK Civil Aviation Authority granted Norse

Atlantic Airways an Air Operator Certificate and Operating Licence allowing the

company to begin direct flights from the United Kingdom. Norse Atlantic intends

to operate direct point to point flights between the UK and the US, subject to

further regulatory approval.

"We have taken swift action to adjust our winter schedule and remove excess

capacity from our network in light of lower expected demand, high fuel prices

and rising global inflation. The flexibility provided by our power by the hour

aircraft lease agreements has allowed Norse Atlantic to lower cash burn over the

winter period in anticipation of ramping up operations for a strong summer 2023

season. We are pleased that bookings for our remaining core winter routes remain

strong and that ticket sales have been increasing as we expand our distribution

network," said Bjorn Tore Larsen, CEO Norse Atlantic Airways.

During September Norse Atlantic Airways operated 98 per cent of scheduled

flights, the decrease compared to the previous month was related to

cancellations brought about by airport closures linked to Hurricane Ian in

Florida. The airline operated 338 flights in September, which represents a 33

per cent increase compared to August, due to a number of routes commencing mid

-month during that period. 75 per cent of operated flights arrived within 15

minutes of the scheduled arrival time, marking an improvement of more than four

percentage points compared to the previous month.

Norse Atlantic carried 62,749 passengers in September, representing a 7 per cent

increase compared to the previous month. The load factor for September was 56

per cent, a decrease compared to the preceding month linked to excess capacity

on specific routes in the network.

Cargo has continued to perform well month on month; Norse Atlantic expects this

trend to continue on core routes throughout the winter as the airline becomes

more established in certain key markets.

Contacts:

Investors: CFO, Ben Boiling, ben.boiling@flynorse.com

Media: SVP Communications, Philip Allport, philip.allport@flynorse.com

Norse Atlantic Airways is a new airline that offers affordable fares on long

-haul flights, primarily between Europe and the United States. The company was

founded by CEO and major shareholder Bjørn Tore Larsen in March 2021. Norse has

a fleet of 15 modern, fuel-efficient and more environmentally friendly Boeing

787 Dreamliners that will serve destinations including New York, Los Angeles,

Fort Lauderdale, Orlando, Oslo, London, Berlin and Paris. The company's first

flight took off from Oslo to New York on June 14, 2022.