Norse Atlantic ASA

Earnings Release • Oct 31, 2023

Norse Atlantic ASA: Reports first profitable quarter, updates on financing, announces strategic review

Norse Atlantic ASA: Reports first profitable quarter, updates on financing, announces strategic review

Arendal, 31 October 2023. Norse Atlantic ASA ("Norse" or the "Company") today

releases its Q3 financial report, showing that the Company has delivered its

first profitable quarter, more than doubling revenue from the previous quarter.

The Company saw record ticket prices and yields, and a continued increase in

ancillary revenues. The quarter saw strong commercial and operational

performance, with an average load factor of 83% and a 99.8% completion during

the quarter, with not a single flight cancelled from late April through to early

September. The Company continues to reduce unit costs, and remains the cost

leader in the Transatlantic market, with a CASK in in the quarter of USD 3.63.

The Company did however face some headwinds from increased fuel prices, and a

weaker than expected cargo market.

Bjørn Tore Larsen, Norse CEO, said: "Norse Atlantic has come a long way since

the initial flight in June 2022. After a short first summer season in 2022, we

had our first full summer season in 2023, growing to a 10 aircraft operation

while delivering a robust performance. We are proud to have delivered our first

profitable quarter and we continue to be agile and adapt as a company to achieve

our goal of becoming the leading low-cost long-haul airline of choice."

Highlights of the Q3 financial results include:

· Activity and revenue doubled

· Q3 revenue more than doubled from the previous quarter to USD 205 million

· Number of passengers, ASK and RPK also more than doubled compared to Q2

· 1,547 of 1,550 planned flights were completed, a completion rate of 99.8%

· Successful Low-cost business model, but challenged by fuel prices

· Ramping up activity while keeping costs under control

· CASK gradually decreasing - Norse showing the lowest CASK in the

Transatlantic market

· Higher fuel prices places pressure on profitability

· Record load factors and fares

· Record high load factor of 83%

· Record high fares during summer peak season

· Seasonal softening from September

· Ancillary revenues continue to increase

· Successful focus on ancillary revenues

· Ancillary revenues increased to USD 131 per passenger

· Profitable summer

· Q3 the first profitable quarter in the Company's history

· EBITDAR from USD 2 million in Q2 to USD 41 million in Q3

· High working capital build-up of USD 32 million

The flexibility of the organization allows Norse to continue to optimize the

network and adjust activity in the seasonally weaker winter market, seeking

attractive ACMI (wet-lease) and charter opportunities, where inquiries are

increasing. Norse will implement an enhanced strategic approach to revenue

management, which will allow the Company to pursue and capture higher

valuefares, supported by the increasing maturity of routes, the increased brand

awareness, and longer selling windows. During Q4, the airline will launch an

upgraded Norse Premium product, which will allow the Company to fully realize

the potential of its leading Premium Product, and the Company continues to

introduce initiatives to further grow ancillary revenue.

During the quarter, an adverse working capital movement led to a reduction of

available liquidity compared to the previous quarter. In addition, the Company

is in the process of concluding a negotiation with a key supplier, that will

require a payment plan to be accelerated. As a consequence, the Company is

exploring additional fundraising of up to USD 45 million to improve liquidity

through the shoulder and winter season, until such time as the revenue generated

from the seasonally stronger summer program bookings are collected. The Company

has engaged with its leading shareholders, B T Larsen & Co Ltd and Scorpio

Holdings Limited, who have both expressed strong support to participate in the

fundraising, for at least their pro rata shareholding. The Company has engaged

Pareto Securities AS and SpareBank 1 Markets AS to advise on and effect the

fundraising. The timing, structure, and terms of any fundraising will be subject

to, inter alia, prevailing market conditions and necessary corporate

resolutions, and no assurance can be given that the Company will carry out such

fundraising. More information on the potential fundraising will be published in

due course.

The Company has recently been approached by and engaged in discussions with

several industrial players, seeking to explore industrial opportunities with the

Company. It is the Company's clear impression from these discussions that the

Company's business, market position, and assets are perceived as attractive, and

that the Company may be well positioned to capitalize on this through industrial

or strategic actions. The Board of Directors of the Company has therefore

decided to seek to engage advisers to explore and advise on strategic

alternatives.

As a result of its significant shareholding and involvement with the Company,

Scorpio Holding Limited has accepted an invite to be represented on the

Company's Board of Directors. The Company is enthusiastic to Scorpio Holding

Limited's continued and increased involvement and will welcome such

representation on its Board of Directors. B T Larsen & Co Ltd has expressed its

support for representation by Scorpio Holding Limited on the Board of Directors.

The Company will present its 3Q financial report to investors on Wednesday, 1

November at 10:00 am CET. The presentation will be held at the offices of Pareto

Securities (11[th] floor, Dronning Mauds Gate 3, 0250 Oslo, Norway)

The Q3 financial report and the Q3 presentation are attached.

For further information, please contact:

Investors: Anders Hall Jomaas, CFO, +47 400 42 918, anders.jomaas@flynorse.com

Media: SVP Communications, Philip Allport, +44 797 6328 710,

philip.allport@flynorse.com

Norse Atlantic Airways is an 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 serve destinations including New York, Los Angeles, Miami,

Orlando, Boston, Washington, Jamaica, Barbados  , Oslo, London, Berlin, Rome and

Paris. The company's first flight took off from Oslo to New York on June 14,

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

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to section 5-12 of the Norwegian Securities Trading Act. This stock exchange

announcement was published by Philip Allport, Senior Vice President

Communications at Norse Atlantic ASA, on 31 October 2023 at 23.25 CET.