Norse Atlantic ASA

Earnings Release • May 31, 2023

Norse Atlantic Airways Q1 2023 report - Strong forward bookings & well-timed ramp-up for a promising summer ahead

Norse Atlantic Airways Q1 2023 report - Strong forward bookings & well-timed ramp-up for a promising summer ahead

· Norse remained in early start-up phase in Q1 and the moderate flying activity

during the seasonally low winter months impacted the quarterly earnings

· Norse commenced flights on Norse's UK AOC and had its inaugural flight from

Paris at the end of Q1

· Final summer 2023 routes made available for sale during Q1

· Main focus has been working towards the planned ramp-up during June, more

than doubling production, so that all aircraft are generating revenue by 1st

July

· Norse will become the largest transatlantic operator from London Gatwick

from 1[st] July

· 110,263 passengers carried in Q1, resulting in a load factor of 54%

· Q1 revenues of USD 40 million, down USD 6 million (14%) from prior quarter

due to reduced capacity and revenue per passenger, partly compensated by

increased aircraft sublease revenue

· Q1 net accounting loss USD 71 million, impacted by USD 19 million non-cash

lease accounting cost, and down USD 4 million (6%) from prior quarter due to

lower revenues

· Cashflow from operations was negative USD 22 million in Q1.

· Increase in ancillary sales through the quarter; Norse aims to become the

highest ancillary revenue per passenger airline globally

· Total cash at end Q1 of USD 42 million (USD 50 million at end May)

· As communicated in November 2022 in relation to a private placement at the

time, Norse made good on its promise to smaller shareholders that it would

perform a repair offering, which it completed post-quarter end, raising NOK 150

million gross (USD 14 million)

· Norse upgraded to Euronext Expand Oslo Stock Exchange, a regulated market,

post-quarter end

· Load factors increasing post-quarter end, with 67% in April, over 70%

estimated for May and expected to significantly increase from June and through

the summer

· Strong forward sales momentum through the quarter continued post-period end;

based on all tickets sold as of 25 May, average net fare on tickets already sold

are 84% and 101% higher per passenger in Q2 and Q3 than was achieved in Q1,

respectively

· Norse will serve 12 destinations in summer 2023 season - five European

connected to seven US cities - and adds new routes from winter to Thailand,

Barbados and Jamaica

· Ready for increased production to a fully operational fleet ahead of peak

summer 2023

CEO, Founder and largest shareholder, Bjørn Tore Larsen:

"Over the past two years we have built a transatlantic airline that focuses on

value to both customers and shareholders alike. By providing affordable air

fares when compared to our competitors we allow more people to explore the world

and enjoy the experience of long haul travel whether for leisure or business.

"We knew Q1 2023 would be challenging financially as we had limited flying

during that period, which is traditionally a lower demand season, however, we

focused our efforts on ensuring that everything was in place for what promises

to be a great summer ahead.

"Demand for transatlantic travel is strong. We are looking forward to the coming

peak summer season as that will be the first time we have all aircraft

generating revenue, and we maintain our goal of delivering the lowest cost as

well as the highest ancillary revenue per passenger in the industry.

"Our sought-after aircraft are locked-in at fixed aircraft lease rates that are

about half of current market rates, we have all the approvals and airport

landing rights we need for now, additionally we have a fantastic team of

employees who deliver the very best service for our customers every day. It is

from this point onwards that we will see sustained value creation as Norse

becomes a profitable long-haul, low-cost airline."

For further information please see Q1 2023 report and company update

presentation attached.

Contacts:

Investor contacts: Ben Boiling, CFO, ben.boiling@flynorse.com

Media contacts: Philip Allport, Senior Vice President Communications

media@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 serve destinations including New York, Los Angeles, Fort

Lauderdale, Orlando, Washington DC, San Francisco, Boston, Oslo, London, Berlin,

Rome and Paris. The Company's first flight took off from Oslo to New York on

June 14, 2022.

This information is subject to the disclosure requirements pursuant to Section 5

-12 the Norwegian Securities Trading Act and the Euronext Growth Rule Book part

II.