Norse Atlantic ASA

Earnings Release • Nov 29, 2024

Norse Atlantic ASA: Q3 2024 Another quarter of strong year-on-year passenger growth and reduced unit costs

Norse Atlantic ASA: Q3 2024 Another quarter of strong year-on-year passenger growth and reduced unit costs

Q3 2024 headlines (comparatives for numbers being Q3 2023):

· Revenue increased by 8% to USD 222.0 million

· 514,913 passengers carried, increased by 18%

· ASK increased by 20% to 4,275

· Load factor increased by three percentage points to record heights of 86%

· Revenue of USD 406 per passenger during the quarter, compared to USD 438

last year

· Number of flights operated during the quarter was 1,813, up by 17%

· Strong operational performance as 99.3% of planned flights were completed

during the quarter

· CASK ex fuel reaching lowest-ever level at 3.55 compared to 3.63 last year

· Total cash held at end of quarter was USD 25.3 million

· Revised business strategy being realized as a longer-term ACMI contract is

materializing, and cost reductions are on the way

"The third quarter brought Norse to record heights on revenue, production and

load factors. Available Seat Kilometers was up 20%, the number of flights

increased 17% and passengers were up 18%, all compared to the third quarter of

2023, while load factor increased by three percentage points to 86%, being the

highest level achieved in any quarter of the Company's history.

Revenue also reached new heights as they came in at USD 222.0 million, 8% above

third quarter last year. As already reported by the Company, yields during

Summer have however not been at satisfactory levels, and revenue per passengers

came in at USD 406, compared to USD 438 last year.

From an operational perspective, we are happy to see that the Company's

organization continues to take on growth in a great manner. The Company's fleet

held in own operations grew by two aircraft and hence 20% into the summer

season, being well reflected in ASK growing by 20%. Operational performance was

strong as 99.3% of all planned flights were completed during the quarter.

As already announced, the Company has agreed commercial terms with one of its

lessors to streamline the fleet by redelivering three Boeing 787-8 aircraft in

2024. The transaction is expected to be completed around the end of the fourth

quarter.

Over the last few months, we have been working on a revised business plan

developing ACMI and charter as more of a separate business area, side-by-side

with, and complementary to the operations in our own scheduled network. Norse

therefore is happy to announce that the Company in the form of a detailed letter

of intent in principle has agreed commercial terms with a reputable

international airline for a longer-term ACMI/wet lease agreement for the full

capacity of six aircraft, two aircraft being deployed in February 2025 and

additional four aircraft being deployed in September 2025. The arrangement is

subject to final agreements, mutual corporate approvals and regulatory

approvals. Subject to such regulatory approvals, the expected minimum contract

value is USD 462 million, and with additional upside if aircraft utilization is

above minimum levels. In addition to this longer-term contract, Norse will

continue to assign capacity to seasonal and ad hoc ACMI/charter contracts.

The agreement as contemplated with this tier one international airline confirms

the strong market potential of long-term ACMI/charter, and it will represent a

new era for the Company, now locking in more of the fleet's capacity and revenue

into longer-term contracts, leaving Norse with a business model carrying lower

market risk going forward. Assigning capacities to this longer-term contract

potentially secures significant revenues, but also allows for cost reductions,

and to build a revised and sustainable business model of Norse Atlantic

Airways," said Bjorn Tore Larsen, CEO and Founder of Norse Atlantic Airways.

For further information please see attached Q3 2024 Report and Q3 2024

Presentation.

A video presentation of the Q3 2024 results can be found here:

https://channel.royalcast.com/landingpage/hegnarmedia/20241129_4/

For further inquiries, please contact:

· Investors: Anders Hall Jomaas, CFO, anders.jomaas@flynorse.com

· Media: Christina Carare, Communications Manager,

christina.carare@flynorse.com

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

Market Abuse Regulation (MAR) and is subject to the disclosure requirements

pursuant to MAR article 17 and the Norwegian Securities Trading Act section 5

-12.

This stock exchange announcement was published by Christina Carare on the time

and date provided.