Norse Atlantic Airways Gains Momentum for 2026

Norse Atlantic Airways Shows Strong Momentum Heading into 2026

Norse Atlantic ASA, one of our Premium Members, today reports a 27% year-on-year increase in revenue for the fourth quarter of 2025 supported by strong passenger growth, higher average fares in own network and consistent industry-leading load factor. Commercial momentum strengthened significantly during the quarter with record unit revenue (TRASK) in own network into 2026.

The shift to a balanced dual ACMI and own network model was successfully completed in January, supporting sustained margin expansion on a low-cost platform with a balanced risk profile.

Q4 and FY 2025 headlines:

• 27% revenue increase YoY on strong passenger growth and higher average fares in own network
• 96% load factor, fifth consecutive quarter above 90%
• 19% reduction in unit cost (CASK ex. fuel) on ACMI transition and adjusting for non-recurring items
• Completed transition to de-risked dual ACMI charter/own network strategy
• Significant shift in commercial momentum from late fourth quarter with record unit revenue in own network (TRASK) into early 2026
• Network high grading and continuous cost improvements to support sustained margin expansion
• FY 2025 EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortisation and Rent) of USD 56.5 million, up from USD -0.1 million in 2024

Outlook:
For full year 2026, Norse expects to report an EBITDAR in the range of USD 130-150 million and a profit before tax in the range of USD 20-40 million. The 2026 outlook reflects the planned flight program, ticket sales to date, continuous optimization of pricing and load in own network, ongoing and new cost initiatives, and estimated fuel costs based on the Brent crude oil price average year-to-date and forward curve.

CEO Eivind Roald comments:
“2026 marks a new chapter for Norse Atlantic with the completion of the transition to a balanced dual ACMI and own network model with reduced risk, more stable revenue, higher flexibility and increased exposure to high-demand routes.

Our ambition is clear: to provide a market-leading affordable long-haul travel product. A great customer experience is the foundation for delivering strong margin expansion on our low-cost platform with a balanced risk profile and accelerating shareholder value creation.

Since becoming CEO in late November, my focus has been on implementing the new business model and on operational simplification to improve speed and responsiveness to market demand. This includes adjusting our network design to better handle irregularities and investing in technology and capabilities to efficiently deliver more consistent customer experience.

We have taken decisive steps to create a more focused own network targeting long-haul routes with strong demand and high fare potential. The “Winter Sun” program between Europe and Asia and Africa illustrates this disciplined network high-grading strategy.

The early results are encouraging. In December, we had a 6% increase in network unit revenue (TRASK) and a 14% increase in production (ASK) compared to the same month a year ago, reflecting higher ticket prices and cargo revenue. The momentum in January is even stronger with a 21% year-on-year increase in unit revenue and 23% increase in production, and we see the positive trend continuing through February.

Norse has a solid foundation for success with highly favorable long-term aircraft leases, an attractive product yielding 96% load factor for 2025 and high customer ratings for our service-minded crew. The strong improvements in recent months confirm that people are willing to pay more for our product on the right routes.

Our low-cost operations control center in Riga is ready to scale as we optimise the route mix for higher profitability. The winter program to Thailand is a great example of how this high grading creates value. We will accelerate commercial efforts to increase prices and ancillary revenue, while also maximising our cargo potential.

We have taken measures to balance aircraft utilisation to increase predictability and avoid unnecessary cancellations due to maintenance requirements. We aim to become significantly more efficient in customer handling when such irregularities occur.

This is part of redefining Norse as an “Airline on Demand”, responding more quickly to changes in market trends and demand. We will be flexible and offer charters/ACMI if that is the most profitable option, we will open and close routes more quickly to maximise profitability. Further we are strengthening our brand and product positioning to increase our total yield as part of our intensified focus on revenue management.”

For more information and to book your ticket, visit flynorse.com

For other interesting articles from our members and chamber activities, please visit our website.

Source