Norse Atlantic Airways has posted a full-year loss for 2023. We ask the following: Is 2024 the year of recovery?
Whilst revenues have increased significantly, the airline hasn’t been able to convert this to profitability.
Without further ado, let’s get into it…
Norse Atlantic Airways’ Financial Results…
Norse Atlantic Airways posted a full-year 2023 net loss of $168.6m, with $64.3m of that coming in the final quarter.
This is off the back of a tripling of revenues from $104.3m in 2022 to $439.4m in 2023.
1,451 flights were operated in 2022, with this nearly quadrupling to 4,002 last year as well.
The airline stated that there were risks associated with newly established enterprises within it’s risks.
A lot of the reasoning behind the losses has been attributed to “macroeconomic developments”.
In their presentation, Norse Atlantic Airways mentioned the sensitivity of the sector as a whole.
Overall Assessment of These Numbers…
Norse Atlantic Airways CEO Bjorn Tore Larsen had this to say on the numbers:
“Q4 marked the completion of Norse’s first full year of operations, in which the Company carried almost one million passengers across 4,000 flights.”
“Our robust operational excellence was clearly demonstrated as more than 99.5% of all scheduled flights were completed as scheduled despite growth in both the summer and winter schedules compared to the previous year.”
“In 2023, Norse achieved strong CASK numbers and demonstrated its ability to drive ancillary sales to become one of the industry’s leading airlines in ancillary revenue.”
“[For] Q3, Norse delivered its first quarter of net profit demonstrating the validity of long-haul low-cost.”
“[Within] Q4 the Company introduced an improved service program and amenities for customers travelling in its Norse Premium cabin, allowing for an improved fare potential going forward”.
“When planning ahead for the winter and summer seasons in 2024 Norse has capitalized on lessons learnt in 2023.”
“Among our priorities will be careful route selection, capturing unreleased fare potential, increasing load factor and developing further business opportunities within cargo and charter operations.”
“The Company will also gradually develop its seasonal strategies as focus during the winter season will turn more and more towards pursuing opportunities in the charter market as a supplement to own scheduled flights.”
“During the summer season the main focus will remain to serve Norse’s own network.”
The Next 12 Months Are Important?
Furthermore, things may not seem as doom and gloom for Norse Atlantic Airways at the moment.
The airline has only just completed one full year of operations, with costs being higher to reflect that.
Looking ahead, the next 12 months of full operations will be to do the same, but to bring costs down.
If they can do this considerably, then there is no reason for them to turn a profit by end of full-year 2024.
Seasonal variations will always affect Norse Atlantic Airways, like with a lot of other airlines.
Total operating expenses for the airline was highlighted as $457m last year.
If they can bring such costs down, whether it be personnel expenses or fuel etc., then they could be on to a winner.
Coincidentally, they also have to achieve this within the confines of external pressures too.
All eyes will be on how 2024 performs for Norse Atlantic Airways moving forward.
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