Norse Atlantic Airways Sets Sights on $45 Million Funding Boost for Winter Liquidity

Norway’s Norse Atlantic Airways (N0) is gearing up to raise an additional $45 million to navigate the seasonal slowdown during the autumn and winter months, ensuring liquidity and settling obligations. The move comes as the airline addresses adverse working capital movements and negotiates payment plans with a key supplier.

According to the airline’s 3Q23 financial report, Norse Atlantic aims to secure the additional funding to bridge the gap until revenue from the stronger summer program bookings is collected. Major shareholders Larsen & Co Ltd and Scorpio Holdings Limited have expressed robust support for the fundraising initiative, which will be managed by Pareto Securities AS and SpareBank 1 Markets AS.

The fundraising, subject to prevailing market conditions and necessary corporate resolutions, will be crucial for Norse Atlantic’s financial resilience during the slower season. Scorpio Holdings Limited will also join the airline’s board in the future.

In addition to the funding initiative, Norse Atlantic revealed that it has received inquiries and engaged in discussions with industry players interested in potential business opportunities. This suggests a potential consideration of selling a stake in the airline. The board has enlisted advisors to assess strategic alternatives, indicating an openness to capitalizing on the airline’s perceived attractiveness in the market.

Norse Atlantic Airways reported its first profitable quarter during the 2023 summer, experiencing significant growth in revenue and EBITDAR. However, challenges such as higher fuel prices and a weaker cargo market have put pressure on profitability. The airline remains proactive, aiming to optimize its network and explore ACMI (wet-lease) and charter opportunities.

The carrier plans to launch an upgraded premium product in 4Q23 and implement initiatives to boost ancillary revenue. With a fleet of four B787-9s operated by Norse Atlantic Airways and six by its UK subsidiary, Norse Atlantic (United Kingdom), the airline serves key destinations across Norway, the UK, the US, Thailand, and France.

CEO Bjørn Tore Larsen highlighted the airline’s growth, stating, “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 ten-aircraft operation while delivering a robust performance.”