Norse Atlantic, the Scandinavian airline that covers long-haul routes between Europe and the United States, broke off its talks with an investor who was interested in joining its capital, after several weeks of dialogue. The agreement was not possible (Norse loses hundreds of millions again also in 2023).
Norse lost $169 million in 2023, according to management due to low occupancy in the low season. For that reason, it has been looking for capital for almost a year. In January of this year it had raised almost 70 million Norwegian crowns and in April it had managed to get its own shareholders to participate in a capital increase for an amount of 20 million dollars.
The airline has developed various strategies to obtain more resources because last year’s 169 million losses are a loss that must be added to the 175 million in 2022, the year in which it practically launched its flight network.
Apparently, the leasing of the aircraft it operates, all 787s, all from its predecessor on the same routes, Norwegian, is sufficiently economical to survive, even without having all the units because several are still sublet to Air Europa today. loses two of the five Boeing 787s leased to Norse).
Management remains optimistic about the company’s future, but another year with losses would be devastating for management’s credibility. Of course, there is no data on how things are going.
