Norse Atlantic ASA: Q2 2024 Strong year-on-year passenger growth and reduced unit costs

• Revenue increased by 65% to USD 164.8 million
• 406,306 passengers carried in Q2 2024, up 99%
• Load factor increased by seven percentage points to 82%
• Revenue of USD 380 per passengers during quarter, compared to USD 425 in Q2 2023
• Continued revenue growth from ACMI and charter
• Number of flights operated during quarter was 1,531, up 89%
• Strong operational performance as 99.5% of planned flights were completed during the quarter
• Lower unit cost with CASK ex fuel being down 35%
• Total cash held at end of quarter was USD 23.7 million
• Revising business strategy, aiming to secure long-term charters and significant cost reductions
• Improved credit card terms secured post quarter-end
• Expect to be available on GDS in 2024

“The second quarter was a successful period for Norse from a growth perspective. Available Seat Kilometres was up 105%, the number of flights increased 89% and passengers were up 99% compared to the second quarter of 2023, while load factor increased by seven percentage points to 82%.

As previously guided in the market update released on 2 July, the second quarter was impacted by lower fare levels across the industry, with revenue per passenger down 11% compared to the same quarter the prior year. Following a strong Transatlantic market in summer 2023, many airlines increased capacity for 2024, leading to the softening of fares and impacting all carriers serving that market.

From end of May we increased our fleet of own operated aircraft from 10 to 12 as we took delivery of two 787-9s from sublease as planned, which represented a capacity growth of 20%. This has created further economies of scale across the business and helped drive unit cost reduction in the second quarter. We expect to see CASK further decrease in the third quarter.

Recently we agreed improved terms with our credit card payment providers that had effect from August.

As Norse’s fantastic people are doing their utmost to deliver a successful summer season for our millions of valued customers, we are also evolving our business strategy to maximize profitability and balance risks. Part of this improvement has already started with a growing proportion of capacity being dedicated to ACMI and charter flying. The third quarter is dominated by flying our own network, but from Q4 and through the winter season we are planning to fly at least half of our operated capacity on ACMI and charter contracts.

We are making an important improvement to our distribution strategy and will join the Global Distribution System (GDS), where we expect to be available in 2024. Once on the GDS, our inventory will be available to be sold by corporate and leisure travel agents globally, significantly increasing the population that will be able to purchase our great value tickets with Norse. We will remain steadfast that the cheapest tickets will always be on our website.

The Company has agreed in principle to commercial terms with one of its lessors to streamline the fleet by redelivering three Boeing 787-8 aircraft in 2024. The three 787-8s have the shortest lease term remaining and have been subleased by the Company. The agreement will result in Norse having a uniform, flexible and cost-efficient fleet of 787-9 aircraft only. The transaction is expected to result in a significant accounting gain. Completion of the early redelivery is subject to completion of formal documentation and execution of the aircraft redeliveries.

Furthermore, the Company is working on a revised business plan that may imply more of the fleet’s capacity and revenue being locked into longerterm contracts, leaving Norse with a business model carrying lower market risk going forward. Norse is currently in negotiations with several airlines regarding multi-year contracts for fleet allocation, some of which would have an impact from the end of 2024 if they materialize. Such business plan may also imply significant cost reductions. Norse will share further updates from the outcome of the process later in the fall, “ said Bjorn Tore Larsen, CEO and Founder Norse Atlantic Airways.

For further information please see attached Q2 2024 report and Q2 2024 presentation.

Contacts:

Investor contacts: Anders Hall Jomaas, CFO, [email protected]

Media contacts: Philip Allport, Senior Vice President Communications, [email protected]

This information is subject to the disclosure requirements pursuant to Section 5 -12 the Norwegian Securities Trading Act and the Euronext Growth Rule Book part II.

Norse Atlantic Airways is an airline that offers affordable fares on long-haul flights, primarily between Europe and the United States. The company was founded by CEO and major shareholder Bjørn Tore Larsen in March 2021. Norse has a fleet of 15 modern, fuel-efficient and more environmentally friendly Boeing 787 Dreamliners that serve destinations including New York, Los Angeles, Las Vegas, Miami, Orlando, Bangkok, Cape Town, Oslo, Athens, London, Berlin, Rome and Paris. The company's first flight took off from Oslo to New York on June 14, 2022.