Annual report 2024

Alternative 1 for About intro





Year in review 6

About Norse 7

Key figures 8

Business highlights 9

Business and strategy 10

Industry and market overview 11

Financial review 15

Going concern 17

Financial risk 19

People and organization 23

Corporate social responsibility 24

Corporate governance 24

Outlook 25

Letter from the CEO 4

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Letter from the CEO

Dear shareholders

In 2024, we at Norse Atlantic took new steps towards building a sustainable and profitable airline, making long haul travel affordable for more people. Into the summer season the fleet in Norse’s own operations was scaled up from 10 to 12 aircraft, and together with improved performance of filling the aircraft, Norse experienced significant volume growth throughout the year.

The number of flights went from 4,002 in 2023 to 5,402 in 2024, a growth of 35 per cent. And as load factor went from 74 per cent in 2023, to 84 per cent in 2024, a 10 per cent-points increase, these factors combined took number of passengers up by 49 per cent, from 980 thousand in 2023 to 1.46 million in 2024. And again, our operations team demonstrated their ability to handle large growth as 99.6 per cent of all flights was completed as planned, whereas most interruptions were due to external factors such as adverse weather conditions or third-party operational disturbances.

The summer season was negatively affected by increased transatlantic market capacities, and over the year revenue per passenger came in at USD 375, which was 5 per cent down from 2023. Driven by the volume growth, passenger revenue however saw large growth, increasing by 33 per cent from 2023 to 2024. Cargo revenue increased by 45 per cent from 2023 to 2024, which is above the general capacity increase. The sub-lease income was

down in 2024 as two aircraft were moved from sub-leases to own operations. Following our increased emphasis on charter and ACMI, charter revenue on the other hand increased seven-fold from 2023 to 2024, ending at USD 37 million for the year. All in all, revenue went from USD 439 million in 2023 to USD 588 million in 2024, a 34 per cent increase equalling to USD 149 million uplift of revenue.

Aiming for our low cost being best in class, we saw the year average CASK ex fuel coming down to 4.1 US cents, representing a decrease of 16 per cent compared to the year average of 2023. Norse Atlantic continues its relentless focus on cost into 2025, aiming at bringing these levels further down.

Although improving both operating margins and net margins and seeing intra-year improvements, the Company is still carrying losses, and we initiated major initiatives both to increase revenues and decrease costs to achieve sustainable profitability.

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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On the commercial side we developed a new approach during the second half of the year, applying science-based methods and data-driven product development facilitated by a new-built tech team. Great results have already been delivered as the fourth quarter load factor came out at 92 per cent, a 22 per cent- age-points improvement from the same quarter the year before. The first months of 2025 have shown that load factor is sticking at high levels spite being in the typically low winter season. We also see that sales and forward load factor build for all quarters of 2025 is trending well above the corresponding numbers of 2024. In 2024 we connected to a light global distribution system (GDS), and we will build further presence on GDS in 2025, allowing for broader distribution of our affordable fares.

After the year-end Norse Atlantic entered into longer-term ACMI contracts with India’s largest airline IndiGo for the wet lease of four of our Dreamliners. Such allocation of fleet capacity allows for Norse Atlantic to de-risk the business model as we secure year- round fixed revenue for a sizeable part of the fleet. It also allows for Norse Atlantic to improve profitability of our own scheduled network as focus going forward will be on the routes that has proven most profitable.

Norse Atlantic maintains its relentless focus on reducing cost, both significantly reducing the overheads as well as better aligning crew bases with the network and improving aircraft utilization.

To further support the streamlining of the Company, we made the decision to early redeliver to the head lessor the three 787-8 aircraft having been subleased. The aircraft were redelivered first quarter of 2025, which then comes with a significant accounting gain. The redeliveries leave us with a fully uniform fleet of 787-9 aircraft only, a fleet being more flexible from a commercial perspec- tive, as well as even more efficient from a cost perspective.

Heading into the 2025 summer season the fleet consist of 12 aircraft of which 11 operates mainly in our own scheduled network and one is fully dedicated to IndiGo wet lease. During the fall, number of aircraft servicing our own network will move to eight, whereas number of aircraft at IndiGo wet leases will increase to four. We believe that this represents a good balance between risk and reward of serving our own scheduled network and picking up on other opportunities offered by a market of widebody capacities being at scarce capacity.

We still have lots of work ahead of us, but we love what we do, and we are looking forward to the summer season and continuing our path towards building a profitable and sustainable future of Norse, and as well as continue making transatlantic travel affordable for all!

Welcome aboard!

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Board of Directors' report

Year in review

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review 

Year in review 

Norse Atlantic ASA (“Norse”) is a public limited company listed on the Euronext Expand Oslo and is a company incorporated under the laws of Norway.

Its registered office is Fløyveien 14, 4838 Arendal, Norway. Norse is an affordable long-haul airline established in 2021 that serves the transatlantic market with modern, fuel-efficient Boeing 787 Dreamliners. Norse’s headquarters are located in Arendal, Norway, and has offices in Fort Lauderdale, USA, Paris, France, Riga, Latvia and London Gatwick, UK, as well as an aircraft maintenance competence satellite at Oslo Gardermoen, Norway. Norse holds a Norwegian AOC (Air Operator’s Certificate) through Norse Atlantic Airways AS and a UK AOC through Norse Atlantic UK Ltd. The AOC entities are 100 per cent owned by Norse Atlantic ASA. The Company has a branch in France and wholly owned subsidiaries in Norway, Latvia, the UK, and the USA. Norse Atlantic ASA and its subsidiaries combined, in this annual report are commonly referred to as “Norse”, “Norse Atlantic Airways”, or the “Company”.

As of 31 December 2024, Norse holds a fleet of 15 aircraft, of which 12 are 787-9 aircraft under its own operations, as well as three 787-8 aircraft subleased to a third party. The three subleased aircraft were early redelivered to the head lessor during first quarter of 2025 to secure an even more streamlined fleet.

Norse commenced its commercial operations in June 2022, flying approximately four aircraft in its own operations during the first 12 months of operations, increasing to 10 aircraft from summer 2023, and further up to 12 aircraft from summer 2024. Norse currently serves a scheduled network across the destinations New York, Orlando, Miami, Las Vegas and Los Angeles in the US, to Berlin, London, Paris, Rome, Athens, Stockholm and Oslo in Europe, as well as flying from Europe to Cape Town and Bangkok.

In addition to scheduled flying, Norse provides charter and ACMI flights for third parties, particularly during the lower demand winter season. As from the first quarter of 2025, the Company will wet lease aircraft to the Indian airline IndiGo on longer term contracts, starting out with one aircraft, gradually increasing up to four aircraft during the second half of 2025, securing the Company year-round fixed revenue.

About Norse Atlantic Airways

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | About Norse

Key figures

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Key figures

Year in review | Key figures

Business highlights

2024 was Norse’s second full year of operations, during which the Company scaled up its own operations from 10 to 12 aircraft and introduced new destinations such as Athens, Cape Town and Las Vegas. The Company over the year carried almost one and a half million passengers across 5,400 flights. Compared to 2023, number of passengers were up by 49 per cent and number of flights were up by 35 per cent. Norse’s Available Seat Kilometres (ASK) increased by 42 per cent in 2024 compared to the previous year.

The Company recorded an average load factor of 84 per cent in 2024 compared to 74 per cent in 2023. Following improvements in commercial approach, the Company showed strong load factors over the last few months of 2024, resulting in an average load factor of 92 per cent in the fourth quarter of 2024, and with the strong trend continuing into 2025.

The Company’s robust operational performance was again demonstrated in 2024 as 99.6 per cent of all scheduled flights were completed as scheduled during another period of substantial growth.

Norse recorded an average Revenue per passenger of USD 375 in 2024, 5 per cent down from USD 393 in 2023, following there being overcapacities and pressure on prices in the transatlantic market during parts of the year. In 2024, Norse achieved an ancillary

revenue exclusive of bundles of USD 81 per passenger, compared to USD 84 per passenger in 2023, still maintaining its relatively strong position on ancillary revenue compared to that of peers.

Cost per ASK (CASK) ex. fuel was reduced by approximately 16 per cent from 2023 to 2024, coming in at US cents 4.07 compared to US cents 4.87 in 2023. The improved CASK mainly comes from Norse building further scale to its operations.

In a market characterized by scarce widebody capacities, Norse has experienced increasing demand for charter and ACMI. Norse has taken opportunities from this, especially during the traditional seasonal lows, and completed 608 charter and ACMI flights in 2024 compared to 71 flights in 2023. In 2023 charter and ACMI represented 2 per cent of Norse’s production, whereas this increased to 11 per cent in 2024. Charter and ACMI contrib- uted with revenue of USD 37 million in 2024, with the two main customers being the cruise lines P&O Cruises and the Italian airline Neos.

Norse completed a repair offering of shares on 2 February 2024, raising new equity capital of USD 5.8 million. On 6 December 2024, Norse raised equity capital of another net USD 8.5 million through a private placement directed towards major shareholder BT Larsen & Co Limited. Total additional equity capital raised during 2024 was net USD 14.3 million. To further strengthen the financial position of the Company, the Board of Directors on 12 April 2024 decided to accept a shareholder loan offered by the two largest shareholders BT Larsen & Co Limited and Scorpio

Holdings Limited in the total amount of USD 20 million with a final maturity date later set at 31 March 2026. Further to this, the Board of Directors on 29 November 2024 decided to enter into an additional shareholder loan offered by major shareholder BT Larsen & Co Limited in the amount of USD 6.3 million with a final maturity date of 31 December 2025. The latter loan remains fully undrawn as per 31 December 2024.

On 28 August, Norse announced that it in principle had agreed terms with one of its head lessors for early redelivery of three 787-8 aircraft at favourable terms. These aircraft have been subleased to an external third party since they were originally delivered to Norse, had relatively short remaining lease terms and carried a different configuration than the rest of the fleet in terms of cabin and certain technical specifications. Returning these aircraft would leave Norse with a uniform, flexible and cost-ef- ficient 12 aircraft fleet of 787-9 aircraft only. The three aircraft were redelivered during the first quarter of 2025, which will come with a significant accounting gain.

In February 2025, after the year-end, Norse entered into longer- term ACMI contracts with India’s largest airline IndiGo for the wet lease of four of our Dreamliners, one aircraft already commenced in March 2025, and additional three aircraft expected to commence in second half of 2025, post having contributed to the summer program of Norse’s own scheduled network. Norse aims for such allocation of capacity to de-risk the business model by securing year-round fixed revenue for a significant part of the fleet.

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Business highlights

Year in review | Business highlights

Business and strategy

Norse’s vision is to be “The Explorer’s Airline.” Inspired by the Norsemen and Norsewomen who travelled and explored the world with their state-of-the art longships, Norse Atlantic enables people the opportunity to explore other continents by offering affordable flights onboard modern and fuel-efficient Boeing 787 Dreamliners. The Group’s strengths and strategy is focused on giving customers value, the Norse culture, and the Company’s low cost base.

The Company provides two main passenger services by providing an affordable scheduled carrier service as well as providing charter and ACMI services to third parties. Norse is a point-to- point low-cost long-haul carrier, with a demand driven approach focusing on both leisure and smart business travellers who value an affordable, high-quality product. Norse mainly focuses on thick, profitable transatlantic routes where there is high passenger demand.

Norse does charter and ACMI (Aircraft, Crew, Maintenance and Insurance) charters for third parties, firstly with a focus on providing such services at times when demand for scheduled traffic is lower on the routes Norse services. Now Norse has taken it a step further, allocating one third of its fleet’s capacity to wet leases with the Indian airline IndiGo, securing a base of year-round fixed revenue. During the low season Norse may allocate further capacity to charter and ACMI on shorter-term and ad-hoc basis.

Norse is able to offer affordable tickets due to its low cost base, including having secured one of the most fuel- and cost-efficient aircraft, the Boeing 787 Dreamliner at attractive and historically low lease rates. Lease contracts are for long durations up until 2038 for the longest contracts, and under fixed lease rates with no inflationary or other price adjustment features. Still being a young airline enables Norse an unprecedented opportunity to establish a best-practice and cost-efficient airline without prior financial restraints.

The Group’s pricing strategy focuses on providing an unbundled affordable entry level fare and charging either as a bundle for a set fee or as additional items priced individually, allowing the customer to choose what they pay for. The Company offers cost-conscious business travellers, as well as premium leisure customers, a Premium product. Norse Premium Class includes upgraded meal options, priority check-in and boarding, on-board amenities like pillows and blankets, and seats with an indus- try-leading 43-inch pitch. Norse Premium Class aims to offer customers superior value compared to competing business class products, by offering an equivalent travel experience at an attrac- tive price point.

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Business and strategy

Year in review | Business and strategy

Industry and market overview

Market introduction

The long-distance market 1 is estimated to constitute more than 90 per cent of the total airline market, according to statistics represented in Boeing’s June 2023 market update 2 . The long-distance market has increased 5.1 per cent per year (compounded) over a 25-year period until 2019 (pre-COVID).

Air travel continues to experience steady growth, and despite the lingering effects of the pandemic, actual demand aligns closely with pre-COVID estimates according to Boeing Analysis (2024)   3 . Overall, macroeconomic fundamentals remain favourable for sustained growth, with GDP rising, inflation slowing, and interest rates declining. As such, travel remains a priority for consumers according to Boeing (2024), with a significant portion of passengers planning to travel more frequently and for longer durations than before the pandemic.

Aviation plays a critical role as an enabler in an increasingly interconnected world. The global airline network has doubled since 2004, and remains highly competitive, where 90 per cent of routes are served by multiple airlines. By helping to keep air travel affordable airlines collectively have delivered a stable global passenger yield over the past 20 years, even as global consumer prices have nearly doubled in the same period. The affordability of tickets can largely be attributed to improved fleet efficiency, driven by advancements in technology, and more fuel-efficient aircraft. Allowing for enhanced productivity and improved regulatory. In total, airlines have been able to optimize load factors, further contributing to cost-effective ticket pricing.

Opportunities

The Company has leased out five and since three aircraft to another airline since 2022, first for an initial period of 18 months with subsequent extensions/renewals. This allowed the Company to phase in the total of 15 aircraft gradually and generate revenue from all aircraft during the ramp-up period. During 2024 the Company reviewed the strategy and concluded that the market, known as ACMI operation, carriers’ attrac- tive benefits in form of lower risk and earnings potential, and therefore extended this. Meanwhile, the Company also capitalized on three aircraft leases by agreeing commercial terms for returning them to the leasing company against a cash consideration to the Company. The three aircraft were executed for redelivery first quarter of 2025. Upon completion, the Company has 12 aircraft partly operated on its own scheduled network, as well as through charters and ACMI. Pursuant to the IndiGo agreements, the Company has phased in one aircraft on a longer-term ACMI contract in Q1 2025, with an additional three aircraft expected to be added to such longer- term contract from the second half of 2025. From Q4 2025 and onwards the Company expects to have a third of its operated capacity on ACMI and charter contracts, whereas the remainder of the capacity will be assigned to its own scheduled network. Norse Atlantic is well positioned for 2025 with significant higher utilization of aircraft and production capabilities, addressing the known growth in demand and capacity between US and Europe. Furthermore, Norse Atlantic increased capacity between Europe and Asia, and continue resilient connection between UK and South Africa.

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Industry and market overview

Year in review | Industry and market overview

Competitive situation

The transatlantic market is dominated by three large airline alli- ances – SkyTeam, Oneworld, and Star Alliance – who by 2024 have 86.6 per cent market share, up from 80.7 per cent pre-Covid (see chart 1, below) In 2024, 7.6 per cent of the market was provided by Low-Cost Carriers (“LCC”), of which Norse Atlantic has a share of 1.6 per cent. Norse Atlantic has proven its exist- ence by capitalize on the void left behind in low-cost operator presence when the main LCC operator left the market in 2020. The 2024 return of LCC market share demonstrate the demand for such service to the markets, even with a stronger consortium of Alliance offerings.

Norse operates in markets that are either operated solely by full-service operators or markets where low-cost presence already exists. However, in both types of markets, Norse is able to co-exist next to full-service and low-cost operators alike. This is demonstrated in four (out of five) of Norse Atlantic’s New York routes from Europe, all of which have significantly grown in available seat capacity between Summer 2019 and Summer 2024. Even though these routes saw substantial growth in figures and a large number of competitors, Norse was able to generate strong traffic on its routes and establish its position in the market. This is reinforced by the fact that Norse has been able to achieve origin

and destination (O&D) passenger market shares between 10 per cent and 20 per cent on the majority of its transatlantic routes in the first full summer season of operations. These passenger shares have outpaced Norse’s seat capacity shares on all trans- atlantic routes. Demand for several of these routes is believed to have been stimulated by the entry of Norse’s low-cost business model and captured from other carriers through the attractive price point.

Looking specifically at airport-level competition, Norse Atlantic faces head-to-head competition on some of its transatlantic routes, while several routes are operated solely by Norse. For example, of the seven routes operated from London Gatwick, the Group operated four routes without any head-to-head competi- tion. As presented in the charts, routes where Norse competes directly with other carriers have various degrees of competition. The head-to-head competition trend has remained relatively similar compared to the competition levels prior to the COVID-19 pandemic, with some exceptions, mainly in the London market due to Virgin Atlantic’s network shift to London Heathrow.

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Industry and market overview

Year in review | Industry and market overview

Market segment cargo

Cargo 2024 global market development

The global demand increased during 2024, rising 6.1 per cent year-over-year (YoY), marking 17 consecutive months of growth. The full year 2024 saw industry-wide demand (CTK) surpass 2023 levels by 11.3 per cent, setting a new record by exceeding 2021’s volumes. The Asia-North America trade lane, the largest in cargo volume, saw an 8 per cent annual rise in cargo demand. All regions and trade lanes saw growth averaging over 5 per cent for the full 2024. Global air cargo capacity, measured in Available Cargo Tonne-Kilometres (ACTK), increased by 7.4 per cent compared to 2023.

The E-commerce demand continues to push yields up in Asia during 2024, resulting in relocation of freighter capacities into this region. The yield development between Europe and North America (the biggest area/capacity share for Norse) continues to be under pressure due to the imbalance demand vs capacity. This has resulted in a decrease of freighter capacities on this sector during 2024.

Norse cargo 2024 performance

Norse Cargo contribution developed positively during 2024, the second full year of operation since the start of Norse. We increased the flown air cargo tonnage by ca 48 per cent (to ca 26,5 thousand tons) while the yield dropped 16 per cent vs 2023. The graphics below illustrate Norse cargo performance since June 2022 and up to year-end 2024:

UK represents the biggest area of flown cargo tonnages with ca 36 per cent during 2024. Followed by Italy, Norway and France with all together ca 34 per cent of the flown air freight.

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Industry and market overview

Year in review | Industry and market overview

Cargo 2025 market outlook

Different sources confirm a cautious optimism in regard to demand growth of ca 4-6 per cent in 2025, which remains tempered by its susceptibility to geopolitical tensions, a subdued manufacturing outlook, and political interventions in an increas- ingly volatile world. The continued geopolitical tensions, threats of US tariffs, tightened measures of de minimis threshold related to e-commerce, increased security risks from rising global tension, extreme weather and natural disasters pose many uncertainties for this year’s global air cargo demand and supply chain. While the threat of further US East Coast port strikes seems to have now been removed, any further disruptions to global ocean freight is likely to see shippers resorting to the predictability of air freight for urgent shipments, triggering further spikes in air cargo rates. October’s three-day strike at US ports produced a +12 per cent jump in air cargo volumes month-on-month from Europe to the US.

Market segment charter/ACMI

The charter/ACMI market (Aircraft, Crew, Maintenance & Insurance) is continuing to grow. Increased global demand for air travel, economic upswing and the expansion of regional middle- class demographics. In addition, many operators are experiencing long delays for ordered aircraft and engines. Several airlines have approached Norse requesting to wet lease our aircraft and we expect this to continue for the next few years due to the lack of imminent capacity.

The charter and ACMI market saw a significant growth during the winter season 2024/2025 – across the whole world. During 2024 Norse have been flying to all of the world’s seven continents. Asia, Africa, North America and Europe is part of our regular schedule flights and then South America, Antarctica and Australia for external customers. From November 2024 to the end of March 2025 Norse operated close to 700 Charter/ACMI flights compared to around 100 the same period one year earlier.

In addition to short term ACMI contracts and ad-hoc charter flights, Norse has entered into a longer-term agreement with the Indian airline IndiGo for the wet lease of four aircraft, one aircraft commencing March 2025, and the remaining three commencing second half of 2025. The four aircraft will mainly be operated from Europe to India.

Going forward, we foresee Norse to engage less in ad-hoc ‘ambulance’ charter/ACMI for the benefit of focusing short- and long-term agreements with established airlines and tour operators.

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Industry and market overview

Year in review | Industry and market overview

Financial review

Consolidated statement of cash flow

The Company’s net decrease in cash and cash equivalents during the year ended 31 December 2024 (the “Period”) was USD 32.0 million (USD 14.9 million in 2023), driven by net cash inflow from operations of USD 55.7 million (outflow of USD 20.6 million in 2023), a net cash outflow to investing activities of USD 24.4 million (USD 7.3 million in 2023) and cash outflow of USD 60.7 million (inflow USD 1.9 million in 2023) to financing activities. Cash flow from financing activities include net proceeds of USD 14.3 million from share issue during the Period (USD 68.2 million in 2023). The Company’s cash and cash equivalents as at 31 December 2024 was USD 22.9 million, including USD 13.2 million of restricted cash (USD 54.8 million as at 31 December 2023, including USD 15.5 million of restricted cash).

Consolidated statement of financial position

As at 31 December 2024, Norse had gross assets of USD 1,031 million (USD 1,083 million at 31 December 2023), consisting of non-current assets of USD 876.4 million (USD 935.5 million at 31 December 2023) and current assets of USD 154.8 million (USD 147.6 million at 31 December 2023). Current assets consist mainly of USD 111.9 million of receivables (USD 66.6 million at 31 December 2023) and USD 22.9 million of cash and cash equivalents (USD 54.8 million at 31 December 2023). Non-current assets consist mainly of right-of-use assets related to aircraft and associated maintenance assets carrying value of USD 849.5

million (USD 908.9 million at 31 December 2023). Lease liabilities, mainly being aircraft and related assets were USD 905.7 million (USD 973.8 million at 31 December 2023). Other non-current assets, totalling USD 26.8 million, consist of aircraft lease deposits, capitalized software development, and other property plant and equipment (total of USD 26.7 million at 31 December 2023). The Company’s total liabilities were USD 1,241.8 million at 31 December (USD 1,172.8 million at 31 December 2023), of which non-current liabilities were USD 921.9 million (USD 960.1 million at 31 December 2023), consisting of USD 826.0 million (USD 902.1 million at 31 December 2023) in lease liabilities, USD 22.1 million of shareholder loan (nil at 31 December 2023) and USD 73.8 million (USD 57.9 million at 31 December 2023) in provisions. The lease liabilities relate to 15 aircraft leased in by the Company and the provisions mainly consist of estimated redelivery costs for the aircraft at the end of the respective lease periods and future peri- odic maintenance costs. The Company had total current liabilities of USD 319.9 million (USD 212.8 million at 31 December 2023), of which USD 138.9 million were trade and other payables (USD 88.7 million at 31 December 2023), USD 101.3 million were towards the Company’s liability for tickets sold but not flown (USD 52.4 million at 31 December 2023) and USD 79.7 million was for the current portion of lease liabilities (USD 71.7 million at 31 December 2023). At the end of the Period, the Company’s current assets were lower than its current liabilities by USD 165.0 million (USD 65.1 million as at 31 December 2023). The Company’s book equity was

negative USD 210.6 million as at 31 December 2024 (negative by USD 89.7 million as at 31 December 2023).

Consolidated statement of comprehensive income

During the Period, the Company recorded a total operating revenue of USD 588.1 million (USD 439.4 million in 2023), consisting of USD 503.4 million in revenues from passengers (USD 379.2 million in 2023), USD 18.8 million from subleases (USD 33.1 million in 2023), USD 20.7 million from cargo (USD 14.3 million in 2023), USD 37.1 million from charter including ACMI (USD 5.1 million in 2023) and USD 8.0 million (USD 7.7 million in 2023) in revenue from other sources. Airfare revenue averaged USD 294 per passenger (USD 309 in 2023) and ancillary revenue was USD 81 per passenger (USD 84 in 2023), an aggregate of USD 375 per passenger (USD 393 in 2023). Total revenue from ticket sold were USD 395.2 million (USD 297.8 million in 2023) and total ancillary passenger revenue were USD 108.2 million (USD 81.4 million in 2023).

The Company’s operating expenses excluding depreciation, amor- tization and aircraft leases during the Period totalled USD 589.0 million (USD 457.4 million in 2023), consisting of USD 131.7 million in personnel expenses (USD 99.8 million in 2023), USD 409.6 million in aircraft operating costs (USD 320.2 million in 2023) and USD 47.7 million (USD 37.5 million in 2023) in marketing, distri- bution and administrative costs. Variable aircraft lease expenses

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Financial review

Year in review | Financial review

were USD 8.2 million (USD 33.1 million in 2023), which is the amount the Company paid in cash for power-by-the-hour aircraft lease costs. Norse recognized USD 87.9 million of depreciation and amortization during the Period (USD 84.1 million in 2023), of which USD 85.5 million related to amortization of the aircraft right-to-use assets (USD 82.5 million in 2023). Net financial expense for the Period was USD 38.1 million (USD 33.4 million in 2023), including USD 36.1 million in lease accounting interest cost (USD 34.7 million in 2023). The Company recorded a net loss for the Period of USD 135.5 million (USD 168.7 million in 2023), of which USD 23.8 million related to non-cash lease accounting costs (USD 59.7 million in 2023). The Board of Directors propose that the net loss is transferred to accumulated losses.

Parent company’s unconsolidated financial statements

Norse Atlantic ASA (the “Parent”) is a holding company and the parent company of the Norse Atlantic Airways group of companies (“Norse”) comprising Norse Atlantic ASA and its underlying subsidiaries. In addition to owning the subsidiaries, the Parent has entered into aircraft leases with external lessors and has subleased the aircraft to its subsidiaries and third-party customers.

During the Period, the Parent’s net cash outflow to operating activities was USD 11.5 million (inflow of USD 29.3 million in 2023), including USD 29.4 million in negative working capital movement (positive USD 14.5 million working capital movements in 2023). Net cash inflow from investing activities was USD 26.5

million (outflow of USD 69.0 million in 2023) which also includes inflows from loans to subsidiaries of USD 44.7 million (outflow of USD 35.7 million in 2023). During 2024 the Parent raised net proceeds of USD 14.3 million in additional share capital (net proceeds of USD 68.5 million in 2023), which has been used to finance the Parent and its subsidiaries. Net cash outflow to financing activities for the Period was USD 33.7 million (inflow of USD 33.5 million in 2025), after lease instalments of USD 66.2 million (USD 26.6 million in 2023) and net paid interest of USD 4,0 million (net received USD 2.1 million in 2023). Cash and cash equivalent at the end of the Period was USD 13.6 million (USD 34.4 million at yearend 2023), including USD 13.2 million (USD 15.5 million in 2023) held in restricted bank accounts.

Gross assets of the Parent as at 31 December 2024 were USD 924.1 million (USD 1,021.0 million at 31 December 2023). Non-current assets were USD 834.9 million (USD 901.3 million at 31 December 2023), consisting of USD 732.4 million in non-current receivables from subsidiaries (USD 716.4 million at 31 December 2023), USD 53.6 million in aircraft and other tangible assets (USD 151.6 million at 31 December 2023), USD 14 thousand in investments in subsidiaries (USD 8 thousand at 31 December 2023) and USD 48.8 million in other non-current assets (USD 33.3 million at 31 December 2023). USD 729.0 million of non-current receivable from subsidiaries are related to the 12 aircraft (10 in 2023) that are subleased to the subsidiaries (USD 706.7 million at 31 December 2023).

The Parent’s book equity value was USD 3.1 million at 31 December 2024 (USD 56.4 million at 31 December 2023), while total liabilities were USD 920.9 million (USD 964.6 million at 31 December 2023). Non-current liabilities were USD 828.7 million (USD 881.1 million at 31 December 2023), consisting of USD 776.8 million in aircraft lease liabilities (USD 850.4 million at 31 December 2023) and a provision of USD 29.9 million (USD 30.6 million at 31 December 2023) that represents the estimate of redelivery costs for the aircraft at the end of the respective leases. The Parent had current liabilities of USD 92.2 million (USD 83.6 million at 31 December 2023), of which USD 15.7 million were trade and other payables (USD 14.7 million at 31 December 2023) and USD 76.5 million being lease liabilities payable within one year from the end of the Period (USD 68.8 million at 31 December 2023).

The Parent’s total revenue for the Period was USD 31.6 million (USD 33.1 million in 2023), hereof USD 18.8 from subleasing of aircraft to a third party (USD 33.1 million in 2023) and USD 12.7 million of gain from cancellations of subleases (nil in 2023). The Parent recorded an operating loss of USD 64.8 million (USD 183.8 million in 2023), after recognizing impairment losses of USD 66.3 million (USD 171.3 million in 2023). Net loss for the Period was USD 67.8 million (USD 187.3 million in 2023). The Board of Directors propose that the net loss is transferred to accumulated losses.

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Financial review

Year in review | Financial review

Going concern

Management and the Board of Directors take account of and consider all available information when evaluating the application of the going concern assumption. For this annual report, the going concern assumption has been evaluated for a period of 12 months following the end of the reporting period. The going concern assumption of the Company is subject to uncertainty.

Being an airline in its build-up phase, the Company has incurred losses over the first periods of operation, and as at 31 December 2024 the reported equity is negative USD 210,6 million.

The Company’s total cash position as at 31 December 2024 is USD 22.9 million.

For Norse’s equity situation, the existence of value in the off- balance sheet assets, particularly related to the significant fair value of the aircraft lease contracts, and more, imply that the real equity could be higher than the book equity.

The Company has been through a process of shaping a strategic reorientation for the Company. The outcome of such process is a revised business plan implying the Company allocating a signifi- cant portion of its capacity towards longer-term ACMI services, whereas the Company has secured new contracts supporting the execution of such business plan. The plan implies a more modest capacity allocated to operation of routes within own scheduled

network, in turn allowing for the Company focusing its most profitable routes. The revised business plan implies generation of year-round fixed revenue and cash flows, and a de-risking of the business model.

Based on the major contracts entered into, as well as the Company's overall plans and ambitions, Norse has prepared finan- cial forecasts that over time show a positive development both in the group’s financial results, financial position in terms of equity and in cash position. Forecasts are subject to risks and uncer- tainties. Some significant risk factors include, but are not limited to, commercial success expressed through achieved load factors and fares, as well as the future development in jet fuel prices. The demand for air travel is subject to seasonal variations and can also be significantly impacted by macroeconomic factors, such as high inflation, that could have a negative impact on customers’ spending behaviour. Airline fares, freight rates and passenger demand have fluctuated significantly in the past and may fluc- tuate significantly in the future.

Specifically, the Company also is in a position of owing an amount of approximately USD 18 million of historic and overdue passenger taxes to the US Internal Revenue Service (IRS), whereas current tax payments are serviced as they fall due. The US IRS has mechanisms of downpayment of such overdue taxes, under which individual agreements must be entered into. The

Company already has started paying down overdue taxes and has proactively entered into a dialogue with the US IRS aiming at establishing a formal plan of downpayment.

The Board of Directors has previously concluded that the transi- tion to the revised business model would require a strengthening of the Company’s financial position and therefore decided to secure more capital to the Company. In December an equity direct private placement therefore was completed towards major shareholder BT Larsen & Co Limited affiliated by CEO Bjørn Tore Larsen, for new shares equal to 15 per cent of the outstanding

Norse Atlantic Airways – Annual report 2024

Norse Atlantic Airways – Annual report 2024

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Year in review

Year in review | Going concern

Year in review | Going concern

share capital. The issuance was done at NOK 5.00 per share, bringing in the NOK amount equivalent of USD 8.7 million. In addition, BT Larsen & Co Limited, provided the Company with a new shareholder loan of USD 6.3 million, bringing the total proceeds of new capital up into the amount of USD 15.0 million. The shareholder loan has a final maturity 31 December 2025. The shareholder loan was fully undrawn as per 31 December 2024 and is still undrawn as per 29 April 2025. Further to this, it was agreed that the existing revolving credit facility with the two major share- holders BT Larsen & Co Limited and Scorpio Holdings Limited, should have its final maturity date extended to 31 March 2026.

There are several uncertainties affecting the financial position of the Company. This includes but is not limited to factors such as the commercial success of the Company during the winter season, the future development in jet fuel prices, the applied holdback mechanisms of credit card acquirers, the outcome of a downpayment plan to be established with the US IRS for the overdue US passenger taxes, as well as general operational risks. On the other hand, there is upside potential on the commercial and financial performance of the Company’s own scheduled network, whereas pre-sales on routes out for sale is trending well above the pre-sales realized at the same time the previous year.

Based on knowledge of the business plan established for the Company, in the Board of Directors’ opinion, there is established a viable plan for the Company to be able to generate profits. In the Board of Directors’ opinion, the going concern assumption is present and applies as basis for the Company’s financial statements, but under the conditions present, the going concern assumption is subject to uncertainty. In the case that the going concern assumption should not serve as basis for the Company’s financial statements, depending on the specific circumstances, some assets of the Company’s may carry values lower than the values at which they are presented in these financial statements.