Norse Atlantic ASA, parent company of low-cost long-haul carrier Norse Atlantic Airways (N0, Oslo Gardermoen), has secured a USD20 million revolving credit facility from its two largest shareholders, providing liquidity support until October 15, 2024. The move comes amid a substantial loss for 2023.

The shareholders are Scorpio Holdings Limited with a 21.22% stake and B T Larsen & Co Limited (owned by CEO Bjørn Tore Larsen) with a 18.88% stake. The company said in a statement that the unsecured facility, on market terms, should bolster the company's financial position ahead of expected cash-generative late spring and summer seasons.

According to the parent company’s 2023 annual report issued on April 12, its cash reserves stood at USD32.6 million as of March 31, 2024. While the airline itself recorded a net loss for 2023 of USD168.7 million (USD175 million in 2022), the parent’s total operating revenue for the period was USD33.1 million (USD14.4 million in 2022), earned from leasing out five aircraft to third parties. Its operating loss stood at USD183.8 million (compared to USD12.1 million in 2022), and its net loss for the period was USD187.3 million (USD16.9 million in 2022).

Despite the challenges, Norse Atlantic sees positive momentum in its business, with increasing revenues and solid prospects for the upcoming summer season. "Forward-looking business continues to improve. Year-to-date revenue from segments sold has increased substantially compared to the previous year. Moreover, charter revenues booked and under negotiation significantly surpass those achieved in 2023," it said.

Exploring its strategic options, it said it was in advanced ongoing discussions with potential strategic investors, and "any such investment will add positively to the cash position of the company, but no such investments are included in the company's current financial forecast." It has engaged Seabury Securities UK as a strategic advisor to that end.

Norse recounted in its annual report that it completed a private placement of new capital equivalent to USD55 million in November 2023. This was followed by a repair offering in January 2024 for another USD6.5 million.

Norse holds a Norwegian AOC through Norse Atlantic Airways and a UK AOC through Norse Atlantic (United Kingdom) (Z0, London Gatwick). The AOC entities are 100% owned by Norse Atlantic ASA, a publicly traded company listed on the Euronext Expand Exchange in Oslo.

The total fleet consists of 15 aircraft, with ten aircraft under its own operations and five on subleases to third parties as of December 31, 2023. The company expects to operate 12 aircraft during the peak summer of 2024 and 15 by summer 2025. According to the ch-aviation fleets module, the Norwegian and UK AOCs each operate five B787-9s leased from AerCap (two to each) and BOC Aviation (three to each).

Separately, Norse Atlantic Airways established a Swedish branch office in Knivsta, Uppsala County, on April 12, according to ch-aviation research. The address, Hyvelgatan 44, is about 20 kilometres by road northwest of Stockholm Arlanda Airport.