Norse Atlantic Airways accelerates cost reduction programme
Norse Atlantic Airways accelerated (07-May-2026) implementation of the Project Falcon cost reduction programme, to improve efficiency, simplify operations and reduce costs. The programme is expected to deliver cost savings of upwards to USD50 million p/a compared to the 2025 baseline. Programme measures include:
- Reduce administrative workforce by approximately 75 positions (35% of administrative staff) and consolidate selected office functions;
- Relocate head office to Oslo, to support closer commercial and operational integration, and subsequently close Arendal office;
- Crew furloughs;
- Temporary pay cuts for non-flying crew;
- More flexible base structure and simplified agreements with airborne personnel;
- Rationalise IT and partner systems.
CEO Eivind Roald said: "Geopolitical tension has affected jet fuel prices and traffic flows, requiring Norse Atlantic to accelerate Project Falcon to strengthen our financial resilience and pave the way towards profitability". [more - original PR]
Background ✨
Norse Atlantic Airways’ Oslo Stock Exchange filing outlined a fully underwritten USD110 million rights issue, a USD70 million bridge loan and a strategic review to explore options including sale, merger or partnership, after a fuel-price shock added about USD10 million per month from end-Feb-2026 and prompted suspension of 2026 guidance1. It previously said Project Falcon targeted USD40 million to USD50 million in annual cost reductions, with about 80% of measures identified and being implemented1 2.