Norse Atlantic Airways announces measures to support operations amid changing geopolitical situation

Norse Atlantic Airways, in an Oslo Stock Exchange filing, announced (15-Apr-2026) the following measures aimed at supporting continued operations amid the rapidly changing geopolitical situation:

• Fully underwritten and subscribed rights issue to raise gross proceeds of USD110 million to strengthen financial flexibility and robustness. The issue is subject to approval by an extraordinary general meeting (EGM) on 02-Jun-2026. Net proceeds will be used to repay an overdraft facility (USD20 million), to pay dues to lessors and suppliers (USD25 million) and the remainder for general corporate purposes. Subject to completion of the rights issue and approval by the EGM, the company will offer bondholders the opportunity to convert bonds into new shares at a conversion price corresponding to the subscription price of NOK0.50 per share;
• Bridge loan facility of USD70 million to fund the liquidity needs pending completion of the rights issue;
• Accelerated implementation of cost saving initiatives: Norse Atlantic will continue to implement its cost saving initiatives programme which targets cost reductions of USD40 million to USD50 million p/a. Approximately 80% of these cost reduction measures were identified and are in the process of being implemented. The company will further optimise its network and fleet allocation;
• Engagement of a financial advisor to launch a strategic review, expected to be concluded in 2026: The company previously received interest from potential strategic partners and is in advanced preparations with an international investment bank to initiate a strategic review to explore alternatives. Strategic alternatives may include a sale, merger or partnership. No indicative offer has been received.

The company was trading in line with budget and guidance until the end of Feb-2026, with strong operational performance continuing into Mar-2026. Increases in fuel cost on own network added costs of USD10 million per month from the end of Feb-2026, not reflected in prices of tickets sold before the price shock. While there is some offset from increased prices of new tickets sold, if current prices prevail, Norse Atlantic expects additional fuel costs could increase USD100 million on a 12 month basis. As a result the company suspended its 2026 guidance. [PR - Restricted Content]