Norse Atlantic Asa · OSL:NORSE
Norse Atlantic Asa — Q2 2024 Earnings Presentation
17 slides from Norse Atlantic Asa's earnings presentation, Aug 28, 2024
Slide 1: Norse Atlantic Airways Q2 2024 Presentation
» Norse Atlantic Airways Q2 2024 , Presentation 28 August 2024 paggnengce te
Slide 2: Disclaimer
Disclaimer This presentation and its appendices (the "Presentation") has been produced by Norse Atlantic ASA (the "Company", and together with its direct and indirect subsidiaries, the "Group"). This Presentation has been prepared for information purposes only, and does not constitute or form part o
Slide 3: Highlights from the quarter
Highlights from the quarter 1 Strong growth in number of passengers and load factor 2 Airfares impacted by softer Transatlantic market 3 Cargo moving sideways as volume is up, yields still low 4 Charter/ACMI grown ten-fold compared to Q2 2023
Slide 4: Operational performance remains strong
Operational performance remains strong % of flights completed and arriving on time Completion Punctuality (A15) 100% 100% 90% 90% 80% 80% 70% 70% • Completion at 99.5% for the quarter 60% 60% 50% 50% 40% 40% • Punctuality at 80% 30% 30% for the quarter 20% 20% 10% 10% 0% 0% Apr-23 May-23 Jun-23 Jul-
Slide 5: Strong growth YoY
Strong growth YoY Quarter LF 82% +7% points YoY Airfares softened, while Quarter Pax 406’ +201’ YoY ancillary remained strong Passengers Load factor USD per passenger - 11% $450 200,000 100% $400 180,000 90% $89 $87 160,000 80% $350 $84 140,000 70% $300 $87 $74 120,000 60% $250 100,000 50% $200 80,0
Slide 6: Relentless cost focus drives unit cost down
Relentless cost focus drives unit cost down CASK improving YoY… …PRASK influenced by softer USD cent per ASK 7.0 USD cent per ASK Transatlantic market 6.0 - 35% - 13% 6.0 5.0 5.0 4.0 4.0 3.0 3.0 5.9 5.3 5.1 4.9 5.1 4.4 2.0 2.0 3.8 3.6 3.6 3.3 1.0 1.0 0.0 0.0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q
Slide 7: Ancillary remains best in class
Ancillary remains best in class Ancillary revenue per passenger USD • Norse’s fare model provides pricing flexibility to + 8% passengers $140 $131 $130 • Ancillary revenue consists of: $120 $120 $120 $116 ⚬ Upgrades to Premium cabin $42 ⚬ Extra baggage $46 $33 $34 $100 ⚬ Seat selection $42 ⚬ Food an
Slide 8: Significant increase in charter
Significant increase in charter Revenue (USD million) Number of flights 4.5 70 4.0 60 3.5 50 • Quarterly revenue up 3.0 by 970% YoY 40 2.5 2.0 • No of flights up by 30 1.5 729% YoY 20 1.0 10 0.5 0.0 0 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 J
Slide 9: Income Statement
Income Statement First quarter of profit as capacity and revenue increase largely during summer season 3 months 3 months 6 months 6 months 12 months USD thousands Q2 2024 Q2 2023 YTD 2024 YTD 2023 FY 2023 • Q2 2024 revenue up 65% YoY, Revenue 164,760 100,101 243,002 139,859 439,436 driven by; Person
Slide 10: Cash Flow Statement
Cash Flow Statement 3 months 3 months 6 months 6 months 12 months USD thousands Q2 2024 Q2 2023 YTD 2024 YTD 2023 FY 2023 Operating cash flows before 2,015 (4,672) (28,197) (44,261) (39,054) WC1) movements • Neutral cash to/from WC1) movements (1,454) 23,667 31,909 42,487 18,496 operations during pe
Slide 11: Balance Sheet
Balance Sheet Statement of financial position USD thousands 30 JUN 24 30 JUN 23 31 DEC 23 Total non-current assets 907,636 949,004 935,505 Credit card receivables 153,454 116,675 60,214 • USD 153 million receivables from credit card companies for booked Other receivables/current assets 32,874 21,770
Slide 12: Second half of 2024
Second half of 2024 1 July softer than last year 2 August stronger than last year 3 Sales for the rest of the year trending better than last year
Slide 13: Monetizing on assets in a strong market
Monetizing on assets in a strong market • Three currently subleased 787-8 to be returned to lessor during fall 2024 • Leaving Norse with a more uniform, flexible, and cost-efficient fleet • Significant positive effects on cash and P&L • Commercial terms agreed, completion of formal documentation in
Slide 14: Successful strategic shift
Successful strategic shift • Norse has the best-in-class aircraft in a market that is short on capacity • Strong charter demand at profitable rates • Ongoing negotiations with several airlines for multi-year charter contracts • De-risking the business through more secured revenue and less fuel price
Slide 15: Appendix
>» Appendix
Slide 16: Key Operational Numbers
Key Operational Numbers Monthly break-down over last five quarters Apr23 May23 Jun23 Jul23 Aug23 Sep23 Oct23 Nov23 Dec23 Jan24 Feb24 Mar24 Apr24 May24 Jun24 Number of aircraft 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 in fleet Number of aircraft 5 5 5 5 5 5 5 5 5 5 5 4 4 3 3 subleased out ASK (mi
Slide 17: Contact
Contact: Investors: investor.relations@flynorse.com Media: media@flynorse.com