Norse Atlantic As (NRSAF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome everyone and thank you for joining the NORS Atlantic second quarter 2026 presentation. As you are aware of, we are in a very challenging period for the entire airline industry with conflicts impacting air traffic and travel demand. Today we will take you through the actions we have taken to navigate these challenges and to position NORS for the future, including the ongoing strategic review. We have reduced capacity where the economics did not work and delivered record unit revenues in our own network. I believe this shows that we offer a great product to our passengers. However, the sharp reduction in production, our fixed cost base and higher fuel prices impacted profitability. Our ACMI operations were also affected with lower than planned production and longer flight durations on the Indigo operation. Overall, this has been a bad quarter for Norse from a financial perspective and we will need to implement further measures to reduce our costs. In this situation, we are strongly focused on executing on our strategy with increased commercial flexibility and ensuring that our cost cut program Falcon continues to deliver. The strategic review is also progressing with strong interest from multiple parties from different parts of the world. Some have described Q2 as the worst quarter since the pandemic for the airline industry. Fuel prices were exceptionally high going into Q2 and they have remained elevated. Travel demand has been reduced due to the conflict in the Middle East and while the industry has trimmed available seat capacity, costs have not followed suit and industry profitability has halved according to IATA. For NORS, the impact was seen on both parts of our business. In our own network, our decision to minimize losses by reducing the number of fligh...