Norse Atlantic scraps routes, explores ‘strategic options’
Norse Atlantic, the Boeing 787 operator which operates long-haul services from various airports in Europe, may not exist for much longer in its present form.
The Summer 2026 schedule is looking thin after a number of route cancellations in recent days.
However, there is no short term risk to the business due a fully underwritten $110 million rights issue and $70 million bridging loan just announced.
Norse Atlantic operates a fleet of 12 Boeing 787-9 aircraft originally used by Norwegian. The airline was designed to cherry-pick long-haul routes from airlines across Europe. Whilst technically a low cost carrier, it actually has the most attractive Premium Economy seat in the air with leg room that puts its competitors to shame.
The airline has been repositioning itself as a lessor. Six aircraft are currently flying on behalf of Indian carrier IndiGo, which wanted to launch long haul routes without waiting for the aircraft it has on order, but this contract will come to a natural end at some point.
What route changes has Norse announced?
Whilst nothing has been formally announced, a number of changes have been picked up in recent days by analysts such as @SeanM_1997 on X.
All flights to/from Los Angeles have been dropped which is probably a sensible move in the face of substantially higher fuel costs. This was a big operation with 12 weekly flights scheduled across London Gatwick, Paris CDG and Rome Fiumicino.
The Summer 2026 schedule will now consist of just five routes:
- Athens to New York JFK
- London Gatwick to Cape Town (no flights June to August)
- London Gatwick to New York JFK
- London Gatwick to Orlando
- Rome Fiumicino to New York JFK
It appears that Manchester to Bangkok has been dropped for Winter 2026.
A refinancing is in place
Norse has announced a ‘strategic review’, which is corporate speak for ‘putting itself up for sale’. Officially it is open to a sale, merger or ‘partnership’.
Subject to shareholder approval in June, the company will raise $110 million via a rights issue. This is fully underwritten by both new and existing investors.
To meet immediate liquidity needs, the airline has raised $70 million via a bridging loan provided by its core shareholders and an outside investor. This will be repaid via the rights issue.
CEO Eivind Roald said:
“The fully underwritten rights issue will strengthen our balance sheet and liquidity to ensure Norse Atlantic can operate through a period of elevated fuel prices, be well positioned to become profitable when the market normalises and potentially become an attractive partner to others in the airline industry.
“The company has over time received interest from potential strategic partners to explore structural opportunities with the company and is in advanced preparations with an international investment bank to initiate a strategic review to explore strategic alternatives to unlock the underlying value of the company and its assets.”