HomeAir LineNorse loses hundreds of millions again also in 2023

Norse loses hundreds of millions again also in 2023

Every so often, Norse, the Norwegian long-haul low cost company, says it is consolidating. And periodically he says that in this or that month he made money. Preferential He has been telling you about it. In fact, the last thing he said is that he is keeping the planes he had leased from Air Europa, as if things were going so well that he needed them (Air Europa will say goodbye to the five Boeing 787s leased to Norse).

It is not like this. Yesterday the data for all of 2023 came out and the losses were 169 million dollars, almost the same as in 2022, when 175 million were left. It already exceeds the 340 million lost (Norse fails in Germany and announces that it will no longer fly).

Turnover has improved: it has gone from 104 to 439 million, but one does not live off the turnover, but on the profits. And this despite the fact that the cost per seat has fallen by a third from 2022 to 2023. But it is not enough.

A still important problem is that it has barely reached an occupancy level of 74 percent of the seats, which is much more than the 62 percent the previous year, but which is far from ideal to survive.

Now Norse has closed an agreement to rent one of its aircraft, with crew, on an ACMI basis, to Air Peace of Nigeria, to fly between London and Lagos. That is a secure and stable income because the risk is assumed by the Nigerian landlord.

Managers now say that in 2024 they will do things better to avoid losses, but the clock is turning against them. The project probably will not last another year with these losses and the company will have to accept that there is no room for low-cost long-haul.

Source: Preferente

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