Norse Atlantic explores ‘sale, merger or partnership’ options

Norse Atlantic has hired international investment bank JP Morgan to review a possible sale, merger or partnership, in response to “interest from potential strategic partners”.

News of the review came as the long-haul budget carrier reported a 66% year-on-year increase in revenue to $160 million for the first quarter of 2026.

It saw “strong commercial momentum” in the quarter, with “continued improvement in underlying profitability” and increased demand for direct long-haul routes following the disruptions affecting Middle East hubs.

The company posted earnings before interest and taxes (Ebitdar) of $5.8 million.

However, it reported a “substantial cost impact from sharply rising fuel costs” after the conflict in the Gulf started at the end of February.

The carrier has adjusted capacity, reduced costs and strengthened its balance sheet “to support continued operations until market normalises”.

More: Norse Atlantic suffers 25% slump in April carryings amid Middle East conflict

Eivind Roald, chief executive, said: “Delivering a positive Ebitdar in the first quarter, the seasonally weakest quarter in the airline industry, is a genuine milestone and direct validation of the strategic transformation we have executed over the past year.

“However, from end-February, the unexpected escalation of the Middle East conflict created an unprecedented spike in fuel prices, materially impacting industry economics.”

He said Norse responded quickly by adding capacity on its Gatwick–Bangkok route.

“Longer term, we believe passengers and partners will increasingly prioritise direct routes over hub-based connections,” he said.

The carrier operates a fleet of 12 Boeing 787 Dreamliners, spilt between in-house flying and external charter and ACMI (Aircraft, Crew, Maintenance and Insurance) wet lease operations.  

“At the end of January, we completed the transition to a more resilient and balanced business model with half of the fleet on ACMI and charter operations, significantly reducing our fuel price exposure and increasing the earnings stability,” said Roald.

The airline is also accelerating its Project Falcon restructuring programme to reduce costs.

“In addition, we are responding to incoming interest from potential strategic partners by engaging an international investment bank to initiate a strategic review of alternatives, which may include a sale, merger or partnership,” added Roald.