Following the Company's first commercial flight on 14 June 2022 - just 14 months after Norse Atlantic ASA ("Norse", "Norse Atlantic Airways" or the "Company") was formed and the IPO completed - the second half of 2022 marked a number of milestones in Norse's short history as it launched several new routes from new European and US cities  as it gradually increased from one aircraft in operation at the end of June to four at the yearend. Norse flew over 289,000 passengers and operated 1,427 flights successfully during the Period.

The Company recorded an average load factor for the six months ended 31 December 2022 ("H2 2022" or the "Period") of 62%, with a monthly high during the peak summer month of July at 86% and a monthly low of 50% during the normal historically low demand month of November. Norse achieved a decent operational performance, flying over 99% of scheduled flights, with the few cancellations being due to adverse weather conditions outside the Company's control.

During the second half of 2022 Norse was awarded a UK AOC (Aircraft Operating Certificate) and operating License by the UK Civil Aviation Authority, and subsequent authorisation from the US Department of Transport to operate flights between the UK and US, which will open up a key market for the Company. Additionally, Norse secured further landing slots at London Gatwick and JFK New York, which Norse will utilize from the summer 2023 season as it ramps-up production. By mid-summer 2023 the Company expects to be utilizing its full fleet of 15 aircraft, with 10 aircraft under own operations and five aircraft on sublease to a third party.

Norse completed a private placement equity raise of gross NOK 300 million (approximately USD 30 million) during H2 2022. The proceeds are used in relation to maintaining a sufficient liquidity balance following a requirement from the UK air authorities to ring fence an amount in relation only to Norse's wholly owned UK subsidiary Norse Atlantic UK Ltd, as well as general corporate purposes. In relation to the private placement, Norse is committed to carry out a repair offering during the first half of 2023, which can raise up to an additional NOK 150 million.

During the Period Norse launched partnerships with major European and US airlines, easyJet, Norwegian and Spirit Airlines, that allows passengers to connect in a virtual interline arrangement, powered by Dohop.

The Company took a careful approach to increasing production during H2 2022, choosing to fly an average of four aircraft through the seasonally low winter season, allowing Norse to focus on preparations for ramping-up production from summer 2023 season, starting with adding Paris from 26 March 2023 and flying with five tails based at London Gatwick by the middle of 2023.

Cargo revenues recorded in the Period totalled USD 10 million, an amount equivalent to 10% of Norse's overall revenues. Norse completed its first charter flights during the latter part of the Period, flying nine charters in November and 21 in December 2022, with charter activity continuing into 2023. The charters were mainly done for the Norwegian Government as well as one global tour operator for winter holiday destinations in the Caribbean and the Far East.

Norse has a fleet of 15 modern, fuel-efficient and environmentally friendly Boeing 787 Dreamliners at historically low pricing and favourable lease terms, including power by the hour payments for a minimum period of the first 12 months after respective aircraft deliveries. As of 31 December 2022, all aircraft are delivered, with five subleased out to a third party for a duration of 18 months each. The total revenue from the aircraft sublease component is expected to be in excess of USD 50 million over the term of the subleases.

Looking ahead to a strong summer 2023 with a focused route network

Inflation is high in Europe and the US, impacting the spending power of consumers, while jet fuel prices remain high and make-up a much higher proportion of airlines' cost base than previously. Norse is a very young airline and will only be operating on a scale that gives efficiencies from mid-2023, while it continues to enjoy the benefits of flexible aircraft lease terms, including power by the hour and low lease rates, during its ramp-up.

As expected, 2022 is a loss-making year as it is a start-up year, being Norse's first full financial year since incorporation in 2021. Start-up costs, including investment in systems, costs related to achieving regulatory approvals, recruitment and initial training impacted the Company's bottom line, while the first flight and, thus, first revenue-generating activity, was about halfway through the year. The next financial year - 2023 - will be Norse's first full year of operations, though Norse will be in a start-up / ramp-up phase during the first half of 2023 and it will be the second half of 2023 that Norse is fully operational.

As a start-up airline that was still in the process of obtaining all relevant regulatory approvals, as well as airport slot times, performance in 2022 has been negatively impacted by having short selling windows between launching ticket sales for a route and flights. For example, there were six weeks between Norse's first tickets on sale for its Oslo-New York route, while in comparison established (ie. non-start-up) airlines typically have tickets on sale 330 days in advance. Norse made its first summer 2023 routes available for sale on 9 November 2022, while due to regulatory approvals the final summer 2023 network was only available for sale from 28 February 2023. As Norse is able to increase its booking window it is expected to have a positive impact on ticket sales as customers will have a longer period to make bookings.

Establishing a new airline takes time and investment and Norse is on-track to becoming a profitable transatlantic low cost carrier. Building a reliable and known brand is continuous and is not completed overnight. While tickets were initially only available for sale on the Company's website, since mid-2022 Norse fares have gradually become available on more and more platforms, including finn.no, kayak.com, kiwi.com, skyscanner.net, and booking.com. During 2023 Norse expects to have tickets for sale on Expedia and will look to add additional selling platforms.

Norse is sufficiently financed and ready for ramp-up to fully operational fleet in summer 2023, including 5 aircraft based at London Gatwick. Strong sales momentum at the end of 2022 and post period end for summer season bookings give preliminary indications that the second half of 2023 could be the Company's first period of profitability since it commenced flying.

"Norse Atlantic Airways continues to build on the solid business plan laid out in 2022. The year ahead will mark many milestones for the company and consumers as we fully establish our presence in key markets and become the disruptor airline of the transatlantic market by offering value, comfort and choice to a wide customer base eager to travel.

As we enter into our first full summer season in 2023 the initial substantial investments that were necessary to launch Norse Atlantic Airways operations, and subsequently establish our UK based airline, will have created a strong and sustainable company, ready to swiftly seize on new opportunities and navigate through an unpredictable global economic environment," continued Bjorn Tore Larsen, CEO Norse Atlantic Airways.

To date Norse Atlantic Airways is performing on track or above the business plan communicated during the Private Placement in November 2022. As previously communicated, the company will carry out a repair offering to those shareholders eligible as at 24 November 2022. The repair offering is expected to be done during the spring once the required prospectus is approved by the Norwegian Financial Services Authority.

For further information please see attached H2 report and company presentation.

Contacts:

Investor contacts: Ben Boiling, CFO, ben.boiling@flynorse.com  

Media contacts: Philip Allport, Senior Vice President Communications media@flynorse.com

Norse Atlantic Airways is a new airline that offers affordable fares on long -haul flights, primarily between Europe and the United States. The company was founded by CEO and major shareholder Bjørn Tore Larsen in March 2021. Norse has a fleet of 15 modern, fuel-efficient and more environmentally friendly Boeing 787 Dreamliners that serve destinations including New York, Los Angeles, Fort Lauderdale, Orlando, Oslo, London, Berlin, Rome and Paris. The company's first flight took off from Oslo to New York on June 14, 2022.

This information is subject to the disclosure requirements pursuant to Section 5 -12 the Norwegian Securities Trading Act and the Euronext Growth Rule Book part II.