Nordic Atlantic Airlines reduced its first quarter losses, reducing operating losses for that period by 90% and net losses by more than 75%.
It aims to provide full year-round profitability in 2025, following a revision of the business model, which intends to offset seasonal fluctuations by leasing a portion of the 12 Boeing 787-9 fleet.
Nordic recently agreed to wet up to six 787s (half of the fleet) to Indian budget airline Indigo.
Under the contract, Nordic will fly 11 7787s for scheduled networks over the summer, after which the remaining jets of Indigo will be transferred from the second half to early 2026.
“We believe this represents a good balance between ensuring fixed revenue year-round from (wet leases) and maximizing the potential of a scheduled network,” says Bjorn Tore Larsen's chief executive.
Scandinavians generated $125 million in revenue in the quarter, half of which was derived from passenger fares and accessories.
Indigo's wet leases and other charter proceeds contributed $28.8 million, raising $3.6 million from the freight.
Nordic also benefited from $28.7 million on-off profits from the early redistributions of three 787-8s.
All three aircraft deviated from Spain's Europe, but Scandinavia chose to phase out the variant last year, leaving 12 787-9.
But Chief Financial Officer Anders Jomaas, speaking at the first quarter briefing on May 21, said, “Even if we ignore the one-off profits of re-delivery on the -8 aircraft…that's an improvement of (revenue) $18 million.”
Jomaas said the carrier has recorded a “large” increase in financial performance, resulting from increased passenger numbers and fares, not just leasing activities.
As part of the revised business plan, the company
Larsen says Scandinavians are still wary of uncertainty. “We don't want to underestimate that part of the photo. This is definitely a volatile market,” he says.
“But I don't think we've seen such a strong outlook from our side as we do now. We believe that despite pressure on prices, we are compensated by load factors.”
Nordic produced an average load factor of 95% over the quarter.
It says the shift to a “dual strategy” business model will reduce the overall cost of operating a “more focused” scheduled network.
Scandinavia says it is working to optimize crew base and crew use, while it is expected to gradually affect its second quarter cost-cutting measures. This forecasts an annual cost reduction and an increase of $40 million in efficiency from 2026.
