Norse Atlantic Airways has accelerated its Project Falcon cost-saving program, targeting annual reductions of $40-50 million. The initiative, launched last year, now aims to deliver approximately 80% of these savings through accelerated measures, including a shift to combined ACMI leasing and own operations.
The airline recently secured $110 million through a fully underwritten rights issue, subject to shareholder approval on June 2, and a $70 million bridge loan to support liquidity while implementing these cuts. Proceeds will repay a $20 million overdraft, settle $25 million in dues to lessors and suppliers, and fund general corporate purposes.
This comes amid improved 2025 financials, with revenues rising to $734 million from $588.1 million, narrowing the operating loss to $20.1 million from $97 million, though the net loss widened to $61.9 million. Unit costs excluding fuel dropped 19% after adjusting for non-recurring items and the ACMI transition.
Norse has also launched a strategic review by the end of 2026, engaging a financial advisor to explore options including sale, merger, or partnership. The carrier cut Los Angeles flights from its summer 2026 schedule and reduced US flights by 60% compared to the prior year.