Annual report 2025

Alternative 1 for About intro





Year in review 6

About Norse 7

Key figures 8

Business highlights 9

Industry and market overview 11

Financial review 14

Going concern 16

Financial risk 18

People and organization 22

Corporate social responsibility 23

Corporate governance 23

Letter from the CEO 4

Norse Atlantic Airways – Annual report 2025

Norse Atlantic Airways – Annual report 2025

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Letter from the CEO

Dear shareholders!

2026 marks a new chapter for Norse Atlantic. We have completed the transition to a balanced dual ACMI charter and own network model, delivering a more resilient revenue base, greater operational flexibility and targeted exposure to the highest-demand routes.

Our ambition is clear: to provide a market-leading affordable long- haul travel product. A great customer experience is the foundation for strong margin expansion on our low-cost platform with a balanced risk profile and accelerating shareholder value creation.

However, in a more volatile world, delivering on this ambition also requires a financial reset to strengthen our balance sheet and liquidity, positioning Norse for profitability in normalized market conditions and ensuring we are attractive to potential strategic partners in the airline industry.

Proactively positioning for the future

Since becoming CEO late last year, my focus has been on imple- menting the new business model and on operational simplification to improve speed and responsiveness to market demand. The ambition is to become an Airline on demand. We are creating a more focused own network targeting long-haul routes with strong demand and high fare potential, and we capitalize on the opportu- nities that offer the highest margins within ad hoc charter.

The early results have been encouraging with strong tailwinds into 2026 driven by higher ticket prices, record unit revenue (TRASK), increased production (ASK), more passengers and growth in cargo revenue. Our ACMI operation with IndiGo delivers stable predictable cash flow with no fuel price exposure.

Norse Atlantic Airways – Annual report 2025

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However, the escalation of the Middle East conflict from late February this year is a stark reminder of the fact that the world does not always progress in a straight line.

Initially, during the temporary closures of Middle East hubs that shifted demand to airlines with direct flights between Europe and Asia, we were allowed to increase ticket prices. But we were soon too exposed to the unprecedented increase in jet fuel prices and potential industry-wide fuel shortages with our network shifting towards the transatlantic summer program during the spring.

This required a decisive and proactive response, strengthening Norse’s financial flexibility and robustness through a proposed USD 110 million rights issue, accelerated cost reductions, capacity adjustments and conversion of debt. I am very pleased with the strong support from high quality investors, including our biggest shareholders, who are also providing a bridge loan. Once all trans- actions are completed, we will be positioned to weather a period of high fuel prices, and ready to deliver profitable operations once markets normalize.

Furthermore, we are responding to incoming interest from poten- tial strategic partners seeking to explore structural opportunities with us. To ensure a systematic approach, we are engaging an international investment bank to initiate a strategic review of alternatives, which may include a sale, merger or partnership.

Solid foundation for value creation

The backdrop for this incoming interest is clear. Norse has a solid foundation for value creation with highly favorable long- term leases for modern, fuel-efficient Boeing 787 Dreamliners, an attractive product yielding 96% load factor for 2025 and high customer ratings for our service-minded crew. The strong improvements in recent months confirm that people are willing to pay more for our product on the right routes.

Our operational management center in Riga, which opened in August 2025, is ready to scale as we optimize the route mix for higher profitability. The “Winter Sun” program to Thailand is a great example of how this high grading creates value. We will accelerate commercial efforts to increase prices and ancillary revenue, while also maximizing our cargo potential.

We have also taken measures to balance aircraft utilization to improve predictability and avoid unnecessary cancellations due to maintenance requirements. We aim to be significantly better in customer relations when such irregularities occur. This is coupled with an unrelenting cost focus and accelerated efficiency meas- ures across our operation, including structural simplification, SG&A reductions, a review of all supplier agreements and establishing new agreements with airborne crew for greater flexibility when setting up new routes.

Airline on Demand

Our balanced business model, with approximately half of the fleet operating on ACMI contracts without fuel price exposure, provides stability in a volatile environment following the war in the Middle East. At the same time, we have seen increased demand for direct long-haul routes between Europe and Asia. With improved efficiency and a strengthened balance sheet we are ready to operate through a period of elevated fuel prices, ensuring we are well positioned to capture opportunities as the market normalizes, including potential strategic solutions.

The ambition is to be an “Airline on Demand”, responding more quickly to changes in market trends and demand. We will be flexible and offer charters/ACMI if that is the most profitable option, we will open and close routes more quickly to maximize profitability. These are key elements of our strategy to build a profitable long-haul business, always agile, responsive and continuously improving – true to our position as “The Explorer’s Airline”.

Welcome aboard!

Norse Atlantic Airways – Annual report 2025

Norse Atlantic Airways – Annual report 2025

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Board of Directors' report

Year in review

Norse Atlantic Airways – Annual report 2025

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Year in review

Year in review 

Year in review 

Norse Atlantic ASA (“Norse”) is a public limited company listed on the Euronext Expand Oslo, incorporated under the laws of Norway.

Its registered office is Fløyveien 14, 4838 Arendal, Norway. Norse Atlantic ASA and its subsidiaries combined, in this annual report are commonly referred to as “Norse”, “Norse Atlantic Airways”, or the “Company”.

Norse is an affordable long-haul airline established in 2021. Norse commenced its commercial operations in June 2022, currently operating 12 modern, fuel-efficient Boeing 787-9 Dreamliners on transatlantic routes and between Europe and Southeast Asia and South Africa.

The Corporate Headquarters is in Arendal, with the Operational Headquarters in Riga. Other offices are located in Oslo Gardermoen, London Gatwick, Fort Lauderdale, and Paris.

Norse holds a Norwegian AOC (Air Operator's Certificate) through Norse Atlantic Airways AS and a UK AOC through Norse Atlantic UK Ltd. The AOC entities are 100% owned by Norse Atlantic ASA. The

Company has a branch in France and wholly owned subsidiaries in Norway, Latvia, Cyprus, Greece, the UK, and the USA.

On 31 December 2025, seven of the 12 operated aircraft flew in Norse’s own network and five were on long-term ACMI (Aircraft, Crew, Maintenance and Insurance) charters to IndiGo, India’s largest airline. A sixth aircraft was transferred to IndiGo in late January 2026, securing the Company year-round fixed minimum revenue. In early 2025, Norse redelivered three subleased aircraft to the head lessor to streamline the fleet.

Norse serves a scheduled network of transatlantic destinations as well as seasonal routes between Europe and South-East Asia and Cape Town, South Africa. Norse also provides charter flights for third parties, particularly during the lower demand winter season.

About Norse Atlantic Airways

Norse Atlantic Airways – Annual report 2025

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Year in review | About Norse

Key figures

Key profit and loss figures

Key cash flow figures

Operational and financial KPIs

1 Other revenue includes USD 28.7 million in one-time gain from lease modifications

Norse Atlantic Airways – Annual report 2025

Norse Atlantic Airways – Annual report 2025

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Year in review | Key figures

Year in review | Key figures

Business highlights

2025 was Norse’s third full year of operations. The Company carried over 1.8 million passengers across 6,103 flights in own network and ACMI/charter operations, an increase of 26% and 13%, respectively, compared to 2024. In 2025, Norse’s Available Seat Kilometers (ASK) increased by 20% compared to the previous year.

The Company recorded an average load factor of 96% compared to 84% in 2024. The progress reflected the commercial strategy introduced in late 2024, leveraging data-driven demand and pricing models, and increased ACMI activity which has materially reduced the business risk through stable earnings and no fuel price exposure. Norse’s own network operation is continuously high-graded to focus on routes with the highest demand and fare potential, delivering significant advances across key performance indicators in late 2025 and into 2026.

The Company’s operational performance was stable with 99.5% of all scheduled flights completed as scheduled, on par with 2024.

Average revenue per passenger was USD 378 in 2025, little changed from USD 375 in 2024, following continued overcapacity and price pressure in the transatlantic market during parts of the year as well as strong demand for winter-program flights between Europe and Thailand and South Africa. Airfare was USD 308 per passenger, up from USD 294 in 2024. Ancillary revenue was

USD 70 per passenger, compared to USD 81 in 2024, with the decrease reflecting repackaging of airfare bundles.

Cost per ASK (CASK) excluding fuel decreased by approximately 10% to US cents 3.67 compared to US cents 4.07 in 2024. The improved CASK reflects the transition to ACMI operations and continuous focus on reducing costs and realizing efficiencies.

In early 2025, the Company redelivered three 787-8 aircraft to the lessor. The aircraft had been leased out and never been operated by Norse, had relatively short remaining lease terms and a different cabin and technical configuration than the rest of the fleet. Norse recognized a USD 28.7 million accounting gain from the redelivery. Following the return of the three aircraft Norse has a uniform, flexible and cost-efficient fleet.

In a market characterized by scarce supply of widebody aircraft, Norse has experienced increasing demand for ACMI and charter related business. In February 2025, Norse completed longer-term ACMI contracts with India’s largest airline IndiGo for the wet lease of four 787-9 Dreamliners, and in May, similar agreements were signed for two additional aircraft. The contracts were in line with the letter of intent signed in late 2024, securing fixed long-term revenues while reducing fuel and market risk in accordance with Norse’s strategy to create efficiencies and maximize fleet utiliza- tion by combining demand from both ACMI and charter with own scheduled network operations. The six aircraft were delivered to Indigo from March 2025 to end-January 2026.

Also in May 2025, the Company renewed the partnership with P&O Cruises for the 2025/26 winter season, carrying cruise

passengers from the UK to the Caribbean. The agreement has an option for extending the charter operations through the 2027/28 winter season.

In 2025, Norse completed 1,437 ACMI and charter compared to 608 flights in 2024. This represented 24% of Norse’s total production, up from 11% in 2024. ACMI and charter contributed with revenue of USD 84.6 million in 2025 compared to USD 37.1 million in 2024, with the two main customers being IndiGo and P&O Cruises.

In August, the Company completed the private placement of a new 2-year senior unsecured convertible bond with gross proceeds of USD 30 million. The convertible bond carries an interest rate of 8.5% per annum. The net proceeds were used for debt refinance and general corporate purposes. The issue was significantly oversubscribed, with strong demand from both international and Norwegian equity and bond investors, including support from Norse’s largest shareholders. As part of the trans- action, Norse repaid USD 17.2 million of shareholder loans.

In October, Norse completed a NOK 113.7 million (approximately USD 11 million) private placement through a private placement of 14,780,242 new shares towards selected strategic investors further widening the international shareholder base, as well as the Company's two largest shareholders. The subscription price was set at the current market price per share.

Also in 2025, Norse entered into a USD 20 million overdraft facility to strengthen liquidity. The facility was fully drawn at year-end.

Norse Atlantic Airways – Annual report 2025

Norse Atlantic Airways – Annual report 2025

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Year in review

Year in review | Business highlights

Year in review | Business highlights

Management team

In late November, the Board of Directors of Norse Atlantic ASA appointed Eivind Roald as the Group's new President and Chief Executive Officer, succeeding founder and CEO Bjørn Tore Larsen, with immediate effect. Mr. Roald brings more than 35 years of executive leadership experience across aviation, technology, and commercial transformation, including having played a key role in the commercial turnaround of SAS. Bjørn Tore Larsen stands for election as chairman of the board of Norse Atlantic ASA at the 2026 annual general meeting (AGM).

In July, Kristin Berthelsen was named Deputy Chief Executive Officer, coming from the position of Chief of Staff and Culture Officer. She has been a member of Norse Atlantic's senior management since 2021.

Business and strategy

Norse's vision is to be "The Explorer’s Airline." Inspired by the Norsemen and Norsewomen who travelled and explored the world with their state-of-the art longships, Norse Atlantic enables people to explore other continents by offering affordable flights onboard modern and fuel-efficient Boeing 787 Dreamliners. The Group’s strengths and strategy are focused on delivering great customer experiences by leveraging the Norse culture and the Company’s low cost base and creating value for the shareholders.

Norse’s fleet of 12 commercially flexible and cost-efficient aircraft have attractive lease terms with an average duration of 10 years. The lease agreements are highly favorable compared to current market rates for equivalent aircraft and have no price or inflationary adjustments, providing Norse with a significant long- term cost advantage and ability to offer affordable tickets.

Norse provides two main passenger services as an affordable scheduled carrier service in own operated network and through ACMI and charter services to third parties.

In 2025, the Company materially reduced the business risk with six aircraft flying Norse Atlantic’s own focused network of routes and six on long-term ACMI charters from end-January 2026 with stable earnings and no fuel price exposure, with additional charter flights for P&O Cruises during the winter season.

The own network operation is continuously high-graded to focus on routes with the highest demand and fare potential. Based on the strong reception for the Europe to Thailand flights this winter and the growing demand for travel to South-East Asia, future capacity allocation may shift away from the transatlantic market to new destinations with stronger growth and less competition.

The continuous focus on optimizing capacity allocation may include an increased share of charter and ACMI on shorter-term and ad-hoc basis if that offers the best returns. This is in line with Norse’s ambition of becoming an “Airline on Demand”, positioned to rapidly capitalize on changes in market trends and demand. Continued brand building and product positioning optimization are key elements of the strategy for revenue management and for building an agile and profitable long-haul business.

Furthermore, Norse is responding to interest from potential strategic partners in exploring structural opportunities with the Company. In April 2026, the Company announced advanced preparations with an international investment bank to initiate a strategic review to explore strategic alternatives to unlock the underlying value of the Company and its assets. These strategic alternatives may include a sale, merger or partnership. No indica- tive offer has been received, and no agreement has been reached on the principal terms.

Norse Atlantic Airways – Annual report 2025

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Year in review | Business highlights

Year in review | Business highlights

Industry and market overview

Favorable market balance

The long-haul market 1 is considered fully recovered after the Covid-19 set-back and forecast to grow approximately 5% per year in the next decade, in line with the growth rate in the decade before the pandemic  2 . 2025 was a particularly strong year with international passenger traffic increasing 7.1% compared to 2024 measured in revenue passenger kilometers (RPK), according to IATA. The 2026 outlook is uncertain due to traffic disruptions from the Middle East conflict.

New aircraft deliveries are lagging demand growth, leading to an under- supplied market. In the coming decade, the average annual capacity growth for widebody aircraft (used on long-haul routes) is expected to be 3.2%, well below the above-mentioned expected growth in demand 2 .

At the start of 2026, the total widebody orderbook comprised 2,179 aircraft, roughly equally split between Boeing and Airbus. Based on the 2025 rate of deliveries (181 aircraft), it will take 12 years to deliver this orderbook to the market. Moreover, an estimated 1,045 widebody aircraft are older than 20 years and set to be replaced in the next decade. Hence, the long-haul market is likely to remain undersupplied. Being in posses- sion of modern, fuel-efficient long-haul aircraft will therefore continue to be advantageous.

Airline on demand

Reflecting the shortage of aircraft capacity, the market for wet lease charters (ACMI) is growing fast, having approximately doubled in recent years. Forecasts indicate this market will grow in the range of 6% to 8% per year in the next decade, well above the overall growth in passenger traffic. This is driven by both aircraft capacity shortages and crew shortages, particularly for pilots.

Norse Atlantic’s ongoing ACMI contracts with IndiGo are representative in this respect. IndiGo has a strategic ambition to grow its international long-haul network but will not take full delivery of its fleet of widebody aircraft until the end of the decade. In the meantime, the modern and fuel-efficient Norse fleet provides Indigo the long-term capacity and crew needed to start operations and build market share early.

Norse Atlantic expects to remain active in the ACMI market going forward, also on more short-term contracts, reflecting the strategy of being an airline on demand. With persistent undersupply of aircraft, the ACMI market will likely offer profitable opportunities also in typically weaker seasons or in situations with disruption to global travel patterns.

The competitive outlook for Norse Atlantic’s own network is dynamic. The transatlantic market has been the backbone for Norse since inception, attractive due to dense business and leisure demand. This market has become increasingly consolidated with airline alliances increasing their market share to close to 90%, leveraging scale and

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Year in review | Industry and market overview

Year in review | Industry and market overview

available capacity, high-frequency schedules and loyalty programs to capture demand. This has left less room for independent low-cost carriers, such as Norse Atlantic. As a result, Norse has deployed a more focused offering in this market targeting the best-performing city-pairs.

At the same time, there are strong growth opportunities in other markets. Global long-term forecasts for air travel point to South and Southeast Asia as the two strongest growth markets, followed by Africa in third place. During the 2025/26 winter season, Norse successfully expanded its network offering between Europe and Asia and Europe and South Africa and expect to target similar opportunities going forward. The ability to offer direct

point-to-point routes is also proving to be beneficial compared to traditional hub-strategies that are more exposed to traffic disruptions, as experienced due to conflict in the Middle East.

The cargo market

In 2025, the global air cargo traffic increased 3.4% measured by cargo ton kilometers (CTK). This indicates a normalization of growth anchored in e-commerce, supply-chain reconfiguration and a continued preference for time-critical transport factors, rather than reflecting a broad-based trade surge. Air cargo continues to enable businesses to adjust to the quickly changing trade policy landscape throughout the year, including by front- loading deliveries.

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Year in review | Industry and market overview

Asia Pacific was the fastest growing market in 2025 with full-year demand increasing 8.4%, distributed across most major routes, according to IATA. European carriers recorded 2.9% growth, underpinned primarily by strong connectivity with Asia and, to a lesser extent, North America.

The same trends were reflected in the Company’s cargo perfor- mance during the year, especially on the “winter-sun” routes towards the end of 2025 with Norse carrying an increasing share of high value cargo between Europe and Asia. One example is exports of Norwegian salmon to key growth markets in Asia, which on average has grown 25% per year since 2021, but was up 67% in 2025. With direct routes to Bangkok from both Oslo and Stockholm

during the winter, Norse offers an efficient transport solution for Norwegian salmon exporters, as well as attractive e-commerce capacity on return flights. Norse delivered a continued positive cargo trend since early 2024.

During 2025, cargo volumes increased moderately by 1%, while total cargo revenue increased 39%, reflecting a 38% increase in price per ton cargo.

The cargo demand outlook for 2026 is positive but activity has been impacted by the traffic disruptions following the Middle East conflict. On the positive side, significant volumes between Europe and Asia have been diverted away from Middle East hubs

to direct routes. On the negative side, the spike in fuel prices combined with the increased passenger travel demand on the same routes have reduced capacity being allocated to cargo per flight. Furthermore, should the Middle East escalations lead to global supply chain disruptions, this may have a negative impact on overall cargo volumes.

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Year in review | Industry and market overview

Financial review

Consolidated Statement of Comprehensive Income

In 2025, total revenue was USD 734.0 million (USD 588.1 million), comprising USD 563.7 million in total passenger revenues (USD 503.5 million), USD 28.8 in cargo revenues (USD 20.7 million), USD 1.4 million from sub-leases (USD 18.8 million), USD 84.6 million from ACMI and charter (USD 37.1) and USD 55.5 million in revenue from other sources (USD 8.0 million). In 2025, revenue from other sources included the lease redelivery accounting gain, in addition to insurance claim proceeds, sales commissions and revenue from maintenance services provided by the Company’s technical personnel to third parties.

Total passenger revenue from tickets sold was USD 459.5 million (USD 395.2 million) and ancillary passenger revenue was USD 104.2 million (USD 108.2 million).

Operating expenses excluding depreciation, amortization and aircraft leases totaled USD 677.6 million (USD 589.0 million), comprising USD 160.8 million in personnel expenses (USD 131.7 million), USD 479.2 million in aircraft operating costs (USD 409.6 million in 2023) and USD 37.5 million (USD 47.7 million) in marketing, distribution and administrative costs.

Variable aircraft lease expenses (cash for power-by-the-hour aircraft lease cost) were zero in 2025 (USD 8.2 million). Norse

recognized USD 76.7 million of depreciation and amortization (USD 87.9 million in), of which USD 74.5 million was related to amortization of the aircraft right-to-use assets (USD 85.7 million).

Operating loss for the period was USD 20.1 million compared to an operating loss of USD 97.0 million in 2024.

Net financial expense was USD 41.2 million (USD 38.1 million), including USD 32.8 million in lease-accounting interest cost (USD 36.1 million).

The Company recorded a net loss for the period of USD 61.9 million compared to a net loss of USD 135.5 million in 2024), of which USD 10.6 million was related to non-cash lease accounting costs (USD 23.8 million). The Board of Directors propose that the net loss is transferred to accumulated losses.

Consolidated Statement of Financial Position

At 31 December 2025, Norse had total assets of USD 913.9 million (USD 1,031.2 million), consisting of non-current assets of USD 772.0 million (USD 876.4 million) and current assets of USD 141.9 million (USD 154.8 million).

Non-current assets comprised mainly of right-of-use assets related to aircraft and associated maintenance assets with a carrying value of USD 746.6 million (USD 849.5 million), whereas

the corresponding lease liabilities were at USD 779.3 million (USD 905.7 million).

Other non-current assets, totaling USD 25.4 million (USD 26.8 million), comprise aircraft lease deposits, capitalized software development, and other property plant and equipment.

Current assets consist mainly of USD 96.8 million of receiva- bles (USD 111.9 million) and USD 17.6 million of cash and cash equivalents (USD 22.9 million).

At 31 December 2025, total liabilities were USD 1,173.9 million (USD 1,241.8 million), of which non-current liabilities were USD 823,8 million (USD 921.9 million), comprising USD 711.2 million (USD 826.0 million) in lease liabilities, USD 28.6 million of interest- bearing convertible bond debt (zero), USD 7.4 million shareholder loan (USD 22.1 million) and USD 76.5 million (USD 73.8 million) in provisions. The lease liabilities relate to 12 aircraft leased in by the Company and the provisions mainly consist of estimated redelivery costs for the aircraft at the end of the respective lease periods and future periodic maintenance costs.

The Company had total current liabilities of USD 350.1 million (USD 319.9 million), of which USD 167.9 million were trade and other payables (USD 138.9 million),

Comparable figures for 2024 are shown in parenthesis.

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Year in review | Financial review

Year in review | Financial review

USD 20.3 million of overdraft facility (zero), USD 93.9 million in liability for tickets sold but not flown (USD 101.3 million) and USD 68.1million of current portion of lease liabilities (USD 79.7 million).

At 31 December 2025, the Company’s current assets were lower than its current liabilities by USD 208.2 million (USD 165.0 million). The Company’s book equity was negative USD 260.0 million (negative USD 210.6 million).

Consolidated Statement of Cash flow

During the year ended 31 December 2025, the Company recorded a net increase in cash and cash equivalents of USD 7.9 million, compared to a net decrease of 29.7 million in 2024.

This reflected net cash inflow from operations of USD 69.3 million (USD 55.6 million), a net cash outflow to investing activities of USD 20.9 million (USD 24.4 million) and cash outflow of USD 41.1 million (USD 60.7 million) to financing activities. Cash flow from financing activities include net proceeds of USD 11.1 million from share issue (USD 14.3 million), net proceeds of USD 28.5 million from convertible bond issue (zero), repayment of USD 15.0 million of shareholder loan (USD 20 million drawn), as well as USD 20.3 million drawn on the overdraft facility (zero).

At 31 December 2025, cash and cash equivalents were USD 17.6 million (USD 22.9 million), of which zero was considered restricted cash (USD 13.2 million).

Parent company’s unconsolidated financial statements

Norse Atlantic ASA (the “Parent”) is a holding company and the parent company of the Norse Atlantic Airways group of companies (“Norse”) comprising Norse Atlantic ASA and its underlying subsidiaries. In addition to owning the subsidiaries, the Parent has entered into aircraft leases with external lessors and has subleased the aircraft to its subsidiaries and third-party customers.

Total revenue was USD 31.0 million (USD 31.6 million). Operating loss was USD 5.8 million after recognition of USD 33.4 million in impairment losses. This compares with an operating loss of USD 64.8 million in 2024 after the recognition of USD 66.3 million in impairment losses. Net loss for 2025 was USD 10.6 million compared to a net loss of USD 67.8 million in 2024. The Board of Directors propose that the net loss is transferred to accumulated losses.

Total assets at 31 December 2025 were USD 820.4 million (USD 924.1 million). Non-current assets were USD 734.9 million (USD 834.9 million), comprising USD 667.8 million in non-current receivables from subsidiaries, mainly being lease receivables (USD 732.4 million), USD 0.5 million in investments in subsidiaries (USD 14 thousand) and USD 66.5 million in other non-current assets (USD 102.5 million).

At 31 December 2025, the book equity was USD 5.0 million (USD 3.1 million), while total liabilities were USD 815.4 million (USD 920.9 million). Non-current liabilities were USD 718.2 million

(USD 828.7 million), comprising USD 664.5 million in aircraft lease liabilities (USD 776.8 million), USD 36.0 million of interest-bearing debt (USD 22.1 million), and provisions of USD 17.6 million (USD 29.9 million) that represents the estimate of redelivery costs for the aircraft at the end of the respective leases.

Current liabilities were USD 97.2 million (USD 92.2 million), of which USD 12.5 million were trade and other payables (USD 15.7 million) and USD 64.4 million were lease liabilities payable within one year (USD 76.5 million).

Net cash outflow to operating activities was USD 35.3 million (USD 11.5 million), including USD 34.9 million in negative working capital movement (negative USD 29.4 million). Net cash inflow from investing activities was USD 45.3 million (USD 26.4). Net cash outflow to financing activities USD 10.2 million (USD 33.7 million). This included net proceeds of USD 11.1 million from share issue (USD 14.3 million), net proceeds of USD 28.5 million from convertible bond issue (zero), repay- ment of USD 15.0 million of shareholder loan (USD 20 million drawn), USD 20.3 million drawn on the overdraft facility (zero), lease instalments of USD 64.2 million (USD 66.2) and net paid interest of USD 4,1 million (USD 4.0), as well as the release of USD 13.2 million of restricted cash (USD 2.3 million)

At 31 December 2025, cash and cash equivalent amounted to USD 290 thousand with zero restricted cash, compared to USD 13.6 million at year-end 2024 including USD 13.2 million held in restricted bank accounts.

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Going concern

Management and the Board of Directors take account of and consider all available information when evaluating the application of the going concern assumption. For this annual report, the going concern assumption has been evaluated for a period of 12 months following the end of the reporting period. The going concern assumption of the Company is subject to uncertainty.

Being an airline in its build-up phase, the Company has incurred losses over the first periods of operation, and at 31 December 2025 the reported equity is negative USD 260.0 million. The Company’s total cash balance at 31 December 2025 is USD 17.6 million. For Norse’s equity situation, the existence of value in the off-balance sheet assets, particularly related to the significant fair value of the aircraft lease contracts, and more, imply that the real equity could be higher than the book equity.

The Company has been through a process of shaping a strategic reorientation for the Company. The outcome of such process is a revised business plan implying that the Company allocates a significant portion of its capacity towards longer-term ACMI services, whereas the Company has secured new contracts supporting the execution of such business plan. The plan implies a more modest capacity allocated to operation of routes within own scheduled network, in turn allowing for the Company to focus on its most profitable routes. The revised business plan implies

generation of year-round fixed revenue and cash flows, and a de-risking of the business model.

Based on the major contracts entered into, as well as the Company’s overall plans and ambitions, Norse has prepared financial forecasts that over time show a positive development both in the group’s financial results, financial position in terms of equity and in cash position. Forecasts are subject to risks and uncertainties. Some significant risk factors include, but are not limited to, commercial success expressed through achieved load factors and fares, as well as the future development in jet fuel prices. The demand for air travel is subject to seasonal varia- tions and can also be significantly impacted by macroeconomic factors, such as high inflation, that could have a negative impact on customers’ spending behavior. Airline fares, freight rates and passenger demand have fluctuated significantly in the past and may fluctuate significantly in the future.

Specifically, the Company also is in a position of owing an amount of approximately USD 14 million of historic and overdue passenger taxes to the US Internal Revenue Service (IRS), whereas current tax payments are serviced as they fall due. The US IRS has mechanisms of downpayment of such overdue taxes, under which individual agreements must be entered into. The Company has started paying down overdue taxes in monthly instalments and

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Year in review | Going concern

has proactively entered into a dialogue with the US IRS aiming at establishing a formal plan of downpayment.

There are several uncertainties affecting the financial position of the Company. This includes but is not limited to factors such as the commercial success of the Company during the winter season, the future development in jet fuel prices, the applied holdback mechanisms of credit card acquirers, the outcome of a downpayment plan to be established with the US IRS for the overdue US passenger taxes, as well as general operational risks. On the other hand, there is upside potential on the commercial and financial performance of the Company’s own scheduled network, whereas pre-sales on routes out for sale is trending well above the pre-sales realized at the same time the previous year.

On 14 April 2026, the Company announced a proposed fully underwritten and subscribed rights issue raising gross proceeds of USD 110 million in response to the changing geopolitical situation and unprecedented jet fuel price increase impacting the global airline industry after the conflict escalation in the Middle East in late February. The Company further announced a

USD 70 million bridge loan facility to fund liquidity needs pending completion of the rights issue and accelerated implementation of cost-saving initiatives. Combined with recent developments in operating and commercial performance and the transition to a balanced dual ACMI and own network operating model, the Company expects the completion of these initiatives to create a financial and liquidity position sufficient until such time as the market normalizes and the Company reaches profitability.

The Board of Directors is of the opinion that, in line with the Company’s business plan, there is a feasible plan for the Company to generate profits. In the Board of Directors’ opinion, the going concern assumption is present and applies as basis for the Company’s financial statements, but under the conditions present, the going concern assumption is subject to uncertainty taking into consideration the increased geopolitical uncertainty and volatility in fuel prices. In the event that the going concern assumption does not serve as basis for the Company’s financial statements, depending on the specific circumstances, some assets of the Company may carry values lower than the values at which they are presented in these financial statements.

Norse Atlantic Airways – Annual report 2025

Norse Atlantic Airways – Annual report 2025

17

17

Year in review

Year in review | Going concern

Year in review | Going concern

Risks

Overview

The Company is exposed to risks that are associated with newly established enterprises, as well as to risks related to the airline industry, including fluctuations in jet fuel price and availability. Routes, network and markets have a maturity period, and the airline market is very competitive. As such, the Company may be subject to aggressive and targeted pricing strategies from competitors on the routes it operates, thereby making it more difficult to establish itself and a customer base.

Financial risks

At 31 December 2025, the Company carried interest-bearing liabilities in the form lease liabilities, shareholder loan, convertible bond and an overdraft facility. The Company’s principal financial assets are its cash deposits held with the banks. The Company’s primary financial risks relate to market risk, credit risk and liquidity risk.

The table shows the carrying value of Norse’s financial assets and liabilities.

Financial assets

Financial liabilities

Norse Atlantic Airways – Annual report 2025

Norse Atlantic Airways – Annual report 2025

18

18

Year in review

Year in review | Financial risk

Year in review | Financial risk

Foreign currency risk

The Company has exposure to the risk of changes in foreign exchange rates related to its cash and cash equivalents held in foreign currencies. At 31 December 2025, 49% of the Company’s cash and cash equivalents are held in foreign currencies. The following table represents the Company’s cash balance’s exposure to foreign currencies:

There is also foreign exchange rate risk present in the current line items ‘Credit card receivables’, ‘Deferred passenger revenue’ and ‘Trade and other payables’.

Approximately 65% of the Company’s passenger revenues are denominated in USD, and all cargo revenue and aircraft lease revenues including charter/ACMI are in USD, hence the majority of revenues are in USD. The major operating costs, including fuel cost and aircraft lease cost, are denominated in USD, while airport and personnel costs are denominated in a mixture of USD, GBP, EUR, NOK and more, depending on the location of the operation. The Company has a somewhat similar revenue-to- cost ratio in the four main currencies of USD, GBP, EUR and NOK. Currently, the Company has not entered into any currency risk hedging arrangements outside of the natural hedges being inherent in the assets, liabilities and cash flows of the business activities.

The following table shows the impact on the Company’s profit or loss at 31 December 2025 from a +/- 10% change in foreign exchange rates of the currencies representing the largest exposure to foreign exchange rate risk:

Interest rate risk

The Company’s exposure to changes in interest rates is limited to the bank overdraft facility and on cash held at bank. Other interest-bearing debt following from the leases and convertible bond carry fixed interest rates. The Company does not currently hedge its interest risk. The following table presents the estimated effect on profits or loss from one percentage point change in interest rates: