Norse Atlantic Airways will be cutting six routes between the USA and Europe in its bid to gain a more favorable financial position.
Norwegian low-cost carrier Norse Atlantic Airways will be scaling back some of its transatlantic service between Europe and the United States. According to a report from Travel Pulse, Norse will be removing six routes connecting major European and American cities:
These route removals will affect budget-conscious travelers who have relied on Norse for very cheap flights across the pond.
Norse has not reported a quarter without net losses. However, the issue does not stem from passenger demand. Instead, the losses are coming from the difficulty of operating a low cost model on long haul routes.
Ultra low cost carriers and low cost carriers in the U.S. and abroad thrive on providing the bare minimum. They usually have high bag fees, no complementary food or drinks, no inflight entertainment, and high density seating. This model does not translate well to long-haul flights.
For transatlantic routes, amenities like baggage are almost always essential. Passengers have extended stays flying across the ocean, so they’ll likely have multiple bags. If an airline charges excessive bag fees, these customers will opt for another airline. Inflight entertainment is another crucial need for long flights. Norse does provide IFE, but these systems add weight and licensing costs. Spirit and Frontier in the U.S don’t utilize IFE.
Longer flights require more crew members, driving up labor costs. Norse is also utilizing a small fleet of Boeing 787 Dreamliners. They cannot achieve the same amount of daily flight frequency as some of the more well known air carriers, which also limits profitability.
Despite this being Norse’s reality, their executive team remains optimistic and promised profitability by the end of 2025. Their path in getting there involves reducing their route network and scaling back their fleet from 12 to six aircraft.
The other aircraft will be wet-leased, or rented out to other airlines for operation. This creates another line of revenue for Norse.
The European transatlantic markets have been quite unforgiving as of late. There is ample opportunity for airlines to come in and undercut traditional carriers on price, many airlines that have attempted their spin on this model have struggled. A recent example would be Play Airlines.
That doesn’t mean Norse will meet the same fate. But headwinds will be very strong. To survive, Norse needs to generate some financial momentum quickly. The airline is taking the right steps towards that. Scaling back U.S operations while focusing on stronger markets is a practical first step.
Could we see Norse reopen several of these cut U.S routes or expand to others? It’s too soon to say. This all hinges on the performance of the U.S economy and if demand rises for travel overseas.
For now, Norse will be sticking to operating from major cities where passenger demand and operating costs can better justify service.
