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Bloomberg
Startup airline Norse Atlantic ASA plans to rent out a third of its fleet next summer amid concern that a weaker economic environment will weigh on demand in the trans-Atlantic markets it’s targeting.
Norse, which agreed to take 15 Boeing Co. 787 jets from leasing firms with the aim of building up US flights from London Gatwick, has hired out four of them to Spanish carrier Air Europa and is in discussions to sublease a fifth for a period of 18 months, according to a statement.
Optimism about surging summer demand is giving way to concern that rising living costs and surging inflation could put consumers off flying. Leasing out a chunk of its fleet will allow Norse to lock-in revenue and reduce costs, with the Oslo-based carrier also cutting services to the US from Norway and Germany over the slower winter months.
Norse said the schedule changes won’t result in redundancies and that it’s continuing to recruit pilots and cabin crew for next summer.
when it expects to have a greater presence at Gatwick after being granted a UK license.
The airline said that it expects traffic to be “strong†from the US to Europe this winter as the dollar strengthens against the euro and pound.