Cheap long-haul flying has a money problem. Norse Atlantic, the Norwegian low-cost carrier that promised budget transatlantic travel, is now exploring a sale.
JPMorgan is running the process, and a deal could value the airline at roughly $1.2 billion including debt.
The CEO confirmed JPMorgan is leading a strategic review that could end with a sale or a merger. Executives have signaled they're open to either path.
Fuel is a big reason. Jet fuel prices have jumped sharply since the war in Iran kicked off, and routes that used to fly over the region are disrupted, adding time and cost to every trip.
The pressure is the same one hitting US carriers absorbing Iran war fuel costs and shipping firms passing along fuel surcharges. Norse has been burning through cash to keep things running.
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Earlier this month, Norse said it would cut about 75 administrative jobs and furlough some crew members. It's also rolling out temporary pay cuts for non-flying crews.
Management has framed the cuts as part of a wider push to lower costs ahead of any deal, which makes the airline easier to sell with leaner books and fewer fixed costs.
Norse only flies long-haul, with a network running between New York-JFK and London, Rome and Athens, plus Orlando to London. Those routes are profitable when fuel is cheap, but they're a stretch when it isn't.
A EUR 1 billion price tag would value the airline at roughly the cost of a small fleet of new widebody planes. That's a clean entry point for a bigger carrier looking to add transatlantic routes.
The strategic review is expected to wrap before the end of 2026.
The buyers most likely to circle are larger European or US airlines that want a low-cost long-haul foothold. A private equity bid is also possible if Norse can show its cost cuts are sticking.
Either way, the budget transatlantic experiment is being repriced in real time.
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