Since summer 2022, the low-cost airline Norse Atlantic has been offering flights across the Atlantic. Their business model shows numerous similarities to the former long-haul operations of Norwegian Airlines, including their fare structure. In the cheapest economy tickets, large carry-on luggage was not included. Passengers could only bring a personal item onboard. The size of this personal item was recently reduced from 45 x 36 x 22 cm to a ridiculous 40 x 30 x 15 cm, ensuring that almost everyone would have to pay for a cabin trolley.
Now, there’s a surprising turnaround. As of yesterday, Norse has upgraded its cheapest Economy Light fare. In addition to the personal item, it now includes large carry-on luggage of up to 10 kg. The dimensions are even more generous than what most other airlines flying across the Atlantic allow, with measurements of 56 x 45 x 25 cm.
The airline announced this yesterday in their newsletter:
To show our gratitude to our loyal customers and adventurous explorers, we’re excited to introduce some fantastic updates to our Economy fare bundles. For new bookings made from September 2nd onwards, our Economy Light fares will now include a complimentary carry-on bag of up to 10kgs/22lbs, in addition to an underseat personal item.
E-Mail from Norse Atlantic
According to Norse, these rules only apply to bookings made directly on FlyNorse.com from September 2 onward. For tickets booked before this change, the carry-on luggage remains chargeable (if still enforced).
Additional costs may apply when booking through third-party providers, e.g. booking.com charges €40 extra for carry-on luggage on a flight from New York to London, whereas it’s included with a direct booking:
This change certainly encourages booking directly at the airline, which was already a good idea anyways. OTAs (Online Travel Agencies) are known for offering small discounts on ticket prices only to charge extra for add-ons like luggage, seat selection, and payment fees.
Tickets Across the Atlantic Starting at €93
Despite the change, Norse Atlantic continues to offer bargain flights. One-way tickets from New York to London are available for as low as €93:
Admittedly, this is €27 more expensive than the last offer in early August, but that was a special promotion. It will be interesting to see how prices develop. The upgrade to the Economy Classic fare (for €81) is now significantly less worthwhile than before. This means Norse will likely lose some additional revenue.
Norse to Downsize Fleet and Cut Routes
Norse is currently facing some challenges. After several airlines have failed with low-cost long-haul flights, Norse recently reported millions in losses, despite increased revenues.
As a result, Norse Atlantic has decided to return three Boeing 787s to the lessor ahead of schedule. The reduced fleet is expected to be increasingly used for wet-lease operations on behalf of other airlines. Consequently, Norse’s route network is expected to shrink further:
Under such a scenario the Company’s own scheduled network will be carefully examined and further refined. Norse will ensure that we capitalize on investments already made in building our market position, focusing on our most mature and profitable routes in a more down-sized network, during Summer as well as during Winter.
Geschäftsbericht Quartal 2 2024 von Norse Atlantic
What might reassure investors is simultaneously unsettling for potential passengers. Anyone booking a ticket for winter 2024/25 or even next spring cannot be certain that the flight will actually take place. If a flight is cancelled, Norse would be obligated to rebook passengers with another airline. However, in the event of bankruptcy, this right might no longer be enforceable.
Conclusion
Norse Atlantic is moving away from the ultra-low-cost carrier model without significantly raising prices. This is initially good news for passengers of the long-haul airline. However, the question remains: how long can this continue?
Translated by Ditmar
Cover Picture: © Norse Atlantic Airways AS