Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental effects of air travel
• Climate change mitigation

Environmental Achievements

• Boeing 787-9 aircraft have a fuel consumption per seat of 2.08 litre per 100 kilometres, calculated based on a configuration of 338 seats compared to estimated 2.27 – 3.16 litre per seat per 100 kilometres for comparable aircraft

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High fixed costs for airline businesses
• Volatile aviation fuel prices
• Seasonal variations in demand for air travel
• Geopolitical tensions and political uncertainty
• Extensive taxes, fees and charges that can affect the demand for air travel
• Climate change, the limitation of greenhouse gas emissions and any changes to environmental legislation
• Highly competitive industry
• Liquidity risk associated with revenue delays
• Counterparty credit risk in relation to its sub-leased fleet
• Exchange rate fluctuations
• Maintaining air operating certificate and operating licenses
• Traffic rights
• Extensive and complex regulations
• Data protection and data privacy regulations
• Claims, legal proceedings or disputes
• Strikes and other work-related disruptions

Mitigation Strategies

• Dynamically adapt and optimise scale and operations in line with the at all time demand
• Fuel surcharge of USD 20 per passenger per long haul flight
• Changes to the route network and program during winter
• Scheduling fleet maintenance activities to the low season
• Connectivity partnerships with other airlines
• Operating from airports with large catchment areas
• Active revenue management
• Continuous risk assessment
• Standard aircraft hull and liability insurances
• Fuel-efficient modern Boeing 787 Dreamliners

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• More volatile weather

Transition Risks

• Stricter environmental regulations

Opportunities

• Fuel-efficient aircraft

Reporting Standards

Frameworks Used: IFRS, IAS 34

Certifications: Null

Third-party Assurance: RSM Norge AS

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Operates an ultra-modern and uniform fleet of Boeing 787 Dreamliners, the most environmentally friendly and cost-effective aircraft in class.
• Minimizes environmental impact through modern Boeing Dreamliners and higher density cabin layouts, resulting in the lowest environmental footprint per seat among transatlantic carriers.
• Estimates that its Boeing 787-9 aircraft boasts a fuel consumption per seat of 2.08 litres per 100 kilometres, surpassing estimates for comparable aircraft.

Social Achievements

• Continued to value positive and productive relationships with labor unions.
• Emphasizes a fruitful employer-employee relationship.
• Developed a great team of passionate people who work together to deliver the best experience to customers.
• Has established a comprehensive system for defining and structuring job levels within the organization, ensuring fair compensation.

Governance Achievements

• Governance systems are based on principles set out in the Norwegian Code of Practice for Corporate Governance.
• Actively adheres to good corporate governance standards and complies with requirements of section 3–3b of the Accounting Act and the NUES Code of Practice.
• Established an Audit Committee.

Climate Goals & Targets

Environmental Challenges

• Limited flying activity and loss-making in the first half of 2023 due to ramping up operations.
• Seasonally weaker revenue from scheduled operations during the winter period.
• Market overcapacity in the air cargo market leading to pressure on yields.
• Fluctuations in aviation fuel prices and availability.
• Risks associated with the limitation of greenhouse gas emissions and environmental regulation and legislation.
• Heightened focus on the environmental impact of air travel leading to growing concern among consumers and policymakers.
• Potential operational disruptions due to climate change (increased turbulence, runway restrictions, storm-related delays, coastal airport impacts).

Mitigation Strategies

• Quickly adapting network and strategy to respond to market fluctuations.
• Stronger focus on charter and ACMI operations during the winter period.
• Increased sales focus and close performance follow-up to improve cargo performance.
• Ongoing evaluation of fuel hedging arrangements.
• Submission and approval of emissions monitoring plans for ICAO CORSIA, EU ETS, and UK ETS; purchase of carbon allowances.
• Commitment to transposing to sustainable aviation fuels as they become commercially viable.
• Operating direct flights exclusively, utilizing fuel-efficient Boeing 787 Dreamliners and higher density cabins.
• Diligent work to eliminate waste generation through source reduction and robust recycling and reuse practices.
• Advocating for legislative measures that incentivize climate action, including support for sustainable aviation fuels.
• Secured a short-term, unsecured credit facility with major shareholders.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased turbulence
• Runway restrictions
• Storm-related delays
• Coastal airport impacts from rising sea levels and flooding

Transition Risks

• Increased cost of carbon emissions
• Stricter environmental regulations
• Reduced demand for air services due to consumer concern over carbon footprint

Opportunities

• Use of sustainable aviation fuels
• Maintaining a competitive advantage with fuel-efficient Boeing 787 Dreamliners

Reporting Standards

Frameworks Used: UN Global Compact

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Softening of fares across the industry due to increased capacity by many airlines.
• Liquidity risk due to tail-heavy summer bookings, awaiting credit card receivables, and softening market conditions.
• High fixed costs making the airline vulnerable to small changes in demand or sales prices.

Mitigation Strategies

• Increased fleet size from 10 to 12 aircraft to create economies of scale and drive unit cost reduction.
• Improved credit card terms secured post quarter-end to resolve near-term liquidity issues.
• Strategic reorientation to simplify and harmonize the fleet, exploring opportunities to reduce overall business risk by replacing variable revenue with more fixed revenue through long-term contracts.
• Working on a revised business plan that may imply significant cost reductions.

Supply Chain Management

Climate-Related Risks & Opportunities