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Very good morning, everyone, and welcome to North Atlantic's Q4 2024 presentation. My name is Bjorn Tore Larsen. I'm the CEO of the company, and we'll present our Q4 results together with our CFO, Anders Jolmos. So a few highlights from today. The last quarter, we have definitely turned the tide in many ways, and we were able to achieve a load factor over the quarter of 92%, which is an increase of 22%. So it's a considerable improvement in terms of filling the cabins. We also increased activity somewhat, about 15% compared to last year. And the number of passengers went up by almost 50%, 46%. Revenues also went up considerably, 30%, $223 million. And the revenue per available seat kilometer went up by 23%. We had a net loss of $35 million in the quarter, which is a $30 million improvement year on year compared Very good morning, everyone, and welcome to North Atlantic's Q4 2024 presentation. My name is Bjorn Tore Larsen. I'm the CEO of the company, and I will present our Q4 results together with our CFO, Anders Hjulmås. So a few highlights from 2020. The last quarter, we have definitely turned the tide in many ways, and we were able to achieve a load factor over the quarter of 92%, which is an increase of 22%. So it's a considerable improvement in terms of filling the cabins. We also increased activity somewhat, about 15% compared to last year. And the number of passengers went up by almost 50%, 46%. Revenues also went up considerably, 30%, $223 million. And the revenue per available seat kilometer went up by 23%. We had a net loss of $35 million in the quarter, which is a $30 million improvement year on year compared to Q4 23. And December isolated also turned out a profit, which was the first winter month in our history where we were profitable. The quarter was somewhat impacted by heavy maintenance on some of our aircraft. We typically do maintenance in the low season, particularly October, November this year. We took four of our aircraft into heavy maintenance, which, number one, increased cost, but also reduced activity in the quarter. Apart from that, it was a normal quarter. Also, we had two aircraft that was allocated for a charter that started a bit late. So we had less utilization of our equipment than we typically would do in Q4. But overall, still, it is a significant improvement of what we had last year. End of quarter, we had a cash ROV of $23 million, which was not including the committed shareholder loan of $6.3 million. That was not drawn at the time, and it is still not drawn. Few topics about our strategic update as well. So as we have explained to our investors earlier, we signed an LOI with, at that time, an unnamed carrier for up to six aircraft in a long-term scenario. charter contract we earlier this month announced that we had signed the first aircraft and today we announced that we now yesterday last night signed additional three aircraft that will commence operation the first one in March first of March in other words this coming Saturday and the remaining three will be in the second half of this year so these are contracts to a very large airline in India called Indigo they are the largest airline in

India, they have 62% market share, flying regionally mostly, domestic and regional. and will now go into long-haul. And they will use our aircraft as foreign... ...for their own long-haul fleet. So it's a great...

with a great company that I think is both going to generate a secure revenue for about a third of our fleet for the next foreseeable future and at good levels.

Also, a good service for our customer here.

Sales for 2025 is also going very well. We have almost 60% more revenue sold so far this year, almost 40% more tickets so far this year compared to the same time last year. So it means that we are both selling more tickets, but we are also selling those tickets at higher prices. The cost efficiencies that we announced last quarter is in motion, and we expect to see the results from both the SG&A reduction, but also the different base structure that we're going to have from Q2 this year. And all told, we are looking at about $40 million reduction in annual cost. We announced last quarter that we have agreed with the Hellasaur to re-deliver three 787-8s. Two of them was delivered this month and we expect the third one to be delivered in March next month. So that is also going according to plan. And then finally, there is, as you know, a possible repair offering, which, if it will take place, will happen in March. Whether it will be done or not, it will depend on the market circumstances at that time.

I think I already mentioned that

The highlights of the Indigo contract, as I said, this is a very significant contract, and it secures our revenue for our aircraft for a longer period of time.

It is...

The length of the contract will be subject to regulatory approvals, mainly on the Indian side. We are quite optimistic and have good reason to believe that is going to be well beyond the six months period. We think it's going to be in the times that we have previously announced when it comes to the length of the contract. That, of course, does impact our schedule network. We have taken this into account when we have made our network. And we are going to keep the two-thirds, in other words, eight aircraft will be flying the schedule network, and we're going to keep the eight best lines of flying and take away the four least good lines of flying going forward. So in a way, it's a commercial win-win for us. And this contract with Indigo gives us a minimum utilization of the aircraft of 350 hours per month, but it can also exceed that with a quite good margin. This slide shows you a bit about how our booking is going so far this year compared to last year. So we are well off both in terms of load factors and in terms of revenue per seat kilometer, both in Q1, Q2 and Q3. So we are bound for a good 2025 and we expect it to be profitable. Cost initiatives, we are reducing our overhead costs, our SG&A, quite significantly. And we are well on our way of achieving our target. The target is quite ambitious. It's 50% reduction compared to the run rate we had in October. And we think that we will hit that point sometime in Q3. the main things we are doing to reduce cost, a part of SG&A, is that we are relocating bases.

We have changed the network over the last 12 months, and now the crew bases are being aligned with where we are flying. So, for example, if we are flying a lot to and from Rome, for example, and going forward, we will have crew bases in Rome rather than certain other places where we have been in the past. That will save us about $40 million a year.

and we are going to continue to work hard to reduce our costs because we have the lowest cost in industry and we want to make sure that