The low-cost long-haul upstart Norse Atlantic Airways has moved to reassure investors and passengers after the Oslo-based carrier suddenly axed or reduced several routes over the winter season and warned of a “challenging” period with passenger demand slowing and fuel and other costs on the rise.

In an update shared, the transatlantic disruptor said it now expected to see “positive” increases in passenger numbers on its remaining routes over the winter season which runs from the end of October to the end of March.

The airline also said it expected to see an increase in yields over the same period, an indication that the airline is confident that passengers are willing to pay more to fly with Norse Atlantic despite worries about inflation and a cost of living crisis.

Previous downbeat updates from the airline in September, as well as a decision to cut flights to Los Angeles and reduce services to other destinations, had raised fears that Norse Atlantic was already struggling in the notoriously fierce transatlantic market.

Throughout the decades, other upstart low-cost carriers have tried to break into the market without the success. The most recent of which was Norwegian which crashed out of the long-haul business during the pandemic.

But on Monday, a Norse Atlantic spokesperson reassured worried employees that no redundancies were planned as a result of the network changes, while the airline says it is actively planning a recruitment campaign for the 2023 summer season.

Norse Atlantic says it is planning to publish its summer schedule next month, and more new routes are also set to be announced soon.

Meanwhile, of the 15 Boeing 787 Dreamliners that Norse has secured on a money-saving ‘power by the hour’ arrangement, the airline said it had already sub-leased four to Air Europa, and a fifth is also set to be sub-leased out for at least 18 months.

“The flexibility provided by our power by the hour aircraft lease agreements has allowed Norse Atlantic to lower cash burn over the winter period in anticipation of ramping up operations for a strong summer 2023 season,” commented the airline’s chief executive Bjorn Tore Larsen on Monday.

“We are pleased that bookings for our remaining core winter routes remain strong and that ticket sales have been increasing as we expand our distribution network,” Larsen continued.