Norwegian Air says it needs more cash as losses mount
Norwegian Air was battered by the coronavirus pandemic in the first half, with its pre-tax loss amounting to $544m (4.79bn Norwegian krone or £409m).
The airline said it faced “challenging times ahead” as it released its results, and said it needs more cash to see it through Covid-19.
The figures
Norwegian Air’s fell to a pre-tax loss of $544m in the first half of the year. That was down from a loss of $160m krone in the same period in 2019.
It took the airline’s total loss to $617m in the first half.
Its operating revenue slumped to $811m in the first half from $2.29bn a year earlier.
Why it’s interesting
Norway’s biggest airline has, like the rest of the aviation industry, been hit hard by the coronavirus pandemic. As governments moved to lock down in March and April, global travel almost ground to a halt.
Norwegian’s results come after Virgin Atlantic Airways filed for bankruptcy protection in the US earlier this month.
British Airways is planning to sack thousands of staff while the US’s American, United and Delta airlines have also announced big job cuts.
Creditors took control of Norwegian in May. The move allowed the embattled carrier to access state funds.
What Norwegian Air said
Yet the airline today said that the government loan guarantee “is not enough to get through this prolonged crisis”.
Norwegian said it would put five more planes back in action in September, bringing the total to 25.
“The situation is evolving rapidly, and it is unclear how the virus will continue to develop or when the airline industry, and thus the company, will see a recovery to baseline levels,” it said.