Airplanes and carriers, 1/2 billion losses for Norwegian Air Shuttle
Covid-19 had a heavy impact in the first half
“Isn't good Norwegian wood?”: The Beatles wondered, humming the lines of the song “Norwegian wood”. For the low-cost carrier Norwegian Air Shuttle, instead, the situation is not good at all, as confirmed by the latest financial data. The company announced today, Friday 28 August 2020, via a live stream, net losses of the first half of this year. Coronavirus could not fail to get a grip on it and in fact between the months of January and June, Scandinavian airline reported a decrease of almost 504 million euros (to be precise 5.3 billion Norwegian crowns). The restrictions imposed by the pandemic made it impossible to use 140 aircraft, without forgetting the 8,000 layoffs (see also the article published by AVIONEWS).
Oslo has already guaranteed a € 286 million bailout package, but CEO Jacob Schram stressed that this guarantee cannot be enough if bankruptcy is to be avoided. On the other hand, there is another impressive number that makes us understand the moment that Norwegian has been experiencing for several weeks. Total passengers dropped by as much as 99% during the second quarter of 2020, and the government-imposed quarantine in the summer prevented even the slightest recovery. Airline specified that it needs new liquidity within the first months of 2021, most likely through a capital increase. In the worst period of the health emergency, the company's aircraft were just 7, while in September they should increase to 25, despite the not exactly encouraging economic outlook.
AVIONEWS - World Aeronautical Press Agency