Norwegian Air says it could run out of cash in early 2021 By Reuters


© Reuters. FILE PHOTO: Passengers board a Norwegian Air plane in Kirkenes

OSLO (Reuters) – Pandemic-hit Norwegian Air (OL:) could run out of cash in the first quarter of 2021 unless it secures fresh funding, the budget carrier said while reporting third-quarter results on Tuesday.

The airline’s cash and cash equivalents stood at 3.4 billion Norwegian crowns ($376.4 million) at the end of September, down from 4.98 billion crowns at the end of June.

“Norwegian is dependent on additional working capital in order to continue operating through the first quarter of 2021 and beyond,” the carrier said in its earnings report for the July-September quarter.

Norway’s government on Monday rejected a plea for more state support, arguing it was too risky, and the company soon after said it would furlough 1,600 more staff, leaving just 600 people still working, down from a pre-pandemic 10,000.

“Our third-quarter results clearly show that the effects of the global COVID-19 pandemic continue to heavily impact our operations and financial position,” Norwegian’s Chief Executive Jacob Schram said in a statement on Tuesday.

($1 = 9.0323 Norwegian crowns)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*