Norwegian has reported a web lack of NOK5.three billion (£450 million) for the primary half of monetary 2020.
With the Covid-19 pandemic taking an enormous toll on the airline, passenger numbers fell 71 per cent to five.three million throughout the first six months of the yr.
Whereas the low-cost provider has efficiently transformed debt, gained entry to state assured loans of NOK3 billion and performed a public providing, Norwegian warned it won’t be sufficient.
“After we entered 2020, we have been anticipating a optimistic end result and one of the best summer season ever, because of profitable cost-saving initiatives and a extra environment friendly operation,” mentioned Norwegian chief govt, Jacob Schram
“Then we have been hit by Covid-19 and buyer demand actually stopped from sooner or later to the following, as government-imposed journey restrictions and journey recommendation have been launched world-wide.
“For the previous months we’ve got been working tirelessly to ensure that we are able to emerge from this disaster as a stronger firm, well-positioned for future competitors.
“A few of these measures have been painful, however completely obligatory if we’re to make it by in any respect.
“Collectors, bondholders and shareholders have proven us help and belief to discover a means ahead for the corporate and our clients are expressing their sturdy help, for which I’m grateful.”
Authorities journey recommendation within the wake of Covid-19 and the next drop in buyer demand compelled Norwegian to floor 140 plane and furlough or lay off roughly 8,000 workers.
Within the second quarter, the airline solely operated as much as eight plane on home routes in Norway.
In Norwegian reopened 76 routes, put an extra 15 plane into service and introduced greater than 600 workers again to work.
Nonetheless, the airline mentioned the market remains to be extremely unsure, primarily as a result of altering journey recommendation from governments throughout Europe.
“The COVID-19 disaster has impacted aviation and the journey trade significantly exhausting, and most corporations want authorities help to outlive.
“We see that a lot of our most important rivals obtain appreciable liquidity help from their governments as aviation represents the spine of infrastructure,” added Schram mentioned.
