Norwegian Air Seeks More Funds as Insolvency Threat Looms
- Troubled discount carrier reports loss for first half
- Air travel remains highly uncertain as rules keep changing
A passenger aircraft, operated by Norwegian Air Shuttle ASA, sits grounded at Stavanger Airport, Norway.
Photographer: Carina Johansen/BloombergThis article is for subscribers only.
Norwegian Air Shuttle ASA said it will need more funds to avert insolvency and announced plans to scale back the discount long-haul operations that it pioneered in order to survive.
The beleaguered carrier, which reported a pre-tax loss of 4.8 billion kroner ($541 million) for the first half, said it will require additional working capital in the first quarter of 2021 to meet its obligations and will consider another private placement of shares as well as selling assets. That’s after the carrier already received a government-backed loan and converted debt into equity.