The airline Norwegian reports an operating loss (EBIT) of almost 3 billion Norwegian kroner for the second quarter. The pre-tax loss was 1.5 billion kroner.
Norwegian was on the verge of bankruptcy last spring when the company pushed through its crisis plan, which involved bondholders and leaseholders converting parts of their debts into shares in the company.
The turnover landed at 632 million Norwegian kroner, down from 12.2 billion kroner. For the first half of the year, the total amount was just over 7.1 billion Norwegian kroner.
During the first half of the year, the company had 5.3 million passengers, a decrease of 71 percent compared to the same period last year. Capacity (ASK) was down 69 percent and load factor was 78.2 percent. Both these metrics are in accordance with Norwegian authorities' requirements for empty middle seats.
Norwegian will cautiously ramp up its fleet from 20 to 25 aircraft in September. Before the pandemic, the summer of 2020 was set to be the company's most profitable ever. However, due to Norway's strict restrictions, the company was forced to ground 140 aircraft and lay off 8,000 employees.
The company's CEO, Jacob Schram, says he is grateful for the government support, but says it is not enough.
”Our closest competitors have received extensive liquidity support from the authorities, as aviation is crucial for infrastructure. We are grateful for the loan guarantee from the Norwegian government, which we are working hard to meet the criteria for. Nevertheless, it is not enough for us to get through the crisis as market conditions stand, says Jacob Schram.
Source: di.se
