Norwegian Air on the brink of bankruptcy
The firm was denied financial support by the government of Norway
Stocks impacted: Norwegian Air Shuttle (NWARF)
Norwegian Air said today it could run out of cash in the first quarter of 2021 unless it secures fresh funding. According to the airline, the cash is necessary to maintain operations throughout the COVID-19 crisis. On Monday, the company was denied financial support by the government of Norway. After the announcement by the authorities, the firm said it would furlough 1,600 more staff, leaving just 600 people still working. Norwegian Air’s cash and cash equivalents stood at 3.4 billion crowns ($376 million) at the end of September, down from 4.98 billion crowns at the end of June. Norwegian’s operating loss stood at 2.8 billion crowns in the third quarter, down from a profit of 3.0 billion in the same months of last year. The company’s share price has fallen by 99% so far this year. On Tuesday, Norwegian’s stocks shed nearly 15%.
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