United Kingdom
United States
Asia Pacific
Norwegian makes deeper cuts in fight for survival
Norwegian Air has furloughed a further 1,600 staff and cut its network to just a handful of domesitc routes after Norway’s government rejected the airline’s application for more state aid.
The airline is warning that it will run out of money in the first quarter of next year without further support.
Norwegian made a third-quarter operating loss of NOK2.8bn compared to a NOK3bn profit in the same period last year.
Its cash reserves dwindled during the summer lockdown to around £285m by the end of September. In its third quarter earnings report today, Norwegian said it is dependant on additional capital to continue to work in Q1 2021.
Chief Executive Jacob Schram said: "Our third-quarter results clearly show that the effects of the global COVID-19 pandemic continue to heavily impact our operations and financial position."
It has cut its workforce from 10,000 to only 600 and parked 15 out of 21 of its aircraft.
Schram said: "This is a sad day for everyone at Norwegian and I sincerely apologise to all our colleagues that are now affected, but there is no other alternative.
"Our goal is to keep six aircraft on domestic routes in Norway, and I expect that Norwegian will also receive route support from the Ministry of Transportation, as previously announced."
The carrier received £250 million-worth of finance at the start of the crisis in March in a deal which required banks and aircraft leasing firms to agree to a £1.2 billion debt for equity swap.
But the Oslo government’s industry minister said yesterday that no further aid would be forthcoming.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Boy falls to death on cruise ship
Turkish Airlines flight in emergency landing after pilot dies
Unexpected wave rocks cruise ship
Woman dies after going overboard in English Channel