Norwegian has reported a web decline of NOK5.three billion (£450 million) for the 1st 50 % of monetary 2020.
With the Covid-19 pandemic taking a enormous toll on the airline, passenger figures fell seventy one per cent to 5.three million through the 1st six months of the yr.
Although the minimal-charge carrier has properly converted credit card debt, acquired entry to condition assured loans of NOK3 billion and conducted a community offering, Norwegian warned it could not be sufficient.
“When we entered 2020, we were expecting a optimistic result and the most effective summertime ever, many thanks to successful charge-preserving initiatives and a additional productive procedure,” mentioned Norwegian chief government, Jacob Schram
“Then we were strike by Covid-19 and consumer demand virtually stopped from one particular day to the up coming, as governing administration-imposed vacation limits and vacation suggestions were released earth-wide.
“For the earlier months we have been doing work tirelessly to make sure that we can arise from this crisis as a more powerful business, effectively-positioned for long run opposition.
“Some of these actions have been distressing, but totally vital if we are to make it as a result of at all.
“Creditors, bondholders and shareholders have shown us help and believe in to come across a way forward for the business and our clients are expressing their sturdy help, for which I am grateful.”
Federal government vacation suggestions in the wake of Covid-19 and the following fall in consumer demand forced Norwegian to ground one hundred forty plane and furlough or lay off about 8,000 staff.
In the next quarter, the airline only operated up to eight plane on domestic routes in Norway.
In Norwegian reopened 76 routes, put an further fifteen plane into services and introduced additional than 600 staff back again to do the job.
Even so, the airline mentioned the sector is nevertheless very uncertain, primarily thanks to transforming vacation suggestions from governments across Europe.
“The COVID-19 crisis has impacted aviation and the vacation market particularly tricky, and most businesses want governing administration help to endure.
“We see that quite a few of our primary competition acquire significant liquidity help from their governments as aviation signifies the backbone of infrastructure,” added Schram mentioned.