Burning of 524 million per month – E24

The case is being updated …

After Norwegian filled the coffers with crisis loans guaranteed by the government, it contracted sharply again during the summer and fall.

After ending the second quarter with NOK 4.98 billion in cash, 1.57 billion disappeared during July, August and September and the company ended the quarter with $ 3.40 million.

Appears on Norwegian’s recent accounts for the third quarter.

This equates to 524 million a month or 17.5 million a day.

This means that the company has burned more than the 300 to 500 million kronor a month that management estimated earlier this year.

For the rest, the accounts reflect the crisis in which Norway and aviation find themselves.

The company carried about one million passengers in the third quarter, a decrease of 91 percent from the same period last year. The previous quarter, traffic was even lower, falling 99 percent compared to the corresponding period last year.

• The accounts also show that revenue fell from NOK 14.4 billion to NOK 1.29 billion compared to the same period last year. Revenues still ended well during the second quarter when they fell to 632.5 million
• Operating profit before leasing costs (EBITDAR) went from 4.66 to -1,260 million compared to the same period last year. In the second quarter, it ended at -1.20 billion
• The profit before tax went from NOK 2.20 billion to NOK -980.5 million compared to the same period last year. In the second quarter, it ended at -1.51 billion

– Our results for the third quarter clearly show that the effects of the global covid-19 pandemic continue to severely affect our operations and financial position, CEO Jacob Schram says in a statement from the stock exchange.

– Changes in travel advice and additional restrictions (…) have contributed to reducing consumer confidence as certain routes are no longer operated. This has led us to rapidly adapt our network, he continues.

Norwegian’s quarterly report

– A challenging situation

The company’s CEO Jacob Schram and CFO Geir Karlsen were supposed to have a quarterly presentation on Tuesday, but it was canceled on Monday.

It happened after the company received a grim message from the government: the request for crisis aid in the billion class is rejected.

On Monday night, Norwegian announced that they will lay off 1,600 new employees and that 15 of the 21 planes in the air will be grounded.

The company went into crisis with more than 11,000 employees and 156 aircraft. In the future, there will be around 600 employees and 6 aircraft in operation.

Until now, no one wanted to say how much help Norwegian actually asked for, but Monday night could E24 says the company should have asked for between four and five billion crowns.

The Norwegian boss described the refusal as “a punch to the stomach” and now management is working feverishly to find other ways to save Norwegian.

CEO Jacob Schram notes that the company works “tirelessly” to ensure the crisis emerges as a stronger company, and thanks creditors and shareholders for their contributions.

– I’m incredibly proud of how colleagues across the company have solved the daunting challenges of reducing our immediate and long-term costs, rebalancing debt, and continually adjusting the network to accommodate changes in demand, says Schram.

Norwegian is silent on the government’s rejection on Monday, but writes, among other things, that:

“The publicity, combined with the recently introduced strict covid-19 measures, places the company in a difficult situation. Currently, the company is evaluating the effects of the situation with the aim of securing all interests.”

This happened on Monday: