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On Tuesday morning, Norwegian presented the accounts for the third quarter of the year, from July to September. It ended with a pre-tax loss of DKK 980.5 million for the period. In the same period last year, there was a pre-tax profit of NOK 2.2 billion.
Turnover ended at DKK 1.3 billion in the quarter, compared to DKK 14.4 billion in the same period last year.
“I am very proud of the enormous challenges that colleagues across the company have overcome to reduce immediate and long-term expenses, rebalance debt, and constantly adapt our network to reflect changing passenger demand and changing travel restrictions.” Norwegian CEO Jacob Schram said. in the report.
During the summer season, airlines tend to make more money and have to save for the rest of the year, but the crown crisis has created a total crisis in the market in general and for Norwegian in particular.
The box empties quickly
At the end of the first half of the year, Norwegian had a cash balance of just under NOK 5 billion. At the same time, the company said that it “burned” between 300 and 500 million kronor in the quarter due to the crisis, and at that time it was in the upper part of the range.
Norwegian has tried to do everything possible to limit losses. However, the cash balance had fallen to NOK 3.4 billion three months later, at the end of September.
By comparison, the cash balance was NOK 5 billion at the end of the second quarter. In other words, Norwegian burned around NOK 1.57 billion in the third quarter.
Net interest-bearing debt at the end of the quarter was NOK 48.5 billion, an increase of approximately NOK 800 million from the end of the second quarter.
Norwegian management had planned an investor presentation on Thursday morning, but the presentation was canceled on Monday after the government said no to a new crisis package for Norwegian. The management does not want to speak to the public now and uses all resources to find a way forward for the company.
– This crisis is far from over and as we move into the traditionally toughest winter, it is critical that the Norwegian aviation industry receive more support if we are to survive and overcome this unique situation, and be prepared to support the economy. rebuilding in the north from 2021, when we get out of it, says Schram.
You should talk to homeowners and creditors.
On Monday morning, Trade and Industry Minister Iselin Nybø (V) and Transport Minister Knut Arild Hareide (KrF) arrived with very bad news to Norwegian and said no to the new billion in crisis aid to take out to Norwegian from the crisis.
– We have analyzed it in its entirety and concluded that it will not be justifiable to spend community funds on it, Nybø said.
This means that Norwegian must talk to major shareholders and creditors to find a solution to money problems.
Later that day, Widerøe’s main owner, the Torghatten shipping company in Brønnøysund, said it might consider taking over parts of Norwegian if the company doesn’t survive on its own.
– You can probably count on us to follow these things closely, Brynjar Forbergskog, President and Principal Owner of Torghatten, told DN.
However, there are no concrete plans at Torghatten to take over all Norwegian operations in the domestic market, which is equivalent to 40-50 Boeing 737 aircraft in Norway.
I must say goodbye more
On Monday night, the message also came that Norwegian will have to lay off 1,600 employees, as well as park 16 of the 21 planes that have been in operation in recent months, as a result of government support – no.
– This is a sad day for everyone in Norwegian. I strongly apologize to the employees who are now affected, but we see no other way out, Senior Manager Schram said in a statement.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be made with written permission or as permitted by law. For more terms, see here.
