Troubled LCC, Norwegian Air is looking to secure funding this year to see it through the next 18 months, it said after reporting H1 losses of $610 million.
During the first half of 2020, 5.31 million customers travelled with the company, a 71% year-on-year fall, which led the carrier to ground 140 aircraft and furlough or lay off approximately 8,000 employees. In Q2, Norwegian operated less than ten aircraft on domestic routes in Norway.
“For the past months we have been working tirelessly to make sure that we can emerge from this crisis as a stronger company, well-positioned for future competition.
Some of these measures have been painful, but totally necessary if we are to make it through at all. Creditors, bondholders and shareholders have shown us support and trust to find a way forward for the company and our customers are expressing their strong support, for which I am grateful,” said chief executive Jacob Schram.
Creditors and lessors completed a debt for equity swap with Norwegian in May, as part of a financial rescue that allowed the airlines to access state-guaranteed loans, but the firm needs more cash.
“Given the current market conditions it is not enough to get through this prolonged crisis,” Schram said. Norwegian is looking to raise cash from the sale of aircraft, additional debt deferrals or owners or the government.
“It needs to be completed throughout the autumn,” Schram told Reuters on the side of a news conference. “The solution must be in place this year.”