BTN Europe presents an overview of business travel and MICE predictions for this year
ExCeL London - 24-25 February 2021
Norwegian claims it is now “fully funded through 2020 and beyond” after securing more than £213 million in capital.
The low-cost carrier said the funding was secured through a “private placement and a convertible bond issue”, both of which it said were oversubscribed.
The announcement comes after Norwegian reported its best ever quarterly result for Q3, with profit before tax improving 38 per cent year over year to nearly £187 million.
In addition to the new capital, Norwegian is undertaking a number of measures to remain profitable following a period of growth. It has delayed aircraft orders to cut expenditures of nearly £2 billion for 2019 and 2020, and also sold planes for £187 million.
Acting CEO Geir Karlsen commented: “The capital raised will secure required financing of working capital during the winter season and create financial headroom as the company moves from growth to profitability. The actions we are now taking will enable us to embark on the next chapter of Norwegian, to the benefit of all shareholders, customers and employees.”
The airline suffered a £131 million loss in 2018, blaming fuel costs, competition and problems with Rolls Royce engines in its Dreamliner aircraft. It was also forced to cut flights between Ireland and North America by the grounding of the Boeing 737 Max. Co-founder Bjorn Kjos stepped down as CEO earlier this year.
Norwegian recently announced its intention to partner with Jetblue in a move that could connect European passengers to destinations across the US and vice versa.