Norwegian Air sees no need to raise more cash as travel demand rebounds

Norwegian Air said earlier this week that it would probably not need to raise additional cash, since the relaxation of COVID-19-related travel restrictions triggered an increase in bookings.

The company’s revenue was reported to have decreased to 591 million Norwegian crowns during the first six months of 2021 from 7.1 billion Norwegian crowns during the same period a year earlier.

Norwegian Air also said it remained focused on cash preservation for the remainder of this year.

“We will very much be ready for the peak season (of 2022), so there is no risk today that we will have to go out and get more capital in the foreseeable future,” Norwegian Air’s Chief Executive Officer Geir Karlsen was quoted as saying by Reuters.

Last year the indebted airline was forced into bankruptcy proceedings due to the pandemic, while it had to terminate its transatlantic network and to reduce its workforce by more than 6,000.

The air carrier emerged from the government-backed bankruptcy proceedings in May and reported an increase in the number of passengers in July.

Bookings have increased after the easing of travel restrictions and the roll-out of vaccines, while the company expects a further increase during the second quarter of 2022 when holiday travel is expected to intensify.

Norwegian Air’s current fleet of 51 aircraft, which compares with nearly 160 last year, will probably be fully utilized by the end of 2021, the company said. It flew less than 10 jets in April and May, but aims to expand to between 60 and 70 jets next year.