By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Norwegian Air unveils £268m cash injection
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > Norwegian Air unveils £268m cash injection

Norwegian Air unveils £268m cash injection

Jake Smith
Last updated: 29 January 2019 13:01
By Jake Smith
3 Min Read
Share
SHARE

Shares in the Oslo-listed company tumbled 10% on the announcement, compounding falls last week when British Airways-owner IAG announced it was walking away from a potential takeover and would be selling its 4.61% stake.

Norwegian said on Tuesday that two separate offers tabled by IAG had “undervalued the company and its prospects” but the rights issue would provide “financial flexibility” and support a shift in focus from growth to profitability.

Résultat de recherche d'images pour "norwegian b787"

Chief executive Bjorn Kjos added: “Norwegian has been through a period of significant growth. Focus going forward will increasingly be on cost savings and capex reductions. We will now get in place a strengthened balance sheet that supports the further development of the company.

“With a strength balance sheet, the organisation can now devote its attention to the further development of the company.”

Last year, the airline – which operates 500 routes to 150 destinations – reported annual revenues of 40.3bn kroner and an underlying loss of 2.2bn kroner.

Analysts at RBC Capital Markets said: “After a 10% operating loss margin in 2018, the present business model looks unsustainable, so potential for a change in focus to profits/cash generation seems to the tone of Norwegian’s likely changes ahead.”

Résultat de recherche d'images pour "norwegian b787"

But they also warned: “Airlines occasionally face unexpected, cash-draining macro-geopolitical events – and we note that previous airline history includes loss-making airlines that have absorbed new equity on the promise of profit improvement that was then not delivered.

“Thus today’s news likely does not deliver a 100% probability that Norwegian will not succumb to an industry shake-out, unless it can generate a fast profit turnaround and rebuild its balance sheet.”

Measures to reduce capital expenditure include aircraft divestment and delaying deliveries of new planes, while a wide-ranging cost-cutting programme is estimated to reduce costs by a minimum of 2bn kroner in 2019.

The rights issue is fully underwritten by Kjos and chairman Bjorn Halvor Kise, who are the company’s largest shareholders, along with other investors. An EGM will held on 19 February for the rights issue to be approved.

Sources: NC, HL & BBC News

 

 

 

 

You Might Also Like

Open call: TAP Air Portugal second edition of Altitude Film Fest
LATEST UPDATE: IMAGES CIRCULATE SHOWING C-17 CARGO JETS FILLED WITH AFGHAN REFUGEES
Finnair Set to Recycle Aircraft on Home Soil
Iranian Responses to Ukraine Crash at Tehran
Ryanair Announces Winter Route Cuts Across Spain
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Jake Smith
ByJake Smith
Director of Special Projects - Jake is an experienced aviation journalist and strategic leader, regularly contributing to the commercial aviation section of Travel Radar alongside leading strategy and innovation including livestreaming and our store.
Previous Article Qantas eyes passenger needs for ultra-long-haul
Next Article Runway Excursion Causes Damage to an Air Europa ATR 72
Subscribe
Login
Notify of
guest
guest
0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

Aer Lingus launches their largest ever transatlantic schedule with expansion of their long-haul network and a new direct service to Dublin from North Carolina in 2026.
Aer Lingus Launches ‘Largest Ever’ Transatlantic Schedule for 2026
Airlines Aviation Route Development
Boeing 777
APEX 2026 Awards: Another Win for Air Canada
Airshow & Events Aviation
A group of five individuals in business attire stand together in a corporate setting, holding a certificate. The background features the Boeing logo prominently displayed on a screen. Two nameplates are visible on the table in front of them, reading "Crystal Remfert - Boeing Global Services" and "Chan Woo Jung - Korean Air." A floral arrangement is also present on the table.
Korean Air and Boeing Forge Strategic Alliance to Advance Predictive Maintenance
Airlines Aviation Technology
A close-up image shows a person holding a credit card near a payment terminal, ready to make a contactless payment. The card is gold-colored with the name "Chris Muller" visible on it. Another hand is holding the payment terminal. In the background, there are blurred figures of people sitting at a table with cups and glasses.
Lufthansa Miles & More Credit Card Relaunches with Deutsche Bank and Expanded Benefits
Airline Economics Aviation Points & Loyalty
Attendees at the signing of the Memorandum of Understanding Between Cathay and Hong Kong Disneyland Resort at Hong Kong Disneyland Hotel
Cathay and Hong Kong Disneyland Join Forces to Boost Tourism
Airlines Aviation
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up