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

SAS strikes persist and negotiation talks continue
Ecuador Ground-Staff block runway
Flights Cancelled and Rescheduled As Omnicron Spreads
Jet Airways is Looking for Pilots for September Launch
Asiana Airlines to Return to Europe after Five years
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

Danish Travel Awards in Cirkusbygningen, Copenhagen, Denmark. Picture of: Anko van der Werff (SAS).
CEO of Scandinavian Airlines Anko van der Werff receives Aviation Award
Airlines Aviation Careers
Delta Aircraft standing in the runway
Two Delta Flights Collide While taxiing at LaGuardia Airport
Aviation Breaking News Incidents & Accidents
Boeing aircraft
FAA to allow Boeing to issue airworthiness certificates following 737 MAX crash in 2018
Aircraft Airlines Aviation
Flight AY915 on the runway at Helsinki Airport
Embraer Celebrates Two Decades of E-Jets Service with Finnair and Norra
Aircraft Airlines Aviation
An Air Canada Airbus A321-200 on its final approach to LaGuardia Airport's Runway 31
Complimentary refreshments for economy customers on Air Canada flights
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