breaking-norwegian-air-reports-91%-traffic-fall-amid-search-for-more-cash

Norwegian flag carrier, Norwegian Airlines, which is attempting to secure a second round of financial restructuring, announced today that it has saw a 91% decline in August passenger volume from a year ago (2019)

Norwegian flew 313,316 passengers in August compared to 3.5 million in August 2019. Only 62.1per cent of its seats were filled on average, down from 90per cent a year earlier, the carrier said.

 

COVID-19 has brought dismay to Norwegian

With its transatlantic business on hold and European routes limited, much of Norwegian’s business is currently concentrated on the Nordic Region of Norway, Sweden and Denmark.

As we reported earlier in the pandemic, Norwegian Airlines is in slight trouble.  The carrier is attempting to secure a second round of financial restructuring, and is now seeing a 91per cent decline in August passenger volume from a year earlier as most of its fleet remains grounded by the coronavirus pandemic. The carrier has faced backlash over crew treatment, redundancy and financial troubles in the past quarter.

 

Financial Difficulties for Norwegian

The budget carrier has said it will fly 25-30 of its aircraft in the months ahead, while more than 100 will remain parked due to a lack of passenger demand for seats onboard flights.

Creditors and lessors took control of Norwegian in May with a financial rescue that allowed it to access state-guaranteed loans of 3 billion Norwegian crowns (US$336 million) and thus prevent a collapse.

The company said last week it hopes to complete a second refinancing by year-end to avoid running out of funds by April of 2021, and is also in talks with Norway’s government over additional support.

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