Norwegian Air denies cash problems

Bookmark and Share

Analysts have long claimed that Norwegian Air needs to sell off aircraft in order to ward off a financial crisis. The Oslo-based airline has finally commented on the negative reports and claims it will avoid any cash shortages this winter.

“The numbers for 2018 are not ready yet,” Norwegian Air’s finance director Geir Karlsen wrote to newspaper Dagens Næringsliv (DN) in an email on Monday, “but we have not violated terms of our loans so far and there’s nothing to indicate that we will do so in the fourth quarter.”

The airline sent a message to the Oslo Stock Exchange on Christmas Eve that it had secured financing for new aircraft that will be delived over the next few months. The airline also announced it would be receiving NOK 275 million in compensation from engine producer Rolls-Royce for all the trouble Norwegian has had with its new Boeing 787 Dreamliner jets on long-haul routes.

Investors are still waiting for news of a sale of up to 100 of its aircraft. The airline’s stock rose more than 7 percent on Monday before falling back, but was up another 1.25 percent on Tuesday. That put it up 4.93 for the week so far as of Tuesday night in Oslo. The airline’s fourth-quarter and year-end results are due in a few weeks.

newsinenglish.no staff