FlyerTalk Forums - View Single Post - Norwegian Air stability through summer?

Apr 9, 2019 | 5:41 am

#118

iflyjetz

Join Date: Jul 2001

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Quote:

Originally Posted by oliver2002

That said I doubt they are selling below cost.

They have had to do a capital raise in both 2018 and 2019. In 2019, they violated bond covenants. They have most of their aircraft fleet actively for sale.
In 2018, they had a net loss of NOK 1.454B.
In 2017, they had a net loss of NOK 1.794B.

I'm not sure how you figure they're not selling tickets below cost. Even if you use questionable accounting, they still have losses. (Norwegian had to restate earnings a while back due to their accounting methods).

At the current ticket prices, Norwegian Air is not a sustainable business model. They ran out of money earlier this year and the only thing that 'saved' them was a massively dilutive secondary stock offering.

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