FlyerTalk Forums - View Single Post - Norwegian Air stability through summer?
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Old Apr 9, 2019 | 12:37 pm
  #119  
iahphx
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Originally Posted by iflyjetz
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.
While Boeing has some incentive to keep airlines like WN and AA happy, I'm not sure what incentive they have to keep Norwegian happy -- basically, to go above and beyond what they're contractually obligated to do. I don't think there's anyone in the sector who would bet on Norwegian being in business a couple years from now. So their current "happiness" probably isn't worth much to Boeing at the moment.
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