...and that ain't good. The plan was to get back to profitability this year and to start building a cushion for a crushing debt payment due in just under 2 years. Liquidity was tight at the beginning of the year; cancelled flights make things worse. Norwegian appears to be headed back toward a bleak-looking future. Which makes me sad... I've kind of come to like the guys running the company as I've watched their presentations over the last year.
Posted by
CA
2141 posts
I’m so glad I had to change my flight next September to another airline once Norwegian changed dates on me.
Posted by
Eastern Iowa, USA
8056 posts
Yes, the virus will be a major stress on airlines, losses in the Billions. Any already weak airline, and some seemingly healthy ones (think budget vacation centered carriers) are looking at grim risks.
Posted by
11569 posts
Very sad as we had an excellent experience flying Norwegian on a Dreamliner JFK to LGW at Christmas time.
Posted by
Uppsala, Sweden
6970 posts
If the share price is an indication, it doesn't look that good for Norwegian: https://www.oslobors.no/markedsaktivitet/#/details/NAS.OSE/overview
Posted by
2 posts
So, does this mean we should be worried about our flights to Europe in August being cancelled?
Posted by
Huntsville, AL, USA
8319 posts
We need'em very badly to keep down airfares to where travel is affordable. Without competition, we could be sitting at a fish camp in Mississippi on vacations.
Posted by
Edmonds, WA 🌨 ☂
11877 posts
The stock's price does not affect how much cash the airline has on hand to fund operations. The near 80% ( if I read the chart correctly) decline in stock price in the past year speaks to investors view of long term profitability.
Whether the airline trims routes ( i.e. eliminates flights) is the consideration that may be more relevant than the stock price.
What I recall from info in earlier posts was it had secured financing to sustain operations for 2020. That probably assumed a certain level of revenue that may not materialize as everyone reassess travel plans related to 'the virus'. What level of operation they can sustain with reduced revenue, and which flights it chooses to operate, is a speculative subject at this point.
"Worry" won't help, but having a 'plan b' would be a good idea.