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Norwegian Air Scraps Profit Guidance for 2020...

...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.

https://www.bloomberg.com/news/articles/2020-03-05/norwegian-air-pulls-2020-guidance-cuts-flights-on-coronavirus

Posted by
994 posts

I’m so glad I had to change my flight next September to another airline once Norwegian changed dates on me.

Posted by
4843 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
5910 posts

Very sad as we had an excellent experience flying Norwegian on a Dreamliner JFK to LGW at Christmas time.

Posted by
2 posts

So, does this mean we should be worried about our flights to Europe in August being cancelled?

Posted by
6543 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
6454 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.