In a post entitled The Noose Tightens at Norwegian as Losses Continue, respected airline blogger Brett Snyder (AKA "The Cranky Flier") analyzes Norwegian's first quarter earnings. It's a worthwhile read for those interested in airlines or for those interested in buying a Norwegian ticket.
I will emphasize that Snyder states Norwegian should have plenty of cash to fly through summer (and I would add through fall), but he notes a number of challenges for the company. The sentence that stands out the most to me follows:
"Receivables have increased by NOK 3,951 million during the quarter
due to increased production, increased hold-backs from credit card
acquirers and seasonality." (emphasis mine)
As most of you know, receivables are basically money that is expected to come in, but has not yet arrived. The credit card company point is huge. Instead of turning all of the money from credit card purchases over to Norwegian immediately, at least some credit card companies are withholding at least some portion of purchases. The credit card companies have a lot of skin in the Norwegian game. If Norwegian ceases operations (like Air Berlin, Primera Air, WOW Air), the credit card companies generally refund charges for future tickets to those who make claims per their credit card agreement (at the credit card company's loss). It appears that at least some credit card companies aren't sure that Norwegian is going to be around to operate flights sold, so they are holding back money. That's big.
Once again, Norwegian should have plenty of cash and cash flow to operate through summer and fall, so people holding tickets during those times should not lie awake at night worrying about their flights. After that, though, things are less clear. Perhaps the profitability plan works (though it appears at least some credit card companies are doubtful, as are many airline analysts). Perhaps another investor steps up. Perhaps the airline follows in WOW Air's footsteps and ceases operations. Time will tell.
For the record... I honestly don't post things like this to fear monger. I post them to educate consumers. Many travelers see a cheap airfare, and say, "Ooh...what a deal! I'll buy that" without knowing much about the company that is offering that airfare or the possible risk that is built into that airfare. It's good to know the financials of the airline operating your flight to Europe, especially if it is part of your "dream trip" to Europe.