While reporting its third quarter results, Norwegian Air, which likes its peers has been ravaged by the coronavirus-induced COVID-19 pandemic which has brought the global travel industry to a standstill, said it is likely to run out of cash in the first quarter of 2021 unless it secures fresh funding.
As of September 30, 2020, the budget airline’s cash and cash equivalents stood at $376.4 million (3.4 billion Norwegian crowns), down from 4.98 billion crowns at the end of June.
“Norwegian is dependent on additional working capital in order to continue operating through the first quarter of 2021 and beyond,” said the carrier in its earnings report for the July-September quarter.
Earlier this week on Monday, the Norwegian government had rejected a plea from the airlines asking for state support saying it was too risky. Soon after the company said it would furlough 1,600 more staff, leaving only 600 people still working, down from a pre-pandemic 10,000.
“Our third-quarter results clearly show that the effects of the global COVID-19 pandemic continue to heavily impact our operations and financial position,” said Jacob Schram, the CEO of Norwegian Air on Tuesday.
($1 = 9.0323 Norwegian crowns)