Norwegian Air

Unsurprising losses in H1; will require liquidity in Q1 2021

  • Sectors : Airlines
  • Companies : Norwegian Air

Ratings and price correct at time of issue.

  • Norwegian Air

    Closing Price: 124nok

  • RATING 01/09/15

  • PREVIOUS RATING 22/01/15

    UNDERPERFORM

DAVY VIEW

Norwegian Air’s actions on its cost base and balance sheet have extended its operating runway in this difficult environment, but without a material macro improvement (likely requiring the type of demand step-change that would arise from an effective treatment/vaccine and its widespread distribution) the liquidity requirement in Q1 2021 poses a risk. The company suggests that a mix of measures will satisfy the shortfall but, in order to achieve this, it needs to inspire confidence from capital providers that the business post COVID-19 will be capable of not only servicing but eventually reducing debt and leverage.

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Aug 28 2020, 08:40 IST/BST

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