Low-cost transatlantic airline Norse admits it's in financial difficulty, sending shares plunging 33% - after predecessor Norwegian flopped during COVID

Trending 6 months ago
  • Norse is nan latest transatlantic hose to find itself successful financial trouble
  • Its banal fell 33 per cent connected Thursday aft announcing its Q3 results
  • It announced it is facing 'headwinds' from precocious substance costs and a weaker cargo marketplace than expected

By Isabelle Stanley

Published: 12:55 EDT, 1 November 2023 | Updated: 12:57 EDT, 1 November 2023

Low-cost transatlantic hose Norse has admitted it's successful terrible financial difficulties, sending its shares plunging and putting it connected people to neglect for illustration galore predecessors. 

The Norwegian bearer said it needs to urgently raise $45 cardinal to salary a 'key supplier' and that it was facing financial 'headwinds,' pinch banal plummeting 33 percent arsenic a result, Bloomberg reported.

It is nan latest successful a drawstring of carriers that person tried and grounded to make fund transatlantic flights possible, aft its predecessor Norwegian Air Shuttle was forced into bankruptcy during nan pandemic. Norwegian subsequently nixed its transatlantic routes, though it continues to alert wrong Europe.

Other low-cost carriers that person tried - and grounded - to ply nan Atlantic astatine rock-bottom prices see Icelandic-based Wow airlines and Primera Air, which offered debased costs fares betwixt nan US and London. 

Norse was founded successful March 2021 and flies betwixt Europe and nan US pinch a fleet of Boeing 787 Dreamliners from nan grounded transatlantic branch of Norwegian. 

Despite a profitable past quarter, nan airline's banal slumped 33 per cent aft announcing its Q3 results connected Thursday successful Oslo.

Norse is nan latest transatlantic bearer to find itself successful financial difficulty

Norwegian was forced to fold its transatlantic helping during nan pandemic 

It said it had to raise an further $45million to tide it complete nan slower wintertime months and to salary a 'key supplier'.

The bearer admitted it is facing ‘headwinds’ from expanding substance costs, and that nan cargo marketplace has been weaker than it anticipated. 

It added that it had been approached by imaginable suitors 'seeking to research business opportunities,' suggesting that it could waste a liking successful nan airline.

It did not elaborate connected nan quality of nan discussions.  

It explained that 'adverse moving superior activity led to a simplification of disposable liquidity'.

Chief executive Bjørn Tore Larsen hopes to offset nan anticipated wintertime losses by renting retired his fleet of Dreamliners to different airlines for money-spinning charter operations, a process known arsenic bedewed leasing.

Norse Chief executive Bjørn Tore Larsen is readying to lease Dreamliners to different airlines during nan slower wintertime season

Larsen said: 'Norse Atlantic has travel a agelong measurement since nan first formation successful June 2022. After a short first summertime play successful 2022, we had our first afloat summertime play successful 2023, increasing to a 10 craft cognition while delivering a robust performance. 

'We are proud to person delivered our first profitable 4th and we proceed to beryllium agile and accommodate arsenic a institution to execute our extremity of becoming nan starring low-cost long-haul hose of choice.' 

The hose flies betwixt New York, Los Angeles, Miami, Orlando, Boston, Washington, Jamaica, Barbados , Oslo, London, Berlin, Rome and Paris.

It took nan spot of Norwegian Air Shuttle which was forced to fold its transatlantic helping during nan pandemic. 

Norwegian was a pioneer successful low-fare transatlantic aerial travel, but its accelerated description near it pinch indebtedness of adjacent to $8 cardinal by mid-2020, making it susceptible to nan fallout from nan COVID-19 pandemic. 

After filing for bankruptcy, it was forced to driblet 105 aircraft, leaving it pinch conscionable 51 planes. 

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