Norwegian Air's Q1 loss widens as carrier prepares for reboot

Norwegian Air posted a wider loss in the first quarter as the coronavirus crisis choked global travel, it said on Thursday, days after completing a financial rescue in which creditors took control of the carrier.

The company posted a January-March pretax loss of 3.28 billion Norwegian crowns ($332 million), compared with a loss of 1.98 billion crowns in the year-ago period. "The company is currently in hibernation mode and at the same time is conducting significant restructuring of the organization, including establishing a new strategy and updated business plans," the budget airline said in a statement.

Before the COVID-19 outbreak, Norwegian had set out a plan to regain profitability in 2020 after posting losses for three consecutive years but instead found itself fighting to survive the crisis. "Our goal is to ensure that Norwegian has a strong position in the future airline industry with a clear direction and strategy," Chief Executive Jacob Schram said in a statement.

The airline has most of its fleet grounded by novel coronavirus lockdowns, and earlier this month secured 3 billion Norwegian crowns in government loans after completing a 12.7 billion crowns debt conversion and share sale. A preliminary recovery plan published in April entails operating just seven aircraft for up to a year, followed by a gradual build-up to 110-120 aircraft in 2022.

Rivals such as Lufthansa, SAS, Ryanair, and EasyJet in recent days announced the reopening of some routes, however. "As soon as the world returns to normalcy, we will be prepared to return with improved service to our customers," Schram said, without elaborating.

($1 = 9.8796 Norwegian crowns)