Norwegian Air scraps profit guidance, to cut flights as virus spreads

Norwegian Air has scrapped its 2020 earnings guidance, which predicted a return to profit after three years of losses, and said it will cancel some of its transatlantic flights in the coming weeks due to the worsening coronavirus outbreak.

Airlines around the world have been cutting capacity and warning of a hit to earnings as a new coronavirus that started in China spreads around the world, hitting travel demand. But analysts have warned Norwegian could be particularly vulnerable to a downturn due to its high debts. "At this stage, it is too early to assess the full impact on our business," the company said in a statement on Thursday.

Norwegian said it had decided to cancel 22 long-haul flights between Europe and the United States from March 28 to May 5, with routes from Rome to Los Angeles, Boston, and New York seeing a reduced number of departures. It will also cut the number of flights between London and New York, flying twice, rather than three times, on some days.

A pioneer in low-fare transatlantic air travel, Norwegian's rapid expansion has left it heavily in debt. European airline bosses warned this week the worst of the economic impact from the coronavirus epidemic was yet to come for the industry, and early on Thursday British regional airline Flybe entered into administration, a form of protection from creditors.