Norwegian right now reported a internet lack of NOK16.6 billion (£1.four billion) for the fourth quarter, together with impairment of NOK 12.eight billion.
The working bills earlier than leasing and depreciation have been decreased by 82 per cent in comparison with the identical quarter final 12 months.
In 2020, the corporate decreased internet interest-bearing debt by NOK18 billon.
Demand was severely affected by altering journey restrictions and the continued unfold of Covid-19 throughout key markets.
Out of a present fleet of 131 plane, a median of 15 have been operational through the fourth quarter, primarily on home routes in Norway.
Norwegian carried 574,000 clients, a lower of 92 per cent in comparison with the identical interval in 2019.
Jacob Schram, chief govt of Norwegian, mentioned: “2020 was an exceptionally troublesome 12 months for the aviation trade and for Norwegian.
“Consequently, the fourth quarter outcomes are as anticipated.
“Sadly, a lot of our workers are furloughed or have misplaced their jobs, partly because of the firm’s resolution to stop long-haul operations.
“Regardless of the difficulties the pandemic has brought about, there’s a nice combating spirit and engagement inside the firm, and collectively we are going to construct new Norwegian after we exit the reconstruction processes.
“Now, we’re doing all the pieces we will to emerge as a extra financially safe and aggressive airline with an improved buyer providing, and as quickly as Europe begins to reopen, we will likely be able to welcome extra clients on board.”
Within the fourth quarter of 2020, Norwegian entered an examinership course of in Eire and a reconstruction course of in Norway.
The aim of the processes is to cut back debt, scale back the dimensions of the fleet and make the corporate financially engaging to safe new capital.
Norwegian targets to cut back its debt considerably to round NOK20 billion and to lift NOK4-5 billion in new capital.