Video: Norwegian Air and Lufthansa hope for a rebound
Editor’s Note: The following is a transcript of the accompanying video. © 2021 Thomson Reuters.
European airlines are feeling a little more optimistic. Norwegian Air said on Tuesday [31 August] that he expected bookings to increase in the coming months as the region reopens for travel.
Although he has still not been able to give a financial outlook for 2021, citing continued uncertainty.
Norwegian emerged from the crisis like a shadow of himself. The airline has cut its fleet by two-thirds and watched its creditors take control. At present, there are only 51 planes. But the company says they will be fully utilized by the end of the year and hopes to start expanding its fleet again in 2022.
For the first half of this year, Norwegian reported revenue of just over $ 68 million, less than a tenth of the same time last year. Meanwhile, Lufthansa says its cash flow will turn positive again this summer. And the German giant says it should be possible to completely unwind a government bailout within a year.
In 2020, Berlin was forced to take a 20% stake in the carrier as part of a $ 7.1 billion bailout. Last week, the German Economic Stabilization Fund announced that it would start selling its stake in the coming weeks. It aims to have it completely by the end of 2023.