Skift Take
Norwegian airline company Flyr’s unsuccessful efforts to raise investment funds will see the budget carrier make functional cuts. This survival relocation is not likely to see its summer season strategies go the distance.
Selene Brophy
Loss-making Norwegian airline Flyr stated on Monday it had actually failed to raise the cash it requires from investors and other possible financiers, leaving it in a “crucial short-term liquidity scenario”.
Flyr’s share price, currently damaged by the budget plan provider’s monetary troubles, fell 78 percent in early trade to a lowest level of 0.0015 Norwegian crowns ($0.00015.)
While the board continues to check out “feasible options” to secure its ongoing operation, the potential options might wipe out the remaining value of its existing investors, the carrier stated in a statement.
Flyr in November said raising money was important for the company to endure the winter season and prepare for a ramp-up in spring and summer season of 2023, however it was just able to raise about half the necessary cash at the time.
The business stated it had actually attempted in recent days to secure funding of $33.27 million however the effort failed.
“Market conditions and continued unpredictability with concerns to airline travel and earnings through 2023 have actually discouraged financiers from committing capital for the required time period,” Flyr stated.
The company, whose competitors consist of Norwegian Air and SAS, stated on Oct. 4 it would make heavy costs cuts to maintain cash during the winter season, consisting of furloughs, and put non-profitable paths on hold.
Reporting by Terje Solsvik, Editing by Louise Heavens and Christina Fincher
This short article was from Reuters and was lawfully licensed through the Industry Dive Content Market. Please direct all licensing questions to [email protected]
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