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. But analysts have warned Norwegian could be particularly vulnerable to a downturn due to its high debts. “Given the uncertainty and ongoing impact on overall demand for air travel, Norwegian withdraws its 2020 guidance provided to the market on February 13,” the company said in a statement. “At this stage, it is too early to assess the full impact on our business,” it added. The shares of Oslo-listed Norwegian have plunged 52 per cent so far this year.

- RTE -



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