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Norwegian Air has seen its share price fall sharply after confirming plans to raise fresh funds.
Shares in the low-cost carrier slipped 15 per cent, to just under €13, after revealing it would seek three billion Norwegian kroner (roughly £268 million) from investors.
The news comes as the company announced that its preliminary earnings for 2018 showed an operating loss of roughly 3.8 billion kroner.
At the same time, Norwegian Air said it would be changing its strategic focus from growth to profitability.
“Norwegian has been through a period with significant growth,” said chief executive Bjørn Kjos.
“Focus going forward will increasingly be on cost savings and CAPEX reductions.
“We will now get in place a strengthened balance sheet that supports the further development of the company.
“With the strengthened balance sheet, the organisation can now devote all its attention to further development of the company.”
Norwegian said it would slow the delivery of aircraft and even look at the sale of planes as it seeks to reduce expenditure.
The carrier will also cut bases and “optimise” its route structure.
Billionaire John Fredriksen, chairman Bjorn Kise and chief executive Kjos have all agreed to underwrite the new share issue.
The company started as a small regional airline flying between Bergen and Trondheim in 1993.
International Airlines Group
It was announced that International Airlines Group had acquired 4.61 per cent of the shares in Norwegian in April last year.
At the time it was thought a takeover was likely.
However, after two preliminary and non-binding conditional proposals from the British Airways-owner, no sale was agreed.
IAG recently sold the stake, quelling speculation in the short term.
Source: breakingtravelnews.com
