The grounding of Norwegian Air’s fleet of Boeing 737 MAX aircraft may undo the carrier’s plan to return to profitability this year, it said while posting a widening first-quarter loss on Thursday.
“Due to the uncertainty related to the MAX grounding, the company sees increased risk related to the target of a positive net profit in 2019,” Norwegian said.
Norwegian Air said the grounding last month of its 18 MAX planes following the deadly crash of an Ethiopian jet, has forced the airline to pay for leases of other aircraft as the peak summer season nears.
The budget carrier’s net result plunged to a loss of 1.49 billion Norwegian crowns (£133.5 million) from a 46.2 million crowns loss a year ago.
Norwegian, which has cut costs and raised money from shareholders in recent months, said late on Wednesday it had agreed with Boeing and Airbus to postpone more aircraft deliveries as it seeks to preserve cash.
Via Reuters
