Norwegian Air has booked an impairment loss of 12.8 billion Norwegian crowns ($1.50 billion) in the fourth quarter related to owned and leased aircraft as well as pre-delivery payments on terminated aircraft orders.
Norwegian Air booked an impairment charge of 12.8 billion crowns in the fourth quarter as it cancelled a major Airbus order and plans to shrink its current fleet to avoid bankruptcy.. | March 4, 2021
Norwegian Air booked an impairment charge of 12.8 billion crowns ($1.5 billion) in the fourth quarter as it cancelled a major Airbus order and plans to shrink its current fleet to avoid bankruptcy.
Low-cost Norwegian Air Shuttle, currently under bankruptcy protection as it battles for survival, posted a record loss in 2020 due to the pandemic and massive writedowns, the company said on Friday.
Placed under bankruptcy protection in both Ireland and Norway, the no-frills carrier posted a net loss of 23 billion kroner (€2.2 billion) last year, or 15 times the loss registered a year earlier of 1.6 billion kroner.
Like other airlines, the company has been hard hit by the dramatic drop in air travel due to the COVID-19 pandemic. But it also registered a mammoth impairment loss of 12.8 billion kroner in the fourth quarter to take into account the planned reduction of its fleet.
Norwegian Air said on Friday it had booked an impairment loss of 12.8 billion Norwegian crowns (US$1.5 billion) in the fourth quarter related to owned and leased aircraft as well as pre-delivery payments on terminated aircraft orders.