Norwegian Air scraps its 2020 profit guidance

OSLO: 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 as a new coronavirus that started in China spreads around the world, hitting travel demand. 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 on Thursday.
“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.
The company said it had decided to cancel 22 long-haul flights between Europe and the United States from March 28 to May 5, with routes from Rome to Los Angeles, Boston and New York seeing a reduced number of departures.
It will also cut the number of flights between London and New York, flying twice, rather than three times, on some days. — Reuters