Norwegian has updated the market on the forthcoming capital raise, setting an upper limit of NOK6 billion (£500 million).

The low-cost airline said cash would be used to sharply reduce debt.

In addition, aircraft orders amounting to NOK85 billion have been cancelled.

“The capital raise has been revised to between NOK4.5 and six billion, this is due to several factors.

“We want to take a conservative approach at a time when the pandemic and travel restrictions continue to create unpredictability in the travel sector.

“Therefore, we must take this uncertainty into account in our forward planning strategy.

“At the same time, we have also taken into consideration feedback from investors, as well as dialogue with our board,” said Jacob Schram, chief executive of Norwegian.

“The new Norwegian, with a simplified organisational structure and operating model, will be a significantly more competitive company than before.

“This will not only be the case when compared to how we were before the pandemic struck, but also in view of the competitive environment we envisage across the aviation industry in the future,” Schram continued.

For further information, see stock exchange announcement.

“We greatly appreciate the long-term support that we have already received for the restructuring and capital raising from individual investors during this time of unpredictability as a result of the pandemic,” said chief financial officer, Geir Karlsen.

“The debt will be reduced by between NOK62 and 65 billion compared to the end of 2019, and we have cancelled aircraft orders worth NOK85 billion.

“Total debt will therefore be between NOK16 and 20 billion, of which NOK6-7 billion is related to our aircraft fleet,” Karlsen concluded.