Traffic figures for Norwegian in April were significantly impacted by government travel restrictions and therefore low demand. Just 59,431 customers flew with the low-cost carrier last month.
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.
The court reached a positive conclusion after the creditors approved the Norwegian reorganisation plan in a reconciliation period that ended on Friday.
A High Court judge in Ireland has approved the next steps in the financial reconstruction of low-cost carrier Norwegian. The airline will now send the same proposal for voting in Norway.
Adrian Dunne will join Norwegian as the new executive vice president, operations. He has more than thirty years of experience as a leader within the aviation industry.
If the plan is approved by the Irish and Norwegian courts in the coming weeks, the company can continue the reconstruction processes and initiate a capital raise next month.
In February, 61,374 customers flew with the low-cost carrier, a decrease of 97 per cent compared to the same period last year. The load factor was 38 per cent, down 44 percentage points.
Out of a current fleet of 131 aircraft, the low-cost carrier said an average of 15 were operational during the fourth quarter, mainly on domestic routes in Norway.
Jacob Schram, chief executive of Norwegian, said: “The pandemic continues to have a negative impact on our business as travel restrictions remain.”
The low-cost airline said the decision to offer new capital would significantly increase its chances of working through the crisis caused by the Covid-19 pandemic.
Low-cost carrier Norwegian has outlined a simplified business structure and dedicated short haul route network as it plans a return from the Covid-19 shutdown.
Norwegian has revealed traffic figures for December continued to be heavily influenced by lower demand caused by continued travel restrictions across Europe.