Positive effect of restructuring process seen by Norwegian

Its unit revenue also increased by 22% following a yield increase of 93% and a decreased load factor of 28.8 percentage points. The company’s total revenue in the first half of 2021 did, however, drop by 92% year on year - going from NOK7.1bn (£594.4m) in the first half of 2020 to NOK591m (£49.4m).

It comes after the airliner emerged from a six-month long financial reconstruction process in May. It began last November when the firm entered into an examinership process in Ireland and a reconstruction process in Norway, with its purpose being to reduce debt, rightsize its fleet and secure new capital.

Approved by courts in Norway and Ireland in the middle of April 2021, the reconstruction plans allowed the business to begin raising capital - with it announcing on 21 May 2021 it had raised at least NOK6bn (£502.1m). This, according to Reuters, is more than the at least NOK4.5bn (£376.6m) it was required to raise.

As part of its restructuring process, the company discontinued its long haul operations, reduced the size of its fleet from 156 planes down to 51, and terminated aircraft orders with Boeing and Airbus - representing capital expenditure commitments of NOK85bn (£7.1bn) in aggregated value.

According to the firm’s results for the first half of 2021, its exit from the examinership and reconstruction process improved equity by NOK10.7bn (£895.2m). During this period of time, its total fleet consisted of 51 aircrafts, with up to 32 being operational due to travel restrictions and lower demand.

Overall, the firm believes its results mean it’s now well-positioned for future growth and to respond to increased customer demand. Commenting on the results, Norwegian’s chief executive Geir Karlsen, said: “The results continue to be heavily impacted by international travel restrictions. However, Norwegian is now in a much stronger financial position and is able to plan for the future with renewed confidence and focus.

“Forward bookings continue to increase in response to the relaxation of travel restrictions and the roll out of international vaccination programmes. We expect to see this trend continue in the remaining months in 2021 and through 2022.”