Since my last coverage, Air France-KLM stock tanked so the Norwegian Air Shuttle performance is now exceeding that of Air France-KLM, but we're not seeing a strong turnaround in the stock price even though in my view the company’s results are materially improving. It does outperform the general markets and the JETS ETF, but that is about it. The conclusion I return to quite often is that it's among the bottom performers when it comes to share price development. What I have been doing in my past coverage of Norwegian is looking at the share price performance. Norwegian Air Shuttle Stock: Still An Underperformer But Outperforms Market Data by YCharts In this report, I will analyze the Q1 2023 and comment on the stock performance. In some way, the pandemic was an unfortunate eye-opener for Norwegian Air Shuttle that it had to do things differently. Bombardier put itself in significant debt for the development of the C Series, but was never able to benefit, but the company is thriving now. It actually reminds me a lot of Bombardier ( OTCQX:BDRAF). So, the company grew, and it failed to generate value while compounding debt. The pandemic could have pushed the company over the edge, but the reality was that the company was badly managed prior to the pandemic, and it kept growing without creating economies of scale or generating value, or as Ryanair’s ( RYAAY ) CEO said: If you have to sell aircraft to pay the fuel bill for your next flight, you don’t have a sustainable business. On November 18, 2020, Norwegian Air Shuttle filed for the examinership process in Ireland, and on December 8, 2020, it filed for reconstruction under Norwegian law.Norwegian Air Shuttle ( OTCPK:NWARF) is one of the companies that seemed to have made its final journey during the pandemic. In early November 2020, the government of Norway announced it would not provide further financial aid to the ailing airline after it had asked for a new billion-dollar rescue package from the state. ![]() At first, Norway’s government gave the ailing airline a helping hand in the form of granting $300 million of state aid along with the conversion of part of its existing debt and its financial commitments into new shares in May 2020. In a statement released on the day, the company explained it has raised $71.7 million (NOK 6,000 million) capital and implemented the Restructuring Proposal, thus concluding the restructuring.Īlready in great financial difficulties at the beginning of 2020, Norwegian was also hit hard by the coronavirus COVID-19 pandemic. On May 26, 2021, Norwegian Air Shuttle announced that it has successfully emerged from the Examinership and the Reconstruction.
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