Norwegian Air Says It Needs More Time to Pay Off Its $380 Million Debt

Sep 3, 2019

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Norwegian Air is in a lot of debt, and it’s asking its bondholders for more time to pay off a whopping $380 million in outstanding debt.

According to Reuters, the airline is willing to use its take-off and landing slots at London Gatwick (LGW) as security. This is just the latest news in what has been a particularly turbulent few years for the low-cost airline, which has struggled to become financially profitable.

Last year, Norweigan sold five of its Airbus A320neo aircraft to help pay off some of the debt.

“Sale proceeds will be used to repay debt and to increase the Company’s liquidity,” Norwegian said in a statement to the Oslo Stock Exchange at the time.

The airline is also reeling from the grounding of the Boeing 737 MAX following deadly crashes in Indonesia and Ethiopia. The airline had a fleet of 18 MAX jets.

Earlier this year, the airline said that the grounding has made it even more challenging to become profitable, as we wrote earlier this year.

“Due to the uncertainty related to the MAX grounding, the company sees increased risk related to the target of a positive net profit in 2019,” Norwegian said in its earnings report, according to Reuters. Its interim CEO says that the airline does not expect to fly the MAX in 2019.

Some larger airline groups have attempted to bid on a buyout of the airline. IAG, which owns British Airways, made three unsuccessful attempts to buy Norwegian last year.

More recently, Ryanair CEO Michael O’Leary said that it would be “inevitable” that faltering low-cost airlines would close operations in the next several months.

The airline flies dozens of routes, many nonstop, between the US and Europe and North Africa. It recently announced plans to cancel all flights between North America and Ireland on Sept. 15, citing the MAX grounding.

Norwegian had been flying the following routes from the US and Canada to Ireland:

  • Providence, Rhode Island (PVD): Cork (ORK), Dublin (DUB), Shannon (SNN)
  • Newburgh/Stewart, New York (SWF): Dublin (DUB), Shannon (SNN)
  • Hamilton, Canada (YHM): Dublin (DUB)
Chase Sapphire Preferred® Card

WELCOME OFFER: 80,000 Points


CARD HIGHLIGHTS: 3X points on dining and 2x points on travel, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
  • Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
Regular APR
16.24% - 23.24% Variable
Annual Fee
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.