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Feb 7 2019, 08:20 GMT
Norwegian Air
Slowing capacity growth into 2019
- Sectors : Airlines
- Companies : Norwegian Air
DAVY VIEW
While Norwegian had a number of specific issues in the past 18 months (Dreamliner hedges, mark-to-market effects of fuel and Bank Norwegian stake), its strategically risky mixture of high operating and financial leverage while it grows rapidly leaves it susceptible to reactive financing requirements. Capacity growth of 9% in 2019 should temporarily ease some growing pains, but only consistent net profits will restore confidence.
