Norwegian shares plunge 12 per cent as airline cancels 3,000 flights
Reported today on City AM
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Shares in low-cost carrier Norwegian plunged 12 per cent today after the airline said it would cancel around 3,000 flights between now and mid-June to tackle the slump in demand caused by coronavirus.The cancellations, which extend existing measures, represent approximately 15 per cent of the carrier's total capacity for the period.Read more: Norwegian under scrutiny amid concerns over carrier's debt pileThey are part of a package of measures the airline, which has been widely tipped as likely to follow Flybe into administration, has introduced to try to tackle the change in demand.In a statement, the firm said that the measures would include "temporary lay-offs of a significant share of its workforce".It added that more details of the cancellations, which will affect Norwegian's entire network, will be shared as soon as they are ready to be implemented.Norwegian's chief executive Jacob Schram said: "This is a critical time for the aviation industry, including us at Norwegian. We encourage the authorities to immediately implement measures to imminently reduce the financial burden on the airlines in order to protect crucial infrastructure and jobs.Sign up to City A.M.'s Midday Update newsletter, delivered to your inbox every lunchtime"Unfortunately, cancellations will affect a significant share of our colleagues at Norwegian. We have initiated formal consultations with our unions regarding temporary layoffs for flying crew members as well as employees on the ground and in the offices".The cancellations come just days after a number of hedge funds increased short positions against the airline amid fears it could be the next carrier to fall into bankruptcy.Analysts also cut their ratings for the stock, largely over fears that the airline is particularly exposed due to the
