Norwegian Air - Improved trading in Q2; H2 capacity growth to go negative

Davy Research
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In the wake of two rights issues in 2018 and early-2019, the need for Norwegian to slow its growth, consolidate operations and focus on cost saving was extreme. This is now picking up pace with growth to go negative in H2 and an aggressive (NOK2bn) cost-cutting plan for 2019 now looking achievable. An improved trading outlook from a low base is helpful, but the company also requires improving cash performances to begin restoring confidence.