Norwegian airline Flyr will implement heavy spending cuts to preserve cash during the winter season, it has said, with plans for furloughs and potentially moves to raise cash.
"We are entering a demanding winter season where discretionary consumer spending is expected to decrease significantly following the recent interest rate hikes, high general cost inflation and record high energy prices," chief executive Tonje Wikstroem said in a statement.
Flyr, the main rivals of which are Norwegian Air and SAS, will put non-profitable routes on hold and maintain sufficient personnel to operate five or six of its 12 aircraft during the winter.
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The budget carrier, which began flights in June 2021, plans a temporary cost reduction of up to 50%, reducing cash burn through the winter season by approximately 400 million Norwegian crowns ($38 million).
Flyr engaged bankers from Arctic Securities, Carnegie and Sparebank 1 Markets to conduct meetings with existing and potential new investors, it added.
"Potential Financial Instruments"
"The purpose of these meetings is to discuss potential financial instruments to strengthen the company's financial position," Flyr said.