Norwegian budget airline Flyr is running out of money

Airline Flyer

It was not possible to raise 30 million euros in fresh funds from investors.

(Photo: IMAGO/NurPhoto)

Oslo The Norwegian airline Flyr, which was founded in the middle of the Corona crisis, has money problems after unsuccessfully seeking new financial injections. The short-term liquidity situation is critical after it was not possible to raise the equivalent of around 30 million euros in fresh funds from investors in the past few days, the loss-making low-cost airline said on Monday.

Continued uncertainty about the development of the flight business and the earnings situation would have deterred investors from capital commitments.

The board of directors is looking for alternatives to keep operations going, the listed airline further explained. However, the solution could be associated with a complete decline in the share value. The share price fell on the Oslo Stock Exchange by more than 75 percent to 0.002 Norwegian kroner, i.e. practically zero.

Flyr only started in the summer of 2021. With a fleet of a dozen aircraft, the airline offers domestic and European connections. With sales equivalent to 93 million euros, the airline made a net loss of about the same amount from January to September 2022.

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At the weekend, the British regional airline Flybe had to shut down operations for the second time in three years. All flights were canceled, affecting around 75,000 passengers. The airline was again put under creditor protection for a restructuring procedure.

Flybe recently had eight leased Q400 turboprop aircraft in operation and 320 employees. Receiver Interpath Advisory said delayed aircraft deliveries hampered the airline’s capacity building and competitiveness. But there is still a chance to save Flybe.

More: Criticism of the planned ITA takeover: “Lufthansa’s variety of brands is a problem”

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