Maxim Primak @Maxprimak: "𝙏𝙝𝙚 𝙡𝙖𝙩𝙚𝙨𝙩 𝙣𝙚𝙬𝙨 𝙖𝙗𝙤𝙪𝙩 𝙉𝙤𝙧𝙬𝙚𝙜𝙞𝙖𝙣..."

Slovakia

𝙏𝙝𝙚 𝙡𝙖𝙩𝙚𝙨𝙩 𝙣𝙚𝙬𝙨 𝙖𝙗𝙤𝙪𝙩 𝙉𝙤𝙧𝙬𝙚𝙜𝙞𝙖𝙣 𝘼𝙞𝙧 𝙎𝙝𝙪𝙩𝙩𝙡𝙚, 𝙖𝙣𝙙 𝙬𝙝𝙖𝙩 𝙙𝙤𝙚𝙨 𝙩𝙝𝙚 𝙛𝙪𝙩𝙪𝙧𝙚 𝙝𝙤𝙡𝙙 𝙛𝙤𝙧 𝙩𝙝𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙮? 🤔 As you may have heard, on 27 May the company completed its big plan to restructure its assets and debt. In this post, I would like to talk about the outcome of the restructuring, and the company's plans for the future. $NAS.OL (Norwegian Air Shuttle) was able to raise $716 million (6 bn NOK) of capital by issuing new shares and currently has about $835 million (7 bn NOK) on the balance sheet. The company has also managed to reduce its debt from 63-65 bn NOK (EUR 6.2-6.4 bn, $7.5-7.8 bn) to 16-18 bn NOK. It reduced its staff from 10,000 to 3,300, cut its fleet from 156 to 51 aircraft, and closed many destinations. $NAS.OL took these measures to avoid bankruptcy, and so far it has succeeded. 𝘽𝙪𝙩 𝙬𝙝𝙖𝙩 𝙙𝙤𝙚𝙨 𝙩𝙝𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙮'𝙨 𝙛𝙪𝙩𝙪𝙧𝙚 𝙡𝙤𝙤𝙠 𝙡𝙞𝙠𝙚? Of course, all these measures have hit the company hard and it has lost its market-leading position as the 3rd low-cost airline in Europe. At the moment the company is still struggling, with only 9 aircraft in its fleet so far, and still suffering huge losses from the pandemic. I don't think a quick recovery is in sight. The company's stock price has dropped from 4,000 NOC to 10 NOC during the pandemic and if you are expecting it to go back to those numbers in a year, I have to disappoint you, it probably won't. At this point, this airline has suffered more than its competitors because it had a huge amount of debt at the start of the pandemic. 𝘾𝙤𝙪𝙡𝙙 𝙩𝙝𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙮 𝙜𝙤 𝙗𝙖𝙣𝙠𝙧𝙪𝙥𝙩 𝙖𝙛𝙩𝙚𝙧 𝙖𝙡𝙡? Of course, it can. If they were able to avoid it today, that doesn't mean it won't be waiting for them tomorrow. After all, the situation in the airline market is still very difficult and recovery could take several years. As I see it, $NAS.OL has now hit its bottom, for the moment, and it is likely that the share price could start to recover. However, as I said earlier, there are still big risks that the company may go bankrupt, so investing in this company should be very careful, taking into account that you could lose your investment. 𝘼𝙣𝙙 𝙙𝙤 𝙮𝙤𝙪 𝙩𝙝𝙞𝙣𝙠 𝙞𝙩 𝙬𝙞𝙡𝙡 𝙗𝙚 𝙖𝙗𝙡𝙚 𝙩𝙤 𝙧𝙚𝙜𝙖𝙞𝙣 𝙞𝙩𝙨 𝙥𝙤𝙨𝙞𝙩𝙞𝙤𝙣 𝙞𝙣 𝙩𝙝𝙚 𝙖𝙞𝙧𝙡𝙞𝙣𝙚 𝙢𝙖𝙧𝙠𝙚𝙩? Thank you all for reading this post to the end. If you liked it, please support it with Like and also subscribe to my profile to stay up to date with the latest news. Good luck with your investments, everyone! Peace ✌️

Not investment advice. The author may have financial interests in the mentioned instruments.

1 Mentioned

NAS.OL

Norwegian Air Shuttle

Strictly Necessary Cookies

Performance Cookies

Functional Cookies

Targeting Cookies