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* Q1 loss widens 66% to $332 mln
* Has laid off thousands of employees
* Recent debt conversion puts creditors in charge
(Adds detail, link to SAS report)
By Terje Solsvik and Victoria Klesty
OSLO, May 28 (Reuters) - Norwegian Air posted a
wider first-quarter loss as the coronavirus crisis froze global
travel, it said on Thursday, days after completing a financial
rescue in which creditors took control of the carrier.
The pioneer in low-fare transatlantic travel reported a
January-March pretax loss of 3.28 billion Norwegian crowns ($332
million) versus a loss of 1.98 billion a year earlier.
In March it furloughed some 7,300 employees, or about 90% of
its staff, and last month said subsidiaries in Denmark and
Sweden had filed for bankruptcy.
"The company is currently in hibernation mode and at the
same time is conducting significant restructuring of the
organisation, including establishing a new strategy and updated
business plans," the budget airline said in a statement.
Before the COVID-19 outbreak, Norwegian had set out a plan
to regain annual profitability in 2020 after posting losses for
three consecutive years, but instead found itself fighting to
survive.
"Our goal is to ensure that Norwegian has a strong position
in the future airline industry with a clear direction and
strategy," CEO Jacob Schram said in a statement.
The airline has grounded most of its fleet and this month
secured 3 billion Norwegian crowns in government loans after
completing a 12.7 billion crowns debt conversion and share sale.
A preliminary recovery plan published in April calls for
operating just seven aircraft for up to a year, followed by a
gradual build-up to 110-120 aircraft in 2022, down from a
current fleet of 147.
Rivals such as Lufthansa, SAS, Ryanair
and easyJet in recent days have announced the
reopening of some routes.
"As soon as the world returns to normalcy, we will be
prepared to return with improved service to our customers,"
Schram said.
Nordic carrier SAS also reported it was conducting intensive
talks with investors to secure its own future.
($1 = 9.8796 Norwegian crowns)
(Editing by Stephen Coates and Jason Neely)
