The Norwegian low-cost airline needs fresh money. About 530 million Norwegian kroner (about 52 million euros) should be redeemed via a so-called private placement of shares. The carrier recently had to announce a quarterly loss of around 22,6 million euros.

Seen over the current year 2022, the shortfall totaled 723,5 million euros (about 70,7 million euros). The net loss in the third quarter of 2022 was the equivalent of 44,28 million euros. In the first nine months of the current year, a minus of 107,5 million euros was accumulated. For comparison: the operating loss for the previous year was reported at 41,7 million euros. The net loss was around 42,7 million euros.

Given the disastrous financial numbers, it's not surprising that Flyr's offer massively reduced in the 2022/23 winter flight schedule. Recently it became known that only a few planes will take off and that about half of all routes have been canceled - at least for the time being. Of course, this also has an impact on the employees. The last time was in October 2022 around 186.600 passengers.

Norwegian consumer protection association warns of possible bankruptcy

Norwegian consumer protection issued a public warning against booking tickets with the airline Flyr. It is recommended that one should wait until Tuesday, as it is said that a decision will then be made as to whether the company will continue to exist or even have to file for bankruptcy.

Consumer advocate Thomas Iversen told E24, among other things: "If you decide to travel with Flyr, you must remember to pay by credit card". He also alludes to the fact that travel insurance is often included and that if the service is not provided, for example due to insolvency, there are options for recovering the money as part of the chargeback process.

While consumer protection in Norway doubts that Flyr will be able to collect around 400 million Norwegian kroner by issuing new shares by Tuesday and fears that failure will result in insolvency, the carrier is confident. Chief Financial Officer Brede Huser said, among other things: "Based on the feedback we have received from our financial advisors and the investor discussions we have had ourselves over the last few weeks, the amount of 430 million and the low subscription price is exactly what we need to raise the money".

Half of the workforce sent to the employment office over the winter

In the official communication of the low-cost airline Flyr, there is always talk of reducing cash burn by around 2022 million Norwegian kroner (around 23 million euros) in winter 400/39,1 and therefore having to significantly restrict flight operations. Those employees who are not needed during the 2022/23 winter timetable period should not receive a salary either. The employment relationships are formally terminated and sent to the employment office based on the model of seasonal branches. Some report that they want to be given reinstatement promises but want to find another employer and will be turning their backs on Flyer.

Flyr, which also likes to present itself as a hip start-up, made a significant loss in the third quarter of 2023 despite high demand. This is also due to the fact that the fuel had to be purchased at the daily pump price, because fuel hedging was not practiced. Gradually, the company is likely to simply run out of money, which is why they are trying to get through the winter by issuing additional shares, drastically reducing flight operations and laying off about half of the workforce. But the strategy is also risky, because aviation personnel are hard to come by and trust in a reliable employer is not exactly strengthened by "sending to the employment office over the winter".