Norwegian collapses more than 20% on the stock exchange due to uncertainty about the coronavirus

The company cancels flights, withdraws its forecast for 2020 and records a 22% drop in the number of passengers in February

Norwegian Air Shuttle titles have fallen more than 22.78% on the Oslo Stock Exchange last Friday, after Thursday announced the cancellation of 22 flights between Europe and the US. due to the coronavirus, the withdrawal of its forecasts for 2020 and the 22% drop in the number of passengers transported in February.

The company’s shares have collapsed to almost 30% throughout the trading session last Friday. The titles end the day at a price of 13.3 euros.

Norwegian reported on Thursday last week of the cancellation of 22 long-haul flights between Europe and the United States due to lower demand due to the Covid-19 virus, while withdrawing its forecast for 2020 due to the outbreak. «At this precise moment, it is too early to assess the total impact on our business,» the company argued.

In addition, on Thursday the company reported that in February it transported 1.9 million passengers, which represented 22% less than the same month of 2019, with an occupancy factor of 81.7% (0.2 percentage points plus).

The airlines are the main punished in the stock market for the crisis that has generated the outbreak of the coronavirus. Also this Thursday, the British company Flybe declared bankruptcy after not being able to secure a financial bailout by the United Kingdom Government and due to the economic impact of the coronavirus outbreak.

On the involvement of the disease in airlines, the International Air Transport Association (IATA) has estimated that the epidemic could cause a reduction in revenues of 63,000 to 113,000 million dollars (56,405 million euros) and 101,196 million euros).