Norwegian Air still needs more cash in order to weather the Covid-19 pandemic, the budget carrier said on Friday, as it reported a deep loss for the first half of 2020.
The company will put five more aircraft back in the air in September, raising the total to 25, while 115 planes remain grounded.
"Norwegian is facing challenging times ahead," the airline said in a statement.
The hard-hit industry saw Virgin Atlantic Airways filing for bankruptcy protection in a US court earlier this month, while American Airlines, United Airlines and Delta Air Lines have announced big layoffs.
Creditors and lessors took control of Norwegian in May with a financial rescue that allowed it to access state-guaranteed loans, with an aim of keeping the airline in business until demand for air travel resumes.
"We are thankful for the loan guarantee made available to us by the Norwegian government which we worked hard to obtain," Norwegian Air's chief executive Jacob Schram said in a statement.
"However, given the current market conditions it is not enough to get through this prolonged crisis," Mr Schram said.
Norwegian Air posted a January-June net loss of 5.4 billion Norwegian crowns ($610 million/Dh2.2bn), compared with a loss of 1.4bn crowns in the year-ago period.
Nordic rival SAS, which is trying to gather support for a 14bn Swedish crown recapitalisation plan, posted a multi-billion crown loss for its May-July quarter this week.
Norwegian aims to rebuild operations, albeit on a smaller scale, after it won the backing of owners and creditors for a 12.7bn crowns debt conversion and share sale, and accessed a 3bn crowns government aid package three months ago.
With most of its business on hold, Norwegian cancelled orders for 97 Boeing aircraft in late June and said it would claim compensation from the US planemaker for the grounding of the 737 MAX and for 787 engine troubles.
Global state-owned investor ranking by size
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1.
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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8.
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Australia
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Saudi Arabia
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South Korea
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Company%20Profile
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LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
COMPANY%20PROFILE%20
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