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Norwegian Air's 2019 profit target in doubt after Boeing MAX groundings

Credit: Reuters Studio
Published on April 25, 2019 - Duration: 01:19s

Norwegian Air's 2019 profit target in doubt after Boeing MAX groundings

A day after Boeing abandoned its 2019 financial outlook in the wake of two fatal plane crashes, Norwegian Air says the grounding of its fleet of Boeing 737 MAX aircraft may scupper plans to return to profitability this year, while posting a wider first-quarter loss.

Edward Baran reports.

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Norwegian Air's 2019 profit target in doubt after Boeing MAX groundings

More downbeat news from the budget airline sector... As Norwegian Air says the grounding of its fleet of Boeing 737 MAX aircraft may scupper its plans to return to profitability this year.

While posting a first-quarter net loss of 172 million US dollars on Thursday.

The firm's fleet of 18 MAX planes has been forbidden from flying following the Lion Air Indonesia and Ethiopian Airlines disasters.

It's forced Norwegian to lease other aircraft as the peak summer season draws near.

The Oslo-listed airline has shaken up the long-haul market by offering cut-price trans-Atlantic fares, but its rapid expansion has left it with hefty losses and high debts.

The two fatal crashes involving the 737 MAX Jet have also hit maker Boeing hard.

The plane was its fastest seller -- but now the company has abandoned its 2019 financial outlook and the crisis has cost it at least one billion dollars so far.

Chicago-based Boeing is now reckoning with a blow to its reputation and the financial cost of getting the planes back in the air.

It met sharply lowered Wall St profit estimates for the first quarter - largely due to stopping deliveries of the 737 MAX jets and a slowdown in production.

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