Norwegian Air will seek to raise up to NOK 6 billion (£515 million) to guard against the ongoing "unpredictability" in the travel sector caused by the Covid pandemic and associated travel restrictions.
The airline has extended the upper limit for its planned capital raise to NOK 6 billion after it was granted approval in both Norway and Ireland to progress with its wide-ranging restructuring effort.
Additionally, Norwegian said the process would "sharply reduce" its debt by up to NOK 65 billion (£5.3 billion) compared to levels at the end of 2019. It has also cancelled aircraft orders worth NOK 85 billion (£7.3 billion).
Chief executive Jacob Schram confirmed the move in a statement issued on Wednesday morning (14 April), and put the decision to expand the scope of its cash raise down to "several factors". It comes after the airline presented its reconstruction plan to creditors last month.
"We want to take a conservative approach at a time when the pandemic and travel restrictions continue to create unpredictability in the travel sector," said Schram.
"Therefore, we must take this uncertainty into account in our forward planning strategy. At the same time, we have also taken into consideration feedback from investors, as well as dialogue with our board."