Flyr Seeking Alternatives as Refinancing Plans Hit Turbulence

DALLAS - Norwegian low-cost carrier (LCC) Flyr (FS) is looking to raise NOK700m (US$68m) via a capital raise.

On November 4, 2022, the airline announced a private share placement in a bid to raise much-needed "near-term liquidity" after revealing that its financial situation was "very strained." However, the scheme, which it hoped would raise NOK430m (US$43m), was dropped after failing to reach enough subscribers.

The airline launched operations on June 30, 2021. Photo: Flyr

Shares Issued

To raise the gross proceeds, FS will issue 70 billion new shares at a subscription price of NOK0.01 per share. The plan was launched on November 9 and will close today, November 11.

"The net proceeds from the private placement will be used to re-establish the company's financial position to bring the company through Q1 2023, while the subsequent offering and any proceeds from the exercise of subscription rights will enable the company to be positioned to ramp up for the coming spring and summer based on the company's business plan and market assumptions," Flyr explained.

NOK 250 million (US$25m) has been conditionally raised in gross proceeds through the conditional allocation of 25,000,000,000 new shares. This will allow the airline to continue operations through the first quarter of 2023.

Flyr received its first 737-8 in February 2022. Photo: Alberto Cucini/Airways

Financial Woes

However, Flyr has warned that "the company may not be able to sustain its future operations if it cannot raise additional funds."

The airline launched operations in 2021 and has been desperately trying to cut costs in recent months. In October, management announced that it would be slashing its operation this winter by 50% to try and save approximately NOK400 million (US$38m).

Featured Image: Flyr currently has a fleet of 12 aircraft, with six 737-800s and six 737-8s. Photo: Alberto Cucini/Airways