If an uncertain future for Norwegian low-cost airline Flyr had been on the horizon for the past few weeks, the situation worsened substantially in the last few hours following the company’s decision to declare bankruptcy after failing to raise the cash it needed to continue operations.
Flyr was in a critical short-term liquidity situation and was going through its most delicate moment since the start of its activities in 2021. The problems began in October 2022, when it first became known that it planned to raise up to 530 million Norwegian kroner (almost 51 million dollars) in new shares to alleviate a “very strained financial situation”.
On Monday, the company said it had tried to raise a total of 330 million Norwegian kroner (33 million dollars) in financing in recent days. The situation triggered a sharp depreciation of its shares, which at times reached 75%.
Flyr suspends all operations
The company officially filed for bankruptcy before the commercial courts in Oslo this morning. “Flyr was unsuccessful in its new financing plan and the Board has concluded that, regrettably, there are no alternatives to continue operating”, the airline said on its official website.
“Thank you to everyone who has chosen to fly with us over the last year and a half, for welcoming us so well and for all the encouragement”, the website’s homepage reads. “We will miss you all and we are very sorry for all those affected”, the text continues.
Flyr today suspended all scheduled flights and the sale of new tickets. The company informed customers with outstanding travel that they should contact their credit card company to request a refund.
For its parte, Scandinavian Airlines System (SAS) said it will offer special discounts to Scandinavian residents who are stranded elsewhere in Europe due to the cessation of Flyr operations.
In a statement, the multinational airline based in Denmark, Norway and Sweden asked these passengers to contact its customer service centre to credit their reservation details with the low-cost carrier and arrange a new ticket.
