Budget carrier Norwegian saw its cash and cash equivalent levels drop by more than 20% during the third quarter of 2013.
Cash and cash equivalents totalled NKr 2.3 billion ($388 million) at 30 September compared with NKr 1.73 billion at the end of last year but Norwegian's cash balance dropped NKr 620 million during the three-month period to 30 September.
The carrier says it generated NKr 67 million cash flow from operating activities down from NKr 460 million in the third quarter of 2012.
Cash flow used in investing activities totalled NKr 618 million up from NKr 565 million in last year’s corresponding period. Norwegian took delivery of three new Boeing 737-800s in the June to September period and made further pre-delivery payments. One new 737-800 was fully financed by equity, Norwegian says. In comparison, three new 737-800s were delivered in the third quarter last year.
Cash flow used from financing activities in the third quarter totalled NKr 68 million while in last year’s quarter the carrier generated NKr 267 million. Proceeds from long term financing of two new aircraft and pre-delivery payment financing are more than offset by down-payment on borrowings and financing costs in the quarter, says Norwegian.
The carrier’s fleet plan includes four new Boeing 787 deliveries in 2014 along with 11 new 737-800s. Norwegian says it will retire four 737-300s from service next year.
It plans to end the year 2014 with 95 aircraft in service compared with 84 units at the end of 2013.