Norwegian airline Flyr said Tuesday it will file for bankruptcy because it has been unable to raise the cash needed for its operations, Reuters reported.
There is no longer any realistic way to find a solution to the short-term liquidity situation, the company said in a statement, and the board's decision was unanimous. All departures and ticket sales have consequently been canceled.
Flyr, which began operations in mid-2021 and served domestic destinations in Norway as well as Europe, said Monday that weak financial markets and uncertainty about airline demand prevented it from raising more cash.
Flyr, which leases 12 Boeing 737s, said in November that raising more money was vital to get through the winter season and prepare for the spring and summer of 2023, but at the time it was only able to raise about half of the amount needed.
The company said Monday that it had tried to raise NOK 330 million ($33 million) in financing in recent days but had failed, causing its share price to drop 78 percent.
Further trading of the stock will be suspended, Flyr said Tuesday.
The company, whose competitors include Norwegian Air and Scandinavian carrier SAS, said Oct. 4 that it would make significant cost cuts, including layoffs, and suspend unprofitable routes to save cash during the winter.
Flyr is the latest Scandinavian carrier to face financial difficulties in recent years as a pandemic, rising energy prices and falling consumer confidence have reduced demand.
SAS is in the process of reorganization under Chapter 11 bankruptcy protection in the United States, and Norwegian Air underwent restructuring under Irish court supervision in 2021 to become a downsized regional airline.