It was clear that it didn’t look good. The Norwegian airline Flyr has now said it was unable to raise the funds it would have needed to continue operating normally. On Tuesday evening, the board of directors decided: Operations will be discontinued.
Trading in Flyr shares was halted and the airline was officially declared bankrupt on Wednesday morning (February 1). “All flights have been canceled and will not be operated at a later date,” the airline said on its website.
The young airline started in the middle of the corona pandemic. It took off for the first time in June 2021. However, it was not Covid-19 that broke her neck, but the crisis that immediately followed as a result of the Russian war of aggression in Ukraine.
The massive increase in the price of kerosene accounts for a lion’s share of airline costs. This becomes a problem for small airlines like Flyr.
Unlike large groups such as Lufthansa or IAG, they cannot pursue a hedging strategy, i.e. they cannot secure options on fuel at a certain price.
But small airlines have a harder time hedging because they don’t have the money to buy in bulk. Therefore, Flyr had to buy at current prices.
Flyr is the second airline to go bankrupt this year. The new Flybe had to give up at the weekend. The airline had been on the road less than a year when it had to admit that this attempt was not working either.
This article was written by Laura Frommberg
The original of this article “The next airline goes bankrupt a few weeks after the start of the year” comes from aeroTelegraph.
