Norwegian Air shares surge on Airbus fleet deal, earnings top forecast

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Shares in Norwegian Air surged more than 20% on Thursday after it said China&#03...

FILE PHOTO: A view of parked aircraft belonging to budget carrier Norwegian at Stockholm Arlanda Airport in this March 5, 2015. REUTERS/Johan Nilsson/TT News Agency

CCB Leasing Corp DAC , a wholly owned subsidiary of China Construction Bank Corp , will own 70% of the venture, with the rest held by Norwegian Air’s Arctic Aviation. The company said the venture would reduce Norwegian’s capital expenditure by about $1.5 billion, based on the 27 aircraft on order. Norwegian cut its 2019 capital expenditure guidance by $200 million this year to $1.0 billion, while raising it by $100 million to $1.4 billion for next year.

In its new plan of cost cuts, Norwegian said it aimed to improve its annual EBITDAR run-rate by another 4 billion crowns by the end of 2021.

 

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