Norse Atlantic eases liquidity pressure with revised credit-card payment terms

Long-haul low-cost operator Norse Atlantic Airways has eased some of its financial pressure through an agreement which releases cash from credit-card payment providers. The airline had disclosed earlier this month that it was encountering near-term cash and liquidity issues after a weaker-than-expected second quarter. While summer bookings have been “satisfactory”, it says, they are being made later. Bookings being made closer to the travel dates are leading to later cash inflow from sales as the carrier awaits collection of credit-card receivables. But Norse states that it has agreed improved terms with credit-card payment providers, and that this has generated an “immediate cash release”. It has not elaborated on the size of the cash influx. Norse says, however, that the new terms have been arranged at no cost, adding that they “represent the most favourable working capital solution and resolve the near-term liquidity issue”. “We continue working to optimise our liquidity and our general financial position going forward,” it adds. Norse operates a fleet of Boeing 787s primarily on transatlantic routes.<br/>