Norwegian Air defies skeptics, exits bankruptcy

Norwegian Air is set to defy the doubters and live on.

On Wednesday (May 26) the airline emerged from six months of bankruptcy protection.

The budget carrier says it now has a much smaller fleet, and greatly reduced debts.

Norwegian exits protection after raising more cash last week.

It secured around $721 million in fresh capital, satisfying bankruptcy courts in Ireland and Norway.

This time last year, prospects had seemed bleak.

Already heavily indebted, Norwegian was then battered by the global travel slump.

That eventually forced it to close large parts of its operations, including transatlantic services.

The airline now has 51 aircraft, down from 156 before the global health crisis.

Its debts are less than a quarter of what they were.

But Norwegian is still cautious about the future.

It says it faces stiffer competition, and lingering uncertainty as a result of ongoing travel restrictions.

Shares in the company surged around 20% in morning trade following Wednesday's news.