Specifically, the company reported that although it was able to improve its liquidity that it felt it was prudent to take steps to streamline as it enters the fall and winter season. It expects even more limited traffic than normal for this time of the year in part due to the governments’ recommendations to limit travel.
Prior to the pandemic, the company had 800 employees and transported over 1.4 million passengers annually. However, they said that further action is needed to create additional cost savings due to the uncertainty as to when traffic would return to normal levels.
In addition, the company acknowledged the support of its owners, banks, lenders, suppliers, and partners which had helped it to raise additional capital. They forecast an estimated positive cash flow of NOK 700 million (approximately $77 million) for 2020.
Rickard Ternblom, CEO of Fjord Line commented that
Even with the government plans for extended layoffs, compensation, and loan guarantees, we cannot avoid the fact that employees will be affected. Up to 200 people will be dismissed or laid off. Cutting costs is the only thing that helps when revenues fall as drastically as they have in the last few months.