Share prices on both Norwegian and SAS plunged after the volcanic eruption in Iceland.
The equity value of Norwegian Air Shuttle and SAS fell by respectively 3.18 and 5.61 percent on Thursday.
The value fell 724.5 million kroner in the 9.5 hours that the Oslo Stock Exchange was open for trading. This means that the value of the two companies fell by around 7.6 million per hour in the exchange’s open hours.
Reversed the trend
SAS had the largest fall in value with a decline in the share price of 5.61 percent. The stock has fallen steadily for some time. So far this year, the share value fell by 27.85 percent, and only last week the price fell by 15.83 percent.
Norwegian, however, marks the current downturn as a break in a trend. For SAS has gone straight into the basement, Norwegian has gone through the roof. In one year the increase in value was the formidable 291.75 percent.
So far this year Norwegian has risen by 32.17, but Thursday that ended. The stock market opened at 09.00 Thursday at around 12:30 PM got the biggest share decline. From and out trading days the share price remained stable, and it ended down 3.18 percent.
Macro Economist Olav Chen at Storebrand said volcanic eruption is serious for both Norwegian and SAS.
“It is quite clear that it affects the airlines hard when they have to put the aircraft on the ground. Even if they save a little that they do not use fuel, they still have expenses for employees, and they must ensure their passengers. Some estimates indicate that the Norwegian traveler loses up to 10 million per day on this,” Chen told NRK.
He says aviation expenses are particularly serious for SAS is already in a serious financial situation.
“The upside for them, however, is that the state is the owner and that they can come to the rescue again,” says Chen.
Jobs are shattered
“The only priority for us now is to get information out to the passengers and to assist passengers where we can. The budget comes second “writes marketing manager Asta Braathen in Norwegian in an email to the financial website E24 .