HEDGE funds have increased their bets against Norwegian Air amid concerns that the low-cost carrier could follow Flybe into bankruptcy due to the slump in demand caused by the coronavirus outbreak.

According to IHS Markit data obtained by the Sunday Telegraph, nearly 16 per cent of the airline's stock is on loan to funds such as Arrowstreet Capital, a $106bn (£81bn) fund founded by Harvard academic John Campbell.

A number of analysts have cut ratings for Norwegian due to fears that it is particularly exposed to disruption due to its large debt pile.

(c) 2020 City A.M., source Newspaper