Norwegian Air Swings To Q4 Operating Profit

Norwegian Air Shuttle reported a fourth-quarter profit and kept its outlook for growth in capacity this year, while costs were seen lower.

The low cost carrier swung to an operating profit before leasing and depreciation (EBITDAR) of NOK295 million Norwegian kroner (USD$34.52 million) from a loss of NOK380 million a year earlier.

Norwegian, Europe's third-biggest budget airline by passenger numbers after Ryanair and easyJet, has launched flights to the Middle East, southeast Asia and the United States, bringing low-cost offers into the long-haul segment, as well as expanding in its core European market.

"We enter 2016 with favourable fuel costs and one of the youngest fleets in Europe, which presents a significant competitive advantage," chief executive Bjørn Kjos said in a statement.

"The market in Norway is influenced by the slowdown in the economy and there is increased competition in the Danish market. The demand for travelling with Norwegian and advance bookings have been satisfactory entering the first quarter of 2016," the company added.

The company confirmed its guidance that its available seat kilometres (ASK) would grow by 18 percent this year. Its unit cost (CASK) is now seen at around NOK0.37 kroner this year versus an previous guidance of 0.39 kroner.