Budget carrier Norwegian Air Shuttle reported rising core earnings in the third quarter and said advance bookings had been satisfactory so far in the fourth quarter.
However, it forecast greater pressure as rivals step up a battle for market share in Scandinavia.
Earnings before interest, depreciation and amortization rose 60 percent in July-September to NOK1 billion kroner (USD$179 million) while revenue rose 19 percent to NOK3.4 billion kroner.
The number of passengers it carried in the quarter rose 21 percent year on year to 4.61 million kroner.
The airline, which competes with Scandinavian leader SAS, said it expected "continued pressure as competitors are announcing capacity increases and lowering fares in parts of the Scandinavian market".
Irish no-frills airline Ryanair recently expanded its operations in southern Norway, while Norwegian Air has abandoned Rygge airport.
Norwegian said total passenger traffic, a measure of the number of passengers and kilometers flown (RPK), rose 27 percent in the quarter.
The yield -- average revenue per passenger carried and kilometer flown -- was estimated at 0.54 kroner for the period, compared with 0.53 kroner in the third quarter of 2010.