Norwegian Air Swings To Q4 profit

February 15, 2013

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Fast-growing budget airline Norwegian Air Shuttle made a surprise pretax profit for the normally weak fourth quarter.

Pretax profit for the last three months of 2012 came in at NOK23 million kroner (USD$4.17 million). That compared with a NOK188 million kroner loss a year earlier.

Chief executive Bjoern Kos said earnings should improve once costs decline. "The result should have been much better," he told a news conference.

The company said it now expects to increase its capacity, in terms of available seat km (ASK), by more than 25 percent this year, including new long haul routes. Previous guidance was for ASK growth in excess of 20 percent.

Norwegian Air has 276 Boeing and Airbus aircraft on order for delivery over the next decade.