OSLO: Budget airline Norwegian Air Shuttle reported fourth-quarter earnings above expectations on Thursday and kept its outlook for growth in capacity this year, while costs were seen lower.
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 favorable fuel costs and one of the youngest fleets in Europe, which presents a significant competitive advantage," Chief Executive Bjoern 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.
Norwegian swung to an operating profit before leasing and depreciation (EBITDAR) of 295 million Norwegian crowns ($34.52 million) from a loss of 380 million a year earlier, beating expectations for a profit of 181 million in a Reuters poll of analysts.
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 0.37 crowns this year versus an previous guidance of 0.39 crowns.
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