Norwegian Air Q4 Loss Widens, Demand Weakens

February 20, 2009

Budget airline Norwegian Air Shuttle posted a wider-than-expected fourth quarter loss and said demand for tickets would weaken in 2009 as the economic slump curbed travel, sending its shares lower.

The loss before interest and tax widened to NOK199 million Norwegian kroner (USD$28.6 million) in the quarter from a loss of NOK58 million a year ago.

Demand for tickets and advance bookings had been satisfactory entering the first quarter, the carrier said on Friday in a statement.

However, it expected "softening demand due to slowdown in the business environment" in 2009.

Norwegian Air, whose main rival is SAS, said it would continue cost-cutting across the group, adjusting both its fleet and routes.

It forecast a unit cost -- an average per passenger carried and kilometer flown -- in the region of 0.53 kroner for 2009 against 0.57 in 2008.