Norwegian posts surprise profit, sending shares flying

Oslo: Norwegian Air Shuttle reported a hefty profit, dramatically wrong-footing industry analysts who had expected a big loss as the low-cost airline burns through cash in its drive for growth, especially on ultra-competitive transatlantic routes.
Shares in the airline, which have been volatile since Norwegian started undercutting large rivals on long-haul routes, jumped in response to the surprise second quarter figures showing a net profit of 300 million kroner ($37 million, 31.7 million euros).
Financial analysts had been expecting a net loss of around 428 million kroner, according to consensus forecasts compiled by FactSet, a data provider. “Despite being at the peak of our growth phase, we have been able to present a profit and decreased unit costs during the second quarter,” Norwegian said in a statement.
The airline said it managed to cut costs by nine per cent in the second quarter, and 19 per cent excluding fuel.
Revenue rose by 31.5 per cent to nearly 10.3 billion kroner, a record high, in the second quarter. — AFP