Norwegian Air swings to surprise Q2 net profit

Norwegian Air Shuttle beat expectations with a second-quarter net profit on Thursday as it controlled costs better than expected at a time when its transatlantic expansion is peaking. Europe's third-largest budget airline by passenger numbers is trying to crack the transatlantic market by undercutting established rivals, but has faced pressures to control costs and shore up its balance sheet in the face of competition. The company posted a net profit of 300m crowns in Q2, compared with a loss of 691m crowns a year earlier. Analysts polled by Reuters had expected a loss of 535m crowns. "Revenues came in line with expectations, while costs improved more than anticipated and this was the main reason for the earnings beat," said Pareto Securities analyst Kenneth Sivertsen. The company's unit costs, including depreciation and excluding fuel, fell to 0.29 crowns from 0.35 crowns a year earlier, helped by lower wet lease costs -- hiring spare aircraft and crew when needed -- and lower technical costs, it said.<br/>