Norwegian Air hit with rising costs due higher fuel prices

Norwegian Air said its unit cost has increased due to higher fuel prices as it posted a Q3 pre-tax result that lagged forecasts Thursday. The carrier 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. It also rebuffed takeover advances by BA parent firm IAG earlier this year. The firm’s 2018 unit cost is now expected in a range of 0.435-0.440 Norwegian crowns, up from a previous guidance of 0.425-0.430 crowns. The company blamed higher fuel prices for the increase. CE Bjoern Kjos reiterated that the growth in Norwegian’s investment would slow down and that the company would reap the bene “However, there is no doubt that tough competition, high oil prices and a strong dollar will affect the entire aviation industry, making it even more important to further streamline our operations and continue to reduce costs,” he said. The company reported a pre-tax result of 1.60b crowns ($191.86m), a 13% increase from a year ago and lagging the 1.74b crowns expected in a Reuters poll of analysts.<br/>