Norwegian Air reported fourth-quarter operating earnings above forecasts, lifting its full-year result to an all-time high, and said it expected its profit to hit a fresh record this year.
The results mark a turnaround for the budget carrier, which only a few years ago could have stopped flying altogether, straining under heavy debts and hit by the pandemic.
The fourth quarter is normally a slow period for holiday travel in the northern hemisphere but Norwegian last month raised its earnings forecast for 2023 on the back of strong demand in the final two months of the year.
Shares in the company rose 10% in early trade on Oslo's stock exchange.
The budget carrier said it had increased passenger numbers in the fourth quarter to 4.7 million passengers from 4.6 million passengers a year ago.
Its October-December operating profit came in at 328 million Norwegian crowns ($31.08m), above the 177 million crowns forecast in a poll of analysts compiled by the company.
"This is a good day for Norwegian," CEO Geir Karlsen told a press conference.
The budget airline said its capacity - as measured by available seat kilometres (ASK) - is expected to rise by 12% this year, while it expects 2024 operating profit of between 2.5 billion and 3.2 billion crowns, up from 2.2 billion crowns in 2023.
Analysts participating in the poll predicted on average an operating profit for 2024 of 2.56 billion crowns.
"Booking momentum (for the summer) is looking good, very good," Karlsen said, adding that inflation and a weak Norwegian crown currency continued to push up prices, including fuel.
Norwegian's Nordic rival SAS last month said it expects 2024 revenues to exceed 48 billion Swedish crowns, and expects to emerge from an amended Chapter 11 plan of reorganisation by the middle of the year.
