Norwegian Air reported a net loss in the fourth quarter on Thursday, citing high fuel costs and a strong U.S. dollar, but reiterated it saw strong demand in the period ahead.
The October-December net result swung to a loss of 119 million crowns ($11.69 million) from a year-ago profit of 112 million.
The fourth quarter, normally a slow period for holiday travel, saw record-high fuel prices, a strong U.S. dollar and "sweeping industry challenges across European airports", the budget carrier said in a statement.
Still, it maintained that the situation would improve.
It said its capacity, as measured by available seat kilometres (ASK), is expected to rise by 24% this year compared to last, while the revenue earned from each passenger would rise and the cost fall.
For the summer of 2023, Norwegian plans to operate 81 aircraft, down from the 85 aircraft it had previously planned for.
The budget airline had a total fleet of 70 Boeing aircraft in its fleet by year-end, up from 69 three months earlier.
It has since announced it would lease six additional Boeing 737 MAX 8, from Air Lease Corporation (ALC), with delivery well ahead of the Northern hemisphere summer season. (Reporting by Victoria Klesty and Gwladys Fouche, editing by Terje Solsvik)