Norwegian B787

Norwegian admits rising oil price is making life tough

The rising oil price and the cost of compensating passengers affected by planes being taken out of commission because of faulty engines has cut profits at Norwegian Air Shuttle.

However, shares in the airline rose 16 per cent on the Oslo market to NKr211.80 as Norwegian revealed plans for a sale and leaseback joint venture for its 158-strong fleet. Analysts said that could release up to $1 billion to bolster Norwegian’s balance sheet.