Shares in Norwegian Air took off on Thursday (February 6).

Up as much as 6%, before easing back.

That on signs that the budget carrier's turnaround is gathering pace.

Two key measures of income per passenger rose sharply according to a new traffic report, beating analyst forecasts.

The gain comes after Norwegian cut almost a third of its capacity in January.

It's been pruning loss-making routes in a bid to save cash.

Routes from Ireland to the U.S. and Canada were among those to go.

Norwegian shook up transatlantic travel with cheap fares...

But over-expansion and the grounding of its Boeing MAX jets brought mounting losses.

Many industry watchers wondered if it might be the next in a slew of airline bankruptcies in Europe.

Now those fears appear to be receding... as is the pressure on peers.

Analysts see local rival Scandinavian Airlines benefiting as Norwegian scales back.