Norwegian Air shares gain altitude on recovery hopes

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.