UPDATE 1-Norwegian Air plans further capacity cuts in turnaround bid

Norwegian Air will make deeper capacity cuts in 2020 than previously announced as part of its plan to return to profits after three consecutive years of deficit, the budget carrier said on Thursday.

The company posted a fourth-quarter net loss of 1.87 billion Norwegian crowns ($202.03 million), reduced from a year-ago loss of 3 billion but lagging a forecast of a 1.35 billion loss in a Refinitiv poll of analysts. A pioneer in low-fare transatlantic air travel, Norwegian Air's rapid expansion has left the company heavily in debt, forcing it to cut unprofitable routes while repeatedly raising cash from owners in order to survive.

In 2020, the company's available seat kilometers (ASK), a key measure of capacity, is now set to decline by between 13% and 15%, more than the goal of 10% cutback which the airline had set last October. The company's guidance is based on a return to service of its fleet of grounded Boeing MAX aircraft in September, it added.

"All the above taken into consideration, the company targets a net profit in 2020," Norwegian Air said. ($1 = 9.2559 Norwegian crowns)

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