UPDATE 1-Norwegian Air posts higher yield in January

Budget carrier Norwegian Air posted higher-than-expected income from each passenger in January but was less successful in filling its planes, its monthly traffic report showed on Wednesday.

The loss-making airline, which has rapidly expanded its transatlantic business, recently announced plans to cut costs and raise cash from owners after IAG, the parent company of BA, abandoned its attempt to buy the firm. "Norwegian has been through a period with significant growth, but now the company will change its strategic focus from expansion and growth to profitability," Chief Executive Bjoern Kjos said, echoing recent statements by the board.

Norwegian's yield, a measure of revenue per passenger carried and kilometres flown, grew to 0.35 Norwegian crowns from 0.32 crowns a year earlier, while analysts had expected an increase to 0.33 crowns. Norwegian expanded its capacity in January by 27 percent year on year but revenue-generating passenger kilometres increased by only 18 percent, lagging a forecast of 20.1 percent passenger growth in a Reuters poll of analysts.

The airline's load factor, a measure of how many seats are sold on each flight, fell to 76.1 percent for the month, missing a forecast of 79.1 percent and down from 82.0 percent a year earlier. (Reporting by Terje Solsvik, editing by Nerijus Adomaitis)

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