The airline has reported earnings before tax of 1.6 billion Norwegian crowns (£149 million) for the third quarter 2018, lagging forecasts. Analysts polled by Reuters had been expecting third-quarter net income to come in at around 1.74 billion crowns.

The company continued to reduce its unit costs despite a capacity growth of 33%. But the unit cost is now expected in a range of 0.435-0.440 Norwegian crowns, up from a previous guidance of 0.425-0.430 crowns, Bloomberg reports. The airline blamed higher fuel prices for the increase.

The net profit for the third quarter was £121 million, an improvement of 18% compared to the same quarter last year while the company’s unit costs excluding fuel have decreased by 10% in the quarter.

Total revenue increased by 33% to £1.2 billion.

The load factor was 90.5% compared to 91.7% last year.

“I am very pleased to present a solid result this quarter with a reduced unit cost despite strong growth,” said chief executive Bjorn Kjos.

“Going forward the growth will slow down, and we will begin to reap the large investments we have made over the years, which will benefit customers, employees and shareholders.

“However, there is no doubt that tough competition, high oil prices and a strong dollar will affect the entire aviation industry, making it even more important to further streamline our operations and continue to reduce costs.”