Budget airline Norwegian Air Shuttle is seeking further cost cuts, including reducing flights, to offset the impact of high oil prices.
Norwegian said on Friday it was still calculating the financial consequences of its plan, which involves fewer flights and lower flight speeds.
"We're launching a project where we aim to fly smarter, by reducing speed among other things," Norwegian Air Shuttle spokeswoman Anne Grete Ellingsen said on Friday. "We will also have fewer flights to some destinations this winter."
Norwegian also said it was gradually replacing old aircraft with newer and more efficient models, she said.
Norwegian Air, which also serves the community of migrant workers flying between Norway and Eastern Europe, had a loss before interest, tax, deprecation and amortization of NOK226 million kroner (USD$44.68 million) in the first quarter of 2008.
When it reported the first quarter loss in April, it said rising fuel costs would significantly affect costs in the coming quarters, adding that it had no fuel hedges.
SAS Chief Executive Mats Jansson said in Norwegian daily Dagens Naeringsliv's Friday edition that the airline industry will see "really challenging" times this year and next due to high oil prices and overcapacity problems.
"There will be short-term rescue actions, drastic measures," Jansson said about the industry. "Most of the low-cost airlines have not hedged against higher oil prices. (This is) a serious problem, a complete catastrophe," he was quoted as saying.
Norwegian Air Shuttle and SAS have been among the weakest performing European airline shares this year.
