Norwegian Air Declines Most in a Month as Danske Cuts to Sell

Jan 07, 2014 5:03 am ET

Jan. 7 (Bloomberg) -- Norwegian Air Shuttle AS fell the most in more than four weeks in Oslo after Danske Markets downgraded its recommendation on the Scandinavian low-cost airline to sell from hold.

Shares in Norwegian fell as much as 4.1 percent, the biggest intraday decline since Dec. 9, and traded 3.8 percent lower at 189.5 kroner as of 11 a.m. local time.

Danske cut its rating based on the “prolonged price war in the Nordics,” the “high cost” of capturing market share in Europe and the negative impact of delays to the Dreamliner aircraft, it said in a report today. The decision was also based on unfavourable developments in exchange rates, the Danish lender said.

Norwegian, based in Oslo, is scheduled to announce December sales and revenue data at 8 a.m. tomorrow.