Budget carrier Norwegian Air Shuttle reported rising core earnings in the third quarter and said advance bookings had been satisfactory so far in the fourth quarter.

However, it forecast greater pressure as rivals step up a battle for market share in Scandinavia.

Earnings before interest, depreciation and amortisation rose 60 percent in July-September to 1 billion crowns (US$179 million) while revenue rose 19 percent to 3.4 billion.

The number of passengers it carried in the quarter rose 21 percent year on year to 4.61 million.

The airline, which competes with Scandinavian leader SAS, said it expected "continued pressure as competitors are announcing capacity increases and lowering fares in parts of the Scandinavian market".

Irish no-frills airline Ryanair recently expanded its operations in southern Norway, while Norwegian Air has abandoned Rygge airport.

Norwegian said total passenger traffic, a measure of the number of passengers and kilometres flown (RPK), rose 27 percent in the quarter.

The yield -- average revenue per passenger carried and kilometre flown -- was estimated at 0.54 crowns for the period, compared with 0.53 crowns in the third quarter of 2010.