Low cost carrier Norwegian plans to cut costs by at least 2 billion Norwegian krone in 2019.

The third largest carrier at Gatwick released an end of year update revealing that “significant savings” have already been identified.

An update on the #Focus2019 initiative will be given with the announcement of results for the first quarter of 2019.

The airline said: “To meet the competitive environment in a period with seasonally lower demand in Europe, the company has made several changes to its route portfolio as well as adjusted its capacity.

“Combined, these measures should improve the financial performance from the start of 2019.

“In addition, the company has launched an extensive cost savings programme.

“As previously communicated, Norwegian’s long-haul operation has been disrupted by challenges with the Rolls-Royce engines on the [Boeing 787] Dreamliners.

“The company has now reached an agreement with Rolls-Royce which will have a positive effect from the first quarter of 2019. The commercial terms of the agreement remain confidential.”

Norwegian added that it had secured financing for all aircraft deliveries for the first half of 2019.

This also includes refinancing of one of the delivered Dreamliners, resulting in a “positive liquidity effect” of 275 million Norwegian krone in December 2018.”

The carrier said: “The process of divesting aircraft continues, and we experience significant interest in our existing fleet as well as future deliveries.

“The company recently signed a letter of intent for the sale of two aircraft with delivery in the first quarter of 2019.

“The discussions about forming a joint venture for aircraft ownership also continues with full force.”

The declaration followed a negative analyst opinion suggesting airline faced a winter cash crunch, which was dismissed as “pure speculation” by Norwegian.