UPDATE 1-Norwegian Air Shuttle says demand still strong

* Posts bigger-than-expected rise in Q3 profit

* Demand so far not hit by global financial turmoil

* Shares rise 5 pct on a nearly flat Oslo Bourse

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OSLO, Oct 23 (Reuters) - Budget airline Norwegian Air Shuttle (NWC.OL) said demand for tickets had not been hit so far by financial turmoil and posted a bigger-than-expected rise in core profit for the third quarter.

But the group said that an uncertain economic outlook could yet hit demand for air travel.

Profit before interest and tax (EBIT) rose to 193 million Norwegian crowns ($27.6 million) in the quarter from 149 million a year ago, above average analysts' forecast of 159 million in a Reuters survey.

"The demand for tickets has so far not been affected by the turmoil in the global financial markets," Norwegian Air Shuttle said in a statement.

"We cannot hide that the macro outlook is uncertain, Chief Executive Bjoern Kjos told a news conference. "This may affect our demand as well, which is something we need to take into consideration, but we have so far not seen this."

Norwegian Air said future demand is dependent on sustained consumer and business confidence in key Scandinavian markets, where it rivals SAS (SAS.ST).

Shares in Norwegian Air rose 5.1 percent to 26.50 crowns by 0714 GMT on a close-to-flat Oslo Bourse .OSEBX, valuing the company at about 855 million Norwegian crowns ($122.4 million).

In 2008, Norwegian has announced more international routes, expanded its operation in Sweden and started up a new base at Rygge airport in Norway.

Kjos also said that the group was comfortable with the financing of 42 planes which have been ordered.

"We do not need to turn around and bring in capital," he said.

The quarterly results were lifted by a one-off gain of 324 million Norwegian crowns on sale of currency contracts in dollars, the group had announced earlier.

Oil prices have dropped during the quarter and Norwegian Air said that with the current prices of jet fuel, the dollar/crown exchange rate and its route portfolio, it expects a unit cost of about 0.54 crowns for the full year 2008, down from 0.55. (Reporting by Aasa Christine Stoltz, Camilla Knudsen: Editing by David Holmes and Hans Peters)