SAS returns to full-year profit
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Scandinavian Airlines (SAS) has returned to the black for its 2012-13 financial year.
The carrier posted a modest net profit of SEK179 million (US$27.3m) for the 12 months to 31 October 2013, following the SEK3.01 billion net loss experienced in the previous financial year.
The result was mainly achieved through cost-cutting, with the airline’s full-year revenue falling 0.6% to SEK42.18bn.
Rickard Gustafson, president & CEO of SAS, said that despite sluggish sales and strong competition, the airline’s “vigorous measures” to reduce costs and sell assets – including subsidiary airline Wideroe – enabled it to offset the operating decline.
“The results are evidence that our established strategy has started to improve our competitiveness,” Gustafson said. “We have increased productivity and the unit cost, excluding jet fuel, fell 5.9% during the year. We have made substantial progress in strengthening our financial position and divested assets with a total value of about SEK2.8bn during the year.”
SAS said it will now continue this strategy in 2014, while at the same time renewing its fleet and launching new routes.
The airline experienced a 3.8% increase in passenger traffic in the 2012-13 financial year, based on a 6% rise in capacity. It will now continue to expand its network, with plans to launch 43 new routes in 2014.
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