SAS loss narrows
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Scandinavian Airlines (SAS) improved its financial results for the November-January quarter, but still suffered a loss for the period.
The net loss of SEK112 million (US$17.5m) marked a significant improvement from the SEK588m deficit the airline suffered in the corresponding period last year. It also marked a considerable achievement for SAS’ restructuring programme. The airline’s quarterly revenues fell 18% to SEK7.87 billion, but SAS also managed to reduce its costs, which led to the improved net result.
Despite this, the airline’s president & CEO, Rickard Gustafson said he was not satisfied with the result.
“As expected, this has been a weak quarter in terms of earnings,” said Gustafson. “The first quarter is seasonally the weakest, but this quarter was also marked by overcapacity and lower growth, which put pressure on margins across the entire market.
“Although the result is as expected, it is not satisfactory. The market trend shows quite clearly the importance of continuing at a high tempo with our three strategic priorities: to establish an efficient operating platform, to win the battle for Scandinavia’s frequent travellers and to invest in our future.”
Looking forward, SAS said it still expects to post positive EBIT (earnings before interest and tax) for the full-year. The restructuring programme is expected to cost SAS SEK1.2bn.
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