SAS profits still on taxiway / News / The Foreigner

SAS profits still on taxiway. Scandinavian Airlines continues its struggle to get profits off the ground, latest company figures show. The SAS group reported a loss of SEK 800 million (some USD 124.9 million) in an interim report presented today.  Net income for the period was a SEK 630 million (about USD 98.36 million) loss. The loss was expected. "SAS is continuing to deliver, step by step, in accordance with the restructuring plan that was presented in November of last year,” President and CEO Rickard Gustafson said in a statement.

sasprofits, sas, scandinavianairlinesreport



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SAS profits still on taxiway

Published on Sunday, 10th March, 2013 at 08:31 under the news category, by Asgeir Ueland.

Scandinavian Airlines continues its struggle to get profits off the ground, latest company figures show.

SAS Airbus A340-300
SAS Airbus A340-300
Photo: SAS


The SAS group reported a loss of SEK 800 million (some USD 124.9 million) in an interim report presented today.  Net income for the period was a SEK 630 million (about USD 98.36 million) loss. The loss was expected.

"SAS is continuing to deliver, step by step, in accordance with the restructuring plan that was presented in November of last year,” President and CEO Rickard Gustafson said in a statement.

“Behind this progress lies one of the most extensive restructuring plans in the Scandinavian business sector - under an agreement with our employees,” he added.

The company’s earnings before interest and taxes (EBIT) margin stood at minus 6.1 per cent, with a target set at 8 percent.  

According to Mr Gustafson, however, the carrier is targeting an EBIT margin of 3 percent, and a positive EBT in the full year of 2012-2013.

He attributed part of the optimistic forecast to “the responsible actions taken by our employees and trade union representatives, which enabled us to enter into new and market-based agreements, were a crucial step toward making SAS profitable.”

A replacement of the current pension terms will reduce the current pension obligations by about SEK 19 billion, down nearly 60%, said Mr Gustafson.

“SAS expects to reduce its outstanding pension obligations by about SEK 19 billion (roughly USD 2.96 billion, which substantially reduces its financial risk,” he stated.

On top of that the company has signed a letter of intent with Swissport to outsource its ground handling company.

SAS saw an increase in the number of passengers in the last quarter of 0.2 per cent compared to the same quarter last year – gaining in the European and intercontinental markets – but sustained a loss in domestic passenger numbers.

Whilst the airline has already announced launch of 45 new routes for this year, low-price competitor Norwegian is due to start its intercontinental flights to the United States and the Far-East in 2013. 

In his closing comment on the results, Rickard Gustafson remarked, “At the same time, we must confirm that SAS reported a loss for the quarter, and although seasonal effects are amplified by the new fiscal year, we are far from satisfied.”



Published on Sunday, 10th March, 2013 at 08:31 under the news category, by Asgeir Ueland.

This post has the following tags: sasprofits, sas, scandinavianairlinesreport.





  
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