• Sweden edition

SAS posts new loss after 'horrifying' year

Published: 28 Apr 2009 16:33 GMT+02:00
Updated: 28 Apr 2009 16:33 GMT+02:00

Scandinavian Airlines (SAS) saw its troubles deepen on Wednesday as it reported a loss for the sixth quarter in succession.

The company, which had described 2008 as a "horrifying" year after experiencing technical problems with its fleet and a deadly crash in Madrid, predicted a difficult 2009 as passenger numbers dwindle amid the global economic crisis.

The airline posted a full-year loss in 2008.

But in the January-March period this year, Scandinavian Airlines System, majority owned by the Danish, Norwegian and Swedish states, reduced its net loss to 748 million kronor ($91 million).

In the same period a year earlier, it registered a loss of 1.16 billion.

SAS' operating loss widened, however, from 513 million a year ago to 747 million.

The company's share price was down by 5.75 percent at 3.44 kronor in mid-afternoon trading on the Stockholm exchange, as the overall market was down by 4.75 percent.

The carrier completed a six-billion-kronor share issue in April.

"The entire aviation industry, which is one of the global industries that is most sensitive to economic fluctuations, is experiencing major problems, one of the consequences of which has been extensive losses," SAS chief

executive Mats Jansson said in a statement.

In a bid to reduce its costs, SAS, which is divided into three national entities (SAS Denmark, SAS Norway and SAS Sweden), has been focusing on its Nordic operations.

In January, it sold its subsidiary Spanair to a consortium of Spanish investors for the symbolic sum of one euro.

Under its restructuring plan, dubbed "Core SAS," the company has announced 3,000 job cuts and reduced its workforce by another 5,600 when airBaltic and Spanair were sold.

The restructuring plan unveiled in February is aimed at saving 4 billion kronor by 2011.

Since the start of the crisis last year, the airline has cancelled almost 40 percent of its routes.

In the first quarter, it had 5.7 million passengers, compared to 6.8 million a year earlier.

Established in 1946, SAS has a 40 percent share of the northern European civil aviation market.

The company has regularly been the target of takeover rumours, with Germany's leading airline Lufthansa long mentioned as a possible rescuer.

AFP/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

04:08 April 29, 2009 by Random Guy
SAS needs to learn how to take care of those who fly.

1. Their points system just stinks. Why why why fly when point go BY BY fast!

2. On top of that, now on low fares, you get LESS points again.

Just sell out to someone who know how to take care of those who fly!
Today's headlines

Sweden wants cruise missiles 'for defence'

The Swedish government has announced plans to beef up its defence forces by fitting its fleet of Gripen fighter jets with long-range cruise missiles. READ () »

Elections 2014
Most Swedes lack info ahead of EU vote
The Green Party is one of only two parties devoting their websites to the EU elections. Here campaign manager Emma Rung presents the party's posters. Photo: Leif R Jansson/TT

Most Swedes lack info ahead of EU vote

The majority of Swedes feel the country's political parties are not doing enough to inform them about the upcoming European Parliament elections. Only two of the eight parties have dedicated their homepages to the May 25th polls. READ () »

Fatal Norrköping Brawl
Local church tried to stop Norrköping murders
Swedish police on the scene following Monday's fatal brawl. File: TT

Local church tried to stop Norrköping murders

The Syrian-Orthodox Church in Ektorp had tried to quell tensions between two rival families just hours before bad blood spilled into a massive brawl and two brothers lost their lives. READ () »

JobTalk Sweden
'Foreigners don't need to show banks Swedish ID'
The bridge that connects Sweden to the European continent. File: L.E. Daniel Larsson/Flickr

'Foreigners don't need to show banks Swedish ID'

The Swedish agency that helps Europeans fight impediments to the EU principle of free movement has revealed an increase in complaints, including one from a foreign citizen unable to open a bank account in Sweden. READ () »

Eurovision 2014
Pig heart shatters in Sweden's Eurovision clip
Sanna Nielsen in the new clip. Photo: YouTube (screenshot)

Pig heart shatters in Sweden's Eurovision clip

Sweden's Eurovision hopeful Sanna Nielsen released the official video for the song Undo on Wednesday, a clip featuring leather, slow motion destruction, and a frozen pig's heart and some violence. READ () »

Software robot pinches Swedish flats in seconds
Swedish apartments. File: The Local

Software robot pinches Swedish flats in seconds

A Swedish landlord suspects that a property fixer has set up a software robot to sign up for new flats on the market within seconds, and is charging house hunters to use the service. READ () »

Swedish zoo fire 'kills only the spiders'
Photo: Johan Nilsson/TT

Swedish zoo fire 'kills only the spiders'

Twenty-five fire fighters were on hand on Wednesday night when a fire broke out in a southern Sweden animal park. The vast majority of the animals were unharmed, but the cluster of spiders wasn't so lucky. READ () »

Sweden Investor group posts sharp profit drop
File photo: Simon Cunningham/Flickr

Sweden Investor group posts sharp profit drop

Swedish investment giant Investor on Wednesday said its first-quarter profits slumped by a quarter, underlining Sweden's vulnerability to international instability. READ () »

Florida 'mystery knight' dies in Sweden
Michael Boatwright (R) and Medieval knight re-enactors.

Florida 'mystery knight' dies in Sweden

The "motel mystery" American who baffled US authorities by only speaking Swedish when he woke up from a coma last year has passed away, Swedish media reported on Wednesday. READ () »

Swedes open coffin of 850-year-old king
Photo: Bertil Ericson/TT

Swedes open coffin of 850-year-old king

UPDATED: Scientists pried open the 850-year-old casket of King Erik the Holy on Wednesday, hoping to find out more about the king, his crown, and his eating habits. READ () »

People-watching April 23
Inside the 850-year-old king's coffin
Sponsored: South-eastern Sweden offers Öland beaches and more
Swedish underwear shop puts staff in front of the camera
IN PICTURES: The Local's Property of the Week - Täby
Sponsored: India+Sweden Week - India Unlimited
Sponsored: India+Sweden Week - A film, food, and finance feast
University applications rocket to record high
People-watching April 18-20
Kids in Victorian garb mark Swedish Easter
Swedish MP ordered chemtrail probe
Swedish supermarket Ica pulls contested Easter commercial off air
Swedish royals set baptism date for princess
People-watching April 16
Who's the prime minister's heir?
Alfie Atkins
Are children's books the key to families integrating in Sweden?
'Sweden Dem protests cater to party's martyr image'
'Swedish research grants were fantastic, but now it's like Australia'
Only in Sweden: The ten problems you'd never encounter elsewhere
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
Video: Oliver Gee finds out how to embrace The Swedish Hug
Abba duo hints at reunion
Flash mobs hug it out across Sweden
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit: