• Sweden edition
 
SAS expects profits in 2013 after cost cuts

SAS expects profits in 2013 after cost cuts

Published: 12 Dec 2012 17:18 GMT+01:00
Updated: 12 Dec 2012 17:18 GMT+01:00

Assuming "that no significant unexpected negative events occur in our operating environment and that jet fuel prices remain stable at current levels, the SAS group's assessment is that potential exists" for a pre-tax profit in the coming year, chief executive Rickard Gustafson said in a statement.

He added that the current quarter will be "extremely weak" since it's traditionally a less profitable time of the year for the airline industry.

SAS last month struck deals with all of its unions to cut salaries and pensions and raise working hours in a bid to turn the company's dire financial situation around.

Critics have said the company's demands, dubbed its "final call" savings plan, ran counter to the Scandinavian labour model, which relies heavily on collective bargaining and a close dialogue between unions and employers.

"Our unions have shown that they have shouldered responsibility and delivered under extraordinary circumstances. The new agreements create the necessary conditions for increased flexibility, reduced complexity and lower costs," Gustafson said.

SAS has come under increasing pressure in recent years from low-cost rivals such as Oslo-based Norwegian, Europe's third-largest budget airline.

The group said on Wednesday that its high level of customer service and a global network of destinations would differentiate it from budget rivals.

The company, which had already announced its third quarter results, said it made a pretax loss of 1.25 billion kronor ($189 million) in the truncated financial year ending October.

The group's new fiscal year began in November, meaning that the current three-month period is its first quarter.

AFP/The Local/og

sweden" target="_blank">Follow The Local on Twitter

The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

19:18 December 12, 2012 by Beavis
Sas senior management still have their heads firmly buried in the sand-- they forget the one thing that is causing them to fail- their prices!! It is not reaonable to offer a 2 hour 30 minute flight for 5000kr one way! Bring your prices down to just above (not 10 times) the budget airlines who are flying the same routes.Apsrt from having the oldest , least safe airlines in all of Europe, they need to go back to school on what good customer service is. Unfriendly old hags that frequent the flights as flight attendants need to shape up with their customer service skills or be done away with
10:37 December 13, 2012 by smilingjack
yes. the swedish business model. we are sweden and we will do things the swedish way - regardless.

I think its called cutting your nose off to spite your face. Its an international business world out there and sweden is only a teeny weeny biy of it. time to integrate folks.
13:31 December 13, 2012 by WelshSwede
They have the worst business model in the world, one day the price will be low, the next it will be high, then when you check again its low again. Its cheaper to fly to Bangkok from Stockholm at times than to fly north to Kiruna, its a joke!
Today's headlines
Sweden's highest peak to lose title next year
The view of Kebnekaise's southern peak, soon to be the second highest peak in the country. Photo: Stockholm University

Sweden's highest peak to lose title next year

Mount Kebnekaise's southern peak will no longer be the highest point in Sweden by 2015, researchers predicted on Thursday, adding that the change will spell a major blow for tourism in the region. READ  

Gothenburg preschools end school photography
Moments like these are a thing of the past for Gothenburg preschoolers. Photo: Jonas Ekströmer/TT

Gothenburg preschools end school photography

Preschool managers in Gothenburg have decided to ban class photos at preschools in their municipality, citing the different economical situations of families as one reason for the change. READ  

Presented by Stockholm Business Region
Introducing… Insurance in Stockholm
This is Stockholm. Don’t worry - be happy. File photo: ASIFE/iStockphoto

Introducing… Insurance in Stockholm

Many consider Sweden a pretty safe place to live, but what if an icicle pierces your little toe or a ray of midnight sun sets fire to your kettle? Don’t worry, we’ve got you covered when it comes to sorting out insurance in Sweden. READ  

Brit's life in Sweden becomes BBC radio show
The cast of The Cold Swedish Winter.

Brit's life in Sweden becomes BBC radio show

The Local chats to UK funnyman Danny Robins about his new radio show The Cold Swedish Winter, which is making waves on BBC radio. He talks elk, moose, and what it means to be a Swedophile. READ  

Allergic Swedes demand separate metro carriages
Peanut photo Shutterstock

Allergic Swedes demand separate metro carriages

A Swedish allergies association has asked Stockholm public transport officials to set aside certain carriages on the metro for those with allergies - banning nuts, animals, and strong fragrances in transit. READ  

Most Swiss want Sweden to be next door
Flag photo: Shutterstock

Most Swiss want Sweden to be next door

Who said there were hard feelings between the oft-confused Swiss and Swedes? A new survey shows that Swiss people would rather have the land of Abba as their neighbour over anyone else in the EU. READ  

What's On in Sweden
Photo: TT

What's On in Sweden

Plenty of events around Sweden to get your teeth into this weekend, with Sunday capped off with a free visual-music concert in central Stockholm. READ  

Elections 2014
Red-greens stay way ahead of Alliance in polls
The Allliance party leaders. Photo: Mats Andersson/TT

Red-greens stay way ahead of Alliance in polls

While the gap between the red-greens and the Alliance is decreasing, the opposition is still far ahead, scoring 48.8 percent of support in a fresh poll. The Alliance came in at 37.7 percent. READ  

Malmö end 14-year Champions League wait
Striker Magnus Eriksson sprints onto the pitch at the end of Malmö's 3-0 win over Salzburg in a Champions League qualifier. Photo: Björn Lindgren/TT

Malmö end 14-year Champions League wait

Malmö overpowered Salzburg on Wednesday night to become the first Swedish team to reach the Champions League since 2000. READ  

Swedish royals boycott Chuck Berry's ceremony
Queen Silvia. Photo: Henrik Montgomery/TT

Swedish royals boycott Chuck Berry's ceremony

Members of Sweden's royal family have revealed that they boycotted the Polar Music Prize ceremony on Tuesday, due to Chuck Berry's past conviction for human trafficking. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
People-watching August 27
Gallery
Top ten false friends in Swedish
National
Roma advocate scoops Wallenberg prize
Society
Meet the man who made a Swedish store recall its high heels for kids
Business & Money
'How I came to run my own business in Sweden'
Blog updates

25 August

Hit och dit, här och där (The Swedish Teacher) »

" Hej igen! A common challenge for Swedish language students are the location adverbs hit/här, dit/där, hem/hemma etc. Some of the location adverbs come in two versions. We should use one type of location adverb when we use a verb describes where we are, and we should use the other type of location adverb when we the verb..." READ »

 

25 August

The Dollar Store (Blogweiser) »

"A dollar store in Sweden. Blog post: http://t.co/tNuuvcP1q0 #USD #greenbacks #sweden #sverige pic.twitter.com/RHFAYf7U1k — Joel Sherwood (@joeldsherwood) August 23, 2014 There’s a chain here in Sweden called The DollarStore. This name always stood out to me in a country where they don’t use dollars. I went there for the first time this weekend. They actually accepted greenbacks..." READ »

 
 
 
Politics
Expert explains why Sweden's election oozes uncertainty
National
City plays Schindler's List theme at Nazi rally
Society
For Stockholm Fashion Week, here's the A-Z of Swedish fashion
National
'Amnesiac' man avoids deportation for ten years
Gallery
Princess Estelle through the years
Business & Money
Swedish city all set for six-hour workday trial
Business & Money
Five golden rules for the Swedish job hunt
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Gallery
People-watching August 22-24
National
Armed royal guards caught (very) drunk on the job
National
Sweden orders textbook on Roma discrimination
Gallery
Violent anti-Nazi demonstrations in Malmö
Society
A closer look at Sweden's five official minority languages
Gallery
See the destruction from the southern Sweden floods
Politics
'Sweden Democrats hold the key to elections'
Society
Swedes celebrate first day of smelly fish season
Politics
Sweden elections: How do they work?
Finest.se
Gallery
People-watching August 20th
Society
Did you know the Bronx in NYC was named after a Swede?
Sponsored Article
Find out what gives this Swedish school executive appeal
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

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 Denmark

More news from Denmark at thelocal.dk

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

702
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:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se