SAS profits fall back

Scandinavian airline SAS has reported profits of 536 million kronor in the third quarter, down from 851 million in the same period last year, despite a record number of passengers.

Turnover at the company increased to 16.8 billion kronor from 16.3 billion kronor.

“Unfortunately, the year has been characterized by several negative events that have affected our customers and employees, as well as having a negative impact on earnings. However, I am convinced that we will be stronger for this experience,” wrote CEO Mats Jansson in the report.

The airline said it expected the number of passengers to increase on most markets in 2007.

The final quarter of 2007 will be negatively affected by costs associated with taking the company’s accident-hit Dash Q400 fleet out of service. This is expected to cost the company between 400 million and 500 million kronor, including loss of income and fixed costs.

“We are now working intensively to deploy replacement capacity in various forms. We expect to be able to commence implementation of a long-term solution during the second half of 2008,” said Jansson.


SAS announces reduced loss and pins hopes on summer flights

Scandinavian airline SAS narrowed its losses in the second quarter, the company said Thursday, as it set its hopes on an easing of coronavirus restrictions this summer.

SAS announces reduced loss and pins hopes on summer flights
A SAS aircraft taking off in Paris. Photo: Charles Platiau/Reuters/Ritzau Scanpix

The earnings report came a day after the governments of Sweden and Denmark announced another round of aid to the ailing carrier.

From February to April, SAS booked a net loss of 2.43 billion Swedish kronor ($292 million, 240 million euros) — 30 percent smaller than in the second quarter last year.

The company also reported an improved operating profit “for the first time since the pandemic’s outbreak, both year-on-year and compared with the previous quarter,” pointing to its cost cutting efforts.

However, the number of passengers in the period declined by 140,000 compared to the first quarter, to 857,000.

This caused revenue to fall to 1.93 billion kronor, a 15 percent drop from the preceding quarter and 63 percent from a year earlier.

“The increase in vaccination rates provides some hope for the relaxation of restrictions, and an increase in demand ahead of the important summer season,” chief executive Karl Sandlund said in a statement.

However, the CEO also noted that “many customers are now increasingly choosing to book their tickets much closer to their travel dates, which makes it difficult to predict demand during the summer.”

SAS also said it expected claims from passengers of up to 150 million kronor after a European court ruled in March that customers should be compensated over disruptions due to a pilots’ strike in 2019.

After cutting 5,000 jobs last year — representing 40 percent of its workforce — SAS announced Wednesday an additional credit line of three billion kronor from the Danish and Swedish governments, its main shareholders, to get through the crisis.

The airline received a similar loan and a capital increase last year.

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