• Sweden's news in English

SAS losses widen in 2010

AFP/The Local · 31 Mar 2010, 07:46

Published: 31 Mar 2010 07:46 GMT+02:00

Facebook Twitter Google+ reddit

In the first two months of 2010, SAS's net loss before taxes widened to 960 million kronor ($135.2 million), compared to 420 million a year ealier, the company said in a preview of results to be published next month.

Sales meanwhile plunged 16 percent to $5.89 billion, dragged down by a drop in passenger numbers.

"The pressure on passenger yield continued to be significant and the yield for Scandinavian airlines (adjusted for currency effects) decreased by 12.2 percent compared to the same period in 2009," the company said.

According to analysts surveyed by Dow Jones Newswires, those results are near expectations.

Shares in SAS were up 0.71 percent to 2.84 kronor at 4:00 pm on Tuesday on a flat Stockholm Stock Exchange.

SAS announced a new 5.0 billion kronor ($688 million) rights issue in February to help it through its financial difficulties.

The terms of the issue will be made public on April 6.

SAS had already issued new rights worth 6.0 billion kronor in the first half of 2009.

The company is set to publish its complete earnings for the first quarter of 2010 on April 22nd.

It said it expects to post a loss of 1.0 billion kronor, in line with a cost reduction plan, which aims to save 7.8 billion kronor by slashing 4,600 jobs, 3,100 of which have already been cut, the company said Tuesday.

Story continues below…

SAS, in which Norway, Denmark and Sweden together hold half the stock, has

been hit by the rise of low-cost airline Norwegian and the plunge in passenger

traffic numbers as a result of the global economic crisis.

AFP/The Local (news@thelocal.se)

Facebook Twitter Google+ reddit

Your comments about this article

09:29 March 31, 2010 by Twiceshy
When you're offering a semi-low cost service for a high price, don't expect people to book flights with you unless they really have to...
13:23 March 31, 2010 by glamelixir
as a frequent flyer, I totally agree with you twiceshy.
17:17 March 31, 2010 by Mib
It's not rocket science. Reduce prices for economy. Add a sensible premium for Economy Plus. Remember, you're competing against Ryanair and Norwegian.se, not just BA.

The savings that are made by reducing the so called free food/drink has probably been outweighed by the loss in revenue. Give customers the choice to have cold food/drinks when they book ie. for an extra 60kr, you can have a sandwich and a coffee. I think quite a few people would pay for the extra at the time of booking, especially if they're business customers.
23:56 March 31, 2010 by loddfafnir
I fly a lot in my work - but only ever sit in economy. So I have the chance to compare different airlines with some objectivity.

In my experience, SAS ...

1) cost much more than other airlines

2) charge for food and drink on flights less than 2 hours (all others except the "cheapies" do not)

3) depart/arrive late 8 out of 10 times (isn't Ryanair the best for being on time?)

4) have "technical diffulties" 2 out of 10 times (where are the maintenace costs going?)

5) land at gates at the extreme end of the airport in foreign cities (a rumour is that this is a cost-saving exercise, but I can say it is darn annoying and often risks missing flight connections)

On the plus side, they do, however, tend to have flight times into the major cities which match business travel. Which is really the only reason I choose SAS these days despite being a Frequent Flyer with them. I guess if they go bust, so do my points.

But they certainly do not appeal to the "normal traveller" wanting to have a stress-free (and cheap) holiday. Surely this should be their target market?
Today's headlines
This is the new top boss of Swedish Ericsson
Börje Ekholm. Photo: Magnus Hjalmarson Neideman/SvD/TT

Telecoms giant Ericsson has appointed a new CEO after a turbulent year for the company.

These are Sweden's best universities: ranking
A new university ranking has been released. Photo: Cecilia Larsson Lantz/Imagebank.sweden.se

At least according to this global ranking, which picks 12 Swedish universities among the top-1000.

Swedish pharmacies restrict paracetamol sales for teens
The move is intended to cut paracetamol overdoses. Photo: Nora Lorek/TT

Sweden's pharmacies are banning teens under 18 from buying more than one pack of pills at a time.

The Local List
12 Swedish words with just awesome literal translations
A filthy-minded lobster, i.e. a snuskhummer. Photo: Gorm Kallestad/NTB scanpix/TT

One of our favourite things about the Swedish language is its wonderful compound words, which range from being utterly bizarre to making perfect sense.

Rwandan genocide suspect held in Sweden
A memorial centre in Kigali, Rwanda. Photo: Ben Curtis/AP

A man has been arrested in Sweden suspected of involvement in the 1994 Rwandan genocide which claimed 800,000 lives.

Sweden can extend border controls, EU says
A police officer carrying out a check at Sweden's border with Denmark. Photo: Emil Langvad/TT

EU countries including Sweden should be granted permission to extend temporary border controls by a period of a further three months, the European Commission has decided.

Nobel Prizes
'I'd say he's arrogant but I'd be lying': Swedes on Bob Dylan
Bob Dylan performing in France. Photo: David Vincent/AP

Almost two weeks have passed since Bob Dylan was awarded the Nobel Prize in Literature and he has yet to acknowledge the win. The Local asked Swedes what they think of the singer's silence.

Sweden cuts 2016 refugee forecast by thousands
A Swedish migration authority office in Stockholm. Photo: Maja Suslin/TT

The country has also slashed its prediction for 2017.

Swedish researchers plan new trucks for women drivers
File photo of trucks in Sweden. Photo: Thomas Johansson/TT

Could vehicles adapted for women attract more female truckers to the profession?

These stats show Swedish driving isn't so gender equal
File photo of a Swedish woman driving a car. Photo: Pontus Lundahl/TT

A new survey shows that few Swedish women get behind the wheel when driving with their male partner.

Sponsored Article
Last chance to vote absentee in the US elections
Property of the week: Kungsholmen, Stockholm
Sponsored Article
This is Malmö: Football capital of Sweden
The Local Voices
'I simply don’t believe in nationality'
Why we're convinced Game of Thrones is based on Sweden
Blog updates

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »


8 July

Editor’s blog, July 8th (The Local Sweden) »

"Hej readers, It has, as always, been a bizarre, serious and hilarious week in Sweden. You…" READ »

Sponsored Article
Where is the Swedish music industry heading?
People-watching: October 21st-23rd
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Fury at plans that 'threaten the IB's survival' in Sweden
Analysis & Opinion
Are we just going to let half the country die?
Angry elk chases Swede up a lamp post
Sponsored Article
Stockholm: creating solutions to global challenges
The Local Voices
'Alienation in Sweden feels better: I find myself a stranger among scores of aliens'
Sponsored Article
Swedish for programmers: 'It changed my life'
People-watching: October 20th
The Local Voices
A layover at Qatar airport brought this Swedish-Kenyan couple together - now they're heading for marriage
Sponsored Article
Top 7 tips to help you learn Swedish
Swede punches clown that scared his grandmother
Sponsored Article
‘Extremism can't be defeated on the battlefield alone’
Fans throw flares and enter pitch in Swedish football riot
Could Swedish blood test solve 'Making a Murderer'?
Sponsored Article
Stockholm: creating solutions to global challenges
Property of the week: Linnéstaden, Gothenburg
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Swedish school to build gender neutral changing room
Sponsored Article
Where is the Swedish music industry heading?
People-watching: October 14th-16th
Sponsored Article
One expat's strategy for making friends in Stockholm
Man in Sweden assaulted by clowns with broken bottle
Sponsored Article
Nordic fashion in focus at Stockholm University
Nobel Prize 2016: Literature
Watch the man who discovered Bob Dylan react to his Nobel Prize win
Record numbers emigrating from Sweden
People-watching: October 12th
The Local Voices
'Swedish startups should embrace newcomers' talents - there's nothing to fear'
How far right are the Sweden Democrats?
Property of the week: Triangeln, Malmö
Sweden unveils Europe's first elk hut
People-watching: October 7th-9th
The Local Voices
Syria's White Helmets: The Nobel Peace Prize would have meant a lot, but pulling a child from rubble is the greatest reward
jobs available