SAS admits delay in reaching financial targets

Positive earnings despite increased price pressure

SAS has just released its year-end report for November 2012 to October 2013, posting revenues of SEK 42,182 million (€4,716 million) for the full year, a slight decrease on the year before. Traffic was up 3.8%, but passenger revenue adjusted for currency was down 3.4%.

Income before tax totalled SEK 433 million, an improvement on the previous year’s loss of SEK 3,255 million, while net income for the period stood at SEK 179 million.

Rickard Gustafson, SAS president and CEO, said the result was positive “despite intensified competition and weak economic growth in the fourth quarter.”

He added: “The results are evidence that our established strategy has started to improve our competitiveness. We have increased productivity and the unit cost, excluding jet fuel, fell 5.9% during the year. We have made substantial progress in strengthening our financial position and divested assets with a total value of about SEK 2.8 billion during the year.”

But he conceded: “The weaker conditions are expected to continue and, as usual, due to seasonality, the first quarter of 2013/2014 (November-January) will be extremely weak. […] SAS now expects, as an additional consequence of the weaker conditions, that the financial targets expected to be reached in 2014/2015 will not now be reached until 2015/2016.”

Yahoo Finance

[image courtesy SAS]

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