SAS clarifies profit warning regarding Spanair

SAS Group now expects negative results for full year 2011

In a clarification of its previous announcement regarding the bankruptcy of Spanair, in which it maintained a stake of almost 20%, SAS Group now says that the bankruptcy implies that the group’s pre-tax results for 2011 will be negative.
SAS Group said about the third quarter of 2011: “Our assessment made in conjunction with the report for the first quarter of 2011 remains valid, but it should be noted that the conditions for fulfilling this forecast have deteriorated. On condition that nothing unexpected occurs, it is our opinion that there is still the potential for SAS to achieve marginally positive income before tax for full-year 2011. The risk in SAS’s exposure in Spanair has also increased due to the difficult economic situation in Spain.”
SAS says that the write down affects the result before tax for 2011 with SEK 1.7 billion and the SAS Group expects a negative result for the full year 2011. SAS expects however a marginally positive result before non-recurring items for the full year 2011.
[pictured: SAS Boeing 737; courtesy SAS]