Profit in airline’s fourth quarter grows to €83.64 million
Cost cuts appear to be working at SAS as it posts a bigger-than-expected adjusted quarterly profit. But, not stopping there, the airline is launching a new round of savings.
Pre-tax profit before extraordinary items in the August-to-October period, the airline’s fiscal fourth quarter, grew to SEK 789 million (€83.64 million). Restructuring costs were higher than expected, at SEK1.1 billion.
SAS said that further long-term cost savings would be launched, in an effort to generate an earnings impact of SEK 2.1 billion by 2017. Its operating profit margin target of 8% will also be reviewed.
“With the uncertainty around what happens in the European industry where low-price firms’ positions are strengthening and new types of contracts and ways to work are emerging, with more outsourcing, we need to take further measures,” Goran Jansson, the carrier’s chief financial officer, told Reuters news agency. About the profit target, he said: “We will get back on where that level should be long-term once we have a clearer picture.”