SAS has best margin for years but risks remain

SAS had a good year compared to its troubled past
SAS has had a good year, compared to its troubled recent past. It returned to profit in its full-year results and its operating margin is its best for at least a decade. But there is a dark side to the results, industry analysts at CAPA report.
The airline managed to reverse its longstanding trend of declining unit revenue, thanks to tight capacity management and focus on enhancing product for frequent flyers as much as favourable currency movements.
However, as previously reported, SAS’s unit cost also increased, despite lower fuel prices. Overall, SAS remains less profitable than the airline industry as a whole.
In 2016, SAS plans to expand its long-haul network, but the risks of pushing the throttle on capacity growth in a competitive market are high, especially as forecasting unit revenue is less certain than forecasting unit cost.
To read the full analysis, click here.
CAPA

x

Check Also

SAS, LOT, Heathrow, London, noise, aircraft, descent, MAX, Boeing, Continuous Descent Approaches, list, greenest, quietest

SAS is “quietest and greenest” at Heathrow

The airlines SAS and LOT have been singled out for praise by one of the busiest airports in the world.

Primera Air, airlines, list, low-cost, long-haul, cheapest, Rome2Rio, ranking, cost per kilometre, SAS, Norwegian, Finnair, Virgin, world, Global Flight Pricing

Cheapest airlines in the world listed

Airlines are ranked according to the lowest fares for passengers in terms of cost per kilometre.

SAS, wifi, internet, price, cost, flight, air travel, free, go, premium, business, high-speed, wireless, device, steam

SAS rolls out fast wi-fi on Europe routes

SAS declares the new high-speed connectivity to be the “best product on the market”.

SAS, food, Nordic, new, menu, inflight, SAS Plus, local, seafood

SAS presents new Nordic summer menu

It’s the tiny details that count in New Nordic City, now being served to SAS Plus passengers.

SAS, Heathrow, London,

New routes and extra flights for Sweden

SAS plans increased air traffic from Stockholm Arlanda and Gothenburg for winter 2018-19.

SAS, Oslo, Miami, Copenhagen, winter, 2018, 2019, new routes, flights, Nordic, Scandinavia, Aberdeen, Bergen, Malaga, Tampere, Oulu, USA

SAS to smash winter schedule record

More than 200 routes will be in the schedules this coming winter – including a few new ones.