SAS posts lower loss, continues restructuring

Quarterly pre-tax loss was SEK 836 million (€91 million)
SAS will continue its cost-cutting program and is determined to reach a core profit for its current fiscal year. This was the message as the airline posted a smaller first-quarter loss than the same period the previous year.
The pre-tax loss for the November-to-January period was SEK 836 million (€91 million).
SAS said late in 2014 that it would launch additional long-term restructuring due to the tough market environment, designed to improve earnings by SEK 2.1 billion by 2017. Goran Jansson, the company’s chief financial officer, said that this year costs would be cut by SEK 1.3 billion.
“We have a need to continue reducing our costs and that is something we are working really hard on,” he told the news agency Reuters, adding that savings would mainly be in logistics, staff and real estate.
Total traffic at SAS fell 1.8% in February, while yield was down 0.4%.
[photo courtesy SAS]