Airline remains in profit for third year running
SAS remains in profit for the third year as it posts its latest stats this morning, with an operating profit of SEK 1.951 billion, or just under €200 million.
There are no huge surprises in the annual accounts, with SAS saying that profits are in line with forecasts. The financial year to the end of October 2017 shows a total turnover of almost SEK 42.7 billion, an increase of 8%.
But growth on the top line did not quite hit the bottom line as SAS released a net profit of SEK 1,149 million for the year, against SEK 1,321 the year before.
However, there was a 108% increase in income before tax and non-recurring items, to SEK 1,951 million. But there is no room for pausing to enjoy the success, said Rickard Gustafson, SAS president and CEO.
“We cannot rest on laurels,” he said. “For the coming winter we expect a further increase in market capacity. In addition, we expect that a new air tax will be introduced in Sweden from April 1, 2019.”
Saving to invest
To meet these challenges, SAS will continue its cost-savings, which aim to raise SEK 3 billion by 2020, as well as establish new bases in London and Malaga and continue to capitalise on the 5 million members of the EuroBonus loyalty scheme.
SAS also continues to upgrade its products, with the cabins in its mid-range Airbus A320s and Boeing 737s next to be refurbished. From spring, the airline will be able to offer WiFi on its European flights.