Category Archives: SAS Group

SAS announces further details of the SAS FORWARD Plan including a financial outlook

SAS has provided further details SAS FORWARD Plan:

SAS AB (Scandinavian Airlines) has announced further details on its SAS FORWARD plan, including a financial outlook for the present fiscal year as well as a mid- to long-term financial outlook. The SAS FORWARD plan consists of two primary parts: a new business plan and a restructuring plan. The new business plan includes leveraging the SAS brand, achieving unit cost competitiveness, rightsizing the fleet, and building a sustainable future. Through the restructuring plan, SAS aims to reach agreements with key stakeholders, restructure the Company’s aircraft and non-aircraft debt obligations, reconfigure its aircraft fleet, and convert SEK 20 billion of debt, hybrid securities, and certain other claims into equity. Those debt-to-equity conversions, together with an expected capital raise of at least SEK 9.5 billion of new equity, will likely result in a dilution to existing SAS shareholders substantially greater than 95 percent. Assuming successful completion of the restructuring plan, SAS expects to attain a strong financial position and targets to be near net debt-free at the end of fiscal year 2026. SAS is dedicated to continue connecting Scandinavia to the world and the world to Scandinavia, by offering our customers attractive travel options and services.

This announcement is part of the Company’s chapter 11 process in the U.S., where SAS agreed to share certain financial and operational information with key creditors and prospective capital providers, subject to non-disclosure agreements that obligate SAS to announce such information by way of a press release. To fulfill those disclosure obligations, SAS hereby announces further details on the SAS FORWARD plan, comments on market demand and the competitive landscape, and provides a financial outlook for the present fiscal year as well as a mid- to long-term financial outlook.

Demand Recovery and Competitive Landscape

The Covid-19 pandemic outbreak has been the most challenging in the history of the aviation industry. Demand for air travel declined sharply, and the recovery since the outbreak of the pandemic has been slower than expected. Additionally, the recovery has been adversely affected by Russia’s invasion of Ukraine in February 2022 and its consequences.

SAS’ air travel demand, in terms of passenger numbers, is currently expected to recover to around 90 percent of pre-Covid levels by the end of the first half of fiscal year 2023.

SAS expects that short-haul leisure air travel demand will return to pre-Covid levels in fiscal year 2024, whereas short-haul business air travel demand is expected to flatten out at around 80 percent of pre- Covid levels. Similarly, demand for longer-haul leisure air travel is expected to rebound more rapidly than long-haul business air travel. 

The Scandinavian air travel market can be divided into three customer segments: 1) customers who focus primarily on the price of the offering, 2) customers who want a high-quality offering but who are price sensitive, and 3) customers who ascribe high value to the quality of the offering. From this perspective, SAS has historically operated primarily in the third segment (“premium segment”). In recent years, the premium segment’s share of the total market has declined, and SAS expects this trend to continue in the coming years. Conversely, the other two lower-cost segments have seen a more positive development, driven by an expansion of several low-cost carriers into Scandinavian bases. This development began prior to the Covid-19 pandemic and is expected to continue. This means that the competition in the Scandinavian market has increased, and SAS needs to reduce its cost per available seat kilometers (“CASK”), adjusted for fuel price changes, to remain competitive. 

SAS FORWARD: Key Elements

In February 2022, SAS announced its comprehensive business transformation plan SAS FORWARD aimed at transforming its business, including its network, fleet, labor agreements, and other cost structures. The plan consists of two primary parts: A new business plan and a restructuring plan. 

New Business Plan

The new business plan includes:

  • reduced annual costs by SEK 7.5 billion – see “Annual Cost Reductions of SEK 7.5 billion” below;
  • redesigned fleet, network, and product offerings – SAS is adopting new network principles and adjusting its fleet and product offerings to position SAS for the future and to enhance the customer experience. SAS will redesign its short-haul network and fleet to drive significant benefits while maintaining the premium brand in this network, allowing the Company to compete with low-cost carriers. The short-haul route mix will be adapted towards the relatively increased leisure travel demand. For example SAS will increase its focus on southern European sun destinations. Joint venture solutions will be explored to enhance long-haul and connecting business travel in order to increase customer choices;
  • digital transformation – SAS will undergo a major digital transformation, delivering substantial improvement in customers’ experiences and delivering financial benefits both on the cost side but also in the form of ancillary revenues such as new in-flight services;
  • positioning SAS as the leader in sustainable aviation – SAS will invest in modern fuel-efficient aircraft, sustainable aviation fuels, emerging technologies, and sustainable products and services with incentivized customer behavior change;
  • operating platform acceleration – SAS will improve flexibility and efficiency, and facilitate adapting to changed market demand and competition; and
  • strengthen SAS’ balance sheet by deleveraging and raising new capital – see “Restructuring Plan” below. 

Annual Cost Reductions by SEK 7.5 billion

A key challenge to SAS’ competitiveness is its cost structure, with SAS’ CASK excluding fuel costs (“ex-fuel CASK”) being significantly higher than those of typical low-cost carriers. In order to address this and achieve an ex-fuel CASK that is competitive in relation to both low-cost carriers and other full-service carriers, SAS needs to pursue significant reductions in annual costs. SAS FORWARD builds on the cost reduction plan presented in 2020, which targeted annual cost reductions of SEK 4 billion, of which approximately SEK 2.0 billion had been achieved prior to commencement of this latest SAS FORWARD restructuring effort.

SAS FORWARD expands on the 2020 plan to include another SEK 3.5 billion, to a total of SEK 7.5 billion in cost savings between fiscal years 2019 and 2026, as compared to the annual cost base for fiscal year 2019. Once the new business plan is implemented and the cost reductions are achieved, SAS believes that it will be financially and operationally well-positioned to compete with both other full-service carriers as well as with low-cost carriers.

The cost reductions (expressed as savings in cash amounts) are split into five main categories: 

  • Operational model and planning – include expected cost reductions of approximately SEK 2.3 billion. A new operational model with several production platforms intends to improve flexibility and efficiency, whereas planning aims at improving SAS’ execution performance and resource utilization by improving quality in SAS’ planning process. 
  • Fleet and maintenance – include expected cost reductions of at least SEK 1.35 billion. Fleet improvements will be achieved by phasing out older, larger and less fuel-efficient aircraft, by replacing widebodies with narrowbodies on some long-haul routes, and by focusing on only three types of aircraft to simplify operations. Contract improvements and concentration of maintenance aim to reduce maintenance costs. Cost reductions of at least SEK 850 million to 1.0 billion are expected to be achieved in reduced aircraft lease and capital costs, with a further SEK 0.5 billion savings to be achieved in maintenance operations.
  • Airport services – include expected cost reductions of approximately SEK 1.2 billion. Cost reductions driven by increased productivity through improvements in scheduling flexibility, service level agreement adjustments, a new planning system, union negotiations, and digitalization of customer touchpoints. In addition, decreasing spend on charges and supplier contracts, coupled with review of other internal processes, aim to further reduce airport costs.
  • Administration, finance, IT and distribution costs – include expected cost reductions of approximately SEK 1.7 billion. These costs will be lowered through a combination of changed practices and new technologies. Furthermore, the conversion of debt into equity will eliminate significant annual interest expense. 
  • Commercial and other costs – include expected cost reductions of approximately SEK 0.9 billion. On the commercial side, costs related to external suppliers, lounges, and onboard services will be targeted, and the overall efficiency in these areas will be improved. Various facilities currently in use reflect pre-Covid needs and will be renegotiated and/or abandoned.

If the effects of the SAS FORWARD cost savings (intended to be achieved by fiscal year 2026) would have been fully implemented in fiscal year 2019, the ex-fuel CASK for the aircraft family A320 (excluding the long range types), which currently constitutes approximately 72 percent of SAS’ fleet (excluding wet leased aircraft), would have been around 30 percent lower than the actual outcome for fiscal year 2019.

The Restructuring Plan

The restructuring component of the SAS FORWARD plan encompasses raising at least SEK 9.5 billion in new equity capital as well as reducing or converting SEK 20 billion of debt into common equity (of which a majority is on-balance sheet debt), including state hybrid notes, commercial hybrid notes, Swiss bonds, term loans from states, aircraft lease and debt obligations, maintenance contract obligations, and other executory contract obligations. 

The contemplated debt restructuring and new equity capital raise are likely to be significantly dilutive events. For example, in previous airline chapter 11 restructurings, the resulting shareholder dilution has often times exceeded 95 percent and in individual cases left shareholders with very little or no recovery. Given the substantial debt-to-equity conversions anticipated combined with the need for substantial new equity capital, the Company currently expects that the recovery, if any, to unsecured creditors (including holders of commercial hybrid notes and Swiss bonds) will result in significant impairment, and that the resulting dilution to shareholders will likely be substantially greater than 95 percent. These illustrative recoveries are subject to material uncertainties, factors and assumptions affecting the final outcomes for the Company’s voluntary restructuring – including the enterprise value of the Company in connection with emergence from the chapter 11 proceeding and the outcomes of negotiations with third parties – and actual recoveries could differ materially from the information above.

The Company intends to conduct a competitive capital raising process to secure the best available terms and conditions for new equity capital in the first half of 2023. SAS targets to complete its court-supervised process in the U.S. within 12 months from the commencement of the chapter 11 process in July 2022.

Financial Outlook

SAS expects that revenues will reach approximately SEK 32 billion in fiscal year 2022 and approximately SEK 40 billion in fiscal year 2023 and return to pre-Covid levels in fiscal year 2025. In fiscal year 2026, revenue is expected to reach approximately SEK 49 billion.

Furthermore, SAS expects to reach an adjusted EBT[1] of approximately SEK 8 billion loss in fiscal year 2022 and approximately SEK 4-5 billion loss in fiscal year 2023. The Company expects to reach positive EBT in fiscal year 2024, increasing to approximately SEK 3-4 billion in fiscal year 2026, corresponding to an EBT margin of approximately 6-8 percent, when the SAS FORWARD plan is expected to have been fully implemented. 

Net debt is expected to amount to approximately SEK 36 billion by fiscal year end 2022. During fiscal year 2023, debt or debt-like items of SEK 20 billion are expected to be converted or reduced through the chapter 11 process. Assuming successful completion of the SAS FORWARD plan, SAS expects to attain a strong financial position and targets to be near net debt-free by fiscal year end 2026.

SAS also expects to achieve a liquidity level[2] exceeding 15 percent by the end of fiscal year 2023, increasing to 25-30 percent by the end of fiscal year 2025 and beyond.

SAS will release its year-end report for fiscal year 2022 (November 2021-October 2022) on November 30, 2022, in accordance with its financial calendar.

The financial information set forth above is not a guarantee of future performance. Even though the financial information reflects SAS’ current beliefs and expectations, it is subject to material uncertainties and factors, e.g., fuel prices, foreign exchange rates, inflation, demand recovery, supply chain instability, that could cause actual results to differ materially from the financial information above. The financial information is premised upon a successful progression and execution of the SAS FORWARD plan, and a demand recovery in line with expectations as described above. Furthermore, the financial information is based on the following foreign exchange assumptions: an exchange rate of 10.67 SEK/USD through the end of fiscal year 2023, 9.20 SEK/USD for fiscal year 2024, and 8.75 SEK/USD for fiscal year 2025 and beyond; and, the following fuel price assumption: 1,140 USD/MT (metric tons) gradually reducing till the end of fiscal year 2025 in which it is assumed to remain constant at 676 USD/MT for fiscal year 2026 and beyond. All numbers are presented on a consolidated basis for the SAS group.

SAS Group issues its Annual Report 2016/2017 including its fleet plans

Scandinavian Airlines-SAS (Ireland) Airbus A320-251N WL EI-SIA (msn 7897) LHR (SPA). Image: 940744.

SAS Group has issued its annual report:

Aircraft Fleet:

SAS has simplified its aircraft fleet considerably over the last few years; today, it has three aircraft types under SAS’s own traffic license. The aircraft fleet consists of Boeing 737 NGs, the Airbus A320 family and Airbus A330/A340s. In addition, SAS wet-leases 33 aircraft through strategic business partners.

As of October 31, 2017, SAS had aircraft orders for 18 Airbus A320neos and eight Airbus A350-900s for delivery up through 2021.

Of the remaining aircraft order for 18 Airbus A320neos, SAS has financed eight aircraft through sale and leaseback. In addition, SAS has begun financing the remaining ten Airbus A320neos and the eight Airbus A350s.

In January 2017, SAS decided to establish a new air operator certificate (AOC) in Ireland (see photo above). SAS also decided to establish bases in London and Malaga, where a total of nine Airbus A320neos are planned for deployment. The first AOC was granted in December 2017, and the first flight took place that same month from the base in London. The first flight from the base in Malaga is planned for the summer of 2018.

Read the full report: CLICK HERE

Top Copyright Photo (all others by SAS): Scandinavian Airlines-SAS (Ireland) Airbus A320-251N WL EI-SIA (msn 7897) LHR (SPA). Image: 940744.

SAS aircraft slide show:

SAS to establish a new airline (AOC) in Ireland with bases in London and Spain

Delivered on November 30, 2016

SAS issued this statement:

SAS’s strategy is to focus on those customers who travel frequently to, from and within Scandinavia. SAS continuously develops its offering and network to meet this customer group’s needs. The air travel market in Europe is experiencing intense price pressure and rising demand for leisure travel. To secure the company’s long-term competitiveness and to take an active role in the growing leisure market, SAS is now taking a further step to reduce the cost differential to newly established competitors.

If SAS is to secure the long-term profitability of key traffic flows and actively participate in the growing leisure market, SAS must have the same preconditions as other market participants. Therefore, SAS has decided to establish a new AOC in Ireland with operational bases in London and Spain. The aim is for the new operations to be up and running from winter 2017/2018, providing a smaller number of departures as a complement to SAS’s existing production.

“In line with SAS’s strategy of focusing on those customers who travel frequently to, from and within Scandinavia, the majority of SAS’s airline operations will continue to be based in Scandinavia moving forward. The establishment of new bases means we can complement our Scandinavian production and, in time, build an even broader network with a superior schedule to the benefit of our customers,” says Rickard Gustafson, SAS President and CEO.

The aircraft based in London and Spain will have the same customer offering and appearance as other airline operations at SAS and with corresponding requirements in terms of safety and standards.

At the start, smaller start-up costs for the new AOC and new bases are expected to impact earnings. Initially, the financial effects from operations at these bases will be small, but will gradually increase as operations grow.

In parallel with establishing the new AOC, SAS has planned further structural measures for its operations, in line with those announced in the 2015/2016 year-end report.

Copyright Photo: Scandinavian Airlines-SAS Airbus A320-251N WL LN-RGN (msn 7341) PMI (Javier Rodriguez). Image: 936438.

Route Map:



AG Read the Real WAN

SAS posts a wider fiscal first quarter net loss

Scandinavian Airlines-SAS (SAS Group) (Stockholm posted a wider fiscal first quarter (through January 31, 2015) net loss of SEK 640 million ($73.7 million), a significant increase from its SEK 112 million ($12.9 million) reported in the same quarter a year ago.

Read the full report: CLICK HERE

Copyright Photo: SPA/ SAS has been selling some of its valuable London Heathrow (LHR) slots to raise capital in the current crunch. As a result, SAS is using larger aircraft into LHR. Boeing 737-883 LN-RRK (msn 32278) completes the final approach to the runway at LHR.

SAS aircraft slide show: AG Airline Slide Show

AG Hot New Photos-Top 100

SAS Group slips back into the red for its fiscal year

SAS Group (Scandinavian Airlines-SAS) (Stockholm) at its annual meeting discussed its financial results for its fiscal year 2013-2014 and also issued its annual report. The group fell back into a net loss of 719 million SEK ($88.4 million) for the year.

The group is coming under continued pressure from lower cost carriers in its markets (especially from Norwegian Air Shuttle) and also from the major European carriers, such as British Airways-Iberia, Lufthansa and Air France-KLM, shifting its European operations to its lower cost subsidiaries such as Vueling Airlines, Germanwings, Transavia Airlines and Hop!

SAS Group’s share of the Scandinavian market:

SAS share of the Scandinavian market

The group summarized its fiscal year:

“The results for the 2013/2014 fiscal year reflect a year characterized by substantial overcapacity and pressure on yield and unit revenue, and in which market conditions stabilized slightly toward the end of the year.”

The group also issued this outlook for 2015:

“SAS is continuing the intensive efforts to strengthen competitiveness. The potential exists for SAS to post a positive EBT before tax and nonrecurring items in the 2014/2015 fiscal year. This is provided that the economy does not weaken, that the trend continues in terms of reduced capacity and lower jet fuel prices, is maintained, that exchange rates are not subject to further deterioration and that no unexpected events occur.”

Fleet streamling:

In the 2013/2014 fiscal year, SAS phased in one long-haul aircraft and five medium-haul aircraft with modern cabins, in parallel with phasing out the last two Boeing 737 Classics. SAS also returned 11 MD-80s and seven Boeing 737 Classics that were taken out of service in the 2013 calendar year. With the phasing out of the MD-80 fleet and Boeing 737 Classics, SAS achieved an in-service aircraft fleet comprising only Next Generation aircraft in 2013/2014. SAS now has only one type of medium-haul aircraft per base, which provides a more stable and more efficient operational and technical plat- form. In addition, SAS plans to further streamline regional aircraft operations by phasing out Boeing 717s in 2015. SAS intends to transfer the CRJ900s to Cimber.

In addition, SAS has placed orders for four Airbus A330Es and eight Airbus A350s with delivery from 2015 to 2021, as well as 30 Airbus A320neo with delivery from 2016 to 2019. The first long-haul aircraft are expected to be in-service in autumn 2015. The introduction of long and medium-haul aircraft means SAS will be able to offer fre- quent travelers a world-class customer experience in parallel with lowering fuel and maintenance costs.

SAS Fleet Plans 2015

SAS Group’s strategy:

SAS Group Strategy

Read the full yearly financial report: CLICK HERE

Copyright Photo: SPA/ The SAS Group still operates both the Airbus A320 and Boeing 737 Next-Generation family of aircraft in a very mixed short haul fleet. With the new A320neo aircraft being added the Boeing 737 fleet will be gradually reduced. Airbus A320-232 OY-KAP (msn 3086) arrives in London (Heathrow).

SAS aircraft slide show:

SAS Group to phase out the remaining five Blue1 Boeing 717s in 2015, reports a full-year net loss of $92.4 million

Scandinavian Airlines-SAS (Stockholm) issued its year-end financial report for the period ending on October 30, 2014. The company continues to reduce its losses. The Group report a SEK (Swedish Krona) 719 million ($92.4 million) full-year net loss.

The comments by the CEO:

“SAS has delivered the promised efficiency measures, with declining unit costs as a consequence. In parallel, passenger growth was strong and the load factor posted a year-on-year improvement for the eighth successive month. However, earnings were impacted by intense com- petition and strong price pressure. This trend is expected to continue. External production models, proprietary low cost carriers and the use of staffing agencies are increasingly becoming the established indus- try norm and are changing competitive conditions for European avia- tion from the ground up.

To meet these challenges and strengthen competitiveness, we are implementing additional long-term cost-saving measures that spans the entire business and together generates an earnings impact of SEK 2.1 billion with full effect in 2017. Measures include our continued opti- mization of production and streamlining the aircraft fleet. On December 8, 2014, the Danish airline Cimber was acquired as part of this strategy and SAS intends to transfer regional CRJ900 production to Cimber in 2015. We are also enhancing our offering to our frequent travelers. For example, in 2015, the first of the new Airbus A330 Enhanced long-haul aircraft will be delivered to SAS and, in Septem- ber, a new direct route from Stockholm to Asia will be opened.”

Rickard Gustafson, SAS President and CEO.

As part of its cost reduction plan, SAS stated the following in its financial report about Blue1 (Helsinki):

“During the year, SAS has reduced capacity at Blue1 by about 40% as a result of the decision to divest four Boeing 717s. The five remaining Boeing 717s will be phased out in 2015. As a consequence, the SAS aircraft fleet will only comprise four aircraft types compared with nine types in 2012. SAS has also transformed Blue1 into a competitive production company and future production is currently being evaluated.”

Read the full report: CLICK HERE

Top Copyright Photo: SPA/ SAS’ Boeing 737-7BX SE-RER (msn 30736) arrives in London (Heathrow).

SAS aircraft slide show: AG Slide Show

Bottom Copyright Photo: Ton Jochems/ Boeing 717-2K9 OH-BLO (msn 55056) taxies from the gate at Amsterdam.

Blue1 aircraft slide show:

SAS introduces a new “We Are Travelers” advertising campaign

Scandinavian Airlines-SAS (Stockholm) has introduced a new advertising campaign called “We Are Travelers”. The airline issued this statement and video:

SAS We Are Travelers logo-1

SAS has launched a new marketing concept “We Are Travelers”. This concept reinforces the idea of travel as part of our way of life and it also
celebrates the joy and anticipation we feel before a flight.

“Travel is a way of life for many Scandinavians; we love to travel and we do it a lot. It is an important part of who we are. Here at SAS, we are very familiar with this lifestyle, because it is our way of life too,” says Stefan Hedelius, Vice President Brand & Marketing at SAS.

“We Are Travelers” is a long-term concept that reflects the fact that SAS is the obvious choice for frequent travelers in Scandinavia. The concept is based on a deep understanding of the positive emotions associated with flying and how we at SAS can enhance the joy of travel, as well as the fact that people who travel a lot have a greater need for smooth and efficient travel.

“Even those who travel frequently see flying as being so much more than just transportation. It is about taking a break from everyday life and about the anticipation of going somewhere, whether you are travelling on business or looking for new experiences on vacation. We travel to be part of the wider world, to feel important and needed, and to grow as human beings,” says Stefan Hedelius.

SAS We Are Travelers logo

The insight into our way of life and the emotions attached to travel is the result of our extensive long-term efforts to listen to our frequent travelers in focus groups and through broader customer surveys. We want to make life easier
for frequent travelers in Scandinavia and the best way to do that is by listening to them.

Initial campaign presents travel profiles – of customers and employees

Using portraits of real customers and employees, SAS wants to show that there are many different kinds of travelers, but they all have something in common – they love to travel and they do so often.

SAS Thank You

Our new concept is being launched through a campaign – via SAS’s own channels, on TV, in print, online and outdoor advertising – in Sweden, Norway and Denmark. The campaign starts with an emotional film that pays tribute to aviation and all of us who love to travel.

During the fall, SAS will be releasing several shorter films featuring SAS crew and customers, all chosen because they love to travel, they travel a lot and because they are interesting people.

Top Copyright Photo: Stefan Sjogren/ (all others by SAS). Scandinavian Airlines’ Airbus A320-232 OY-KAN (msn 2958) completes its final approach to the runway at the Stockholm (Arlanda) hub.

Scandinavian Airlines-SAS: AG Slide Show

Video: SAS:


SAS Group reduces its quarterly loss to $17.6 million

SAS Group (Scandinavian Airlines-SAS) (Stockholm) has reported a net loss of SEK 112 million ($17.6 million) for the quarter ending on January 31, 2014.

Read the full report: CLICK HERE

Copyright Photo: Rolf Wallner/ Airbus A319-132 OY-KBO (msn 2850) taxies at Zurich in the 1952 retrojet livery.

Scandinavian Airlines-SAS: AG Slide Show


SAS Group posts its first full-year net profit since 2007

SAS Group (Scandinavian Airlines-SAS) (Stockholm) after fighting to stay out of bankruptcy, has posted its first full year net profit since 2007.

After making massive cuts to positions and salaries, the company reported a net profit of $27.3 million for its fiscal year ending on October 31. The company still remains a high cost airline and it expects weaker conditions to continue.

Read the full report: CLICK HERE

Read the analysis from the WSJ: CLICK HERE

Copyright Photo: Stefan Sjogren/ Scandinavian Airlines’ Boeing 737-883 LN-RCY (msn 28324) in the special “Disney Planes – See the Movie” motif arrives at the Stockholm (Arlanda) hub.

Scandinavian Airlines-SAS: AG Slide Show

SAS Group’s third quarter net profit rises to $128 million

SAS Group (Scandinavian Airlines-SAS) (Stockholm) reported its third quarter net profit rose to 844 million kroner ($128 million). Facing stiff competition from low-fare airlines, the SAS Group cut 800 jobs last year in order to reduce its costs. The SAS Group issued this financial statement for its third quarter:

SAS delivers positive result for the May-July 2013 quarter:

· Revenue: MSEK 11,593 (11,638)
· Traffic: up 5.6%
· Passenger revenue adjusted for currency: up 5.3%
· Income before tax and nonrecurring items: MSEK 973 (497)
· EBIT margin: 11.6% (9.0%)
· Income before tax: MSEK 1,120 (726)
· Net income for the period: MSEK 844 (534)
· Earnings per share: SEK 2.57 (1.62)
· Cash flow from operating activities: MSEK -276 (-187)

November 2012-July 2013

· Revenue: MSEK 31,123 (31,007)
· Traffic: up 3.8%
· Passenger revenue adjusted for currency: up 5.3%
· Income before tax and nonrecurring items: MSEK 229 (-788)
· EBIT margin: 2.2% (-1.3%)
· Income before tax: MSEK -9 (-2,694)
· Net income for the period: MSEK -174 (-2,436)
· Earnings per share: SEK -0.53 (-7.40)
· Cash flow from operating activities: MSEK 518 (299)

“It is gratifying that our robust and sweeping restructuring program is having the anticipated effect and SAS exits the third quarter strongly with a positive income before tax of MSEK 1,120.

We have made substantial progress in the implementation of our plan to improve our financial position. When the sale of Widerøe is concluded in September, we will have completed the sale of assets corresponding to about SEK 2.7 billion.

In parallel, during the quarter, we were able to increase traffic through a significant improvement in productivity. During the summer, 32 new routes were opened, which contributed to increased passenger revenue at the same time as operating expenses decreased. We have signed a letter of intent with Airbus regarding the renewal of the SAS Group’s long-haul fleet, which bolsters our long-term competitiveness.

Competition in European air traffic remains very intense. Consequently, our focus is on completing the entirely necessary transition to a lower and more flexible cost structure, in parallel with our continued aggressive investment in our customer offering. Our forecast of achieving positive earnings for the full-year remains firmly in place,”

Rickard Gustafson, SAS President and CEO.

Copyright Photo: Brian McDonough/ SAS has eight Airbus A350-900s on order with the first deliveries in 2018. The new type will replace the older Airbus A340-300s. A340-313X LN-RKG (msn 424) approaches the runway at Washington Dulles International Airport.

Scandinavian Airlines-SAS: AG Slide Show