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/AirlinersGallery.com. 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: