SAS moves quickly to announce €66 million in Q3 earnings
Following what it calls “numerous rumours in the Scandinavian media” and a dramatic announcement this morning that trading in the company’s shares would be suspended, SAS has quickly moved to announce it will report on 8 November a positive result for the third quarter on this year, with SEK 568 million (€66 million) in earnings before tax. Passenger revenue growth was 9% and unit cost reduction was 6%.
“In a very difficult and competitive industry environment, the positive development in Q3 is proof that implementation of the 4 Excellence strategy has proceeded according to plan,” SAS says in a statement.
SAS adds that it has for some time signaled the need for significant further efficiency improvements in order to secure its long-term competitiveness. It is currently finalising “a comprehensive plan to fundamentally address its cost on a long-term basis, to increase cost flexibility, reduce complexity and also reduce the effect of the potential equity write down in 2013 due to pension accounting changes”.
It estimates the financial benefit from this plan to amount to around SEK 3 billion in earnings before tax. The plan encompasses disposals of non-core assets. A board decision on the plan is expected to be made and communicated in the near future. SAS has available credit facilities of SEK 4.7 billion that will expire in June 2013. It is currently in negotiations on the extension and amount of its credit facility.
[pictured: SAS Airbus A340; courtesy SAS]