It its interim report for January-March 2012, published today, SAS Group says that a strengthening cash flow is not enough to fight negative earnings. Citing “continued challenges in 2012”, the company says that jet-fuel prices and increased capacity in the market mean that cost-cutting measures under what it calls the 4Excellence strategy are being accelerated. Both revenues and number of passengers carried increased during the period, but the net loss increased to SEK 729 million (€82 million) from 373 million in the first quarter the previous year.
Cost-saving measures corresponding to SEK 5 billion will be implemented in the period 2012-2013. Agreements have been signed with many of SAS’s trade unions regarding cost savings corresponding to SEK 1 billion for the period 2012-2013.
[pictured: Airbus A340; courtesy SAS]