“Positive income before tax” in SAS Group report
In its year-end report released today, SAS Group says that cost-saving and profitability-boosting measures launched at the beginning of the year are now making an impact. It reports SEK 23 million (€2.67 million) in income before tax and nonrecurring items for the period January-October 2012, with passenger revenues up 5.6% and unit costs excluding jet-fuel down by 4% during the period. However, overall there was a pre-tax loss of SEK 1,245 million for the period as previously announced restructuring costs and other nonrecurring items impacted income. The net loss was SEK 985 million.
SAS Group also announced today a “new aggressive plan” which it calls 4Excellence Next Generation (4XNG), designed to address SAS’s structural and financial challenges. Measures in the plan – which aims to increase earnings by around SEK 3 billion – include the recently agreed employment contracts for flight crews and new pension terms. There will also be divestment of assets.
“4XNG will deliver a significantly improved cost base looking forward,” SAS said in a statement. “During 2012-2013, a positive impact on earnings of SEK 1.5 billion is expected from the 4XNG plan.”
[photo courtesy SAS]