Airline says measures strengthen its financial position
SAS is sticking with its cost-cutting strategy plan as unit costs fell 10.7% in the February-April period. Income before tax narrowed to minus SEK 306 million (€35 million), from a loss of SEK 734 million in the same period the previous year.
Income before tax and nonrecurring items improved by SEK 700 million, impacted by a nonrecurring effect of SEK 450 million as a result of measures linked to renegotiated pension terms.
“SAS is now putting yet another eventful quarter behind it and is continuing to deliver on its established 4XNG strategy plan,” Rickard Gustafson, SAS president and CEO, reassured. “The unit cost, excluding jet fuel, fell 10.7%. Adjusted for the effect of early retirement pensions, the unit cost declined 3.6%. At the same time, we must state that the earnings level is not yet satisfactory but completely in line with our expectations.”
He added that the airline’s focus was now directed to “fully completing the restructuring measures and the forecast of achieving positive income for the full-year remains firmly in place.”
The divestment of Widerøe will generate sales proceeds of around SEK 2 billion when the transaction is completed.
[pictured: SAS aircraft lands at CPH; photo courtesy Copenhagen Airport]