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SAS: positive turnaround being felt

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Positive changes in RPK and shares being traded

SAS says that there is light at the end of the dark tunnel of its years of losses. It is reporting that its tough cost-cutting measures are resulting in a positive change in RPK (revenue per passenger kilometre), which could fall by about 2% in 2012 before a slight recovery in 2013. SAS has now replaced its old and expensive fleet. Shares in the company are reportedly trading better than expected so far this year, pushing the share price up by 14% amid thin trading elsewhere.
SAS is fighting to slash costs in order to compete with dynamic low-cost carriers like Norwegian and Ryanair. Its loss in 2011 was SEK 1.6 billion (€180 million), but this was an improvement on the SEK 3.1 billion loss the previous year. The airline last made a full-year profit in 2007. The most recent SEK 5 billion cost-cutting, revenue-boosting package, which it calls 4Excellence, was launched last year.
Reuters
[photo courtesy SAS]

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