Airline posts profit boosted by one-off real estate deal
SAS reports today that it made a modest profit in the second quarter after nine months of losses. Cost cuts are beginning to offset the effects of high fuel prices and a weak European and global economic environment. The cost of jet fuel alone increased by SEK 800 million (€96 million) for the quarter, compared to the previous year. The airline made a pre-tax profit of SEK 371 million (€44.5 million). Excluding a one-off profit from the sale of real estate, the company made SEK 137 million (€16.5 million) for the quarter.
The group commented that earnings remain unsatisfactory, but that its latest cost-cutting program is starting to have an effect. Unit revenues rose slightly during the quarter and unit costs were down. The Scandinavian airline has posted a profit for only three years out of the last 11.
[Photo courtesy Copenhagen Airports]