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Disappointing as SAS makes a billion Krona Loss

Wednesday, 12 December 2012
Troubled Scandinavian airlines system, SAS, reports a loss before tax of Skr1.3 billion in its financial statements for 2012 in the fiscal year from January to October.

The deficit was expected. SAS has a charge to income of 1.4 billion Swedish kroner in disposable and restructuring costs.

After securing new loans and guarantees from the owners and the banks, agreements with unions to reduce its workforce by approximately, 800 workers and adopted the sale of businesses, including Widerøe, SAS is expects to make a small profit in the financial year 2012-13.

Passenger revenue rose 5.6 percent, adjusted for currency, while unit costs fell by four percent, excluding fuel and adjusted for changes in exchange rates.

SAS management believes that there are opportunities to reach full-year earnings 2012/2013, provided that fuel prices are stable and that nothing unexpected happens in the outside world.

"The first quarter of 2013 (November-January) will however be seasonally very weak," writes CEO Rickard Gustafson in the financial statements.

SAS has this year introduced different accounting year which runs from November to October. Therefore, the fiscal year 2012 will only have ten months (January-November).

SAS shares rose sharply in Wednesday trading after lunch, in which the closing report was assessed by the market to be better than expected especially the announcement that a sale of Wideroe and ground handling was going to happen.

On eh whole, SAS shares opened slightly up but the upturn took off after SAS CEO Rickard Gustafsson told Reuters news agency that the talks with several potential buyers for its Norwegian operations, Wideroe and ground services business was making progress.
by Scancomark.com Team

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