Weak loads hit first quarter results
The SAS Group has blamed a first quarter pre-tax loss of SEK1,024m (€95m) on weak loads brought on by the global recession.
The Scandinavian group said lower earnings had been expected in the first three months of the year, coming in at a loss of SEK934m (€86.9m) down from SEK875m (€81.4m) in 2008.
SAS's president and ceo said demand in the first quarter was traditionally weak, with both yield and load falling across the industry.
He said the downward trend had resulted in "a negative spiral for many companies."
Mr Jansson added: "For the full-year, the market is extremely unpredictable and uncertainty regarding the time of a recovery commencing remains high."
The Group's Q1 net loss was SEK748m (€69.6m), an improvement on the SEK1,163m (€108.3m) loss suffered in the same period 2008.
SAS said costs incurred as part of its ‘Core SAS' airline restructuring amounted to SEK95m (€8.8m).
Mr Jansson said the cost cutting measures which began in February were "progressing according to plan" but had resulted in job losses.
"Unfortunately, about 500 employees had to leave the Group during the first quarter. This is in line with Core SAS and is entirely necessary for the Group to generate profitability in the long term," he said.
The Core SAS measures include the removal of 18 aircraft from operation and capacity cuts in line with falling demand.
Mr Jansson said Core SAS had so far resulted in savings of SEK233m (€21.7m).
"We will see even more extensive effects of Core SAS throughout the remainder of the year," he added.
SAS said it had sold its 80.1% stake in Spanair and shares in Latvian national airline airBaltic.
"At the same time, the Group is continuing to work on divesting the operations that are not related to Core SAS. These activities are also proceeding according to plan," Mr Jansson said.
The Group said it planned to sell its 20% stake in bmi.
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