SAS expects earnings to fall

Scandinavian airline SAS Group slashed its capacity almost one fifth in September and now expects its yield to plunge.

Related news:
• SAS ‘haven’t broken any negotiation’

SAS Group, half-owned by Sweden, Norway and Denmark, said its traffic fell 17.7 percent in September as the capacity also was down 17.7 percent in a move to adjust supply to demand.

More troublingly, the improvement in passenger load factor, a measure of how successful it was filling its seats, came to a halt last month.

The yield for Scandinavian Airlines in August -- the most recent month for which data is available -- was down by 8.8 percent. For September, the change in yield is also expected to be negative indicating continued yield pressure going forward.

This development will have a negative impact on the forth quarter result, the company said.

SAS' second-quarter net loss amounted to 1.05 billion kronor (€102 million, $143 million), compared to a loss of 422 million kronor a year ago.

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Last Updated (Wednesday, 07 October 2009 12:49)

 
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