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Joined: Fri Sep 15, 2000 2:19 am

SAS, Positive Third-quarter Earnings.

Tue Nov 02, 2004 11:31 pm

Some interesting notes from the SAS Interim report:

The forecast for the full-year 2004 remains unchanged according to SAS. "The SAS Group´s Board and Management expect negative earnings before tax and nonrecurring items for the full-year 2004." Intercontinental traffic developed well, Jan-Sep compared to previous year +12%. One of the biggest problems are the Swedish domestic traffic, traffic fell by 4,4% during Jan-Sep compared with last year. The airline industry is still suffering great problem, one can only hope that the situation will be better in the future.

"2004-11-02 Interim Report January-September 2004
SAS Group
Interim Report
January-September 2004

Positive third-quarter earnings
Operating revenue for the nine-month period amounted to MSEK 43,133 (43,930), a decrease of 1.8%.

Operating revenue for the third quarter amounted to MSEK 15,423 (14,920), an increase of 3.4%.

Traffic growth was good but slightly weaker in the third quarter. The SAS Group’s total passenger traffic (RPK) increased by 9.1% for the whole period and by 5.8% for the third quarter.

Income before capital gains and nonrecurring items improved by MSEK 337 compared with 2003 and amounted to MSEK -1,469 (-1,806) for the nine-month period. The result for the third quarter was positive at MSEK 153 (116).

Income after financial items amounted to MSEK -1,526 (-1,225), and to MSEK 57 (564) for the third quarter. In 2003 the third quarter result included capital gains of MSEK 559.

Income after tax amounted to MSEK -1,236 (-834), and MSEK 68 (699) for the third quarter."

Some interesting words about the traffic situation:

"The good traffic growth we noted in the second quarter of this year did not continue at the anticipated rate in August and September. In particular, travel from the Nordic region to destinations in the rest of Europe has not really gained momentum. The passenger trend is more positive within Scandinavia and on the intercontinental routes.

The situation in the airline industry remains characterized by overcapacity and intense competition which has resulted in substantially reduced yield. Despite in many cases unrealistically low average fares, new players have emerged, while some have disappeared. According to independent sources, fares within
Scandinavia and to/from Scandinavia have been among the lowest in Europe. There are signs that the industry may well be entering a phase of consolidation, a trend that we also expect in the years ahead.

Jul-Sep Change Jan-Sep Change
SAS Group 2004 vs. 2003 2004 vs. 2003
No. of passengers (000) 8,591 3.2% 24,708 5.2%
Passenger km (mill) 9,198 5.8% 25,189 9.1%
Seat km (mill) 13,557 7.9% 38,864 8.0%
Cabin factor 67.8% -1.3%pts 64.8% +0.7%pts"

For more info:

"He was a wise man who invented beer"-Platon
Posts: 1001
Joined: Sun Aug 22, 1999 8:34 am

RE: SAS, Positive Third-quarter Earnings.

Wed Nov 03, 2004 4:11 am

But the result are not that good as expected by analysts and economists.

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