SAS cuts losses
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Scandinavian Airlines (SAS) reduced its quarterly loss.
The Copenhagen-based carrier posted a quarterly net loss of SEK388 million (US$58.9m) for the February-April 2013 quarter, 9.6% better than the SEK429m loss it recorded in the same period last year. This improved result came as a result of 10.7% reduction in unit costs, which offset a slight fall in company revenues, from SEK10.07 billion to SEK9.33bn. Passenger revenues however, climbed 4.4% following a 1.0% rise in passenger traffic.
Rickard Gustafson, president & CEO of SAS, called the three-month period an “eventful quarter”, but said the airline was making progress towards its 4XNG turnaround strategy.
“It is gratifying to state that the extensive restructuring effort is now starting to create tangible effects,” said Gustafson. “The underlying trend shows a continued lower unit cost and a better yield trend than expected.
“At the same time, we must state that the earnings level is not yet satisfactory but completely in line with our expectations and our plan. Our focus is directed to fully completing the restructuring measures and the forecast of achieving positive income for the full-year remains firmly in place,” he added.
The airline also recently revealed its revamped cabin classes, SAS Go and SAS Plus, which will replace the business and economy cabins on short-haul flights. In addition, SAS has already launched 18 new routes this year, with another 32 due to commence during the summer.
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