SAS lowers bar as profits descend

A bad year as Scandinavian Airlines is forced to downgrade expectations

May 8th, 2014 2:29 pm| by admin

After posting a first quarter loss, Scandinavian Airlines (SAS) is now under so much pressure that the board has decided to turn down the expectations a notch, Børsen reports.

Too much competition has made it impossible for the airline to reach the goal it set at the start of the year, and it has been forced to lower its worst-case forecasts.

Taking aggressive course
"Increased competition for the customers means SAS will be more aggressive," the head of SAS, Rickard Gustafson, told Børsen.

"We have improved our offer to Scandinavia's commuters, intensified marketing and therefore have more customers combined with a larger load factor."

Budget cutbacks are expected to generate positive results for the airline, including the positive effects that recent changes to employee's pensions will bring. Previous estimates expected positive results without including the pension changes, but the board now finds that prospect too ambitious.

More passengers
However, the downgrading coincides with rising revenue passenger kilometre figures, which rose by 13.7 percent in April compared to the same month last year.

SAS carried 2.4 million passengers in April – 9.2 percent more than last year.

The six million kroner table (photo: Phillips)
Danish table breaks world auction house record
A dining table by the Danish designer Peder Moos has broken the world aucti...
It's not the first lion dissection Odense Zoo has been involved in (photo: Odense Zoo)
Odense Zoo preparing for another lion dissection
If you don't have any plans for the autumn holidays this year, you can alwa...
The cost of a ticket to the US could be lost under the sofa cushions (photo: Russell Lee)
Norwegian boss promises ultra-cheap fare to the US
Bjørn Kjos, the head of low-cost airline Norwegian, has revealed he has a ...
Car prices could start going up across the board (photo:  Tesla)
Prices for cars could be on the rise
Denmark is already one of the most expensive nations in the world to own a ...
Astrid Krag is hoping for a compromise on tougher citizenship laws (photo: Mogens Engelund)
Government wants to make it harder for kids with foreign parents to become a citizen
Although the government has already reached a consensus on tightening the r...
EasyJet will be flying between Copenhagen and Venice from March 2016 (photo: iStock)
EasyJet launching new route from Copenhagen to Venice
The British budget airline EasyJet has unveiled plans to open a summer rout...