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
facebooktwittergoogle_pluspinterestmail

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.

We know Lear couldn't recognize his daughter, but did the English even know their favourite son?
Crazier than Christmas: To tell or not to tell
There is a murder mystery about Shakespeare that could rattle the foundatio...
The two groups of students worked hard and expressed themselves on stage.
Out and About: Breathing life into the Aalborg Music Festival
This year, Denmark was treated to the annual Aalborg Music Festival. Two gr...
You better make that second beer to go
Under the Raydar: Taking it easy – in 1986 and 2016
Challenger blew up 30 years ago last month … a moment most Americans reme...
(photo: CCO)
School News in Brief: Case competition rise
More companies and educational institutions are using case competitions t...
February 14 will offer time for quiet reflection, but more importantly: love!
Quietly remembered in a city where love will conquer all
The morning of 14 February 2015 was like any other Valentine’s Day in Cop...
The Danish-German border (photo: Arne List)
This Week’s Editorial: Refugees at work
The Danish politicians have digested the L87 austerity package and found a ...