SAS financial bleeding less severe than a year ago
The Scandinavian Airlines System (SAS) has reported a loss of SEK 554 million before taxes in the first quarter. This is an improvement from the first quarter in 2010, when reported losses were SEK 972 million.
The first quarter result for 2011 is nearly identical to the that expected by most analysts, NRK writes.
Rickard Gustafson, SAS President & CEO, says the first quarter of 2011 was dominated by continued economic recovery and the favorable economic trend is expected to continue in 2011, particularly in the SAS Group’s home market. He saays growth is expected to be strongest in Sweden and Norway, but lower in the euro countries.
Despite record-high jet fuel prices, several players in the Nordic region have in recent months increased capacity beyond the estimated market growth, and capacity in the home market is now expected to increase by about 10 percent in 2011. Overcapacity remains in certain markets, particularly on European routes from Denmark and in the Swedish market. In total, the market is expected to grow about 6 percent in 2011 and SAS plans to increase capacity to the corresponding level during the year, Gustafson says.
Source: The Norway Post