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SAS posts positive results

Positive figures from the SAS Group’s year end report have been published, including a rise in both passengers and revenue.Results show income before capital gains and nonrecurring items amounted to MSEK
114 in 2005, an earnings improvement of MSEK 1 815. The Group’s total operating revenue rose 6.5% to MSEK 61 887 for 2005 and the Group transported a total of 34.9 million passengers, an increase of 8% compared with 2004. Earnings of MSEK 114 are in line or slightly better than market expectations.

J¿rgen Lindegaard, President and CEO of the SAS Group, comments:
“Turnaround 2005 comprising savings of SEK 14 billion was completed as
planned. The unit cost has fallen by over 30% since 2002. After five years
of sweeping changes, the SAS Group posts positive earnings before capital
gains and nonrecurring items, an earnings improvement of SEK 1.8 billion
compared with 2004. Scandinavian Airlines’ new business models have
strengthened competitiveness with improved cabin factors but weaker yield.
Despite powerful measures, further cost savings must be made to ensure
long-term competitiveness in several of the Group’s units. The SAS Group
has, as communicated earlier, initiated new cost-cutting measures
corresponding to SEK 2 billion.”