SAS gains ground on cost-cutting

Scandinavian airline SAS posted a smaller-than-expected first-quarter pretax loss today and said it saw no sign of a slowdown…

Scandinavian airline SAS posted a smaller-than-expected first-quarter pretax loss today and said it saw no sign of a slowdown.

The group reported a pretax loss of 477 million Swedish crowns versus a loss of 1.4 billion in the year-ago quarter. Operating revenue was 13.8 billion crowns versus an expected 14.4 billion.

The company said 85 per cent of planned cost savings of 2.5 billion crowns had been implemented by the end of March. It is due to unveil further measures in a scheme called Strategy 2011.

The airline - half owned by the governments of Sweden, Norway and Denmark - has been hit in recent years by tough competition from budget carriers, overcapacity and rising fuel prices. The flag carrier has cut costs and sold non-core assets to make itself competitive.

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SAS repeated that there were no signs of a slowdown in the economy or the airline market but said uncertainty remained regarding the strength of growth, the future competitive situation and jet fuel prices.