Nordic Airlines: Scandinavian Airlines yields remain weak, SAS downgraded by Moody’s

SAS Group (comprising SAS Scandinavian Airlines, Widerøe or Blue1) continues to suffer in a tough Scandinavian marke. SAS Scandinavian Airlines reported a 11.3% yield contraction for Oct-2009, for seven consecutive month of yield reductions and the second largest reduction (after Apr-2009’s 11.7% reduction) in the over 18 months. [1514 words]

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This report contains the following subheadings:

• …and expected to continue moving forward
• Downgraded by Moody’s
• ‘Core SAS’ strategy “well on track”
• Market share on core European business route “relatively stable”; traffic reductions in the Scandinavian market
• Finnair’s traffic affected by labour dispute; expects loss of EUR200 million for 2009
• New CEO on board from Jan-2010
• Worsened yield climate for Norwegian Air Shuttle in Nov-2009
• Fifth month of yield contractions in the past 18 months
• Unit revenues also down by double-digits
• Norwegian still well positioned
• Norwegian growing at the expense of its network competitors
• Shifting focus to Norwegian domestic market and Copenhagen

This report contains the following charts and tables:

• Scandinavian Airlines yield growth: Apr-2008 to Oct-2009
• SAS Group traffic highlights: Nov-2009
• Finnair traffic highlights: Nov-2009
• Norwegian Air Shuttle yield growth: May-2008 to Nov-2009
• Norwegian Air Shuttle unit revenue (RASK) growth: Apr-2009 to Nov-2009
• Norwegian traffic highlights for Nov-2009
• Norwegian, SAS Group and Finnair passenger load factor: Aug-2008 to Nov-2009
• Norwegian, SAS Group and Finnair total passenger number growth: Aug-2008 to Nov-2009