SAS 3Q earnings up, but outlook looking weaker

SAS reported significantly improved year-on-year earnings in the third quarter (three months ended 30-Sep-2011) with pre-tax profit up to SEK276 million (EUR29.9 million) – a sharp turnaround from 3Q2010’s SEK-1076 million (EUR-116.6 million) pre-tax loss. The result was due entirely to further drastic cost cuts at the group, as revenue and yields came under heavy pressure in the quarter. Revenue fell, despite the increase in passenger numbers, due to softening demand and continued intense competition in the Nordic region. [1411 words]

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This report contains the following subheadings:

• Revenue and yield fall
• Costs down, but unit costs gain strongly
• Blue1 still significantly underperforming
• Spanair risk increases
• Stronger result, but outlook clouded

This report contains the following charts and tables:

• SAS Group pre-tax profit (SEK millions): 3Q2009 to 3Q2011
• SAS Group revenue (SEK millions): 3Q2009 to 3Q2011
• SAS Group passenger numbers (thousands): 3Q2009 to 3Q2011 (not to scale)
• Year-on-year change (%) in Scandinavian Airlines’ currency-adjusted yield and unit costs: 1Q2009 to 3Q2011