SAS Group earnings for first quarter: MSEK –973 - Profit 2008 action program expanded to SEK 1.1 billion
Key data from the SAS Group’s first-quarter report today:
• Earnings before nonrecurring items for the period amounted to MSEK -973 (-94), a decline of MSEK 879
• The Group transported 7.3 million passengers, an increase of 2.4%As a result of the rapidly increasing fuel prices, increasing overcapacity and the consequent pressure on yield, SAS has expanded the action program announced in February, which has been grouped under the name Profit 2008.
Main points of Profit 2008:
• Total earnings effect in 2008 – SEK 1.1 billion
• Capacity reduction by 11 aircraft commencing in autumn 2008, and the addition of another long-haul aircraft has been postponed
• A surplus of approximately 1,000 full-time positions will occur.
Mats Jansson, President and CEO, comments:
“To turn around the earnings trend and manage the challenging market situation, we are undertaking a number of short-term measures that we have grouped under the name Profit 2008. These measures shall generate an earnings effect in 2008 of SEK 1.1 billion, including price adjustments, changes to the traffic programs, additional efficiency enhancements of overheads and the discontinuation and postponement of certain planned activities. In total, the number of positions will be reduced by approximately 1,000 FTE.
“At the same time, it is important to keep S11 on track to ensure that we can develop SAS to become an even stronger and more competitive airline.”
Refer to the interim report at www.sasgroup.net for further detailed information.
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