SAS Interim Report November 2015–January 2016

March 8, 2016 07:00

SAS presents earnings improvements for the quarter

November 2015 – January 2016

Income before tax: MSEK -309 (-836)
Income before tax and nonrecurring items: MSEK -404 (-829)
Revenue: MSEK 8,275 (8,371)
Unit revenue (PASK) declined 10.0% [1]
Unit cost (CASK) decreased 6.6% [2]
EBIT margin: -2.2% (-7.8%)
Net income for the period: MSEK -246 (-640)
Earnings per common share: SEK -1.01 (-2.21)
The outlook for the 2015/2016 fiscal year remains firm, see page 8.

[1] Currency adjusted.
[2] Currency adjusted and excluding jet fuel.

Comments by the President and CEO of SAS:

“The first quarter is the seasonally weakest quarter of the fiscal year and, this year, income before tax amounted to MSEK -309. However, this represents a year-on-year improvement of MSEK 527. The improvement was driven by our commercial success, significantly lower jet-fuel costs and the effects of cost measures.

Our strategy is to strengthen our offering to Scandinavia’s frequent travelers and to be an airline that rewards its customers for their loyalty. Many travelers appreciate the advantages offered by SAS, which resulted in a year-on-year increase in EuroBonus members of 14%, while income from members accounted for more than 50% of our total passenger revenue. Competition intensified in 2016 with increased capacity growth in the market. Accordingly, we are working intensively on adapting operations to market conditions and enhancing efficiency. The outsourcing ground handling services at the line stations in Norway comprises a key element in increasing our cost flexibility and has now been completed according to plan.

Looking ahead to the spring, we look forward to offering new routes to both Los Angeles and Boston and welcoming our travelers on board our upgraded long-haul aircraft with a product that, according to our customers, is the best in Europe,” says Rickard Gustafson, SAS President and CEO.

SAS discloses this information pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was provided for publication on March 8, 2016, at 8:00 a.m.