SAS from red to black numbers

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As the SAS management presented its year-end report for November 2014 to October 2015 on Wednesday, it soon became clear that the group has accomplished many an airline’s dream nowadays, namely turning red numbers into black.

Last year’s income before tax were MSEK -918, whereas this year’s income has grown to MSEK 1,417.

Other key figures are (last year’s figures in parentheses):

Income before tax and nonrecurring items: MSEK 1,174 (-697)
Revenue: MSEK 39,650 (38,006)
Unit revenue (PASK) increased 3.8% [1]
Unit cost (CASK) increased 3.3% [2]
EBIT margin: 5.6% (0.4%)
Net income for the period: MSEK 956 (-719)
Earnings per common share: SEK 1.84 (-3.03)

Mr. Rickard Gustafson, appointed SAS' new president and CEO (photo from SAS)
Mr. Rickard Gustafson, SAS’ president and CEO (photo from SAS)

“SAS reported positive income before tax and nonrecurring items of MSEK 1,174 for the 2014/2015 fiscal year. This was a significant year-on-year improvement, primarily driven by our commercial successes, cost measures and, in the fourth quarter, by lower jetfuel costs. During the year, we have implemented extensive improvements aimed at frequent travelers and these have delivered clear results. However, the unit cost after adjustments for currency and jet fuel increased during the year, which is unsatisfactory. We now need to work even more intensively with implementation of the continued cost measures to improve our long-term competitiveness”, says Rickard Gustafson, SAS President and CEO, continuing:

“Altogether, the product enhancements and the implemented cost measures have created new preconditions enabling us to open new long-haul routes to Los Angeles, Miami and Boston next year. We know that competition will intensify moving forward, but given our improved financial position, our focused enhancement initiatives and our customers’ positive response, we have an excellent starting position. We are continuing our dedicated efforts to make life easier for our frequent travelers with time-saving and smooth journeys to sought-after destinations”.

Top photo: A Boeing 737 SAS aircraft (photograph from the SAS Group).