SAS and Wideroe signed a new agreement with Statoil regarding the company’s domestic and international flights. The agreement covers a period of five years, including options, and will secure revenues for SAS in the coming years. SAS Income before tax in the period november 2017-february 217 was MSEK -697 (-309). Income before tax and nonrecurring items: MSEK -707 (-404). SAS Revenue was: MSEK 8,957 (8,275), and the EBIT margin: was-6.4% (-2.2%), writes Sasgroup.net.
SAS Yield Down
Scandinavian Airlines Systems Capital market, presented SAS Economic News, March 8, 2017 08:01
• Scheduled traffic (RPK) increased 13% and the capacity (ASK) was up 5%, despite the leap year in February 2016.
• The load factor improved by 4.8 p.u. versus last year to 67.9%.
• SAS carried 2 million scheduled passengers in February, up 2.6% vs. last year.
• The preliminary currency adjusted yield and PASK were down 8% and 1% in February 2017. The nominal yield was down 6% while the nominal PASK was up 1%.
Market development
Although the demand is growing, the operating environment is more challenging, with the yield at historically low levels. In addition, jet fuel prices have increased versus last year combined with an unfavorable USD development versus the SEK.
In fiscal year 2016/2017, SAS’s total capacity growth (ASK) will amount to 6-8%. The growth will primarily be driven by a full-year effect from the new intercontinental routes that commenced during 2015/2016, increased production on European leisure routes and the fact that the Airbus A320neo is larger than the aircraft it will replace. The number of flights is expected to increase by about 2%.
Traffic development
SAS increased its scheduled capacity in February by 5.0% and the traffic grew by 13.0%. The overall load factor was up 4.8 p.u. versus last year to 67.9%. The load factor improved in all geographical areas with strongest developments on SAS’s international routes.
SAS intercontinental traffic increased 31.0% and the capacity was up 18.9%. The growth was driven by the new routes to/from Los Angeles and Miami as well as larger traffic volumes on existing Asian routes. The traffic on the European/Intrascandinavian routes increased by 6.0%. The growth continued to be particularly strong on the leisure oriented routes. On domestic routes, the capacity was increased by 0.2% and the traffic was up by 1.4%.
Latest SAS Figures
SAS Interim Report November 2016 – January 2017
Seasonally weak earnings as expected – structural measures being planned
November 2016 – January 2017
Income before tax: MSEK -697 (-309)
Income before tax and nonrecurring items: MSEK -707 (-404)
Revenue: MSEK 8,957 (8,275)
EBIT margin: -6.4% (-2.2%)
Net income for the period: MSEK -556 (-246)
Earnings per common share: SEK -1.95 (-1.01)
The outlook for the full year 2016/2017 is retained, writes SASGroup.net.
Renewed Statoil Deal
A wide-ranging network and frequent departures were just two of the reasons for Statoil once again demonstrating its confidence in SAS in the form of a new agreement. The agreement covers a period of three years, with an option for a further two years.
SAS and Wideroe are preferred partners, which means that the majority of Statoil’s domestic flights will be taken with SAS and Wideroe.
“SAS is pleased to be renewing our long-standing cooperation with Statoil for at least another three years, and we are very proud of the confidence shown in us and the expectations placed on us as an airline. We are continuing to build on our vision of making life easier for our Scandinavian travelers. As well as investing in a brand new cabin, we will soon also begin installing the fastest Wi-Fi on the market on our domestic and European routes,” says Eivind Roald, Executive Vice President Commercial at SAS.
