SAS Group Interim Report January-September 2007

[sail4fun]

SAS Group Interim Report January-September 2007

Key ratios for the period

· Operating revenue: MSEK 46,995 (45,468) (+3.4%)

· Number of passengers: 31.1 million (+6.2%)

· Earnings before nonrecurring items in continuing operations: MSEK 982 (239)

· EBT margin before nonrecurring items: 2.1% (0.5%)

· Net income for the period: MSEK 1,261 (93)

· Earnings per share: SEK 7.50 (0.09)

Comments by the CEO

Unfortunately, the recent months have been characterized by problems with our Dash 8 Q400 aircraft. In September, we had two accidents involving emergency landings due to problems with the landing gear. After being grounded for several weeks, with extensive replacements and inspections, the aircraft were successively brought back into operation. Unfortunately, on October 27, there was another emergency landing with the same aircraft type, once again as a result of problems with the landing gear, but with a different cause. Taking into consideration our customers, our employees and our brand, which is characterized by a focus on safety, punctuality and regularity, the management and Board of Directors decided to immediately discontinue all operations using this type of aircraft. The decision is unique and severe, but necessary.

We are now working intensively to deploy replacement capacity in various forms.
We expect to be able to commence implementation of a long-term solution during the second half of 2008. The direct effect on earnings for the full year is estimated at MSEK 600-700, of which MSEK 200 pertains to the third quarter. We are involved in discussions with aircraft manufacturer Bombardier to identify potential solutions relating to the Q400 fleet, including compensation.

Despite the problems described above, we were once again gratified to achieve a
record number of passengers during the quarter and have transported nearly 41
million passengers in the past 12 months.

The airline business is generally performing extremely well. For Scandinavian Airlines, the trend over the past nine months has resulted in an earnings improvement of slightly less than SEK 1 billion. Both Scandinavian Airlines Sverige and Scandinavian Airlines Norge have results that exceed or are close to the Group's profitability requirement. Scandinavian Airlines Danmark improved its earnings month by month, despite problems with strikes and the Q400.
Widerøe, Blue1 and airBaltic also recorded strong improvements in earnings. The earnings improvements by the airlines are attributable to a strong market, improved concepts, efficient control and traffic optimization, as well as continued cost measures.

The strategy plan launched in June (S11) is now being implemented with full force. For our customers, we have introduced a number of innovations and we are proceeding with concept development and harmonization. We have also launched a special focus on leisure travelers, starting in Norway, with 12 new destinations at reduced prices. We have also decided to expand our intercontinental fleet by one aircraft to open the Copenhagen-Delhi and Copenhagen-San Francisco routes.
During the quarter, shares were sold in the Spanish ground handling company Newco and the process for the divestment of Spanair was started. The work to evaluate the future structure of SGS, STS and terminal handling at SAS Cargo is continuing and a decision will be made in December. Our cost program, comprising many components, is continuing with a large number of projects and we will gradually see the effects.

Unfortunately, the year has been characterized by several negative events that have affected our customers and employees, as well as having a negative impact on earnings. However, I am convinced that we will be stronger for this experience and, with the help of S11, will create a strong, sustainable and profitable SAS.

Mats Jansson
President and CEO

Direct questions to:
Investor Relations SAS Group:
Vice President Sture Stølen
+46 8 797 14 51, e-mail: investor.relations@sas.se

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This information was brought to you by Cision http://newsroom.cision.com The following files are available for download:
http://wpy.waymaker.net/client/wayma...fn=wkr0011.pdf The full report

[MD90]

I rapporten står det at SAS har besluttet å öke Intercont-flåten og starte CPH-DEL samt CPH-SFO.

[sail4fun]

Originally Posted by MD90

I rapporten står det at SAS har besluttet å öke Intercont-flåten og starte CPH-DEL samt CPH-SFO.

Ja, ser der ja

The strategy plan launched in June (S11) is now being implemented with full force. For our customers, we have introduced a number of innovations and we are proceeding with concept development and harmonization. We have also launched a special focus on leisure travelers, starting in Norway, with 12 new destinations at reduced prices. We have also decided to expand our intercontinental fleet by one aircraft to open the Copenhagen-Delhi and Copenhagen-San Francisco routes.

[CK]

et resultat omtrent sånn midt på treet av det analytikerne hadde ventet etter det jeg kan huske.
DEL og SFO er jo spennende - noen som har klart å snuse opp oppstart og tidtabell for de nye rutene. Blir det en ny A330 eller A340?

[Balle Chlorin]

De bekrefter også at en avgjørelse angående SGS og STS vil bli tatt i Desember.

[Someone]

Originally Posted by CK

et resultat omtrent sånn midt på treet av det analytikerne hadde ventet etter det jeg kan huske.

Netto resultatet var bedre enn forventet, mens driftresultatet var dårligere enn forventet. Uansett så er SAS på rett vei.

Blir spennende å se hva slags nytt fly de får inn og når det kommer

[amatør]

Var det ikke "store" ord om OSL-ORD og OSL-BKK for en tid tilbake hvis SAS fikk inn flere fly i flåten, sto ingenting om det her ?!?!?

[sail4fun]

Originally Posted by Balle Chlorin

De bekrefter også at en avgjørelse angående SGS og STS vil bli tatt i Desember.

Og STS og SGS tallene var ikke pene

[Balle Chlorin]

Hvor leser du det om SGS?

[sail4fun]

http://news.cision.com/wpyfs/00/00/0...31/wkr0011.pdf side 7

[Balle Chlorin]

Der ja. Et lite underskudd gjør vel ikke akkurat at kjøperne står i kø..... Men på en annen side så er det kanskje ikke så interresant å beholde noe som man taper penger på...

[Someone]

Eller var det interesant å lese at SAS hevder at joint-venture avtalen mellom SAS, BMI og Lufhansa på ruter til og fra UK vil i 2007 koste SAS alene 800mill SEK som er et betydlig tap og det er vel ingen tvil om at denne avtalen må være en av tidenes dårligste, men heldigvis for SAS går denne avtalen ut etter 2007 for den har opp gjennom årene kostet SAS flere milliarder.

Det eneste virkelige tapsluket dette kvartalet er STS som blør penger, og det er i mine øyne SAS Danmark som imponerer mest og det virker som om hele SAS Airline begynner å tjene penger, selv om det bør forbedres ytterligere

[fokkeren]

STS tapte 205 MSKR.
Det blir spennende hva som skjer i Desember SGS og STS.
Frykter det blir solgt slik som BTS og SAS Component.

[BSSW]

BTS ble ikke solgt, det ble lagt ned.

Deler av SAS Component er fremdeles i Sas. Sas eier 33% av SAS Component Group (SCG)

[fokkeren]

Beklager,mente lagt ned
Hvordan går det SAS Comp.,kjøper Singapore Tech de siste 33%?

[BSSW]

Det vet jeg faktisk ikke, gi meg en uke eller to så skal jeg klare å finne ut noe

[fokkeren]

Tusen takk,forsatt god (h)elg

[BSSW]

I like måte. Feire med måte (at det er helg)

[Someone]

http://borsen.dk/webtv?&clipid=1227&tabtype=tv_nyheder

Intervju med Jansson hvor Q400, streiker og ekspansjon tas opp

[BSSW]

Originally Posted by fokkeren

Beklager,mente lagt ned
Hvordan går det SAS Comp.,kjøper Singapore Tech de siste 33%?

Slik jeg har forstått det så vil Singapore Tech. kjøpe opp resten. Om/når/hvis, vet jeg ikke.

Singapore vil ihvertfall utvide Sas Comp. avd OSL, gjerne flytte fra Sas hangaren også. Men de har en avtale gående der. Så hvor lenge den avtalen er på vet jeg ikke