SAS CEO Says Airline May Have To Step Up Cost Cutting: WSJ Interview

Posted: May 3, 2012 in Airlines, Aviation & Airports (General News), Scandanavia
Tags: , , , , , , ,

[Wall Street Journal/Dow Jones] As SAS reports wider loss for the first quarter, the Chief executive says costs related to Cimber Sterling bankruptcy is too early to assess.

Scandinavia's biggest airline Thursday reported a net loss SEK729 million for the first quarter, compared with SEK373 million the same period last year

Scandinavia’s biggest airline Thursday reported a net loss SEK729 million for the first quarter, compared with SEK373 million the same period last year: Photo Wikipedia

STOCKHOLM – Struggling Scandinavian airline SAS AB (SAS.SK) may have to intensify its efforts to cut costs only months after it began a new restructuring plan as its loss in the first quarter widened sharply due to high fuel prices and tough competition, Chief Executive Rickard Gustafson said Thursday.

“We have to adapt to prevailing circumstances and I can therefore not exclude that we will make adjustments to the [cost saving measures] that we are currently working on,” Gustafson said in an interview with Dow Jones Newswires.

Scandinavia’s biggest airline Thursday reported a net loss SEK729 million for the first quarter, compared with SEK373 million the same period last year.

SAS said it should start to reap the benefits of a SEK5-billion cost-saving plan, announced in February, in the second half of 2012.

Shares in SAS, 50%-owned by the Swedish, Danish and Norwegian states, fell sharply. At 0921 GMT shares traded down 9.6% at SEK7.50.

“The report is clearly worse than expected,” said Jacob Pedersen, analyst at Sydbank. Pedersen said while it was no surprise that high fuel costs weighed on SAS’s performance, the airline is having difficulty in optimizing the use of its aircraft fleet in an increasingly competitive Nordic air-travel market.

Further complicating SAS’s outlook was Thursday’s decision by the owners of ……..

Read the full Dow Jones interview at The Wall Street Journal….. 


By Christina Zander, Dow Jones Newswires;
+46-8-5451-3104; email Christina


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