Scandinavian airline SAS reports 2011 net loss

Feb 8, 2012, 9:20 GMT

Stockholm - Scandinavian airline SAS on Wednesday reported a net loss of 1.6 billion kronor (240 million dollars) for 2011, attributed largely to the bankruptcy of Spanair, in which it owns a 10.9-per-cent stake.

The group said the Spanish carrier's bankruptcy cost it 1.7 billion kronor. In 2010, SAS posted a net loss of 2.2 billion kronor.

'As dissatisfactory as it may be, after adjustments for the effects of Spanair, we delivered marginally positive earnings,' SAS chief executive Rickard Gustafson said.

Turnover in 2011 increased slightly to 41.4 billion kronor, with 27 million passengers flying with airlines operated by the group, 7.8 per cent more than the previous year.

The outlook for 2012 was challenging, the group said, citing uncertainties over how the global economy and fuel prices develop, and capacity in the market.

SAS said it plans to accelerate cost cutting. The 4Excellence programme launched in September was estimated to give savings of 5 billion kronor in 2012-2013.

The SAS Group had about 14,950 employees at the end of December, compared to 15,123 year-on-year.