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19-Dec-2014 12:39 PM

SAS posts positive earnings in 4Q2014, earnings reflect impact of competition and price pressure

SAS CEO and president Rickard Gustafson stated (18-Dec-2014) the carrier has posted positive earnings in 4Q2014 in line with its forecast, with earnings "clearly" reflecting the impact of "intense competition and continued strong price pressure in the market." During 4Q2014, the currency-adjusted unit cost fell 1.1%, resulting in an accumulated 3.9% reduction for the fiscal year. Mr Gustafson said, "Despite a challenging market, our established strategy has generated results and, during the quarter, SAS has continued to post robust passenger growth. The intense price pressure during the year has impacted the entire industry and escalated the reshaping of the European airline industry. The new norm with external production models, the launch of proprietary low cost carriers and using staffing agencies is becoming increasingly established and is radically changing competitive conditions." The carrier has initiated discussions with its trade unions to achieve increased flexibility and reduced complexity, with plans to implement cost measures to "win the battle for Scandinavia's frequent travelers and to invest in the future." [more - original PR]

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