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SAS

IATA Code
SK
ICAO Code
SAS
Corporate Address
Frosundaviks Alle 1
19587 Stockholm
Sweden
Website
http://www.flysas.com
Main hub
Copenhagen Kastrup Airport
Country
Sweden
Business model
Full Service Carrier
Network
Domestic | International
Airline Group
Part of SAS Group
Alliance
Star Alliance
Joined Alliance
1997
Association Membership
AEA
IATA
Codeshare Partners
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SWISS
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Widerøe

Based in Stockholm, Scandinavian Airline System (SAS) is the national airline of three Scandinavian States; Denmark, Norway and Sweden, operating three primary hubs at Copenhagen-Kastrup Airport, Stockholm-Arlanda Airport and Oslo Gardermoen Airport. SAS’ network consists of extensive regional services within Scandinavia and Europe as well as international services to Asia and North America. SAS is member of the Star Alliance.

Location of SAS main hub (Copenhagen Kastrup Airport)

SAS Group share price


 
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1,377 total articles

and

99 total articles

and

SAS Scandinavian Airlines: 3Q profits down as yield weakness continues at Europe's high cost airline

12-Sep-2014 4:41 PM

Another quarter, another fall in yield for Scandinavian Airlines, SAS. The Nordic region's largest airline reported a year on year decline in profits in 3QFY2014 and a fall into loss for 9M. It has made good progress with its cost reduction programme, but costs are not falling fast enough to offset tumbling yields and SAS remains one of Europe's highest cost airlines.

Healthy load factor gains demonstrate that SAS has some appeal to the Scandinavian frequent flyers that it desires, but price discounting remains a key feature of this appeal. Overcapacity in its markets has contributed to yield weakness, but its many LCC competitors are better positioned to provide the lower fares demanded by the market. In spite of some easing of the supply/demand imbalance, SAS expects continued yield pressure.

SAS' number one priority is an additional cost reduction programme, full details of which will be announced by the end of 2014.

Europe's airlines: 1H2014 results season shows improving trend, but cost reduction is the key driver

7-Sep-2014 11:28 AM

Europe's airlines appear to be following a course to improved profitability, based on the 1H2014 results of the largest publicly quoted airline groups. Profits remain slender in most cases, but margins are improving in aggregate. Individually, financial performance varied widely, with LCCs both leading (Ryanair) and lagging (Norwegian) the operating profit margin rankings in 1H2014.

The European market offers volume growth, but is characterised by price pressure, with RASK falling for the majority of the larger airline groups and this points to the need for additional caution in capacity growth. The LCCs collectively enjoyed higher growth than the FSCs in 1H2014 and also achieved a more stable RASK performance (although not in all cases).

Profit improvement is largely being achieved through cost savings and CASK reduction. Although fuel prices are high on a longer term historic perspective, they are enjoying a period of relative stability and this has helped the cost picture. Although Europe's airline sector remains only thinly profitable, these 1H results hold out the prospect of better full year results in 2014 versus 2013.

SAS yield decline outweighs cost cuts to give wider losses in 2Q. Market share versus profitability?

20-Jun-2014 11:00 AM

SAS posted another pre-tax loss in 2QFY2014 after a weak 1Q result. For 1HFY2014, its pre-tax loss before non-recurring items was more than three times that of the same period a year earlier. It continued to make good progress with its 4XNG cost reduction programme, achieved further load factor gains and improvements in labour productivity and aircraft utilisation. However, the positive effect of these factors was wiped out by plummeting yields, attributed by SAS to overcapacity in Scandinavian markets.

In response to the weakening revenue and profitability environment, SAS has announced a new cost savings target and is taking action to "win the battle for Scandinavia's frequent travellers" through improvements to its product offering. Its recent re-capitalisation gives it more time to attempt to build a sustainably profitable business, or at least one that may become part of the next phase of European consolidation (whenever that might be).

Airline consolidation: could Europe follow North America's path to improved margins?

4-Jun-2014 6:24 AM

IATA's latest airline industry financial forecasts highlight the different performance of the different regions of the world. North America is the most profitable region, measured by its net margin (net profit as a percentage of revenues) and Africa the least profitable. Europe has the second lowest margin, but has gained a little on fourth ranked Asia Pacific. Latin America has improved the most since 2012 to rank second, just ahead of the Middle East.

North America has had a relatively good recovery, while Asia Pacific's margins have fallen from their 2010 peak. Even North America's net profit is only 4.3% of revenues, its best since the late 1990s, but still a very thin margin.

Analysis of the relationship between net profit margins and various explanatory factors appears to confirm that market concentration is a key one. Europe's perennial underperformance in airline margin terms – in spite of the region's wealth, high propensity for air travel and high load factors – owes much to the fragmented nature of the market. Nevertheless, a European deal that is truly transformational in terms of its market structure remains unlikely for now.

Singapore Airlines seeks to expand its partnership portfolio further following a spate of new deals

20-May-2014 10:00 AM

Singapore Airlines (SIA) is focusing on further expanding its partnership portfolio to provide a more comprehensive network and boost feed. New deals have been forged over the last six months with Air New Zealand, Asiana, EVA Air and Turkish Airlines as part of an ongoing initiative which is expected to generate more new or expanded partnerships by the end of 2014.

SIA has already more than doubled its codeshare segments over the last three years as it has added eight new partners and strengthened several existing partnerships. The group is now negotiating several more new partnerships while seeking opportunities to improve connectivity with existing partners.

In this analysis CAPA examines the increasingly important role partnerships are playing in SIA’s European, African and Middle Eastern networks. In a second part, to be published later this week, CAPA will focus on SIA’s need to rely more on partners to expand across the Americas.

Lufthansa pilot strike highlights labour issues for Europe's legacy carriers. It's time to wake up

1-Apr-2014 3:41 PM

An impending three day strike by Lufthansa pilots – described by the carrier as "one of the biggest walkouts" in its history – highlights what continues to be a challenging labour relations environment for Europe's legacy carriers. In spite of years of competition from LCCs and cost efficient long-haul players, and after significant progress with restructuring programmes, such disputes remain common.

Labour-related issues are affecting a number of other airlines, including Austrian Airlines, Air France, Aer Lingus, SAS and Finnair. Even LCC Norwegian Air Shuttle faces key strategic questions in connection with the use of low-cost labour to grow its nascent long-haul business. In general, however, LCCs enjoy a less unionised environment and greater labour flexibility.

It is not uncommon for labour unions to become more militant as the profit cycle picks up, but airlines cannot always hide behind this excuse. As IAG CEO Willie Walsh has said*, "it is not about unions, but management. Management needs determination and can do it if it wants to…Cost creep is requested by unions, but made by management”.

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