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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
Adria Airways
Aegean Airlines
Aeroflot
Air Canada
Air China
airBaltic
All Nippon Airways
Austrian Airlines
Croatia Airlines
EgyptAir
Estonian Air
Ethiopian Airlines
Icelandair
LOT Polish Airlines
Lufthansa
NextJet
Rossiya - Russian Airlines
Singapore Airlines
South African Airways
SWISS
Thai Airways
Turkish Airlines
United Airlines
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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1,353 total articles

and

97 total articles

and

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”.

SAS Group has a weak 1Q2014 as predicted, in spite of cost cuts. Is it time for capacity cuts?

19-Mar-2014 5:40 PM

When it announced a return to profit for FY2013 in Dec-2013, SAS warned that 1QFY2014 would be “extremely weak”. Its prediction has proved correct. The SAS Group’s 1Q pre-tax loss (before non-recurring items) widened by 57%. It continued to make good progress with its 4Excellence Next Generation (4XNG) cost reduction plan, but highly competitive market conditions weighed heavily on unit revenues.

SAS President and CEO Rickard Gustafson commented that the quarter was “marked by overcapacity and lower growth, which put pressure on margins across the entire market.” In this respect, SAS may be contributing to its own problems as it plans faster growth than the market this summer.

Its cost cutting and product improvement credentials are strengthening with each passing quarter, but its capacity growth is clearly not being absorbed profitably by the market.

SAS returns to profit in FY2013 through cost reduction, but is not out of the woods yet

20-Dec-2013 8:32 PM

The SAS Group returned to net profit in FY2013, mainly through successful cost reduction. There was no growth in revenues, in spite of 6% ASK growth by the core SAS airline. In addition to cost cutting, the group’s restructuring in the year also included the sale of 80% of its Norwegian regional subsidiary Widerøe and the sale of 10% of its ground handling operation to Swissport as a first step in what is intended eventually to be a full disposal.

Improved profitability was essentially the result of SAS lowering its unit costs, CASK, faster than the decline it suffered in unit revenues, RASK. In both cases, this extends the trend of recent years. However, in spite of attempts to shore up demand (with some success – it has grown membership of its EuroBonus FFP), the slide in RASK accelerated in 4Q2013. This was partly currency related, but also reflects tough competitive dynamics in SAS’ markets.

Moreover, its CASK reduction in the year, while commendable, still leaves it with one of the highest levels of unit costs in Europe. SAS is not out of the woods yet - but the profit is a welcome result.

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