Signs continue that Scandinavian Airlines (SAS) has emerged from crisis after it reported strong quarterly results of SEK 1.12 billion this week. An analyst who follows SAS said the profits were a result of the airline’s tough cost-cutting program.
“The balance sheet clearly shows that the strategy is working,” analyst Jacob Pedersen of Sydbank told Ritzau Finans of Denmark. The airline is also seeing growth in its core Scandinavian markets even though competition among European airlines is tough.
“Things are going better and the period with enormous losses is behind them,” another analyst, Preben Rasch-Olsen told news bureau NTB. “Prospects are better for the next few years, but it will still be difficult to achieve satisfactory profitability.”
SAS chief executive Rickard Gustafson said the airline’s crises are over and he hopes to see the airline end the year profitably as well.