SAS: posts 'disappointing' results, shares down
(CercleFinance.com) - Shares in Scandinavian airline SAS dived on Tuesday after the company posted a"disappointing" drop in quarterly profit and said it faced "macroeconomic headwinds".
The airline, which is partly owned by the Swedish, Norwegian and Danish States, posted a third-quarter net income of 1.16 billion Swedish kronor for the May-July period, against 1.57 billion Swedish kronor a year ago.
SAS attributed this decrease to a rise in fuel costs, the Swedish krona's continued weakness against the US dollar, and a pilot strike at the beginning of the quarter.
Due to new records for passenger numbers in both June and July, revenue came in at 13.55 billion kronor, representing an increase of over 3% compared with the same quarter last year.
Looking ahead, several challenges remain unchanged, SAS noted, citing the continued weakness of the Swedish krona against the US dollar and the euro, as well as the emerging slowdown in the European and global economies.
The group has reiterated its full year outlook that it will be challenging to reach a positive result before tax and items.
SAS shares were down 4.2% at 12.1 Swedish kronor after the report, and have now fallen by over 42% year-to-date.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The airline, which is partly owned by the Swedish, Norwegian and Danish States, posted a third-quarter net income of 1.16 billion Swedish kronor for the May-July period, against 1.57 billion Swedish kronor a year ago.
SAS attributed this decrease to a rise in fuel costs, the Swedish krona's continued weakness against the US dollar, and a pilot strike at the beginning of the quarter.
Due to new records for passenger numbers in both June and July, revenue came in at 13.55 billion kronor, representing an increase of over 3% compared with the same quarter last year.
Looking ahead, several challenges remain unchanged, SAS noted, citing the continued weakness of the Swedish krona against the US dollar and the euro, as well as the emerging slowdown in the European and global economies.
The group has reiterated its full year outlook that it will be challenging to reach a positive result before tax and items.
SAS shares were down 4.2% at 12.1 Swedish kronor after the report, and have now fallen by over 42% year-to-date.
Copyright (c) 2019 CercleFinance.com. All rights reserved.