No 2012 guidance from SAS

As had been made known before, SAS’s (STO: SAS, OSE: SAS,CPH: SAS) earnings before taxes and non-recurring items for 2011 were slightly positive. The Spanair write-down pushed full year net income nearly 1.7 billion into minus. Consequently Q4 2011 was even more in the red than that at more than 2 billion as operations also posted a loss for the quarter. Annual revenues were slightly over 41 billion with Q4 just topping 10 billion.

The company was happy about reduced costs, the billing of the most punctual airliner in Europe in 2011 and for carrying 2 million more customers (27 million in total) than in the previous year. Out of the 22 new routes launched in 2011, CEO Rickard Gustafson highlighted Oslo- New York as a route that achieved exceptionally high load factors.

SAS calls the current situation even more challenging with competitive market, high jet-fuel prices and global economic uncertainty. Thus the company decides to accelerate its 4Excellency strategy. This will mean a reduction of administration staff by 300. The program aims for 5 billion in revenue and cost cutting impact by the end of 2013.

First quarter is usually seasonally weak for SAS to begin with. The company says that in light of the prevailing market conditions, this will also be the case in 2012. The company predicts continued pressure on yield and revenue per available seat kilometre (RASK). The firm is planning for this weaker scenario but is unwilling to give definite guidance. SAS’s stock is down slightly going into afternoon session.