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Q1 losses not as bad as anticipated for SAS

admin
March 5th, 2015


This article is more than 9 years old.

Strike cost the airline 40 million kroner

Scandinavian Airlines' financial results for the first quarter of its financial year – a pre-tax loss of 670 million kroner on a turnover of 6.7 billion kroner – might look less than rosy, but it's actually far better than experts had anticipated.

The profit margin for the period came in at -7.8 percent, compared to 1.7 percent last year during the same period. SAS's expectations remain the same for the rest of the year.

“The first quarter of the fiscal year [November-January] is seasonally the weakest and SAS posted income before tax and non-recurring items of -670 million kroner,” Rickard Gustafson, the CEO of SAS, said.

”This is an earnings improvement of 275 million kroner and an increase in unit revenue of 6.7 percent compared with the year-earlier period, which confirms that our commercial focus on Scandinavia’s frequent travellers is generating effect.”

READ MORE: SAS back in the skies as strike ends

"Exciting 2015"
Gustafson was excited about 2015, looking forward to the delivery of the airline's first new Airbus A330E long-haul aircraft and the opening of a new direct route between Stockholm and Hong Kong

The airline has been under pressure over the past week thanks to a cabin crew strike that lasted several days and led to over 300 departures being cancelled.

SAS estimated that the strike cost them around 40 million kroner.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”