STOCKHOLM, Sweden, Jan. 13, 2003 (PRIMEZONE) -- The SAS Group (Other OTC:SASDF) December Traffic Development -- Highlights:
-- The SAS Group transported a total of 2.3 million passengers in
December 2002 vs. 1.7 million in 2001, an increase of 38%
(excludes Braathens and Spanair in 2001).
-- Overall group passenger load factor increased by 0.7 p.u to 60.6% for
December 2002 vs. 2001.
-- Scandinavian Airlines traffic (RPK) increased by 3.8% in December
2002 compared with 2001.
-- Scandinavian Airlines passenger load factor increased by 1.4 p.u.
to 63.5%
-- Scandinavian Airlines passenger load factor on intercontinental routes
increased by 0.9 p.u. to 74.4%.
Negative Trading Environment with Continued Pressure on Yields in Scandinavian Airlines
The traffic and yield development in November and December was weak as expected and indicates a tougher trading environment going forward. Passenger load factors continued to improve for most airlines in the group, but the rate of the improvements are less than previous months.
When comparing December 2002 with 2001 it is important to take into account the weak comparable last year. Since the situation last year, capacity has been reduced significantly on Scandinavian Airlines routes. A new traffic program was introduced October 27 with additional reduced capacity on European and Swedish domestic routes as well as the termination of the Greenland route (Danish domestic).
Among the group's airlines, Braathens showed a strong increase in passenger load factor of 7.0 p.u while Spanair's load factor was weaker, affected by slow demand. Wideroee's showed strong growth and improved passenger load factors.
Early indications of passenger yields in December show pressure on yields for Scandinavian Airlines as a result of change of routes, negative mix, campaigns and other market activities. Yield (unit revenues) for November 2002 was down 17% vs. November 2001. Currency adjusted by the reduction was 15%. Accumulated yield from January 2002 - November 2002 was down 3.5% or 4% currency adjusted. The overall yield development is significantly affected by more capacity on intercontinental routes with lower yields. As comparison, the yield on European routes was down approx 4-5% in November/December, slightly weaker than 3rd Quarter 2002 levels of 2-3%.
The continued improvements in passenger load factors for all airlines in the SAS Group are according to set out plan, but the pace has slowed down. Yield development is still weak for Scandinavian Airlines. The overall market outlook remains negative for the coming months as a result of economic slowdown in Scandinavia and weaker world economies and general market development.
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