The SAS Group, operator of Scandinavian Airlines, reported a losses Thursday for the fourth quarter of 2004 and for the year. Post-tax losses for the quarter were 636 million kronor (89.8 million dollars) compared to a 581-million-kronor loss for the corresponding business period in 2003. The post-tax loss for the full year 2004 was 1.87 billion kronor (264 million dollars), compared to the 1.42 billion kronor loss reported for 2003. The SAS management and board had warned that the group would report a loss for 2004. Chief Executive Officer Jorgen Lindegaard said the group was affected by high fuel prices and aircraft overcapacity. Operating revenue for 2004 increased 0.6 per cent to 58.07 billion kronor (8.2 billion dollars). "We expect continued intense competition and overcapacity in many markets. The proportion of low-cost travel is growing but the pure- play, low-cost carriers can expect increased competition from the network companies," Lindegaard said. The corporate savings programme aimed at saving costs totalling 14 billion kronor (1.97 billion dollars) by 2005 would continue. So far, 85 per cent of these savings had been achieved, the group said. With that programme in place, favourable traffic development and "no significant changes in the business environment" the group said it may be back in black this year. The SAS Group flew some 32.4 million passengers during 2004, a 4.4 per cent increase on 2003. The group's cabin factor, or occupancy rate, increased by 0.2 per cent to 63.7 per cent.
