SAS HAS REPORTED ITS first pre-tax profit in five years, following the major reworking of finances and operations, which was stepped up at the start of 1994.

In a brief preliminary statement, the Scandinavian airline group revealed that it expects its 1994 profit to come in at SKr1.5 billion ($200 million), marking a turnaround from the SKr492 million lost in 1993. The total pre-tax losses since 1989 had mounted to SKr3.3 billion.

The positive result comes despite a SKr600 million increase in depreciation costs, after the introduction of a new formula, and another SKr1 billion to cover restructuring. That was partially offset by some SKr850 million raised from asset sales, says SAS.

At the start of 1994, the group planned to cut costs by SKr2 billion over the year, including the loss of around 2,900 jobs.

Businesses, including SAS Service Partner, SAS Leisure and a 42% stake in LanChile, have also been sold.

Source: Flight International