++ SAS sank to pre-tax losses of SKr248 million ($32 million) in the first quarter of 1997, as sales remained sluggish, but costs grew by 7%. The weakness of the Swedish krona was responsible for part of the gap, but after the exchange-rate effect is stripped out, seat costs were still up by 3.6% against a 3%fall in yields. Load factors also slipped as passenger traffic was unchanged, despite a 3% rise in capacity, mostly in the increasingly competitive Scandinavian market. The airline, which had earned SKr336 million in the first quarter of 1996, says that traffic is now picking up and looks stronger for the rest of the year. ++ Norwegian challenger Braathens SAFE also reports sluggish traffic growth in Scandinavia and a dip in operating profits to NKr84 million ($12 million) over the first three months. Braathens had ended 1996 with sales of nearly NKr4.5 billion, including the Transwede acquisition in Sweden, with net profits steady at NKr222 million. ++ Sabena recovered some of its ground in the first quarter, following the disastrous impact of strikes a year ago. Load factor edged up by three points to 57%,and this year the airline, which lost BFr8.8 billion ($247 million) says that it should hit its target to cut operating losses to around BFr1.5-2 billion. ++ Austrian Airlines increased profits to Sch102 million ($8 million) in 1996, after managing to creep above break-even in 1995. Passenger numbers grew by 7.6%, including a 14% boost in charter traffic. ++ The world airline industry saw operating-profit margins slip by a point in 1996, largely because of higher fuel costs and a strengthening US dollar, according to International Civil Aviation Organisation (ICAO) preliminary figures. The figures suggest that the net margin slipped to 4.3% on revenues of $282 billion, down from 4.3% in 1995. The net result is expected to improve because of lower interest rates, improved airline balance sheets and less expenditure on restructuring.
Source: Flight International
