Sunday, 8 March 2020

SAS reports passenger growth, unit revenues and passenger yield showed good development in February as COVID-19 only had a limited impact

SAS, the airline of Scandinavia has reported that passenger growth, unit revenues and passenger yield showed good development in February as COVID-19 had a limited impact. Due to the outbreak, SAS notes a reduced demand going forward and adjusts its route network and capacity accordingly.

Total capacity (ASK) and revenue passenger kilometres (RPK) increased by 1.4% and 0.5%, respectively, compared to last year. Currency adjusted unit revenue increased by 1.1% and passenger yield increased by 2.2%.

Following the outbreak of COVID-19, SAS suspended flights to/from Mainland China on 31 January, Northern Italy on 4 March and Hong Kong on 5 March. SAS is also adjusting other parts of network and reducing capacity on routes with lower demand.

- We have noted reduced demand due to the COVID-19 outbreak, primarily on intercontinental travel and travel to/from Northern Italy, but also in other parts of our network. We continue the close dialogue with relevant authorities and follow their recommendations. To mitigate some of the negative financial effects, SAS reduces long- and short haul network capacity on routes with low forward bookings. Given the fluid and uncertain situation, we are also pursuing a number of other initiatives to reduce costs and preserve our strong liquidity position, says Rickard Gustafson, CEO of SAS.

SAS scheduled trafficFeb20Change1Nov19- Feb20Change1
ASK (Mill.)3 4160.4%14 1750.7%
RPK (Mill.)2 232-0.7%9 5971.4%
Passenger load factor65.3%-0.7 p.p.67.7%+0.4 p.p.
No. of passengers (000)2,0353.4%8,1541.9%
Geographical development, scheduleFeb20            vs.           Feb19Nov19-Feb20    vs.     Nov18-Feb20
SAS charter trafficFeb20Change1Nov19-Feb20Change1
ASK (Mill.)21519.7%7148.0%
RPK (Mill.)19617.6%6578.0%
Load factor90.9%-1.7 p.p.91.9%+0.0 p.p.
No. of passengers (000)7520.2%21611.0%
SAS total traffic (scheduled and charter)Feb20Change1Nov19-Feb20Change1
ASK (Mill.)3 6321.4%14 8891.0%
RPK (Mill.)2 4280.5%10 2541.8%
Load factor66.8%-0.6 p.p.68.9%+0.5 p.p.
No. of passengers (000)2,1103.9%8,3702.1%
1 Change compared to same period last year.p.p. = percentage points
Preliminary yield and PASKFeb20Nominal changeFX adjusted change
Yield, SEK1.00+3.7%+2.2%
PASK, SEK0.66+2.5%+1.1%
Punctuality (arrival 15 min)  83.0%
Regularity  97.5%
Change in total COemissions, rolling 12 months  -3.1%
Change in COemissions per available seat kilometer  -2.9%
Carbon offsetting of passenger related emissions  45%

RPK – Revenue passenger kilometers
ASK – Available seat kilometers
Load factor – RPK/ASK
Yield – Passenger revenues/RPK (scheduled)
PASK – Passenger revenues/ASK (scheduled)
Change in COemissions per available seat kilometers – SAS passenger related carbon emissions divided with total available seat kilometers (incl. non-revenue and EuroBonus), rolling 12 months
Carbon offsetting of passenger related emissions – Share of SAS passenger related carbon emissions compensated by SAS (EuroBonus members, youth tickets and SAS' staff travel)
From fiscal year 2020 we report change in CO2 emissions in total and per Available Seat Kilometers (ASK) to align with our overall goal to reduce our total CO2 emissions by 25% by 2030, compared to 2005.

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