SAS releases preliminary earnings for fiscal year 2016/2017
SAS reports a pre-tax profit of SEK 1.7 billion for the 2016/2017 fiscal year and forecasts steady income for the upcoming year amid market volatility.
SAS has released preliminary earnings for the 2016/2017 fiscal year, reporting revenue of approximately SEK 42.5 billion and a pre-tax income of SEK 1.7 billion. The results were announced ahead of an extraordinary shareholders' meeting as the company prepares to transition into the next fiscal period.
The final quarter of the year saw non-recurring costs totaling SEK 0.5 billion, linked to IT investments, personnel changes, and maintenance overheads. Additionally, currency fluctuations and balance sheet translations impacted earnings negatively by over SEK 0.2 billion. Despite these pressures, the company maintained a financial preparedness level of 37%.
Looking ahead to 2017/2018, SAS has set a guidance for income before tax and non-recurring items between SEK 1.5 billion and SEK 2.0 billion. The airline plans to moderate capacity growth to 1–3%, while targeting SEK 0.7 billion in savings through ongoing efficiency measures.
Management noted that macro-environmental uncertainty, specifically volatile jet fuel prices and a strong US dollar, remains a risk factor. While SAS has hedged a portion of its fuel and currency exposure, these external variables could influence future earnings.