=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/05/14/f= inancial1130EDT0093.DTL ---------------------------------------------------------------------- Tuesday, May 14, 2002 (AP) SAS posts $129 million loss, company being restructured (05-14) 08:30 PDT STOCKHOLM, Sweden (AP) -- Scandinavian Airlines System on Tuesday posted a first-quarter net loss = of 1.32 billion kronor ($129 million) but said the negative earnings trend had "reached its lowest point" and a recovery was on the way. SAS, which had a first-quarter net profit of 13 million kronor last year, said the number of passengers decreased by 7.1 percent and traffic was down by 1.1 percent during the three months ending March 31. The joint flag carrier for Sweden, Denmark and Norway said operating revenue increased 13.5 percent to 13.77 billion kronor ($1.34 billion) in the period. The airline said there was still considerable uncertainty regarding mark= et development and demand for the airline industry after Sept. 11, but it was optimistic about the future. "Economic development in the U.S. and Europe is giving signals that a recovery is on its way," the company said. "The SAS Group considers that the negative earnings trend has now reached its lowest point." Also Tuesday, deputy chief executive Marie Ehrling, who is chief operati= ng officer of the group's largest airline unit, announced she had decided to resign, effective immediately, after 18 years with the company. Her positions will be phased out as operations are restructured into four business areas -- SAS airline, subsidiary and affiliated airlines, airline support and airline-related businesses and hotels. SAS, which has 35,000 employees after its acquisition of Norwegian carri= er Braathens ASA, reported a loss of 1.1 billion kronor last year, compared with a profit of 2.1 billion kronor in 2000. The group also suffered its biggest disaster when 118 people were killed in an SAS crash in Milan, Italy, on Oct. 8. =20 ---------------------------------------------------------------------- Copyright 2002 AP