=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/2003/02/12/f= inancial0832EST0024.DTL ---------------------------------------------------------------------- Wednesday, February 12, 2003 (AP) SAS posts narrower fourth quarter loss MATT MOORE, AP Business Writer (02-12) 05:32 PST STOCKHOLM, Sweden (AP) -- SAS Group posted a smaller fourth-quarter loss Wednesday, and said it plans to continue restructuring its operations in a bid to counter declining passenger numbers and competition from low-cost, no-frills air carriers. SAS, the joint carrier of Sweden, Denmark and Norway, lost 284 million kronor ($33.2 million) for the three months ended Dec. 31 in contrast to a loss of 997 million kronor a year ago. Revenue rose to 16.7 billion kronor ($1.9 billion) from 12.8 billion kronor a year ago. For the year, the company, which operates Scandinavian Airlines Systems, hotels and airline support businesses, lost 132 million kronor ($15.5 million) compared with 1 billion kronor in 2001. Revenue rose to 64.9 billion kronor ($7.6 billion) from 51.4 billion kronor in 2001. In trading Wednesday, shares of SAS were down 0.30 kronor (4 cents) to 36.50 kronor ($4.30) on the Stockholm stock exchange. "An apprehensive market combined with intense competition is putting pressure on revenues. This is the reality in which SAS lives," said president and chief executive Joergen Lindegaard. He said 2003 would be a year of restructuring for Scandinavian Airlines and cited concern over a possible war in Iraq and the "uncertain global political situation." The company declined to present an outlook for its earnings through 2003. It also doesn't plan to pay a dividend to shareholders. The restructuring includes the appointment of Soeren Belin as the new chief operating officer of Scandinavian Airlines. Lindegaard said that Belin has "solid hands-on experience of our sector and is highly competent to lead the process of change that is of special significance to us at the present time." Belin was previously with consulting firm Cara Booz Allen & Hamilton, but worked for SAS from 1993-1995, overseeing its station operations in Sweden. SAS reported a decline in the number of passengers in Scandinavia and Europe during the fourth quarter, but said overseas flights offset the decline. For the quarter, the number of passengers fell by 2.7 percent to 5.1 million from 5.3 million a year ago. For the year, the number of passengers fell 5.2 percent to 21.8 million from 23 million in 2001. In Europe, traffic was down by 4.6 percent for the year and travel betwe= en its Scandinavian routes fell by 7.7 percent during 2002. Domestic travel in Denmark fell 12.4 percent in the fourth quarter while traffic in Norway was down by 27.7 percent. In Sweden, traffic was down by 5.4 percent for the quarter. In December, SAS said it would offer low-cost flights to several European cities, part of an effort compete with airlines like Dublin, Ireland-based Ryanair. The as-yet unnamed budget airline targets private customers who want to travel inexpensively to European destinations. On the Net: SAS: www.sas.se =20 ---------------------------------------------------------------------- Copyright 2003 AP