This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ SAS Group Sees Drop in 2nd - Quarter Profit August 11, 2003 By THE ASSOCIATED PRESS Filed at 10:24 a.m. ET STOCKHOLM, Sweden (AP) -- Scandinavian travel conglomerate SAS Group reported a drop in second-quarter net profit on Monday, citing lower demand for air travel due to the SARS outbreak. The group earned 66 million kronor ($8.1 million), or 0.40 kronor (5 cents) per share, in the three months ended June 30, compared with 968 million kronor in the same period last year. The group saw an 8.3 percent drop in passengers, notably on international routes operated by its main carrier, Scandinavian Airlines System. Traffic to Asia was particularly affected by the outbreak of severe acute respiratory syndrome, the group said. Sales for the quarter were 15.3 billion kronor ($1.88 billion), down from 17.8 billion kronor a year earlier. Due to a weak first quarter, SAS recorded a net loss of 1.53 billion kronor ($188 million) for the first half of the year, which chief executive Joergen Lindegaard called ``unsatisfactory.'' ``Customers are demanding less expensive tickets, and the challenge we face is that of providing travel at a lower price while maintaining the quality people expect from us,'' he said in the report. ``This underscores the need to continue cutting costs.'' The SAS group announced in the spring that it would eliminate 4,000 jobs, or nearly 13 percent of its work force, to counter dropping demand and increased competition from low-cost, no-frills carriers. Lindegaard said the company's cost-cutting program was proceeding as planned. SAS shares were up 5.4 percent at 48.60 kronor ($6.00) in afternoon trading on the Stockholm Stock Exchange. Scandinavian Airlines, the joint carrier of Sweden, Denmark and Norway, flies to more than 90 destinations worldwide from bases in Stockholm, Copenhagen and Oslo. The group also includes regional airlines Spanair, Braathens, Wideroe and Air Botnia, as well as the Rezidor SAS hotel chain. ^------ On the Net: SAS: http://www.sas.se http://www.nytimes.com/aponline/business/AP-Earns-SAS.html?ex=1061632151&ei=1&en=ee8f3b1250f4155c --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company