sas group€¦ · 2000-05-23 sas ir/stu stockholm, may 11, 2000 sas group 1st quarter 2000 press...
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2000-05-23
SAS IR/STU
Stockholm, May 11, 2000
SAS Group
1st Quarter 2000
Press Conference
www.scandinavian.net
2000-05-23
SAS IR/STU
Business highlights - 1st Quarter
Modest capacity increase
Traffic growth in both classes
"Millennium" effect
Improved passenger load factors
Strengthened home market position
Increased Jet Fuel costs
Result improvement program in progress
2000-05-23
SAS IR/STU
SAS GroupJanuary - March 2000
MSEKMSEKMSEKMSEK 2000200020002000 1999199919991999
Revenues 10 305 9 705
Cash flow 490 438
Gain on sales 13 387
Pre-tax profit -297 -11
2000-05-23
SAS IR/STU
Other highlights in 1st Quarter
SAS Cargo, Lufthansa Cargo and Singapore
Cargo in increased cooperation on air freight
SAS, BMA and Lufthansa in Joint Venture
Singapore and Austrian join Star AllianceTM
SAS tests Digital TV for communications with
customers
Star Alliance carriers take the lead in airline
industry B2B exchange
2000-05-23
SAS IR/STU
Increased cost focus - favorable
developments during 1st Quarter
Unit costs up 0.6%
Fuel Costs up MSEK 368 vs 1999
Jet fuel impact unit costs negatively by
4.1 p.u.
Result Improvement Program
MSEK 1350 achieved as of 1st Quarter
2000-05-23
SAS IR/STU
SIH - 1st Quarter stronger than 1999Income before taxes (MSEK)
-200
-100
0
100
200
300
400
500
600
1993 1994 1995 1996 1997 1998 1999
-50
0
50
100
150
200
Q1/2000 Q1/1999
PBT Gains
2000-05-23
SAS IR/STU
Radisson SAS Hotels & Resorts -
expanding to 129 hotels
0
20
40
60
80
100
120
140
1992 1993 1994 1995 1996 1997 1998 1999
No. of hotels
Owned Leased Managed Franchised
4 new hotels added
during 1st Quarter
Increased demand in
Belgium, Netherlands,
Germany and
Southern Europe
4 new hotels added
during 1st Quarter
Increased demand in
Belgium, Netherlands,
Germany and
Southern Europe
2000-05-23
SAS IR/STU
Share of full-fare traffic
total system 1995-2000
Moving 12 months values
Passenger load factor
total system 1995-2000
Increased load factors and stabilization
of Business Class development in Q1
Moving 12 months values
62%
63%
64%
65%
66%
67%
DEC94 MAR JUN SEP DEC95 MAR JUN SEP DEC96 MAR JUN SEP DEC97 MAR JUN SEP DEC98 MAR JUN SEP DEC99 MAR
28%
29%
30%
31%
32%
33%
34%
DEC94 MAR JUN SEP DEC95 MAR JUN SEP DEC96 MAR JUN SEP DEC97 MAR JUN SEP DEC98 MAR JUN SEP DEC99 MAR
2000-05-23
SAS IR/STU
Passenger load factors
North Atlantic/ Asia
Intercontinental routes1999- April 2000
"Millennium" effect
Asian routes "booming"
Reduced over- capacity
on North America
North America- improved
development - primarily
in Economy Class
Flexible Economy Class
ticket introduced
55
65
75
85
95
JAN
MAR
MAY
JUL
SEP
NOV
JAN
MAR
Month
Passenger
load factor
North Atlantic Asia
2000-05-23
SAS IR/STU
European routes - improvements1999- April 2000
Strong growth in
Economy Class
Improved passenger mix
Business Class -
improvements noted
Traffic to/ from U.K. -
strong in Business Class
Business Class/
Economy Class
80
90
100
110
120
130
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
Month
Growth vs LY Index
Economy Class Business Class
2000-05-23
SAS IR/STU
Danish routes affected by aircraft
introductory problems1999 - April 2000
Problems on Aarhus
Introductory problems
deHavilland Q400
Passenger load factor
improved
Problems on Aarhus
Introductory problems
deHavilland Q400
Passenger load factor
improved
Passenger load factor
50
60
70
80
JAN
MAR
MAY
JUL
SEP
NOV
JAN
MAR
Month
Passenger
load factor
Dansih domestic
2000-05-23
SAS IR/STU
Reduced over-capacity on Norwegian
domestic routes1999 - April 2000
Continued capacity
adjustments
Passenger load factor
still too low
SAS gains market shares
21% growth in Business
Class in Southern
Norway in Q1
Continued capacity
adjustments
Passenger load factor
still too low
SAS gains market shares
21% growth in Business
Class in Southern
Norway in Q1
Passenger load factor
40
50
60
70
JAN
MAR
MAY
JUL
SEP
NOV
JAN
MAR
Month
Passenger
load factor
Norwegian domestic
2000-05-23
SAS IR/STU
Swedish domestic routes strong1999- April 2000
Strong growth
New price concepts
introduced in September
Arlanda - Gothenburg and
Arlanda- Malmoe gain
shares from secondary
airport Bromma
Arlanda Express Train
stimulate traffic
Boeing 737-800 introduced
08MAY
95
105
115
125
135
JAN
MAR
MAY
JUL
SEP
NOV
JAN
MAR
Month
Growth vs LY Index
Economy Class Business Class
Business Class/
Economy Class
2000-05-23
SAS IR/STU
Reduced yield pressure in Q1Total system - currency adjusted
Overall yield down
0,6% in Q1
Growth in Business
Class, but still negative
mix
Continued yield
pressure in Economy
Class
Overall yield down
0,6% in Q1
Growth in Business
Class, but still negative
mix
Continued yield
pressure in Economy
Class-3%
-2%
-1%
0%
Q1/99 Q1/00
2000-05-23
SAS IR/STU
"CSI Index" 1996-1999
1997:1(Marts)
1997:2(November)
1996(Maj)
1998(November)
6568
70 701999
(November)
74
2000-05-23
SAS IR/STU
Prices and awards in 1999/ 2000
Grand Travel Award - Norwegian domestic
Best Swedish domestic airline
The Freddie Award - best international
frequent flyer program
1998 Mercury Award - catering and service
Cargo Airline of the Year
Second best reputation of world airlines -
(RI&HI)
Grand Travel Award - Norwegian domestic
Best Swedish domestic airline
The Freddie Award - best international
frequent flyer program
1998 Mercury Award - catering and service
Cargo Airline of the Year
Second best reputation of world airlines -
(RI&HI)
2000-05-23
SAS IR/STU
Scandinavian airports most punctual
in 1999
Copenhagen 18,3%
Stockholm 18,5%
Helsinki 18,9%
Oslo 22,3%
London LHR 25,7%
Amsterdam 30,3%
Copenhagen 18,3%
Stockholm 18,5%
Helsinki 18,9%
Oslo 22,3%
London LHR 25,7%
Amsterdam 30,3%
(Major hubs AEA punctuality statistics)
Delay >15 minutes
Zurich 32,5%
Frankfurt 33,5%
Brussels 35,4%
Paris CDG 36,4%
Rome 37,4%
Madrid 48,4%
Milan Malpensa 54,0%
Zurich 32,5%
Frankfurt 33,5%
Brussels 35,4%
Paris CDG 36,4%
Rome 37,4%
Madrid 48,4%
Milan Malpensa 54,0%
2000-05-23
SAS IR/STU
SAS' cargo business - in increased
cooperation
New Global Cargo
Agreement with Lufthansa Cargo and
Singapore Airlines Cargo signed 26APR00
Common products
Harmonization of sales, handling and IT
Revenue tonnes up 7%
Revenues up 2%
1st Quarter 2000
2000-05-23
SAS IR/STU
AIR FRANCEAIR FRANCEAIR FRANCEAIR FRANCEDELTADELTADELTADELTA
KLMKLMKLMKLM ALITALIAALITALIAALITALIAALITALIA
NORTHWESTNORTHWESTNORTHWESTNORTHWEST CONTINENTALCONTINENTALCONTINENTALCONTINENTAL
SWISSAIR SWISSAIR SWISSAIR SWISSAIR AUSTRIAN AUSTRIAN AUSTRIAN AUSTRIAN
SABENASABENASABENASABENA
'WINGS''WINGS''WINGS''WINGS'
????
SASSASSASSAS
LUFTHANSALUFTHANSALUFTHANSALUFTHANSA
UNITEDUNITEDUNITEDUNITED
AIR CANADAAIR CANADAAIR CANADAAIR CANADA
VARIGVARIGVARIGVARIG
THAITHAITHAITHAI
ANSETTANSETTANSETTANSETT
AIR NEW ZEALANDAIR NEW ZEALANDAIR NEW ZEALANDAIR NEW ZEALAND
ALL NIPPONALL NIPPONALL NIPPONALL NIPPON
BRITISH AIRWAYSBRITISH AIRWAYSBRITISH AIRWAYSBRITISH AIRWAYS
AMERICANAMERICANAMERICANAMERICAN
CANADIANCANADIANCANADIANCANADIAN
QANTASQANTASQANTASQANTAS
CATHAYCATHAYCATHAYCATHAY
IBERIAIBERIAIBERIAIBERIA
FINNAIRFINNAIRFINNAIRFINNAIR
LAN CHILELAN CHILELAN CHILELAN CHILE
AERO MEXICOAERO MEXICOAERO MEXICOAERO MEXICO
TAPTAPTAPTAP
AOMAOMAOMAOM
CROSSAIRCROSSAIRCROSSAIRCROSSAIR
TURKISHTURKISHTURKISHTURKISH
AIR LITTORALAIR LITTORALAIR LITTORALAIR LITTORAL
TYROLEANTYROLEANTYROLEANTYROLEAN
LAUDA AIRLAUDA AIRLAUDA AIRLAUDA AIR
AIR EUROPEAIR EUROPEAIR EUROPEAIR EUROPE????
SINGAPORESINGAPORESINGAPORESINGAPORE
BRITISH MIDLANDBRITISH MIDLANDBRITISH MIDLANDBRITISH MIDLAND
MEXICANAMEXICANAMEXICANAMEXICANA
Star Alliance stands strong in
current alliance turbulence
2000-05-23
SAS IR/STU
Star Alliance™Star Alliance™Star Alliance™Star Alliance™
� LufthansaLufthansaLufthansaLufthansa
� United AirlinesUnited AirlinesUnited AirlinesUnited Airlines
� Thai AirwaysThai AirwaysThai AirwaysThai Airways
� Air CanadaAir CanadaAir CanadaAir Canada
� VarigVarigVarigVarig
� Air New ZealandAir New ZealandAir New ZealandAir New Zealand
� Ansett AustraliaAnsett AustraliaAnsett AustraliaAnsett Australia
� All Nippon AirwaysAll Nippon AirwaysAll Nippon AirwaysAll Nippon Airways
� Singapore AirlinesSingapore AirlinesSingapore AirlinesSingapore Airlines
� Austrian Airlines GroupAustrian Airlines GroupAustrian Airlines GroupAustrian Airlines Group� MexicanaMexicanaMexicanaMexicana (by July '00) (by July '00) (by July '00) (by July '00)
British Midland and Mexicana new
members during 2000
Traffic SystemTraffic SystemTraffic SystemTraffic System
PartnersPartnersPartnersPartners� SpanairSpanairSpanairSpanair
� IcelandairIcelandairIcelandairIcelandair
� MaerskMaerskMaerskMaersk Air Air Air Air
� British MidlandBritish MidlandBritish MidlandBritish Midland
(by July '00 in Star Alliance)(by July '00 in Star Alliance)(by July '00 in Star Alliance)(by July '00 in Star Alliance)
RegionalRegionalRegionalRegional
PartnersPartnersPartnersPartners� Cimber AirCimber AirCimber AirCimber Air
� WideroeWideroeWideroeWideroe
� SkywaysSkywaysSkywaysSkyways
� Air BotniaAir BotniaAir BotniaAir Botnia
� airBalticairBalticairBalticairBaltic
� Estonian AirEstonian AirEstonian AirEstonian Air
� GrönlandsflyGrönlandsflyGrönlandsflyGrönlandsfly
2000-05-23
SAS IR/STU
British Midland Added to SAS' Joint
VenturesSAS capacity allocated
Non-SAS capacity
allocated
SAS capacity allocated
Non-SAS capacity
allocated
Between
Finland/Scandinavia and
Germany
Between Spain and
Scandinavia
Between Toronto and
Copenhagen
Between LHR and Milan,
Rome and Madrid
Between
Finland/Scandinavia and
Germany
Between Spain and
Scandinavia
Between Toronto and
Copenhagen
Between LHR and Milan,
Rome and Madrid
2000-05-23
SAS IR/STU
Approaching
2 million EuroBonus
members
Number of members during 1st
quarter increased by 4,4% to
1 886 000
Member distribution by country:Outside Scandinavia 30%
Denmark 16%
Norway 32%
Sweden 22%
Number of members
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 000
2 000 000
jan 96
jul 96
jan 97
jul 97
jan 98
jul 98
jan 99
jul 99
jan 00
2000-05-23
SAS IR/STU
Strong focus on costs - unit costs
down adjusted for fuel costsIndex Last Year
Increase of 0,6% in
1st Quarter
Down 3,5% adjusted
for fuel costs
Positively affected by
– Result Improvement
program
Increase of 0,6% in
1st Quarter
Down 3,5% adjusted
for fuel costs
Positively affected by
– Result Improvement
program-1%
0%
1%
2%
3%
4%
5%
6%
Q1/99 Q1/00
2000-05-23
SAS IR/STU
MSEK 1350 achieved as of 1st quarter 2000
Target by early 2001: 3 000 MSEK
Result Improvement Program 1999/00
Area Targeted effect vs. 1998
Cargo 100 MSEK
Catering & In-flight service 300 MSEK
IT & communications 250 MSEK
Distribution & Electronic channels 800 MSEK
Air crew 610 MSEK
Ground handling 300 MSEK
Technical maintenance 310 MSEK
Overhead & other 360 MSEK
Total 3030 MSEK
2000-05-23
SAS IR/STU
Fleet composition according to
strategy - five new units during Q1 CHANGE 30MAR00 Changes until end year 2000
Boeing 767-300 - Unchanged
MD-80 - Unchanged
MD-90 - Unchanged
Boeing 737 +5 15 new deliveries
DC-9-81 - Phase out 2000
DC-9-41 -1 Phase out 2001
DC-9-21 -1 Phase out 2000
Boeing 737-300 - Flexible capacity, wet lease
Fokker F28 -1 Phase out 1999/00
Fokker F50 - Gradual phase outGradual phase outGradual phase outGradual phase out
DeHavilland Q400 +3 Phase in 2000
SAAB 2000 - Gradual phase out
TOTAL +5
2000-05-23
SAS IR/STU
www.scandinavian.net
2000-05-23
SAS IR/STU
Electronic Channels -
more news to come..
New web site launched
in (NOV99)
WAP-based booking
service (JAN00)
Tests of Digital -TV
communications with
customers (MAY00)
European Travel Portal
(MAY00)
New web site launched
in (NOV99)
WAP-based booking
service (JAN00)
Tests of Digital -TV
communications with
customers (MAY00)
European Travel Portal
(MAY00)
TicketlessTicketlessTicketlessTicketless travel travel travel travel
E-TIX, TPC, TP
12% of total
Scandinavian sales
(up from 6%)
Travel Pass Corporate
(TPC) - a great
success
TicketlessTicketlessTicketlessTicketless travel travel travel travel
E-TIX, TPC, TP
12% of total
Scandinavian sales
(up from 6%)
Travel Pass Corporate
(TPC) - a great
success
2000-05-23
SAS IR/STU
Travel Pass Corporate -
exponential development
Reduced distribution
costs
– Bookings online
Increased customer
value
– Pay as you fly!
Focus on corporate
accounts
– Bonus on volume
Reduced distribution
costs
– Bookings online
Increased customer
value
– Pay as you fly!
Focus on corporate
accounts
– Bonus on volume
0
1 000
2 000
3 000
4 000
5 000
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Okt
Nov
Dec
Jan
Feb
No of active cards each monthNo of active cards each monthNo of active cards each monthNo of active cards each month
0
1 000
2 000
3 000
4 000
5 000
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Okt
Nov
Dec
Jan
Feb
No of active cards each monthNo of active cards each monthNo of active cards each monthNo of active cards each month
2000-05-23
SAS IR/STU
First European online portal takes offAnnounced today
First European, multi-airline, online travel
market created
10 major European participants
Most up-to-date fare information
Lowest branded fares
To cut the cost of selling and distributing
tickets significantly
2000-05-23
SAS IR/STU
April traffic figures- a mixed picture
Strong growth and sharply increased load factors
Business Class affected by Easter periods
Passenger-Passenger-Passenger-Passenger- Seat capacitySeat capacitySeat capacitySeat capacity Cabin-Cabin-Cabin-Cabin-
traffic (RPK)traffic (RPK)traffic (RPK)traffic (RPK) (ASK) (ASK) (ASK) (ASK) factorfactorfactorfactor
SAS TotalSAS TotalSAS TotalSAS Total +7,0%+7,0%+7,0%+7,0% -1,4%-1,4%-1,4%-1,4% +5,3 p.u.+5,3 p.u.+5,3 p.u.+5,3 p.u.
IntercontinentalIntercontinentalIntercontinentalIntercontinental +12,9%+12,9%+12,9%+12,9% +2,6%+2,6%+2,6%+2,6%
EuropeEuropeEuropeEurope +4,2%+4,2%+4,2%+4,2% -1,2%-1,2%-1,2%-1,2%
Domestic andDomestic andDomestic andDomestic and +3,4%+3,4%+3,4%+3,4% -5,2%-5,2%-5,2%-5,2%
IntrascandinavianIntrascandinavianIntrascandinavianIntrascandinavian
2000-05-23
SAS IR/STU
Operating key figures - year 2000
2000
ASK
Frequencies
Up approx 3%
Marginally up
RPK Up 7-8%
Passenger yield Down 1-2%
Unit costs Down
Increased traffic growth scenario
Continued pressure on yields
SAS
2000-05-23
SAS IR/STU
The Board of Directors
Assessment for full year 2000:
Full year forecast from February 17
maintained
Efforts to reduce unit cost continues
Jet fuel expense estimated at MSEK 3000
for 2000 as a whole
Income before taxes ex gains - around
MSEK 1000
Capital gains estimated at MSEK 1700
2000-05-23
SAS IR/STU
European airline sharesRelative development since January
1999
75757575
85858585
95959595
105105105105
115115115115
j an-jan-jan-jan-
99999999
feb-feb-feb-feb-
99999999
mar-mar-mar-mar-
99999999
apr-apr-apr-apr-
99999999
maj-maj-maj-maj-
99999999
jun-jun-jun-jun-
99999999
jul-jul-jul-jul-
99999999
aug-aug-aug-aug-
99999999
sep-sep-sep-sep-
99999999
okt-ok t-ok t-ok t-
99999999
nov-nov-nov-nov-
99999999
dec-dec-dec-dec-
99999999
jan-jan-jan-jan-
00000000
feb-feb-feb-feb-
00000000
mar-mar-mar-mar-
00000000
Index
Index
Index
Index Peers
SAS