SAS Group Interim Report January-June 2007

SAS Group Interim Report January-June 2007

Key ratios for first six months:
· Operating revenue: MSEK 30,133 (29,131) (+3.4%)

· Number of passengers : 20.1 million (+5.8%)
· Income before nonrecurring items in continuing operations: MSEK 369 (-588)

· EBT margin before nonrecurring items: 1.2% (-2.0%)

· Net income for the period: MSEK 560 (-511)

· Earnings per share: SEK 3.44 (-3.31)

Income and key ratios

                 Apr-Jun     Apr-Jun     Jan-Jun     Jan-Jun     Jul-Jun
(MSEK)              2007        2006        2007        2006     2006-07
Revenue           16,294      16,155      30,133      29,131      61,615

EBITDAR            2,230       2,035       3,174       2,225       7,477

Income before                                                           
nonrecurring
items in
continuing
operations           844         695         369        -588       1,785

EBT margin
before
nonrecurring
items               5.2%        4.3%        1.2%       -2.0%        2.9%

Income before
tax, EBT             800         442         323        -909       1,481

Net income
for the
period               607         553         560        -511       5,811

Earnings per                                                            
share (SEK)
from
continuing
and
discontinued
operations          3.55        2.97        3.44       -3.31       34.85
Comments by the CEO
The quarter was characterized by continued favorable business conditions
in our home market, which contributed to growth in the market for air
travel. Consequently, the trend for passengers and yield remained
positive and this, combined with effective cost and capacity control,
generated income for the quarter of MSEK 844 before nonrecurring items,
an improvement of MSEK 149. For the first six months of the year, the
earnings improvement was approximately SEK 1 billion. For the first six
months, the improvement in income amounted to approximately SEK 1
billion. During the period, there were strikes at SAS that had a
negative impact on income of  MSEK 300.
During the quarter, we carried 11 million passengers - the highest
number ever for the SAS Group, which is 5.8% more than in the preceding
year.
In June, we launched our strategy plan 2011. The premise for this is to
reduce the Group's complexity to benefit the customer and the key terms
are cultural turnaround, focus, concentration, harmonization and
increased competitiveness, involving further cost adaptations of SEK 2.8
billion. The job of implementing the plan is now starting with full
strength. The objective of the plan is to create the conditions for
profitable growth and to achieve an earnings level that meets our
investment requirements and shareholders' demands.
I deeply regret the strikes that have affected SAS customers and
shareholders. Accordingly, a key part of our strategy is to implement a
cultural turnaround and find a new model for cooperation with the trade
unions.
There are currently no clear indications of a slowdown in the economy or
the airline market, but uncertainty remains regarding the strength of
growth, the competitive situationmoving forward and the trend for jet
fuel. The first and second quarters progressed in a positive direction
and, for 2007 as a whole, continued positive passenger growth is
expected in most of the SAS Group's markets. Competition is expected to
remain intense in the markets in which SAS operates.
Mats Jansson
President and CEO

Direct questions to: Investor Relations SAS Group: Vice President Sture
Stølen +46 8 797 14 51, e-mail: investor.relations@sas.se