News Summary: SAS Q2 profits drop

AP News
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Posted: Aug 08, 2012 1:36 PM

FUEL SOARS: Scandinavia's SAS AB, the largest airline in northern Europe, reported a worse-than-expected 42 percent drop in second-quarter net profit, mainly because of soaring jet fuel costs. Profit was 320 million kronor ($48 million), down sharply from the 551 million kronor recorded in the same three months a year ago.

ROUGH LANDING: CEO Rickard Gustafson called it an "unsatisfactory earnings level," but he said a cost-cutting program launched last year is starting to pay off.

BRIGHTER SKIES AHEAD? Revenue rose slightly, as the airline carried more passengers. It expects 5 to 7 percent passenger growth for the full year.