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SAS postpones third quarter financial report

Scandinavian Airlines, SAS, is postponing its third quarter report due to ongoing negotiations regarding its revolving credit facility, the company announced on Thursday.

SAS postpones third quarter financial report

“The finalization of SAS’s comprehensive plan to address the company’s cost structure and complete asset disposals is an essential part of these negotiations,” said the company in a statement.

According to the company, the plan is expected to be finalized within a few days.

The company made a profit of 568 million kronor ($85.2 million) in the third quarter of 2012, a figure that it was forced to publish last week after media speculation prompted a suspension of trading in SAS shares.

“Following numerous rumours in Scandinavian media, SAS announces that it will report on November 8th a positive result for the third quarter, with a pre-tax profit of 568 million kronor,” the group said in a statement shortly after the stop in trading.

This report will now be postponed until November 12th, according to the company.

SAS has said that it intends to cut back an additional 3 billion kronor, and sell assets to the same value, but many question marks remain.

But according to the new SAS figures, traffic growth remained positive in October, although it did not keep pace with an increase in capacity. Weather conditions and short-term operational challenges also affected the growth, the company said.

However, intercontinental and certain European and domestic routes continued to grow well.

“Overall, the market demand continues to be good, but remains unpredictable due to risk in the global economy,” the company said.

SAS Group carried 2.7 million passengers in October, a figure which is up by 4.6 percent.

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SAS

‘We agree to disagree’: Still no progress in marathon SAS strike talks

By lunchtime on Friday, talks between the Scandinavian airline SAS and unions representing striking pilots were still stuck on "difficult issues".

'We agree to disagree': Still no progress in marathon SAS strike talks

“We agree that we disagree,” Roger Klokset, from the Norwegian pilots’ union, said at lunchtime outside the headquarters of the Confederation of Swedish Enterprise in Stockholm, where talks are taking place. “We are still working to find a solution, and so long as there is still some point in continuing negotiations, we will do that.” 

Mats Ruland, a mediator for the Norwegian government, said that there were “still several difficult issues which need to be solved”. 

At 1pm on Friday, the two sides took a short break from the talks for lunch, after starting at 9am. On Thursday, they negotiated for 15 hours, breaking off at 1am on Friday morning. 

READ ALSO: What’s the latest on the SAS plane strike?

Marianne Hernæs, SAS’s negotiator on Friday told journalists she was tired after sitting at the negotiating table long into the night. 

“We need to find a model where we can meet in the middle and which can ensure that we pull in the income that we are dependent on,” she said. 

Klokset said that there was “a good atmosphere” in the talks, and that the unions were sticking together to represent their members.

“I think we’ve been extremely flexible so far. It’s ‘out of this world’,’ said Henrik Thyregod, with the Danish pilots’ union. 

“This could have been solved back in December if SAS had not made unreasonable demands on the pilots,” Klokset added. 

The strike, which is now in its 12th day, has cost SAS up to 130m kronor a day, with 2,550 flights cancelled by Thursday, affecting 270,000 passengers. 

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