SAS Cargo profit plummets in 2007

SAS Cargo profit plummets in 2007

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SAS Cargo, the freight division of Scandinavian Airlines Systems, today reported a 77.8 percent decline in pre-tax profit for 2007 of SEK 22 million ($4 million).
   The company’s revenue for last year slipped 8.5 percent to SEK 3.33 billion ($517 million).
   “The air cargo industry is experiencing some big changes these years with consolidation among the customers and overcapacity on key markets. SAS Cargo is going through a transition process in order to adapt to these changes. This has affected the result for 2007, which is not at a satisfactory level,” said Kenneth Marx, SAS Cargo’s president and chief executive officer.
   In a bid to reverse the company’s fortunes, the SAS board has decided to sell off SAS Cargo’s cargo handling unit, Spirit Air Cargo Handling.
   Marx said he has “positive expectations” for 2008 and highlighted the company’s recent move into the Vietnam market and added that the airline is planning to start new services to San Francisco and Delhi.