* Sees overcapacity in several markets
* Unit revenue expected to fall in rest of year
* Competition at home to push down yields
* FY pretax to be cut by 1 bln crowns
* Shares down 4.4 pct, hit eight-month low
(Adds company comment, detail, background.)
By Simon Johnson
STOCKHOLM, May 8 Airline SAS trimmed
its full-year profit forecast on Thursday, estimating
competition in its home Scandinavian markets would push down
yields and cut around 1 billion Swedish crowns ($154 million)
from pretax earnings in the current year.
Its shares were down 4.4 percent at 12.95 crowns at 0719 GMT
against a small rise in the wider Stockholm index. The
stock fell as low as 12.70 crowns, its lowest in about eight
SAS, 50 percent owned by Sweden, Denmark and Norway, has
been struggling for years with overcapacity and competition from
budget carriers such as Ryanair and Norwegian Air
The airline said rivals had shifted capacity to Scandinavia
in the last six months, meaning unit revenue had developed more
weakly than expected during the second quarter.
"Market conditions remain challenging with overcapacity in
several of SAS's markets, for which reason the yield and PASK
(or revenue per passenger per available seat kilometer) are
expected to continue to decline in 2013/2014," the airline said
in a statement.
However SAS said that if conditions don't worsen, it now
sees the potential to make a pretax profit in its current fiscal
year through October, "including the positive effect from the
amendments to pension reporting".
Positive earnings effects from pension changes are expected
to be around 1 billion Swedish crowns and were previously
excluded from the airline's outlook.
After heavy restructuring SAS posted its first annual pretax
profit since 2007 in the fiscal year 2012/13.
It reported a loss of 1.17 billion Swedish crowns for the
fiscal first quarter, before taxes and non-recurring items,
($1 = 6.4942 Swedish Crowns)
(Editing by Mia Shanley and David Holmes)