FlyerTalk Forums - View Single Post - Bloomberg article on SAS - can’t be good
Old Nov 8, 2019, 4:01 pm
  #127  
GUWonder
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Originally Posted by highupinthesky
It is when we look at the LH group in/out of Scandinavia. But we can also just look at the number of pax's which goes through the airports, and here SK have higher growth than the airports, meaning they are taking pax's from the other airlines. DY have lost a number of pax's but it's not just from here SK is getting there growth.
SK’s improved growth and performance and DY’s better performance is largely explained by this:

When the Swedish housing market is “too” frothy/expensive for most of the remaining wannabe buyers of their own place (sort of), there tends to be some leftover money to be spent on travel and other entertainment. When the bulk of the Scandinavian labor market is tight, the employed may have way more money to speed on travel and entertainment, more so when housing affordability isn’t increasing big time anytime soon and so there is even more of the mentality of “live/spend for today because the welfare state’s safety net has us anyway and that dream home is nowhere near now.””

And DY’s retreat — and even Thomas Cook’s problems — have also been to SAS’s benefit (and DY’s in a way).

The measure of SK’s performance and the sustainability of performance are best measured once it has had a major recession as its stress test. Looking good when times are sort of great in one’s home market doesn’t require all that much business acumen, especially not when the other major home market competitor has been on a major retreat.
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