Scandinavian airline SAS sees Q2 profits drop

(AP) Scandinavian airline group SAS AB says its net profit fell almost 42 percent in the second quarter, worse than the market had expected, as jet fuel costs continued to eat into its earnings.

Wednesday's report showed a net profit of 320 million kronor ($48 million), down sharply from the 551 million kronor recorded in the same three months a year earlier.

Revenues, however, rose slightly to 11.39 billion kronor from 11.31 billion kronor, mainly thanks to an increased number of passengers.

Still, fuel costs continued to hammer the Stockholm-headquartered company's bottom-line earnings amid cut-throat market competition from low budget carriers.